Sigma Lithium (NASDAQ: SGML) swings to nine-month cash inflow, but Q3 loss widens

What happened

Sigma Lithium Corporation (NASDAQ: SGML) swung to $51.33 million of operating cash flow in nine months, from a $6.57 million outflow a year earlier. That is a $57.90 million turnaround in the interim results for the period ended Sept. 30. The third quarter alone looked much weaker.

Third-quarter revenue fell to $13.52 million from $28.55 million a year earlier. The quarterly net loss widened to $25.88 million from $11.58 million. Mining and plant operations were suspended from July 17 to Aug. 22, until the company signed a conduct adjustment agreement with federal and Minas Gerais state authorities. On Sept. 30 it suspended all mining and industrial production again under a preliminary injunction in a lawsuit filed by the non-governmental organization Ngolo.

On Oct. 6 the Federal Court of Appeals ruled in the company's favor on the technical merits. The decision upheld its current environmental licenses, and mining and industrial operations resumed. The company estimates the environmental procedure adjustments under the agreement will need $1.0 million of capex.

Key numbers

Metric	Latest	Change	Source
Operating cash flow, nine months	$51.33 million	from -$6.57 million, +$57.90 million	Calculated from SEC 6-K
Net sales revenue, nine months	$110.56 million	from $93.11 million, +18.7%	Calculated from SEC 6-K
Net loss, nine months	-$17.39 million	from -$25.71 million	SEC 6-K
Net loss, third quarter	-$25.88 million	from -$11.58 million	SEC 6-K
Negative working capital at Sept. 30, 2026	$218.61 million		SEC 6-K
Convertible bonds priced Nov. 2, due 2031	$125 million		SEC 6-K

Read more: Sigma Lithium (SGML) company research

Where the nine-month gain came from

Nine-month revenue rose 18.7% to $110.56 million from $93.11 million in the same period of 2025. Cost of goods sold fell to $47.93 million from $87.86 million. Gross profit reached $62.63 million, up from $5.25 million.

High-grade lithium oxide concentrate sold under a December 2025 offtake agreement brought in $71.2 million of net revenue. That agreement covers 70,500 tonnes to be supplied during 2026. Sales of low-grade material, high-purity lithium fines, added about $39.4 million.

The same agreement provides a $96 million working capital revolver, paid out in fixed monthly installments of $8.0 million.

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Why it matters

OptimistFi has argued that Sigma Lithium must turn demand into low-cost cash before weak lithium prices and thin liquidity force it to issue shares. The nine-month cash flow supports the first half of that view. The balance sheet tests the second half.

Costs below the gross profit line absorbed much of the gain. Operating income was $4.53 million against a $22.43 million loss a year earlier. The net loss was still $17.39 million, narrower than $25.71 million. Net financial expenses were $15.49 million against income of $1.62 million. Stock-based compensation was $10.34 million versus $1.73 million.

Lease obligations grew sharply. The company recognized $139 million in property, plant and equipment tied to right-of-use assets for leased operating equipment. Current lease liability was $47.37 million, up from $1.21 million at Dec. 31, 2025. Cash paid on lease liabilities was $22.17 million against $1.89 million a year earlier.

Liquidity is the weak side. Negative working capital was $218.61 million at Sept. 30. The filing says this may cast doubt on the company's ability to continue as a going concern. Management says it is comfortable given recent operating performance and cash flow. Cash was $10.38 million, up from $6.21 million at Dec. 31, 2025. Current loans and export prepayment were $127.02 million.

Suppliers add another caveat. The company disputes $27.81 million, or 39.2%, of the $70.94 million it owes suppliers.

How the funding is lining up

On Oct. 23 the company amended its export prepayment agreement, a US$100 million facility with an original four-year term. The amendment moved maturity back six months, from December 2026 to June 2027. The rate stays at SOFR plus 6.95% a year. Covenants and events of default are unchanged.

On Nov. 2 it announced the pricing of US$125 million of senior unsecured convertible bonds due November 2031. The bonds pay 7% a year, quarterly in arrears. They convert into CHESS Depositary Interests, each representing one common share, at an initial US$6.51 per CDI. Because the bonds can become shares, the dilution risk OptimistFi has flagged now has a specific conversion price.

The company plans to use part of the net proceeds to repay in full its senior secured debt agreement with Synergy Capital. The rest is for growth capital expenditure and general corporate purposes. When the statements were authorized, the offering had not settled and no proceeds had been received.

What's next

Settlement of the bond offering is expected on Nov. 16, subject to closing conditions. Closing on schedule would deliver the funds for the Synergy Capital repayment and add funding behind the cash-generation side of the case.

If the offering does not close, the negative working capital and the extended export prepayment would remain the near-term pressure points.

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