Sigma Lithium Locks In $146M Supply Deals Through 2026, Slashes Debt By 35%

• The first agreement covers 70,500 tonnes in 2026, while the second ensures 40,000 tonnes annually over three years starting in 2026.
• Sigma Lithium recorded roughly $67 million in combined sales for Q4 2025 and Q1 2026.
• Over the next 12 months, Sigma Lithium projects production of 240,000 tonnes of high-grade lithium oxide concentrate.

Sigma Lithium Corp. (SGML) announced on Monday that it secured two major offtake agreements totaling $146 million, ensuring the supply of high-grade lithium oxide concentrate through 2026 and beyond. 

The first agreement provides for 70,500 tonnes during 2026 with monthly prepayments of $8 million, while the second guarantees 40,000 tonnes annually over three years starting in 2026, offering flexibility on delivery timing.

Debt Reduction And Financial Performance 

The company also said that it has slashed its total debt by 35% year-on-year (YoY), ending the year with total debt of $141 million, including a $100 million loan scheduled for repayment in 2026 using proceeds from the offtake agreements and cash flow generation.

Sigma Lithium’s sales for the fourth-quarter fiscal 2025 and the first-quarter fiscal 2026 reached approximately $67 million from around 655,000 tonnes of lithium products. The company reported an operating cash margin of 47% in the fourth quarter (Q4), driven by a 77% YoY reduction in costs.

Sigma Lithium stock traded over 21% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘normal’ levels in 24 hours. 

Production Guidance And Cash Balance 

Sigma Lithium forecasts production of 240,000 tonnes of high-grade lithium oxide concentrate over the next 12 months at an all-in sustaining cost of $592 per tonne. Longer-term projections for 2027 and 2028 anticipate production volumes of 520,000 and 770,000 tonnes, respectively, with strong cash-flow potential across a range of realized lithium prices.

The company reported $31 million in cash from operations in Q4, supported by $41 million in inflows against $10 million in operating costs. Cash and equivalents totaled $6.2 million at year-end 2025, rising to $12 million by March 30, 2026.

SGML stock has gained over 26% in the last 12 months. 

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