Slide 1: Q2-2023 Results Conference Call
Q2-2023 Results Conference Call September 2023 : S2GM34 Leading Global Producer of Green Lithium
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: Sigma Became the First Global Producer of Zero Carbon, Zero Tailings, Zero Chemicals Green Lithium
Sigma Became the First Global Producer of Zero Carbon, Zero Tailings, Zero Chemicals Green Lithium: Transformational for EV Industry High Purity Lithium, Responsibly Sourced page 4
Slide 5: Operational Update: Sigma Continues to Deliver Successful Ramp up and Expansion Plans to Triple Capacity
Operational Update: Sigma Continues to Deliver Successful Ramp up and Expansion Plans to Triple Capacity 1 Greentech Plant: Ramp-up Success, Confirming Guidance 130,000t for 2023 2 Second Shipment of Triple Zero Green Lithium and Byproducts on Track 3 Advancing Detailed Engineering (FEL3) for Produc
Slide 6: Financial Update: Sigma Continues to Deliver on Every Front
Financial Update: Sigma Continues to Deliver on Every Front 1 Closed First ACE Credit Line with Santander Brazil for US$10M 2 Ended Second Quarter with C$45.6M in Cash & Cash Equivalents 3 Expects to Recognize Revenue and Report Positive Operating Profits for Q3 2023 4 Delivered Phase 1 Construction
Slide 7: Operational Update
-s Operational Update
Slide 8: Video Update
Video Update High Purity Lithium, Responsibly Sourced page 8
Slide 9: Phase 1 Production Ramp-Up
Phase 1 Production Ramp-Up Jan-23 Feb-23 Mar-23 April-23 May-23 June-23 July-23 Aug-23 Q3-2023 Crushing Circuit Commissioning ✓ DMS Circuit Commissioning ✓ ✓ Initial Production Production Ramp-Up to NAMEPLATE CAPACITY ✓ ✓ First Shipment Second Shipment Third Shipment Production at Nameplate Capacity
Slide 10: Commercial Success: IRA and C-BAM Increased Interest Significantly
Commercial Success: IRA and C-BAM Increased Interest Significantly Carmakers Procuring Sustainable and Responsibly Sourced Battery Materials Aligned with Western Consumers Expectations ✓ 15,000 tonnes of Triple Zero Premium Sustainable Lithium at or being trucked to Vitora Port ✓ 30,000 tonnes of Gr
Slide 11: Triple Zero Premium Lithium: Achieving 6% Coarse Particles Above 6.5mm, as Designed
Triple Zero Premium Lithium: Achieving 6% Coarse Particles Above 6.5mm, as Designed High Purity Lithium, Responsibly Sourced page 11
Slide 12: Achieving Operational Consistency and Successful Plant Recoveries: Concentrate Grade above 5.5% Li2O
Achieving Operational Consistency and Successful Plant Recoveries: Concentrate Grade above 5.5% Li2O Concentrate Grade Head Grade 8% 2.0% 1.8% 7% 1.6% 6% 1.4% 5% 1.2% 4% 1.0% 0.8% 3% 0.6% 2% 0.4% 1% 0.2% 0% 0.0% 1-Jun 22-Jun 13-Jul 27-Jul 8-Jun 6-Jul 20-Jul 3-Aug 31-Aug 15-Jun 17-Aug 29-Jun 10-Aug 2
Slide 13: DMS Cyclones Recovering Seamlessly Coarse Material: Plant Recovery as Designed above 65%
DMS Cyclones Recovering Seamlessly Coarse Material: Plant Recovery as Designed above 65% High Purity Lithium, Responsibly Sourced page 13
Slide 14: Magnetic Separator
Magnetic Separator High Purity Lithium, Responsibly Sourced page 14
Slide 15: Successful Commissioning & Calibration of Dry Stacking in August
Successful Commissioning & Calibration of Dry Stacking in August • Recoveries Significantly Increased • Plant Optimized as Yield Increased Yield Recovery 25% 90% 80% 20% 70% 60% 15% 50% 40% 10% 30% 5% 20% 10% 0% 0% 1-Jun 22-Jun 13-Jul 27-Jul 3-Aug 24-Aug 31-Aug 8-Jun 6-Jul 20-Jul 15-Jun 17-Aug 29-Ju
