Ana Cabral-Gardner, Co-Chair and CEO of Sigma Lithium, assured investors that the company is well-positioned to address its upcoming $100 million debt maturity in October 2026. She stated, "We believe that our cash flow from operations, including the proceeds that we have from prepayments, will be more than sufficient to pay down the $100 million-dollar bullet payment of our debt." This statement aims to alleviate concerns regarding the company's financial liquidity, especially after reporting a negative working capital of $144,527 as of March 31, 2026.
Sigma Lithium's financial strategy heavily relies on significant prepayment agreements. The company recently recognized $6.8 million in net revenues in March 2026 from the first delivery under a $96 million offtake agreement signed in December 2025. This facility provides fixed monthly installments of $8 million. Additionally, in the first quarter of 2026, Sigma Lithium secured a three-year offtake agreement for 120,000 tonnes of high-grade lithium oxide concentrate, which includes an advance payment of $50 million expected by the end of June 2026. Management further noted another potential $50 million agreement and $100 million in prepayments for production starting in 2027.
The company has also demonstrated improved financial performance and debt reduction. In the first quarter of 2026, Sigma Lithium reported a net income of $11.1 million, with net revenues of $42.3 million for the quarter, including approximately $35.5 million from the sale of low-grade material. The adjusted EBITDA margin reached 39.5%. Total debt was reduced to $133.9 million as of March 31, 2026, marking a 20.6% year-over-year decrease and a 33% reduction over two years from $201 million in Q1 2024. Short-term bank trade debt was also significantly cut by 75% over the past year, from $90 million to $13 million.
Despite a decrease in cash and cash equivalents to $3.9 million by March 31, 2026, from $6.2 million at the end of 2025, Cabral-Gardner mentioned an improved cash position of $28 million as of May 15, 2026, which includes $22 million in receivables. The company is actively restructuring its mining operations to enhance efficiency and increase capacity, which is expected to improve operating margins. These strategic moves, coupled with ongoing strong lithium market conditions, underpin management's confidence in the company's ability to continue as a going concern.
