Sigma Lithium shares dropped after the company said all of its mining and industrial production was temporarily suspended Wednesday.

The stock was 14% lower, at $8.09, in midday trade, and is down 39% year-to-date.

In early September, the lithium producer said a preliminary judicial ruling in Brazil purported to suspend its environmental licenses, though it vowed to fight the ruling. The preliminary ruling included a provision for a daily fine that would be due in the event of a final negative ruling, as well as other provisions that also would take effect only once the full legal process has been completed, possibly in multiple years, the company said.

The company said the suspension is a result of an atypical 15-day delay by the Federal Court of Appeals in reviewing its legal defense.

Sigma Lithium confirms that it remains focused on advancing its expansion plans, expecting to deliver 330,000 tons of lithium oxide concentrate in fiscal 2027. However, the company will postpone by three months its 12-month guidance of 240,000 tons.

Sigma Lithium will maintain the commercial and recycling operations that ensure the circularity of 100% of its dry stacked tailings, selling high-purity lithium fines, generating cash flow and expecting to continue to self-fund the company during the temporary suspension.

The core issue of the dispute is the mine's proximity to the traditional Quilombola community.