Sigma Lithium Corp ( TSX-V:SGML , NASDAQ:SGML , ASX:SAU) has completed a balance sheet restructuring that extended more than 90% of its debt maturities and reduced short-term debt by about 78%, while reporting a 32% gross margin in its third-quarter preview.
The lithium producer said it issued a convertible bond in Hong Kong into its ASX-listed CHESS Depositary Interests (CDIs), lowering short-term debt to US$28 million from US$125 million.
The move is expected to support its production ramp-up and strengthen operating cash flow, the company said.
Total debt stood at US$125 million as of October 21, down roughly 40% over two years. Sigma has repaid more than US$90 million in debt since the second quarter of 2024 through cash generation.
The company said it has been self-funded since beginning commercial sales in July 2023, with no equity issuance since 2021 or debt issuance since 2022.
Lower costs despite production disruption
Sigma maintained its low-cost position in the third quarter despite lower production volumes.
Its cost, insurance and freight (CIF) cash cost to China was US$518 per tonne, compared with US$543 per tonne a year earlier.
The company also lowered its full-year 2026 all-in sustaining cost guidance by 6% to US$668 per tonne from US$710 per tonne, while maintaining its fiscal 2027 guidance of US$620 per tonne.
Brazilian court rulings support operations
Sigma reported favorable developments in Brazilian courts, including a ruling by the Superior State Court of Appeals that cited the company's significant economic contribution to Minas Gerais.
The company also signed a Term of Adjustment of Conduct (TAC) agreement with the state that it said protects its environmental licenses.
Sigma said its environmental, sustainability and social credentials had withstood legal scrutiny and audits by court-appointed technical experts, adding that it had prevailed in a legal challenge it described as unfounded.
Production resumes
Operations resumed smoothly early in the fourth quarter following a suspension during the third quarter, Sigma said.
Third-quarter production and sales totaled 7,293 tonnes of high-grade lithium oxide concentrate. The shutdown of the industrial lithium facility left about 21,000 tonnes of intermediate and low-grade lithium products unprocessed.
In the fourth quarter, Sigma has processed and sold 10,000 tonnes of that inventory and produced 9,000 tonnes of high-grade lithium to date.
The company maintained its production guidance of 240,000 tonnes over the next 12 months and 330,000 tonnes in fiscal 2027 on an annualized basis, as outlined in its August 14 second-quarter results.
Sigma held US$10 million in cash as of September 30 and identified US$62 million in potential sources of short-term liquidity through sales of high-grade and fines inventory, along with offtake installments.
The company said the combination of extended debt maturities, lower operating costs and resumed production positions it to accelerate its ramp-up while generating operating cash flow.
