Sigma Lithium Corporation · NASDAQ:SGML
Sigma Lithium — Investor Presentation (March 2024)
42 slides from Sigma Lithium's investor presentation, March 2024
Slide 1: World's 4th Largest Operating Pre-chemical Lithium Beneficiation & Mining Complex
World’s 4th Largest Operating Pre-chemical Lithium Beneficiation & Mining Complex March 2024 : SGML : SGML : S2GM34
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: Operations in Brazil “Non-Aligned”: Strategically Supplying Global EV Supply Chain
Operations in Brazil “Non-Aligned”: Strategically Supplying Global EV Supply Chain Brazil is one of the world’s largest and most established mining countries: 2nd Iron Ore Global Supplier Easy Access Atlantic Port Location Existing Capex Infrastructure: Low Construction and Operating Costs Shipping:
Slide 5: Sigma: Combination of “Key” Competitive Advantages
Sigma: Combination of “Key” Competitive Advantages 1. Scale: 4th Largest Mineral-Industrial Lithium Complex (Rock) 2. Low Cost: Second Lowest in Lithium. Brazil is low-cost country 3. Quintuple Zero: The most sustainable lithium in the world 4. Speed Of Execution: Record Build, Commission, Ramp on B
Slide 6: Clockwork Execution: Achievements in Last 6 Months
Clockwork Execution: Achievements in Last 6 Months 1 Ramped up Production at Near Full Capacity of 240-270 kt per annum 2 Increased Audited Mineral Resource by ~30% to 109Mt. Estimated Resource to Increase by ~75% to 150Mt 3 Low Production Cost, $510/tonne CIF China (1) • Expecting annual recurring
Slide 7: 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 Low-Cost Green Cars: Next Generation of EVs 1. Zero toxic chemicals 2. Zero carbon 3. Zero Drinking Water 4. Zero Tailings Dams 5. Zero Dirty Power High Purity Lithium, Responsibly Sourced
Slide 8: Became 3rd Largest Operating Lithium Integrated Mineral Producer
Became 3rd Largest Operating Lithium Integrated Mineral Producer 4th Largest Lithium Industrial Mining Complex 150Mt of Estimated Projected Mineral Resource – 109Mt Audited NI-43101 Company Reports and Benchmark Minerals High Purity Lithium, Responsibly Sourced page 8
Slide 9: Operational Prowess: Flawless Execution to Producer in 2H23
Operational Prowess: Flawless Execution to Producer in 2H23 Jul. 30 Aug 30 Sept 20 Oct 20 Nov 30 Dec. 30 Feb 5 Mar 8 15,000t 15,000t 22,500t 20,000t 22,000t 22,000t 22,000t 22,000t Shipped Port Shipped Shipped Shipped Shipped Shipped Shipping 5,500 15,000t By Products 5,034 Shipped 4,847 4,766 4,815
Slide 10: Expansion
EXPANSION: • Low Capex • Favorable Development Bank Financing • Increased Operating Life: Larger Resources
Slide 11: Expansion
Expansion ✓ Plans to triple or quandruple production up to 1,020 ktpa of Green Lithium over 3 stages of construction ✓ Secured Letter of Intent for funding from Brazilian Development Bank for Phase 2 Greentech & ✓ Phase 2 capex estimated at ~$100Mn Infrastructure for 250ktpa of spodumene capacity Hi
Slide 12: Capacity & Production Forecast (kt)
(1) Ability to Scale Up Production Organically: Utilizing Large Reserves 1,020 P1: ~270 kt P2: ~250 kt P3: ~250 kt Phase 4: Potential P4: 250 kt Capacity in Capacity in Capacity in Integrated Sulfate Capacity in 2026 2026 2026 2026 35 kt LCE 570 Capacity & Production Forecast (kt) P1: ~270 kt P2: ~2
