Sigma Lithium Corporation · NASDAQ:SGML
Sigma Lithium — Q1 2025 Earnings Presentation
33 slides from Sigma Lithium's earnings presentation, May 2025
Slide 1: First Quarter 2025 Earnings Release Presentation
First Quarter 2025 Earnings Release Presentation May 2025 : 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 (…) to risks associated with its reliance on consultants and others for mineral exploration and exploitation expertise; The current COVID-19 pandemic could have a material adverse effect on Sigma’s business, operations, financial condition and stock price; If Sigma is unable to ultimately
Slide 4: Leading Global Lithium Producer: Operational Excellence, Competitive Advantage of Low Costs & Traceability
Leading Global Lithium Producer: Operational Excellence, Competitive Advantage of Low Costs & Traceability Strategically Well Positioned • Industrializes Lithium Oxide Concentrate: Higher Margins Than Refining • Plant and Mine Located in Brazil: Established Industrial and Mining Jurisdiction, Strong
Slide 5: Key Accomplishment of 1Q25: Increased Overall Resilience of the Business
Key Accomplishment of 1Q25: Increased Overall Resilience of the Business Maintained Production Volumes Consistency, as Targeted: ▪ Demonstration of Operational Efficiency at Greentech Industrial Plant Delivered All-In Sustaining Costs Below Target ▪ ASIC at $622/t: Includes Operating Costs, Mine Dev
Slide 6: Outperformed Operational Targets in 1Q25, Positive Trajectory From 1Q24
Outperformed Operational Targets in 1Q25, Positive Trajectory From 1Q24 YoY: Significantly Upward Trajectory QoQ: Increased EBITDA Production Sales EBITDA Production Sales EBITDA +17% -16% +223% +3% 77kt 74kt 68kt 68kt 62kt 62kt 54kt $10.7 M $10.7 M 53kt $9.7 M $3.1 M 1Q24 1Q25 4Q24 1Q25
Slide 7: Production Levels Increase of 28% YoY Achieved in 1Q25 Reinforces FY2025 Production Guidance
Production Levels Increase of 28% YoY Achieved in 1Q25 Reinforces FY2025 Production Guidance Production Volume Unlocking Financing 100% Production Not Tied to Production Sales Annualized Production Offtakes = 308kt Potential Cash Generation From Prepayments, Lower Cost of Debt 273kt 270kt 30kt 240kt
Slide 8: Maintained Low-Cost Leading Position on an All-In Basis
Maintained Low-Cost Leading Position on an All-In Basis: Demonstrating Operational Strength Throughout Lithium Price Cycles (1) (2) (3) Plant Gate Cost CIF Cash Cost with Royalties All-In Sustaining Costs USD/Tonne USD/Tonne USD/Tonne -20% $775 $779 $761 -17% $622 $592 -12% $551 $515 $513 $458 $427
Slide 9: Sigma Lithium Delivered on the Challenge
Sigma Lithium Delivered on the Challenge Achieved Low-Cost Production, Without Sacrificing Sustainability and Ethical Sourcing Hard-Rock C3 cost-curve 1,400 1,200 CIF China U$/t Cost of Lithium Concentrate 1,000 800 600 400 200 - - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 Spod
Slide 10: All-In Sustaining Cost Better than Target: Ability to Generate Positive Cash Flow
All-In Sustaining Cost Better than Target: Ability to Generate Positive Cash Flow Across Lithium Price Cycles Reported 1Q25 Forecast 25E and 26E 68,308/Q = 273,200t/Y 270,000t/Y 520,000t/Y Financial Expenses -6% SG&A Maintenance Capex $660 $622 $6 $70 $75 $55 $527 $72 $35 $35 $458 $11 $30 $35 $500 $
Slide 11: Operational Excellence Driven by a Culture of Safety and Processes
Operational Excellence Driven by a Culture of Safety and Processes One of ICMM’s Best Safety Records ▪ Strengthening Health, Safety & Environment Strategy ▪ Employee Engagement & Safety Leadership ▪ Workshops & Safety Culture Development 700+ Consecutive Days Without a Lost Time Injury (LTI) 1.23 (1
Slide 12: We Mastered The DMS Technology for Lithium Processing
We Mastered The DMS Technology for Lithium Processing: Greater Efficiency and Reliability in 2025 ▪ We have been recurringly achieving unprecedented recovery levels : ▪ Over 70% at plant level ▪ Global recoveries well into 60% ▪ Recovery efficiency achieved in our Greentech Plant, is a result of imp
Slide 13: Financial Performance
Financial Performance
Slide 14: 1Q25 Financial Highlights: Significant EBITDA Growth and Margins
1Q25 Financial Highlights: Significant EBITDA Growth and Margins Revenue COGS Cash Gross Margin $48 mm $34 mm 35% Increase YoY Increase YoY 28% 19% EBITDA/ Adj. EBITDA Cash Position $10 mm/$11 mm EBITDA/ Adj. EBITDA Margin $31 mm Increase YoY 21%/24% Net Income $5 mm 224% /113% $0.04 per share Note:
Slide 15: Discipline in Execution Driving Strong Margins
Discipline in Execution Driving Strong Margins Cash Gross Profit 1Q25 EBITDA 1Q25 $ Millions $ Millions Cash Gross Margin: 35% Adjusted EBITDA Margin: 24% $1.4 ($34.2) $47.7 $11.4 $10.0 $3.2 $16.7 Net Revenue Cost of Good Sold D&A Cash Gross Profit Reported EBITDA Stock Compensation Adjusted EBITDA