Slide 16: Triple Zero Green Lithium and By-Products
Triple Zero Green Lithium and By-Products Zero hazardous chemicals, Zero tailings and zero net-carbon Zero Hazardous Chemicals • Greentech Plant utilizes Dense Medium Separation instead of Chemical Flotation Zero Tailings (Dry Stacked) • Green Byproducts monetized and • coarse gravel rejects donated
Slide 17: Strategic Land Acquisitions: Surface Areas
Strategic Land Acquisitions: Surface Areas ✓ Board and TSX Approved $12 million Marina Bernardini Roberto Coelho Filho LOAN and LEASE BACK to Tatooine 99% 1% ✓ Objective: Operational Extra safeguard for the surface areas previously leased with surface rights Endor Participações Ltda. ✓ Sigma conserv
Slide 18: Expansion of Production and Mineral Resource Growth
Expansion of Production and Mineral Resource Growth
Slide 19: Ability to Scale Up Production Organically: Large Mineral Reserve
Ability to Scale Up Production Organically: Large Mineral Reserve Significant growth profile with 104 kt LCE in annual production - further growth potential via the Phase 2 & 3 expansion (utilizing Phase 1 infrastructure) Phase 4: Potential for additional line ~530 kt expected in 2024 Run-Rate Produ
Slide 20: Expansion To Triple Capacity Will Have At Least 2 More Lines
Expansion To Triple Capacity Will Have At Least 2 More Lines Optimized Construction Requires Additional Areas: Reconfiguration of Original Expansion Plan Expansion ▪ FEL3 Detailed engineering is ongoing ▪ Fully funded via operational cash flow ▪ Plans to triple production to 766 ktpa of Green Lithiu
Slide 21: Greentech & Infrastructure Expansion
Expansion Greentech & Infrastructure High Purity Lithium, Responsibly Sourced page 21
Slide 22: Phase 2 & 3 Detailed Engineering Timetable
Phase 2 & 3 Detailed Engineering Timetable Proceeding on schedule towards formal investment decision Dec- Jan- Feb- Mar- Apr- May- June- July- Aug- Sep- Oct- Nov- Dec- H1-2024 H2-2024 22 23 23 23 23 23 23 23 23 23 23 23 23 Detailed Engineering Expected in Q4-2023 Trade-Off Design Final Designs Studi
Slide 23: Significant Potential for Additional Growth: Potential 4th Line
Significant Potential for Additional Growth: Potential 4th Line ~40,000 meters to be drilled in 2023 with the current focus on connecting the Phase 4 deposits (just one part of the broader land package with nine former operating lithium mines) High Purity Lithium, Responsibly Sourced page 23
Slide 24: Financial Update
y X4 Financial Update 4
Slide 25: Strengthening Balance Sheet and Approaching Operating Profitability
Strengthening Balance Sheet and Approaching Operating Profitability ✓ Closed the first green ACE Credit Line (Export Prepayment) with Santander Brazil for R$50 million (US$10 million) Demonstrates the Company’s operational and credit strength and ESG reputation in Brazil, where it is regarded as a “
Slide 26: Projected Operating Profit Per Tonne @ Prices $3,000/t: Analysis at Various Cost Assumptions
Projected Operating Profit Per Tonne @ Prices $3,000/t: Analysis at Various Cost Assumptions Operating Profit Per Tonne (Cost Sensitivity) – US$/t $2,550 $2,527 84% $2,500 $2,475 82% $2,450 82% $2,422 80% $2,400 80% $2,370 78% 78% $2,318 $2,350 76% $2,300 76% $2,266 75% 74% $2,250 $2,200 73% 72% 70%
Slide 27: Projected Cash Flow @ $3,000/t: Analysis at Various Cost Assumptions
