Sigma Lithium Corporation · NASDAQ:SGML
Sigma Lithium — Investor Presentation (May 2024)
29 slides from Sigma Lithium's investor presentation, May 2024
Slide 1: 2023: A Transformational Year – Became the 4th Largest Lithium Industrial Mining Complex
2023: A Transformational Year – Became the 4th Largest Lithium Industrial Mining Complex in the World : 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: Sigma Lithium in 2023: Achieved full Production Capacity at 2nd Quarter of Operations
Sigma Lithium in 2023: Achieved full Production Capacity at 2nd Quarter of Operations 270,000 t: Nameplate sustained over Dec 2023 12mo capacity reached within 6 months of commissioning (1) 105,000 t: 6 months in 2023 Lithium production for full year of 2023 Premium Price: U$1,160 (ex-VAT) Premium f
Slide 5: Industrial Plant Cleantech Innovation and Delivery of Quintuple Zero Lithium
Industrial Plant Cleantech Innovation and Delivery of “Quintuple Zero Lithium”: Low Cost & Green Lithium for Green Cars 1. Zero Toxic Chemicals 2. Zero Carbon 3. Zero Drinking Water 4. Zero Tailings Dams 5. Zero Dirty Power page 5
Slide 6: Became the 4th Largest Lithium Industrial Mining Complex
Became the 4th Largest Lithium Industrial Mining Complex 150Mt of Estimated Projected Mineral Resource – 109Mt Audited NI-43101 47.0% 20.9% Source: Company Reports High Purity Lithium, Responsibly Sourced page 6
Slide 7: Became the 6th Largest Producer Globally: 2024 Production x Market Cap Comparison
Sigma’s Became the 6th Largest Producer Globally… But As Commissioned in Bottom of Lithium Cycle, Not Repriced as Large-Scale Producer 2024 Production x Market Cap Comparison Producers Developers 18.0 250 Market Cap (US$ bn) 2024E Production (LCE kt) 12.0 200 199 US$13.7 200 US$12.6 12.0 Market Cap.
Slide 8: Resilience & Product Quality: Shipment Cadence Through Bottom Cycle
Resilience & Product Quality : Shipment Cadence Through Bottom Cycle Established a track record of reliable large-scale supplier to EV battery chain 35,000 Shipment Price (USD/Ton) 3,000 2,812 30,000 1,160(2) 1,305(2) 1,094 1,037(1) 1,056(1) 1,072 (1) 1,000 25,000 22,860 22,050 21,624 22,157 22,000
Slide 9: Sigma Achieved a Meaningful Premium Final Price
Sigma Achieved a Meaningful Premium Final Price: Validates Outstanding Metallurgical and Chemical Properties of Product ▪ Increased premium fixed price ▪ US$ 1,160 /t (net of VAT) Prices are Increasing at Rapid Speed (U$/t of SC6) ▪ for its 8th shipment of 22,000 tonnes (2) for delivery within 2 wee
Slide 10: High Quality and Low-Cost Lithium Concentrate
High Quality and Low-Cost Lithium Concentrate Unique high grade, high purity and coarse-grained concentrate enables low-cost lithium chemical production and cost savings Low Impurities Coarse Spodumene Iron Mica Sigma’s Dry Coarse Australian Wet Fines Canadian Wet Fines 2.1% 10.0% 1.6% 7.2% 6.5% 1.2
Slide 11: Leading Global Producer of Sustainable Lithium
Leading Global Producer of Sustainable Lithium Zero Carbon, Chemicals, Tailing Dams, Potable Water Use, Carbon Intensive Electricity Tailings Recycling Water & No Chemicals Clean Energy Usage Dry Stacking (if not sold) 100% 100% Leads to low environmental Of water used in production Hydroelectric cl
Slide 12: Sigma is Built to Last with Financial Discipline: Production Consistency
Sigma is “Built to Last” with Financial Discipline: Production Consistency Drives Revenue, Low Costs Create Commodity Cycle Resilience 2023 FY Revenue FOB Adj. Cost at Plant(1) FOB Plant Margin (1) U$135.1mm U$ 427/t 67.7% Lithium Shipped FOB Adj. Cost at Port(1) FOB Port Margin (1) 102,535 t U$ 485