Slide 16: Decrease in Trade Finance Short-Term Debt As a Result of Working Capital Efficiency
Decrease in Trade Finance Short-Term Debt As a Result of Continuous Working Capital Efficiency (1) Decreased Short-Term Trade Finance Facilities Decrease in Interest per Ton in 1Q25 $ 120 25.00% $ 2,500 $ 80 Interest (Accrued) and Average Interest Rates (US$ M) -42% Export Prepayment Trade Finance B
Slide 17: Further Decreased Interest Expenses Towards Achieving 2025 Targets
Further Decreased Interest Expenses Towards Achieving 2025 Targets Production Expansion to be Financed with Lower-Cost Subsidized Debt from BNDES Financial Guidance Statements Provided Reported Guidance Provided FY 2025 E FY 2026 E Short-Term Debt $1 20/t Long-Term Debt $ 200,000 Interest/ton Non-Di
Slide 18: Ability to Receive Prepayments for Offtake Agreements Enables Sigma to Lengthen Its Debt Maturity Profile
Ability to Receive Prepayments for Offtake Agreements Enables Sigma to Lengthen Its Debt Maturity Profile Monthly Debt Repayment (Millions) Potential to Lengthen with Offtake Prepayments $100.3 $100.0 $20.1 $16.2 $8.8 $5.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.2 $0.2 $0.3 $0
Slide 19: Proven Ability to Generate Operational Cash Flow
Proven Ability to Generate Operational Cash Flow Cash Flow Bridge Description 1 Increase in 1Q25 Trade Receivables Due to Quarter-End Customer Receivables: $15 Cutoff Timing ▪ Portion of Customer 1 Receivables was Settled in 2Q25 due to Quarter Cutoff Timing ($23) $32 ($7) 2 ($5) Cash Proforma Cash
Slide 20: Update on Expansion
Update on Expansion
Slide 21: Existing Infrastructure and Mining Operations of Plant 1 will Expedite Construction of Plant 2
Existing Infrastructure and Mining Operations of Plant 1 will Expedite the Construction of Plant 2 Construction Progress P1 P2 Water Pipelines In Place Power Substation In Place Moving High Voltage Power Lines In Place Sewage Water Treatment Plant In Place Greentech Plant Support Infrastructure In P
Slide 22: Plant 2 Fully Financed by BNDES Loan BRL 487 mm
Plant 2 Fully Financed by BNDES Loan Highly Attractive Development Loan for Project Financing Financial Commitment: BRL 487 mm The financing is structured on a reimbursement basis and secured by 99% Capex a bank guarantee Terms: Maturity: 16 Years Grace Period: 18 Months % Fixed Interest Rate: USD o
Slide 23: Among the Lowest Capex-Intensive Projects in the World
Among the Lowest Capex-Intensive Projects in the World Sigma is the incremental supplier to meet growing demand Project Capex Intensity Comparison Sigma’s P2 Leads in Capex Intensity Bubble size = capex efficiency ratio (USD millions) / production capacity Capex intensity ratio = capex (USD millions
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Reported Cash Cost Better than Target: Achieved Economies of Scale
Reported Cash Cost Better than Target: Achieved “Economies of Scale” from Increased Production Volumes 1Q25 Unit Operating Cash Cost Bridge Description ~10% Higher Q/Q Cost Plant 4 3 Gate as a Result of Lower $28 Production Volumes 2 $23 1 $46 Includes Operating Personal $36 Stock-Based Compensation
Slide 27: We Successfully Solved The Puzzle of Competitive Advantage
We Successfully Solved The “Puzzle of Competitive Advantage” Scale + Low Costs Traceability + Low Costs Scale + Traceability = = = Price Cycle Resilience Competitive Sells to Largest Supply Advantage to Africa Chains Low Construction Capex Management Speed of Location in Developed = Execution Mining
Slide 28: Appendix Financial Statements
Appendix Financial Statements
Slide 29: Consolidated Statements of Income (Loss) Summary
Consolidated Statements of Income (Loss) Summary Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 Three Months Ended March Three Months Ended March Consolidated Statements of Income (Loss) 31, 2025 31, 2024 ($ 000s) Revenue 47,67
Slide 30: EBITDA Bridge
EBITDA Bridge Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 Three Months Ended Three Months Ended EBITDA March 31, 2025 March 31, 2024 ($ 000s) Revenues 47,673 37,202 Cost of goods sold & distribution (34,217) (28,642) Gross P
Slide 31: Consolidated Statements of Financial Position Summary
Consolidated Statements of Financial Position Summary Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 Consolidated Statements of Financial Position As of March 31, 2025 As of December 31, 2024 ($ 000s) Assets Cash and cash equiv
Slide 32: Consolidated Statements of Cash Flow Summary
Consolidated Statements of Cash Flow Summary Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 Three Months Ended March 31, Three Months Ended Consolidated Statements of Cash Flows 2025 March 31, 2024 ($ 000s) Operating Activities
Slide 33: Sigma Lithium
W\4 SIGMA LITHIUM