Projected Cash Flow @ $3,000/t : Analysis at Various Cost Assumptions EV/EBITDA Cost Variations DFS +10% +20% +30% +40% +50% 5.5% Concentrate Price (US$/t) $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 All-In Sustaining Cash Cost (US$/t) ($523) ($575) ($628) ($680) ($732) ($785) Implied Net of AISC per
Slide 28: Projected Operating Profit Per Tonne @ $2,000/t At Various Cash Cost Scenarios
Projected Operating Profit Per Tonne @ $2,000/t At Various Cash Cost Scenarios Operating Profit Per Tonne (Cost Sensitivity) – US$/t $1,800 90% $1,600 $1,627 80% 1,575 $1,522 $1,470 $1,400 73% $1,418 70% 70% $1,366 68% $1,200 65% 60% 63% 60% $1,000 50% $800 40% $600 30% $400 20% $200 10% - 0% DFS +1
Slide 29: Projected Cash Flow @ $2,000/t: Analysis At Various Cash Cost Scenarios
Projected Cash Flow @ $2,000/t: Analysis At Various Cash Cost Scenarios EV/EBITDA Cost Variations DFS +10% +20% +30% +40% +50% 5.5% Concentrate Price (US$/t) $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 All-In Sustaining Cash Cost (US$/t) ($523) ($575) ($628) ($680) ($732) ($785) Implied Net of AISC pe
Slide 30: Sigma Is One Of The Few Producers That Could Reach 100,000t LCE: "Super Major" in 2024
Sigma Is One Of The Few Producers That Could Reach 100,000t LCE “Super Major” in 2024 Market Market Producers (kt LCE) Emerging Producers (kt LCE) Capitalization Capitalization Total Cash & Equivalents 203 248 $0.0 18 27 US$3.0 B $0.2 25 US$0.5 B 160 241 $0.3 18 US$0.8 B 65 121 US$9.7 B Next Cycle P
Slide 31: Re-Rate Potential as Sigma Delivers Consistently as a Producer
Re-Rate Potential as Sigma Delivers Consistently as a Producer Market Capitalization vs. Production Scale Producers Emerging Producers Post 2027 $40.0 248 250.0 241 Attributable 2023E Production (kt LCE) $35.0 203 200.0 Attributable 2025E / Expanded Production (kt LCE) $30.0 160 150.0 $25.0 121 102
Slide 32: Phase 2 & 3 & 4 Expansion Highlights
Phase 2 & 3 & 4 Expansion Highlights Growth expected to position Sigma Lithium as one of the world’s largest suppliers of Chemical Grade Sustainable Lithium Concentrate Phase 2 & 3 Expansion Economic Overview Project Production Profile (‘000 t) Phase 1 Phase 2 Phase 3 Phase 4 Potential Payback Perio
Slide 33: Sigma Delivered on Every Front: Consistency & Focus
Sigma Delivered on Every Front: Consistency & Focus ✓ Ramping up dry stacking of tailings circuit Dry Stacking/ Zero Tailings: ✓ ✓ Completed commissioning Zero Chemicals/ High Recovery ✓ of the crushing circuit ✓ ✓ Zero Carbon ✓ Environmental operating license in March 2023 ✓ First shipment Initial
Slide 34: The Importance of Our Legacy: Transforming an Entire Sector and Society
The Importance of Our Legacy: Transforming an Entire Sector and Society
Slide 35: Supporting Conservation of the Amazon Forest: 59,000 tonnes of Carbon for 13 years
Supporting Conservation of the Amazon Forest: 59,000 tonnes of Carbon for 13 years High Purity Lithium, Responsibly Sourced page 3535 page
Slide 36: Changing the Lives and Empowering 1,600 women going to 10,000
Changing the Live snd Empowering 1,600 women going to 10,000 High Purity Lithium, Responsibly Sourced page 36
Slide 37: Appendix
Appendix
Slide 38: Mineral Resources and Mineral Reserves
Mineral Reserves (1) Mineral Resources (inclusive of Mineral Reserves) (1,5) Xuxua Deposit (Phase 1) (2) Xuxua Deposit (Phase 1) (6) Category Ore (Mt) Li2O Grade (%) Li2O (KT) LCE (Kt) Category Ore (Mt) Li2O Grade (%) Li2O (KT) LCE (Kt) Proven 8.3 1.55% 130 320 Measured 10.2 1.59% 162 401 Probable 3