Slide 13: Uses and Sources of Funding for Phase 2 Construction
Uses and Sources of Funding for Phase 2 Construction (FEL 3 Estimates - Preliminary) Uses (US$) Sources Services Brazilian Reference Rate + 2.7% p.a. Professional Services 11.8 M 10 years, 2 years grace period Civil Works 18.6 M Assembly 21.1 M BNDES Project Finance (US$) Commissioning 0.7 M Year 1
Slide 14: Potentially Increased Operating Life of Project to +25years
Potentially Increased Operating Life of Project to +25years Interlinkage & Closer Proximity of 3 Large Phases Increases Economics High Purity Lithium, Responsibly Sourced page 14
Slide 15: Potentially Increased Operating Life of Project to +25years
Potentially Increased Operating Life of Project to +25years NDC – Murial Strike offers mining at scale High Purity Lithium, Responsibly Sourced page 15
Slide 16: Unpriced Attributes
Unpriced Attributes • Higher-Quality: Purity and Coarse • Quintuple Zero: Carbon Neutral
Slide 17: 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 Iron Oxide Content (%) (1) High Quality 2.1% 1.6% • Sigma 1.2% 1.1% 0.9% 0.9% 0.7% • Tallison 0.4% Mica Content (%)
Slide 18: Unique Coarse High Purity Lithium Concentrate: Quintuple Zero
Unique Coarse High Purity Lithium Concentrate: Quintuple Zero
Slide 19: Competitive Commercial Advantage: Not Fully Priced Value in Use to Converters
Competitive Commercial Advantage: Not Fully Priced Value in Use to Converters Value Creation to Converters: Resource quality drives $2,000 - $3,000 /tonne of margin to converters at trough of cycle $1,000 $14,000 $3,000 $10,000 Sigma Cost $9,000 Advantage $7,000 U$ 3,000 Or US$330/t spodumene $1,000
Slide 20: Financials and Markets
Financials and Markets ay
Slide 21: Sigma Transformation from Builder/Developer to Large Scale Producer
Sigma Transformation from Builder/Developer to Large Scale Producer NOT PRICED: Fundamental Value -84% US$ 5,590/t -30% $ 3,500mm US$ 900/t US$ 900/t Lithium Price -62% SGML Implied Price SGML Market US$ 1,350/t Lithium SGML Implied Price $ 1,320mm Cap Price Market SGML Cap February 2023 February 20
Slide 22: Implied Lithium Concentrate Prices at Various Market Capitalizations
Implied Lithium Concentrate Prices at Various Market Capitalizations (1) (10% Rate) $1,575 $1,467 $1,358 $1,249 $1,141 $4,500 $1,033 $4,000 $925 $3,500 $3,000 $2,500 $2,000 $1,500 Market Cap (US$mm) Implied Spodumene Concentrate (5.5%) Price (US$/t) ____________________ Note: analysis considers late
Slide 23: Sigma Can Generate Cash at Bear Market of 1000/t
Sigma Can Generate Cash at Bear Market of 1000/t: Low Costs • Unique Operational Efficiency • Low Costs Are Mainly Due to Low Processing Cost and Brazil Jurisdiction: • Utilization of DMS/ Low Cost Renewable Power FY24E Cost Scenarios DFS Run Rate 5.5% Concentrate Price (US$/t) $1,500 $1,000 CIF Cos
Slide 24: Large-Scale & Low-Cost Producer = Fundamental Intrinsic Value
Large-Scale & Low-Cost Producer = Fundamental Intrinsic Value Sigma is on track to become one of the largest and highest-grade lithium producers globally Producers by Volume (kt LCE) EBITDA Margin 300 N.A. 35% N.A. 15% 86% 9% 47% 56% N.A. 24% 20% 43% Market Cap $0.6 B $0.3 B $0.3 B $3.6 B $6.8 B $8.
