Slide 1: 1Q 24 Earnings Investor Conference Call
1Q 24 Earnings Investor Conference Call : SGML : SGML
Slide 2: Disclaimer
Disclaimer No Offer or Solicitation Regarding Securities This presentation has been prepared by Sigma Lithium Corporation (“Sigma”) for general information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Sigma or its affiliates in any jur
Slide 3: Disclaimer
Disclaimer (…) Sigma is subject to liquidity risk and therefore may have to include a “going concern” note in its financial statements; Sigma may not be able to obtain sufficient financing in the future on acceptable terms, which could have a material adverse effect on Sigma’s business, results of o
Slide 4: In 1Q 24 Sigma Lithium Advanced Towards Key Catalyst of Doubling Production Capacity
In 1Q 24 Sigma Lithium Advanced Towards Key Catalyst of Doubling Production Capacity in 2025. 1. Delivered Increased PREMIUM PRICING: Achieved a fixed-floating formula of 9% of LME Lithium equivalent to $1,290 (11% increase to April 24, 30% of 1Q24 Realized) 2. LOW COST: Became the world’s 2nd LOWES
Slide 5: Delivering on our Vision to Combine Large Scale Production with Low Cost and Sustainability
Delivering on our Vision to Combine Large Scale Production with Low Cost and the Highest Environmental Sustainability Standards in Lithium Large Scale Traceability/State of the Art Low Production Cost Sustainability Standarts page 5
Slide 6: Became the 4th Largest Producing Lithium Industrial Mining Complex
Became the 4th Largest Producing Lithium Industrial Mining Complex 77Mt of Mineral Reserves 150Mt of Estimated Mineral Resource/ 109Mt Audited NI-43101 Resource 47.0% 20.9% High Purity Lithium, Responsibly Sourced Source: Company Reports, Data as of Jan 15, 2024 page 6
Slide 7: Sigma is Delivering on its Operational Targets for 2024
2024 - Sigma is Delivering on its Operational Targets for 2024 RESILIENCE and LONGEVITY through low costs and global scale resource 270,000 t: Nameplate sustained in Dec 2023 (1) 178,000 t: first 10 months of production Economics for 9th shipment at 9% of LME = U$1,291/t SC6 $397/t Cash Cost at Plan
Slide 8: Shipments to Date, Lithium Prices Achieved & Lithium Market Outlook
Shipments to Date Lithium Prices Achieved & Lithium Market Outlook
Slide 9: Sigma's Demonstrated Production Consistency and Scale During 2023
Sigma’s Demonstrated Production Consistency and Scale During 2023: Initiated Premium Pricing Through Auctions in 2024 Gained Commercial leverage to achieve in May a 25% increase from 1Q24 realized prices. Shipments Avg Realized Price 6% Benchmark 3,500 3,475 25,000 22,860 22,050 21,624 22,157 22,000
Slide 10: Sigma is One of the Lowest Cost Producers in the World
Sigma is One of the Lowest Cost Producers in the World Secured Its Position in Global Supply Chain: Low Cost & Sustainable/Traceable Yichun Others Huaqiao Dagang 1,400 Total Low Cost 2025E (Brines & Mines) = 1,000 kt LCE Baishuidong & Shuinanduan NAL and Authier C3 Cash Cost Spodumene Curve Baishicu
Slide 11: Lithium Demand is ROBUST: In 2024 Still Not Enough Low-Cost Supply
Lithium Demand is ROBUST: In 2024 Still Not Enough Low-Cost Supply The Top 6 Largest Producers Do NOT HAVE THE CAPACITY in 2024 to Supply this Demand Global Lithium Demand kmt LCE Global EV Outlook EVs in millions of units Average EV Battery Size in kWh Bearish Between 2024 As EVs grow so too does D
Slide 12: 1Q 24 Financial Highlights
1Q 24 Financial Highlights ay
Slide 13: First Quarter Financial Highlights ($USD)
First Quarter Financial Highlights ($USD) Avg Realized Price FOB / tonne (1) Adjusted EBITDA (2) 1Q24 Reported Revenue for 1Q Shipments $37.2mm $ 5.9 mm $930/t Margin of 15.8% Lithium Shipped 52,857 t Cash Operating Cost/t FOB Pro Forma Adjusted EBITDA (3) Lithium Produced $462/t $ 17.4 mm 54,168 t
Slide 14: Cash Costs Reaching Towards Guidance of $370 At Plant Gate
Cash Costs Reaching Towards Guidance of $370 At Plant Gate Costs are normalizing as operations advance in 2024 1Q24 Reached Guidance $542 on “normalized” 1Q24 reported Cash Operating 4 55 Production. Costs of Concentrate per tonne(2) 21 $462 65 • Plant Gate = $397 $397 • Plant gate costs down 17% $3
Slide 15: Operational Cash Flow Bridge
Operational Cash Flow Bridge Sigma built additional liquidity through trade finance lines in 1Q. Finance lines drawn but fully available. 2 12 USD Millions Outside of interest payment, non-operational 49 cash flow modest drag 79 38 108 11 6 3 8 6 49 EBIT Neutral on provisional adjustments Starting C
