Sigma Lithium Corporation · NASDAQ:SGML
Sigma Lithium — Investor Presentation (March 2023)
64 slides from Sigma Lithium's investor presentation, March 2023
Slide 1: Corporate Presentation
Corporate Presentation March 2023
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 3.0: Investment Highlights
Sigma Lithium 3.0: Investment Highlights Commissioning the world’s next tier-1 lithium operation, sustainably 1 Large Scale: Becoming One of the World’s Largest Lithium Producers • Run-rate annual production of 766,000 t 5.5% SC • 20 years at current rate, 13 years at expanded rate Global Leader in
Slide 5: Sigma Lithium: By the Numbers
Sigma Lithium: By the Numbers The largest spodumene lithium project in the Americas Tier 1 Economics $15.3 B 13 years $1.8 B After-Tax NPV8% Operating Life Avg. Annual FCF Low Capital Intensity $523/t $131 M $155 M All-in Cost (CIF China) P1 Initial Capex Expansion Capex Large Scale Production 270 k
Slide 6: Sigma Lithium: Greentech Business
Sigma Lithium: Greentech Business Pioneered environmentally friendly high purity lithium production Green Mining: Greentech Batteries & Aligned Dry Stacking Transformation Cathodes End-Users Battery Grade Lithium Concentrate Spot: US$6,150 (1) Sigma Lithium EBITDA Margin @ (1) Fastmarkets as of Marc
Slide 7: Major Milestones Achieved & Upcoming Catalysts
Major Milestones Achieved & Upcoming Catalysts ✓ Phase 1 feasibility study ✓ Maiden Phase 3 resource estimate ✓ Phase 2 maiden resource estimate ✓ Phase 2 & 3 PFS ✓ Case study at COP-25 ✓ Synergy pre-export financing ✓ Phase 1 commissioning commenced 2018 2019 2020 2021 2022 2023 ✓ Canadian IPO ✓ Ph
Slide 8: Dry Plant (Crushing Circuit) Commissioning Schedule
Dry Plant (Crushing Circuit) Commissioning Schedule First lithium material crushed on February 10, 2023 with commissioning completed on-schedule Dec-22 Jan-23 Feb-23 Mar-23 April-23 May-23 June-23 H2-2023 Operational Crusher Achieved High Purity Lithium, Responsibly Sourced page 8
Slide 9: Wet Plant (DMS Circuit) Commissioning Schedule
Wet Plant (DMS Circuit) Commissioning Schedule Operational DMS circuit expected in March 2023 after commencing commissioning ahead of schedule in January 2023 Dec-22 Jan-23 Feb-23 Mar-23 April-23 May-23 June-23 H2-2023 Operational DMS by March 2023 High Purity Lithium, Responsibly Sourced page 9
Slide 10: Production Ramp-Up Schedule
Production Ramp-Up Schedule Commercial production expected in Q3-2023, with first production targeted for April 2023 Dec-22 Jan-23 Feb-23 Mar-23 April-23 May-23 June-23 H2-2023 Production Ramp-Up Commercial Production High Purity Lithium, Responsibly Sourced page 10
Slide 11: Corporate Structure: Concentrated Institutional Ownership
Corporate Structure: Concentrated Institutional Ownership Fully funded following the US$100 million senior secured pre-export financing with Synergy Capital (one of Sigma Lithium’s current shareholders based in the UAE) announced in December 2022 Capitalization Summary (1,2) USD Share Price (NASDAQ:
Slide 12: Debt Financing Overview
Debt Financing Overview Definitive agreement signed with Synergy Capital (one of the Company’s current shareholders, based in the United Arab Emirates) for up to US$100 million of senior secured pre-export financing Sources (US$ millions) Phase 2 & 3 Pre-Production Capex (US$ M) (2) Debt Financing T
Slide 13: Canadian Company With Operations in Brazil: Strategically Located for the EV Supply Chain
Canadian Company With Operations in Brazil: Strategically Located for the EV Supply Chain Operation Located in one of the world’s largest mining provinces with existing infrastructure, including roads, water, clean power and port access Favourable Atlantic Port Location Nearby Infrastructure Shippin
Slide 14: Near-Term Production with Significant Organic Growth Profile
