Sigma Lithium extends $100M debt to June 2027 as Brazil operations resume

So, what it means um is that not only we got the trust of our uh credit holders, but also we can actually build cash flow throughout the period to eventually um um June 2027 and pay down the debt.

All right, welcome back inside our Proactive newsroom and joining me now is Ana Cabral Gardner, the CEO of Sigma Lithium. And Ana, it's great to see you again. How are you?

I'm well. Thank you. It's great to be here again. Thanks for hosting me.

Yeah, good to have you along. Exciting because you've got news out today, significant news in fact, that you've been able to extend your uh $100 million senior secure debt uh by six months to June of 2027. So, this obviously gives uh a breath of fresh air for the company, let's say.

Absolutely. I mean, considering how uh the original duration of four years was uh, thought through for us to have the ability to deliver on our business plan and consider that from when we got the debt to now, I mean, we we had zero when we got the debt. We were not even operating and now we are uh one of the largest lithium companies uh globally, largest in the Americas. So our credit creditors were very delighted about what we've delivered and they uh extended their trust in us yet again and furthered uh the maturity by six months to June 2027. So, what it means um is that not only we got the trust of our uh credit holders, but also we can actually build cash flow throughout the period to eventually um um June 2027 and pay down the debt.

So how does that work with your capital structure and your debt profile? It obviously, it obviously creates a lot of space for you now. Is that is that fair to say?

Well, yeah, but this was our only debt essentially. That's all we had. Our total debt was 125 million total. and this this debt uh once it arrived once we reached the fourth year, it was reclassified for short term. So then it it was sitting in our short-term debt, but once this moves to 2027, we're back to the breeding room, uh to continue to do what we do, which is to operate and produce lithium and sell lithium and generate cash flow because we are very low cost. So at these levels, we are generating cash flow. These are healthy levels for us to then to then smoothly get to June and pay down the debt.

I would imagine you you've resumed operations now and the idea is to sort of really wrap up operations as well. So, why don't we talk a bit about that part of it and because I think that's a key story as you uh, you know, have this time now for the debt. you want to make uh as much money as you can up until that particular point. So, um, ramping up is very important.

Absolutely. and we started on that uh this year in 2026 and we kept on delivering on all of our targets. Uh, and on the third quarter, we've been halted twice for reasons that were proved to be wrong and unfair and incorrect. Uh because of rule of law in Brazil, we won, so permanently uh safe to operate. So ultimately now, uh, we can go forward and continue to do what we're doing, which is, uh, we have the institutional security, institutional safety of a very strong rule of law in the country, uh, basically shielding the company, both on the federal, uh uh arena and the state arena. And so is essentially resuming from where we were in the second quarter, continuing to deliver, continuing to operate.

And you have the, and you have the infrastructure in place there to to ramp up. It's it's it's a process that can come by fairly quickly.

Yes, we were doing what we were doing before. Essentially, we had uh upgraded our fleet, primarized our mining operations, uh, and essentially continued on to deliver on the material. Now we have a primarized uh fleet and we have a primarized operation. So, it's been uh a a fantastic journey because we were able to have more control of our uh of our mining uh uh raw materials which feed our industrial plant materials. So our industrial plant and therefore we produce lithium materials out of mine door. So we deliver lithium concentrate out of the mine door that goes to our plant. So, now we fully control those two ends of the operation essentially.

And as you've told me in the past in the interviews that we've talked about, and you mentioned here as well, because of your low cost that you have to uh of production, it it really benefits the company, really sets you apart from others.

Absolutely. So we we are we are resilient. In an environment such as this, uh lithium is around 1,300, $400 per ton. Our cost uh gate plant is $450 per ton. Um and essentially, we have quite a lot of space here to generate cash and to cover the liquid the the logistic cost. So essentially, it's it's it's a we are the floor. We are always generating cash. Our costs are lower than Africa and as a result, we generate cash in any environment. And with the ramp and we have the ability to operate, we are able to continue to do so uh throughout uh the rest of the quarter and throughout 2027.

All right. Well, it's exciting times ahead now that you've got this taken care of. Anna, thank you so much. Really great update as always. Good to see you again and we'll talk soon, okay?

Perfect. Thank you.

All right, there's Ana Cabral Gardner, the CEO of Sigma Lithium.