Slide 13: Operations and Shipments Supported by Low Cost Structure
Operations and Shipments Supported by Low Cost Structure 4Q costs approaching targets, cost initiatives will drive it home • Reported 4Q Cash Unit Operating Costs of Concentrate per tonne FOB Vitoria(1) of $542/t • Non-recurring commissioning expenses of $94/tonne • Pro forma 4Q Cash Unit Operating
Slide 14: Operations and Shipments Supported by Low Cost Structure (Cont'd)
Operations and Shipments Supported by Low Cost Structure (Cont’d) 4Q costs approaching targets, cost initiatives will drive it home 4Q’23 COGS Bridge (US $/tonne) 800 non-recurring 700 $94 600 $549 ($149) $521 $542 $76 500 ($94) $455 $50 $16 400 ($71) $384 $71 300 200 100 0 (1) 384/t is the Company’
Slide 15: Sigma Lithium Delivered an Adjusted EBITDA U$49.1 M
Sigma Lithium Delivered an Adjusted EBITDA U$49.1 M The Company ended its first year of production with positive cash adjusted EBITDA and cash operating profit, particularly given the market volatility EBITDA Bridge USD 000’s 140 120 ($57) 100 $135 80 ($12) 60 $66 ($42) 40 $24 $49 20 ($5) $6 $19 ($3
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
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$109.4 mn US$88.8 mn US$100.5 mn As of March 30th, 2024 As of March 30th, 2024 page 19
Slide 20: 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 • Total capex estimated at ~$100mn for 250kmt of capacity • P2 enough lithium for 850k EVs • EPCM is mobilizing fleet for earthw
Slide 21: Phase 2 Expansion; Imitation is the Highest Form of Flattery
Phase 2 Expansion; Imitation is the Highest Form of Flattery 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 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 770 Phase 3: Production in 2026 2026 P1: 270 kt Capacity P2: 250 kt Capacity P3: ~250 kt in 2026 in 2026 Capacity in 2026 Phase 1, 2 & 3 = 770 ktpa
Slide 23: Closing Remarks
Closing Remarks ay
Slide 24: Combines Large Scale with Low Cost and High Sustainability Standards
Combines Large Scale with Low Cost and High Sustainability Standards Large Scale Traceability/State of the Art Low Production Cost Sustainability Standarts page 24
Slide 25: Completely Transformed the Company from a Construction Site into the 4th Mining Complex
Completely Transformed the Company from a Construction Site into the 4th Mining Complex in the World Completed FID Phase 2 and operational DMS plant Mobilitzation commissioning Initial production April ‘23. Nameplate Begin Phase 2 capacity by 4Q construction Dry stacking and/or selling tailings to m
Slide 26: Appendix
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Slide 27: Income Statement Summary ('000)
Income Statement Summary (‘000) Twelve Months Twelve Months Ended Dec. 31 Ended Dec. 31 Income Statement Summary 2023 2023 ($000) CAD USD Revenue 181,231 135,128 Operating costs (76,740) (57,218) Trucking, insurance, and port costs (15,595) (11,628) Gross profit 88,896 66,282 G&A expense (54,398) (4
Slide 28: Balance Sheet Statement ('000)
Balance Sheet Statement (‘000) Twelve Months Twelve Months Ended Dec. 31 2023 Ended Dec. 31 2023 ($000) CAD USD Assets Cash and cash equivalents 64,403 48,584 Trade accounts receivable 29,693 22,400 Other current assets 48,580 36,647 Total current assets 142,676 107,631 Property, plant and equipment
Slide 29: Cash Flow Statement Summary ('000)
Cash Flow Statement Summary (‘000) Twelve Months Twelve Months Ended Dec. 31 Ended Dec. 31 Cash Flow Statement Summary 2023 2023 ($000) CAD USD Operating Activities Net income (loss) for the period (38,246) (28,517) Adjustments 69,253 51,319 Adjustments to income (loss) for the period 31,007 22,780