Sigma cathing up on lost weeks of lithium oxide concentrate production
With its Grota de Cirilo complex in Brazil having been under a brief administrative suspension, Canadian miner Sigma Lithium has produced 7 090 t of lithium oxide concentrate between October 5 and 22, and remains on track to scale its production of lithium oxide concentrate to 330 000 t/y by end-2027.
Sigma had postponed its rolling 12-month guidance of 240 000 t by three months while maintaining its 2027 target of 330 000 t of lithium oxide concentrate.
Additionally, the company managed to extend the maturity of a four-year $100-million senior secured debt facility with Synergy Capital by six months from December this year to June 2027.
The extension defers Sigma's repayment by six months, enabling the company to continue ramping up production and building operational cashflow before the new debt maturity date.
Overall, Sigma has repaid more than $90-million of debt since the second quarter of 2024 through cash generation alone. After reducing its total debt by about 40% over the past two years, Sigma had a debt balance of $125-million as of October 21.
For context, Sigma restarted its Grota operation on October 5 after Brazil's Federal Superior Court granted a decision reinstating all of its environmental licences. It stemmed from an emergency motion of suspensive relief owing to the severe economic impact that a prolonged stoppage would cause in the Vale do Jequitinhonha region.
The mine's environmental licences were suspended on September 4 following a civil lawsuit by the Federation of Quilombola Communities of Minas Gerais (N'Golo), which argued the project is located within 2.7 km of the Bau Quilombola traditional territory and under an 8 km consultation threshold.
Sigma will report its third-quarter production and sales results on or about November 13.
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