Near-Term Production with Significant Organic Growth Profile Significant growth profile with 36.7 kt LCE in annual production in the near term and further growth potential via the Phase 2 & 3 expansion (growth to leverage Phase 1 infrastructure) 800 Run-Rate Production Forecast (kt) Phase 2 & 3: PFS
Slide 15: Large Scale Operation
Large Scale Operation Sigma will be one of the largest and highest-grade lithium producers globally Commissioning Market Producers (kt LCE) Start Near-Term Producers (kt LCE) Capitalization Total Deb t 160 230 Q4-2022 $0. 7 37 104 Disconnect US$3.7 B Total Cas h & Equivalents 130 211 H2-2022 $0. 8 1
Slide 16: Production Re-Rate Potential
Production Re-Rate Potential Sigma is one of the few near-term producers that could reach the 100,000t LCE threshold Market Capitalization vs. Production Scale Near-Term Producers Funded Producers Next Cycle Producers & in Construction $4 0.0 250.0 230 Basic Market Capitalization (US$ Bn) $35.0 211
Slide 17: Project Economic Highlights (Combined Phases 1, 2, 3)
Project Economic Highlights (COMBINED Phases 1, 2, 3) Economics Overview 5.5% Li2O Battery-Grade Lithium Concentrate Production Year 1 Years 2-8 Avg. Years 9-13 Avg. Battery Grade Sustainable Lithium Production (t) 277,000 768,200 491,000 Price Battery Grade Lithium Hydroxide Price (US$/t) $64,150 $
Slide 18: Project Economic Highlights (Combined Phases 1, 2, 3)
Project Economic Highlights (COMBINED Phases 1, 2, 3) Economics Overview 5.5% Li2O Battery-Grade Lithium Concentrate Average Annual Economics Estimated Revenue, Operating Costs (13 Years Operating Life @ 624,000 tpa of Lithium Concentrate) (1) and After-Tax Earnings (US$ M) (US$/t Lithium Concentrat
Slide 19: High Quality and Low-Cost Battery Grade Lithium Concentrate
High Quality and Low-Cost Battery Grade Lithium Concentrate Unique high grade, high purity and coarse-grained concentrate enables low-cost lithium chemical production and cost savings Illustrative C1 Cash-Cost (1) Low Impurities Coarse Spodumene Ex. Royalties & Transport Costs Iron Oxide Content (%)
Slide 20: Commercial Offtakes
Commercial Offtakes Partnership established with global leader in advanced battery manufacturing ✓ Take-or-pay contracts with prices linked to the floating lithium hydroxide price (1) Typical Producers Long Route to Batteries (end users) Direct with Battery Producer Lithium Concentrate Lithium Conce
Slide 21: Phase 1 Construction
-s Phase 1 Construction
Slide 22: Activity Accelerated with Workforce Increasing to >1,000
Activity Accelerated with Workforce Increasing to >1,000 High Purity Lithium, Responsibly Sourced page 22
Slide 23: Crushing Circuit Commissioning Completed
Crushing Circuit Commissioning Completed High Purity Lithium, Responsibly Sourced page 23
Slide 24: DMS Plant Commissioning
DMS Plant Commissioning High Purity Lithium, Responsibly Sourced page 24
Slide 25: Power Substation Commissioning
Power Substation Commissioning High Purity Lithium, Responsibly Sourced page 25
Slide 26: Phase 1 North Pit Mining & South Pit Pre-Strip
Phase 1 North Pit Mining & South Pit Pre-Strip (in Background) High Purity Lithium, Responsibly Sourced page 26
Slide 27: Piaui Seasonal Stream Bridge Construction
Piaui “Seasonal Stream” Bridge Construction High Purity Lithium, Responsibly Sourced page 27
Slide 28: Phase 1, 2 & 3 Operations
-s Phase 1, 2 & 3 Operations
Slide 29: Phase 1, 2 & 3 Economics
Phase 1, 2 & 3 Economics Production Expansion Study presents robust economics for the combined operation Economic Highlights @ 5.5% SC After-Tax NPV8% Sensitivity to Lithium Prices (US$ B) (2) Economic Analysis $8,000 $29.6 After-Tax Net Present Value (@ 8% Discount Rate) US$15.3 billion After-Tax I
Slide 30: Production Profile
