Sigma Lithium Celebrates International Women’s Day By Closing Esg Trade Finance Credit Lines Totalling USD 90M And Loading 22,000T Shipment To Glencore With 85% Prepayment At Premium Prices.
Sigma Lithium Corporation (“Sigma Lithium” or the “Company“) (NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML), a leading global lithium producer dedicated to powering the next generation of electric vehicles with carbon neutral, socially and environmentally sustainable lithium concentrate, announces it will celebrate International Women’s Day this weekend by loading 22,000 tonnes of Quintuple Zero Green Lithium to Glencore AG (“Glencore“), at the Port of Vitoria. This seventh overall shipment demonstrates consistent performance of its Greentech industrial plant to produce at a monthly cadence equivalent to approximately 270,000 tonnes per year.
Glencore has increased the amount of its prepayment to 85% of the shipment’s value and improved the terms to affect payment upon product delivery to the warehouse. This represents a shift from prior shipments, whereby the Company secured 50% of the value upon loading.
The prepayment reflects premium provisional pricing at 7.5% of the lithium hydroxide price quoted at LME (average China, Japan, South Korea) for the Company’s unique Quintuple Zero Green Lithium concentrate (“Quintuple Zero Green Lithium”). The shipment is part of a commercial distribution and marketing agreement with Glencore that aims to build a low carbon, environmentally and socially sustainable global lithium supply chain for electric vehicles.
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Additionally, Sigma Lithium announces that it has closed a total of USD 90 million in trade finance credit lines, with the following group of leading sustainability oriented financial institutions at interest rates averaging 11% annually:
- Citibank: USD 50 million
- Santander: USD 20 million
- Banco do Brasil: USD 10 million
- XP Inc: USD 10 million
The most recent trade finance credit line with Citibank for USD 50mn has a 180-day duration and a 9.3% total interest rate. The Company was able to achieve favorable terms given its superior ESG credentials, which Citibank is now expressly considering in its Supplier Finance ESG lines. The increased balance of trade financing remains available for use, as the Company currently funds its working capital through its prepayment agreement with Glencore.
Ana Cabral-Gardner, Company CEO and Co-Chairperson, notes:
We reached an important financing milestone closing a total of USD 90mm of ESG trade lines by achieving production cadence at the Greentech industrial plant.
“Establishing a consistent shipping schedule, demonstrating our product quality, and low-cost resilience at the trough of this lithium cycle has opened these additional credit opportunities for Sigma Lithium. The trade lines with longer duration significantly increase our financing flexibility, as our board prepares to make a final investment decision on the construction of a second Greentech industrial production line of Quintuple Zero Green Lithium.”
Sigma Lithium has managed to industrialize a unique Quintuple Zero Green Lithium, recognized at COP28 as the most sustainable lithium in the world:
- Zero Net Carbon: First large-scale producer in the lithium industry to achieve carbon neutrality.
- Zero Coal Power at Greentech Plant: 100% renewable power.
- Zero Tailings Dams: 100% dry stacked tailings.
- Zero Utilization of Potable Water: Sewage treatment for solid fecal residues for Greentech plant inbound water.
- Zero Use of Hazardous Chemicals in manufacturing process of lithium concentrate.
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Sigma Lithium Celebrates International Women’s Day By Closing Esg Trade Finance Credit Lines Totalling USD 90M And Loading 22,000T Shipment To Glencore With 85% Prepayment At Premium Prices. source
