Business
Sigma Lithium Signs Inaugural Deferred US$ 22.4 Million Letter of Credit Export Financing with Banco Do Brasil
HIGHLIGHTS Sigma Lithium signed on July 24, 2024 a deferred US$ 22.4 million letter of credit (the "Transaction") with Banco do Brasil. This Transaction strengt
About this update from Sigma Lithium Corporation
[{"type":"text","content":" HIGHLIGHTS Sigma Lithium signed on July 24, 2024 a deferred US$ 22.4 million letter of credit (the \"Transaction\") with Banco do Brasil. This Transaction strengthens Sigma's commercial power, enabling it to offer 90-day \"export vendor financing\" to its clients at very low interest rates. The Transaction amount was calculated based on the 22,000t July 5th production and shipment at the price of 8.75% of Lithium Hydroxide quoted at LME. The Transaction represents the inaugural solution for the Company developed in tandem with Banco do Brasil to deepen Sigma Lithium's commercial partnerships during the seasonal lithium purchase cycles. As a result of the Transaction, Sigma Lithium will gradually phase out existing trade finance lines (drawn but mostly unused in the Company's treasury) and move from a position of receiving advance payments (at a higher cost) to providing vendor financing and widening its client base. The Transaction allows Sigma Lithium to further improve its competitive position by strengthening commercial flexibility with the goal of institutionalizing a premium for its lithium concentrate. The Company's ability to access this category of export financing demonstrates it has achieved maturity as producer within its first year of operations. SÃO PAULO, Brazil, July 29, 2024 /CNW/ -- 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, is pleased to announce it signed an inaugural deferred US$ 22.4 million letter of credit for export financing with Banco do Brasil at very low interest rates. As Sigma matures as an industrial producer and demonstrates its ability to consistently deliver its Quintuple Zero Green Lithium, it gained access to access low-cost trade finance mechanisms through Banco do Brasil, available to the country's largest industrial exporters. These agreements enhance Sigma Lithium's commercial flexibility and market access. As a result of the lower interest export credit lines, the Company will phase out the existing trade lines in its treasury, thus decreasing the Company's recurring interest expenses and further improving its competitiveness. Ana Cabra...