Production Profile Growth expected to position Sigma Lithium as one of the world’s largest suppliers of Battery Grade Sustainable Lithium Concentrate Project Production Profile (‘000 t) Phase 1 Phase 2 Phase 3 804 811 781 774 766 739 703 240 258 233 253 247 187 247 504 504 504 471 471 278 264 254 26
Slide 31: Production Expansion Study Highlights
Production Expansion Study Highlights Commodity price forecast updated based on current market conditions Battery Grade LiOH & SC Price Forecast (US$/t) Phase 1, 2 & 3 NPV8% Sensitivity to Lithium Prices (US$ Bn) (1) Sigma Expected Contract Price @ Spot Price Lithium Hydroxide Battery Grade Global P
Slide 32: Phase 2 & 3 to be Fully Integrated with the Phase 1 Operations
Phase 2 & 3 to be Fully Integrated with the Phase 1 Operations Streamlined construction of Phase 2 & 3 production line expected to be built alongside the Phase 1 production line currently being constructed High Purity Lithium, Responsibly Sourced page 32
Slide 33: Expansion Greentech Plant & Infrastructure
Expansion Greentech Plant & Infrastructure High Purity Lithium, Responsibly Sourced page 33
Slide 34: Phase 3 Deposit Located Nearby Phase 2
Phase 3 Deposit Located Nearby Phase 2 Phase 3 2P mineral reserve of 21.2 Mt @ 1.45% Li2O located nearby the Phase 2 pit and suggests further high- grade prospectivity in the region (e.g. Phase 4) Phase 3 Overview Phase 2 (Barreiro) 800m 5km Phase 3 (NDC) High Purity Lithium, Responsibly Sourced pag
Slide 35: Additional Growth Potential (Including Phase 4)
Additional Growth Potential (Including Phase 4)
Slide 36: Significant Potential for Growth as EV Demand Accelerates
Significant Potential for Growth as EV Demand Accelerates Current focus is on just one part of the broader land package and only 4 of the 9 former operating lithium mines have NI 43-101 mineral resource estimates to date Phase 1 Phase 2 Phase 4 Phase 3 High Purity Lithium, Responsibly Sourced page 3
Slide 37: Sigma 3.0: the Next Level of Social & Environmental Sustainability
Sigma 3.0: the Next Level of Social & Environmental Sustainability
Slide 38: 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 39: UN SDGs Guiding Sigma Lithium's Corporate Mission
UN SDGs Guiding Sigma Lithium’s Corporate Mission “UN Energy Compact” member with 100% of business decisions made with sustainable development in mind Lithium is desperately needed for EV Transition Jequitinhonha Valley to become part of global supply chain Promoting sustainable economic development
Slide 40: Global Thought Leader Driving Change (at UN COP27)
Global Thought Leader Driving Change (at UN COP27) Sigma Lithium actively participated with its entire ESG leadership team at COP27 in Egypt (the team collectively participated in over 26 events, panels and workshops) High Purity Lithium, Responsibly Sourced page 40
Slide 41: Global Thought Leader Driving Change (continued)
Global Thought Leader Driving Change (continued) Additionally, speaking at the UN COP25 and COP26, participating at the UN High Level Energy Dialogue with Vale and participating in Tailings Working Group of Swedish Pension Board / Church of England Pension Board High Purity Lithium, Responsibly Sour
Slide 42: Recognized Nationally in Brazil for ESG Leadership
Recognized Nationally in Brazil for ESG Leadership Awarded for making an ESG difference in the mining, metallurgy and steel category High Purity Lithium, Responsibly Sourced page 42
Slide 43: Green Mining Case Study: Water & Chemicals
“Green Mining” Case Study: Water & Chemicals Committed to operating in an environmentally-friendly way (scope 1) Water sourced is non-drinkable and needs to be Piaui “seasonal stream” preserved for local communities treated for industrial use (Phase 1 mined as two pits instead of one) Zero hazardous
Slide 44: Green Mining Case Study: Tailings
