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    Andre Krupnick • Brickwood

    Andre Krupnick's questions to Sigma Lithium Corp (SGML) leadership

    Andre Krupnick's questions to Sigma Lithium Corp (SGML) leadership • Q2 2024

    Question

    Andre Krupnick of Brickwood followed up on the Phase 2 expansion, asking about the timing of the most capital-intensive spending and the intended funding strategy. He specifically questioned if the company planned to rely on existing short-term trade finance lines or if it would seek additional long-term debt.

    Answer

    CEO and Co-Chairperson Ana Cabral Gardner stated that the Phase 2 CapEx is back-loaded, with significant spending not expected until Q1 of the following year when equipment is delivered. She confirmed the company is not relying solely on trade finance and is in advanced discussions with Brazil's Development Bank (BNDES) for a $100 million long-term credit line. Additionally, she mentioned the company is actively pursuing liability management to replace existing shareholder debt with more favorable commercial bank debt.

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    Andre Krupnick's questions to Sigma Lithium Corp (SGML) leadership • Q2 2024

    Question

    Andre Krupnick followed up on the Phase 2 expansion, asking why Q2 capital spending was light, when to expect the more capital-intensive period to begin, and how the project would be funded, questioning the reliance on short-term trade finance.

    Answer

    CEO Ana Cabral Gardner explained that the project's CapEx is back-loaded, with major spending expected in Q1 of the following year when equipment is delivered. She clarified that the primary funding source will be a long-duration, $100 million credit line from Brazil's Development Bank (BNDES), not short-term trade finance. She also mentioned the company is actively working with commercial banks on liability management to replace existing, more restrictive shareholder debt.

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