Sigma Lithium Corporation · NASDAQ:SGML
Sigma Lithium — Q3 2023 Earnings Presentation
31 slides from Sigma Lithium's earnings presentation, Nov 1, 2023
Slide 1: Leading Global Producer of Triple Zero Green Lithium - Q3-2023 Results
Leading Global Producer of Triple Zero Green Lithium Q3-2023 Results Earnings 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: Operational Highlights
Operational Highlights: Sigma Delivered Successful Ramp Up 1 Greentech Plant at 90% Throughput: • Consistent Monthly Shipments of 20kt 2 Fourth Shipment Expected by end of November with minimum 20kt to Glencore 3 Substantial Potential Increase of Mineral Resource: Phase 4 (26-30Mt) and Phase 5 (20Mt
Slide 5: Financial Highlights: Every Financial Target Delivered
Financial Highlights: Every Financial Target Delivered, Profitable on First Operating Quarter Production to Date 1 Operational Efficiency & Discipline: Q3 Revenue High Grade Profitable with Superior Product - Triple $96.9mm 71,650 t Zero Green Lithium from concentrate and tailings sales in Q3 Low Gr
Slide 6: Production Highlights: Triple Zero Lithium is a Commercial Success
Production Highlights: Triple Zero Lithium is a Commercial Success There is not enough of our Triple Zero Green Lithium to satisfy demand Q3 Highlights and Production to Date ✓ Produced 38,500t of 5.5% Triple Zero Green Lithium. YTD Production 71,650t ✓ 62,000t of Triple Zero Green Byproducts (ultra
Slide 7: Sigma Can Generate Cash at Depths of Bear Market
Sigma Can Generate Cash at Depths of Bear Market: Low Costs • Unique Operational Efficiency and FEL3 Precision Studies: Production Costs to Match Feasibility Technical Report • Low Costs Are Mainly Due to Low Processing Cost: Utilization of DMS/ Low Cost Renewable Power Cost Variations DFS 10% 20% 5
Slide 8: Unique High Grade, High Purity, Coarse-grained Product
Sigma Has A Unique High Grade, High Purity And Coarse-grained Product = Low-cost Li-chemical Production High Quality • Sigma • Tallison Inferior Quality High Purity Lithium, Responsibly Sourced page 8
Slide 9: Premium Quality + Triple Zero = Competitive Advantage
Premium Quality + Triple Zero = Competitive Advantage = Priority Volumes • Sigma is The Second Lowest Cost Producer Globally of Lithium Concentrate Triple Zero Lithium Low Impurities First Lithium Concentrate In Iron Oxide Content (%) Mica Content (%) The World Delivered With 2.1% 10.0% ✓ Zero Hazar
Slide 10: Sigma Brings Cost Savings for Downstream Clients
Sigma Brings Cost Savings for Downstream Clients Demonstrated Efficiencies Drive demand for Sigma Product in Any Market • Working with Glencore and customers to premium-ize our product in the market • Even at 9%, Sigma’s premium spodumene concentrate can drive measurable savings to converters in cur
Slide 11: Lithium Prices and Market Update
Demonstrated Efficiencies Drive Demand for Sigma Product in Any Market • Temporary supply-demand imbalances are painful, but normal in cyclical markets • Sigma responds by focusing on controllables, drive costs lower, and expand production at attractive capex levels Lithium Prices and Market Update
Slide 12: Supplier of Choice for Battery Makers Selling to Europe
Sigma is Supplier of Choice for Battery Makers Selling to Europe (2026 Battery Passport): Triple Zero Green Lithium is a “Recognized Brand” Europe Battery Passport 2026 Europe Auto Market Sigma Lithium Production 2023e 2023e = Number of cars Number of cars 4,500,000 693,935(2) LCE (tons) LCE (tons)
Slide 13: Top Choice for EU Bound Batteries
Sigma Lithium: Top Choice for EU Bound Batteries Sigma can enable best-in-class carbon intensity for Batteries 45.0t Tons of CO2 per Ton of LCE 15.0t 13.0t 5.0t 5.0t 3.0t 2.5t Lepidolite Spodumene Brine DLE Best in X1Class Average X2 LIOH China LIOH China page 13
Slide 14: Triple Zero: Zero Carbon, Zero Chemicals, Zero Tailings
Triple Zero: Zero Carbon, Zero Chemicals, Zero Tailings Key Elements 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 clean power in footprint & upcycle opportunity plant is recycled e
Slide 15: Operation and Resource Expansion Update