Slide 25: Appendix
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Slide 26: Financial Highlights
Financial Highlights Q3 Revenue Q3 Adj. EBITDA Production to February 24 High Grade US$96.9mm US$54.6mm 147,000t FY24E Revenue 56% Margin Low Grade US$324mm @ $1,200 200,000t Unit Operating Cost(1) Q3 Net Income FOB $420/mt(2) US$36.2mm Guidance for FY24 FOB $577/mt Realized in Q3 (1) Cash Operating
Slide 27: Sigma is Undervalued to Largest Independent Australian Peer
Sigma is Undervalued to Largest Independent Australian Peer Fundamental Value: Next Lithium Major with Execution Track Record (USD 000) Leading Aussie Peer Sigma 2024 Capacity 580 ktpa 270 ktpa 2025 Capacity 680 ktpa 510 ktpa Unit Cash Cost at Plant $420 / tonne (1) $370 / tonne (2) Unit Cash Cost C
Slide 28: Delivered Significant Environmental & Social Impact Programs
Delivered Significant Environmental & Social Impact Programs UN SDGs drive all business decisions, lead by the ESG Committee Corporate Mission Guidance (UN SDGs) UN Case Study on “Green Mining” Scope 1 Impact Scope 2 Impact ✓ Minimal water impact ✓ 100% green hydro power used ✓ No hazardous chemical
Slide 29: The Most Sustainable Lithium in The World
The Most Sustainable Lithium in The World: • Socially • Environmentally
Slide 30: Sigma Lithium: Prosperity for All in the Jequitinhonha Valley
Sigma Lithium: Prosperity for All in the Jequitinhonha Valley 14,000 20% 21,000 Jobs Growtth Workplaces 18,000 People Drinking Water 270,000 R$2.0 Bi 3 Millions Meals Served Monthly Lithium Investment Meals Served Annualy High Purity Lithium, Responsibly Sourced page 30
Slide 31: Greentech Plant Water: Most Efficient Usage in Lithium Globally
Greentech PlantWater DMS Circuit Most Efficient Usage in Lithium Globally • 100% Water Recirculation • Sewage Water as Input High Purity Lithium, Responsibly Sourced page 3131 page
Slide 32: Greentech Plant Ultra Fine Cake Technology
Greentech Plant Ultra Fine Cake Technology High Purity Lithium, Responsibly Sourced page 32
Slide 33: Wire frame models show neighboring pit structure
Wire frame models show neighboring pit structure High Purity Lithium, Responsibly Sourced page 33
Slide 34: Barreiro extension extends Sigma’s lithium corridor west
Barreiro extension extends Sigma’s lithium corridor west Resources run parallel along the J-Curve High Purity Lithium, Responsibly Sourced page 34
Slide 35: Phase 1 DMS Plant – annual nameplate capacity 270kmt
Phase 1 DMS Plant – annual nameplate capacity 270kmt Ramp of phase 1 successful as plant sustains nameplate capacity for six weeks ended Dec. 31, 2023 High Purity Lithium, Responsibly Sourced page 35
Slide 36: Dry Stacking
Dry Stacking High Purity Lithium, Responsibly Sourced page 36
Slide 37: Greentech Plant Power Substation
Greentech Plant Power Substation High Purity Lithium, Responsibly Sourced page 37
Slide 38: Low Cost Open Pit Mining: Phase 1 Mine
Low Cost Open Pit Mining: Phase 1 Mine High Purity Lithium, Responsibly Sourced page 38
Slide 39: Lithium prices are driving a supply response
Lithium prices are driving a supply response Underinvestment and demand growth will drive another bull cycle Supplier Response Spot Lithium Carbonate 90,000 80,000 Produce as much as possible 70,000 Produce as much as possible Demand Destruction USD/tonne LCE 60,000 Pricing 50,000 Produce as much as
Slide 40: Engaged, Diverse and Accountable Board of Directors
Engaged, Diverse and Accountable Board of Directors Seasoned Board of Directors combining technical, operations and capital markets expertise Chairperson Gender ANA CABRAL-GARDNER MARCELO PAIVA Diversity Co-Chairperson & CEO Co-Chairperson • Co-Founder at A10 Invest • Co-Founder and Managing Partner
Slide 41: Mineral Reserves and Mineral Resources
Mineral Reserves (1) Mineral Resources (inclusive of Mineral Reserves) (1-10) Xuxa Deposit (Phase 1) (6) Table 1: Grota do Cirilo Consolidated Mineral Resource January 2024 Category Ore (Mt) Li2O Grade (%) Li2O (KT) LCE (Kt) CUT-OFF GRADE (%Li20) CATEGORY TONNES (MT) (%Li20) Proven 8.3 1.55% 130 320
Slide 42: Note to Spodumene mining operations by resource chart
Appendix Note to Spodumene mining operations by resource chart Resource as displayed in Figure is qualified on a measured and indicated basis only and are as of January 31, 2024 Company Mine M&I (k MT) M&I Grade (Li2O%) M&I (Mt LCE) Source: Critical Elements Rose 30.5 1.03% 0.8 Investor Presentation