Slide 16: Sigma Generates Cash at Trough, a Lot at Mid Cycle
Sigma Generates Cash at Trough, a Lot at Mid Cycle • Unique Operational Efficiency • Low Costs Are Mainly Due to Low Processing Cost and Brazil Jurisdiction: • Utilization of DMS/ Low-Cost Renewable Power FY24E Run Rate Cost Scenarios Current Price Mid-Cycle Estimated Run-Rate Cash Operating Margin
Slide 17: Phase 2 Initiation of Construction to Double Production Capacity to 520,000t/y
Phase 2 Initiation of Construction to Double Production Capacity to 520,000t/y
Slide 18: Greentech Line Infrastructure Expansion
Expansion Greentech Line ✓ Plans to double production to 520ktpa of Green Lithium within a year ✓ Phase 2 capex estimated at ~$100Mn for ~250ktpa of spodumene capacity ✓ Cash position as of March 30 is U$109M Infrastructure to execute Phase 2: fully funded page 18
Slide 19: Balance Sheet Strength Supports Construction of Phase 2
Balance Sheet Strength Supports Construction of Phase 2: a Combination of Cash Generation and Undrawn Trade Finance Revolving Credit Lines Robust Cash Position Trade Finance (Drawn and Unused) Construction Capex US$108.1 mn US$88.8 mn US$100.5 mn As of March 31th, 2024 As of March 31th, 2024 page 19
Slide 20: Sigma to Start Construction Activities on Site this Month
Sigma to Start Construction Activities on Site this Month for Earth Civil Works, Foundation, and Infrastructure Installation Mobilizing Equipment and Approximately 200 Workers 04 Capital Structure Initial Financing 02 Project capex is fully funded given cash balance, unused trade finance lines and e
Slide 21: Sigma Board Approved Initiation of Construction of Phase 2 Industrial Greentech Plant
Sigma Board Approved Initiation of Construction of Phase 2 Industrial Greentech Plant SIGMA HAS THE ONLY TRACK RECORD IN THE INDUSTRY OF BUILDING ON SCHEDULE AND ON BUDGET • On April 1, 2024 Sigma Lithium Board of Directors issued an FID on Phase 2 expansion • Total capex estimated at ~$100mn for 25
Slide 22: Ability to Scale Up: Integrate Into Intermediate Lithium Chemicals
Ability to Scale Up: Integrate Into Intermediate Lithium Chemicals Significant growth profile utilizing Phase 1 infrastructure and processing flowsheet Phase 1 Phase 2 Phase 3 770 2026 Lithium Sulfate Integrated 270 Kt 250 Kt 250 Kt to P2 or P3: ~30 kt LCE Capacity in 2027 520 PHASE 3 2025 Capacity
Slide 23: Closing Remarks
Closing Remarks ay
Slide 24: Sigma Became the 6th Largest Producer Globally... Sigma Did Not Reprice
Sigma’s Became the 6th Largest Producer Globally… Sigma Did Not Reprice From Developer to Producer 2024 Integrated Lithium Production x Market Cap Comparison Top 2024 Integrated Producers = Total Developers 18.0 250 Market Cap (US$ bn) US$15.2 2024E Production (LCE kt) 12.0 200 199 200 US$13.4 12.0
Slide 25: Sigma Did Not Benefit in Valuation From Becoming A Large Producer
Sigma Did Not Benefit in Valuation From Becoming A Large Producer Re-Rate of Valuation did not take place: Ramped up production against lithium prices sharp decline in 2H24 Proportional Comparison: Valuation to Production SGML x ALB SGML x PLS 199Kt $15 bn 4/5 77kt $8 bn 4/5 1/2 1/2 37kt 37kt $4 bn
Slide 26: Transforming from a construction site to an Industry Leader
Transforming from a construction site to an Industry Leader Completed FID Phase 2 and operational DMS plant Mobilitzation commissioning Initial production April ‘23. Nameplate Increase Mineral capacity by 4Q Reserves by 40% Dry stacking and/or selling tailings to market Begin Phase 2 Construction Ze
Slide 27: Appendix
A ppendi x ay
Slide 28: Phase 2 Expansion; Derisked Construction Replicating Plant 1
Phase 2 Expansion; Derisked Construction Replicating Plant 1 Phase 2 builds on Phase 1 success Phase 1 Phase 2 Construction Items USD M Totals USD M Totals Industrial Site Earthworks 7.2 7.2 Construction 16.6 16.4 Infrastructure 9.4 9.2 Crushing System 19.9 21.2 DMS System 31.0 30.8 Industrial Plant
Slide 29: Staged Capex Distribution Creates Manageable Cash Expense Profile
Stagged Capex Distribution Creates Manageable Cash Expense Profile MONTHLY DISBURSEMENT PHASE 2 - TOTAL PLANT & PRE-PRODUCTION COMISSIONING ACCELERATION PLAN EPCM-PROCUREMENT TEAM EPCM CIVIL WORKS ASSEMBLY SUPPLY TOTAL 14.0 12.0 10.0 USD / US$ MM 8.0 6.0 4.0 2.0 - Apr-24 May-25 Jun-24 Jul-24 Aug-24
Slide 30: Income Statement Summary and EBITDA Bridge ('000)
Income Statement Summary and EBITDA Bridge (‘000)
Slide 31: Cash Flow Statement Summary ('000)
Cash Flow Statement Summary (‘000)
Slide 32: Balance Sheet Summary ('000)
Balance Sheet Summary (‘000)