Operation and Resource Expansion Update
Slide 16: Successful Commissioning of Dry Stacking
Successful Commissioning of Dry Stacking • Recoveries Increased Significantly • Plant Optimized as Capacity Utilization Increased • Installation of magnetic separator to improve recoveries on a sustained basis 20% Q3 Recovery and Yield (5-day Moving Average) 80% 18% 70% 16% 60% 14% 50% 12% 10% 40% 8
Slide 17: Maintaining Head Grades Through Successful Operational Integration
Maintaining Head Grades Through Successful Operational Integration: Mine & Plant • Consistency of Spodumene Input Demonstrates Adherence to Mining Plan in Feasibility • Homogeneous Ore Body and Consistency Facilitates Achievement of 5.5% Concentrate Levels Concentrate and Head Grade (%) – Q3 7.5 2.0
Slide 18: Greentech & Infrastructure Expansion
Expansion ✓ FEL3 Detailed Engineering: selection of contractor connected to strategic review ✓ Funded via operational cash flow & Debt ✓ Plans to triple production to 766 ktpa of Green Lithium Greentech & ✓ Optimized construction requires additional Infrastructure areas: reconfiguration of original
Slide 19: Ability to Scale Up Production Organically
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 800 Run-Rate Production Forecast (kt) 6
Slide 20: Finalists in Strategic Review All Plan To Produce Intermediate Chemicals
Finalists in Strategic Review All Plan To Produce Intermediate Chemicals • Brazil is the perfect location for double zero chemicals production: zero carbon and zero tailings • Brazil large cement-based construction industry and cleaning products domestic manufacturing can absorb the chemical waste g
Slide 21: Phase 4 & Phase 5
-s Phase 4 & Phase 5
Slide 22: Additional Growth: Potential Resources Phase 4 & 5
Additional Growth: Potential Resources Phase 4 & 5 Positive results from Phase 4 Exploration Program (potential increase to 110Mt of mineral resources) and expected further increase resulting from Accelerated Plan to drill a Phase 5 and beyond page 22
Slide 23: Closing Comments
y XG Closing Comments 4
Slide 24: Full Re-Rate As Producer Yet to Occur
Full Re-Rate As Producer Yet to Occur Sigma is one of the few producers that could reach the 100,000t LCE threshold, Trades Like a Smaller Producer Producers Developers Market Capitalization (in US$ bn) vs. Production Scale (kt LCE) $4 0.0 232 238 240.0 Attributable 2023E Production (kt LCE) $35.0 S
Slide 25: Conclusion: Sigma Will Be the Next Lithium Major
Conclusion: Sigma Will Be the Next Lithium Major Sigma is already one of the largest producers 22.5 ktpm / 20 ktpm = 270 ktpy / 240 ktpy Becoming one of the lithium majors @760 ktpy with the most competitive product High purity and coarse lithium Amongst lowest cost producers Triple zero: carbon neu
Slide 26: Sigma Delivered on Every Front: Consistency & Focus
Sigma Delivered on Every Front: Consistency & Focus ✓ Ramping up dry stacking of tailings circuit Zero Carbon ✓ ✓ Completed commissioning of the crushing circuit Shipments ✓ Consistent Monthly ✓ Initial production in April 2023 Phase 4 & 5 Resource ✓ ✓ Completed operational DMS plant commissioning P
Slide 27: AY aaa
AY aaa v
Slide 28: Appendix
Appendix
Slide 29: Profit and Loss – Summary
Profit and Loss – Summary Three Months Ended Nine Months Ended Profit and Loss - Management P&L (USD) September 30, 2023 September 30, 2023 • Revenues of $96.9mn reflect the sale of both Sigma’s Triple Revenue from contracts with customers 96,902 96,902 Zero Green Lithium concentrate and Green By-Pr
Slide 30: EBITDA GAAP to Non-GAAP Bridge
EBITDA GAAP to Non-GAAP Bridge Three Months Ended Nine Months Ended EBITDA Bridge (USD) September 30, September 30, Revenue from contracts with customers 96,902 96,902 Operating cost (excl. depreciation expense) (31,110) (31,110) Distribution cost (814) (814) Gross margin 64,977 64,977 General and a
Slide 31: Mineral Reserves and Mineral Resources
Mineral Reserves (1) Mineral Resources (inclusive of Mineral Reserves) (1,5) (6) Xuxua Deposit (Phase 1) (2) Xuxua Deposit (Phase 1) 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