Sigma Lithium Corporation (NASDAQ: SGML) saw its stock price soar 5.31% in Friday's pre-market trading session, following the release of its second-quarter 2025 financial results. Despite reporting a significant revenue decrease, investors appeared to focus on the company's strong production figures and cost management efforts.

The lithium producer achieved a production volume of 68,368 tonnes of lithium oxide concentrate in Q2, slightly above its quarterly target of 67,500 tonnes and representing a 38% year-on-year increase. This puts the company on track to meet its full-year 2025 production target of 270,000 tonnes. Sigma Lithium also demonstrated impressive cost control, with CIF China cash operating costs of $442 per tonne, 12% below the target of $500 per tonne, and all-in sustaining costs (AISC) of $594 per tonne, 10% below the full-year target of $660 per tonne.

However, the company reported a sharp 62% year-on-year decrease in revenues to $21.1 million for Q2. This decline was attributed to a deliberate strategy of withholding product during periods of intense price volatility to preserve pricing power and protect long-term margins. Despite the revenue drop, Sigma Lithium posted a quarterly loss of $0.17 per share, which was worse than analyst expectations but viewed as a necessary trade-off for maintaining market position.

Ana Cabral, Co-Chairperson and CEO, emphasized the company's operational resilience and disciplined commercial strategy. She also highlighted progress on the Phase 2 expansion project, which aims to double the company's nameplate capacity to 520,000 tonnes per year. The market's positive reaction suggests that investors are focusing on Sigma Lithium's long-term potential and its ability to navigate challenging market conditions in the lithium sector.