“Green Mining” Case Study: Tailings Committed to operating in an environmentally-friendly way (scope 1) Tailings to be dry stacked (no tailings dams), enabling the potential to upcycle tailings High Purity Lithium, Responsibly Sourced page 44
Slide 45: Green Mining Case Study: Power
“Green Mining” Case Study: Power Committed to operating in an environmentally-friendly way (scope 2) 100% of power needs to be sourced from clean and cheap hydroelectricity from the 360 MW Irape Hydroelectric Power Plant (transmission lines run directly to site) and net zero carbon emissions targete
Slide 46: Microcredit Program for Female Entrepreneurs
Microcredit Program for Female Entrepreneurs Fostering sustainable development of the Jequitinhonha Valley region, where we operate 730 female entrepreneurs empowered R$2,000 lent to each female entrepreneur 10,000 female entrepreneurs to be empowered (ultimate goal) High Purity Lithium, Responsibly
Slide 47: Zero Draught Program
Zero Draught Program Construction of rainwater capture structures to fight flooding & store water in periods of drought 2,000 rainwater capture structures to be built in the towns of Aracuai and Itinga Specialized Consultants hired by Sigma Lithium to monitor the structures’ performance indicators R
Slide 48: Zero Hunger Action
Zero Hunger Action Fighting hunger and poverty in the Jequitinhonha Valley region, where we operate 2021 Program: Completed 7,000 >3,000 food baskets people in delivered need fed 1.2 million meals provided 2022 Program: In Progress (1) 14,000 >3,000 food baskets people in delivered need fed 2.4 mill
Slide 49: COVID-19 Prevention & Relief
COVID-19 Prevention & Relief Fighting to keep people safe in the Jequitinhonha Valley region, where we operate 12,000 liters of disinfectant delivered to 16 local hospitals 840 kg of alcohol gel hand sanitizer delivered to 16 local hospitals 20,000 medical appointments enabled per month High Purity
Slide 50: Disaster Relief During Unprecedented Flooding
Disaster Relief During Unprecedented Flooding Supporting families in the Jequitinhonha Valley region during the Holiday Season 11,000 liters of potable water distributed 400 families supported that lost their homes during the Holiday Season of 2021 High Purity Lithium, Responsibly Sourced page 50
Slide 51: Homecoming Employment Program
Homecoming Employment Program Fostering sustainable development of the Jequitinhonha Valley region, where we operate >1,000 workers on site for construction ~40% of workforce local to the Jequitinhonha Valley region ANA CABRAL-GARDNER Co-Chairperson & Co-CEO “Reconstitution of the social fabric of t
Slide 52: Education Program for Mining Technicians Established
Education Program for Mining Technicians Established Fostering sustainable development of the Jequitinhonha Valley region, where we operate Partnership with creating first program to prepare mining technicians in the region ANA CABRAL-GARDNER Co-Chairperson & Co-CEO “Sigma Lithium is contributing to
Slide 53: Childcare Center Sponsorship
Childcare Center Sponsorship Enabling the mothers of the Jequitinhonha Valley region resume gainful employment two local childcare centers sponsored (one in each of the municipalities where we operate) 560 children in need supported ANA CABRAL-GARDNER Co-Chairperson & Co-CEO “The childcare centers s
Slide 54: Appendix
Appendix
Slide 55: Sigma High Purity and Green Lithium Concentrate is Unique
Sigma High Purity and Green Lithium Concentrate is Unique How to differentiate lithium? Few suppliers can deliver a differentiated product & “value in use” High Purity Lithium, Responsibly Sourced page 55
Slide 56: 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 ANA CABRAL-GARDNER GARY LITWACK Chairperson Gender Co-Chairperson & CEO Co-Chairperson Diversity • Co-Founder and Managing Partner at A10 • Canadian lawyer an
Slide 57: Diverse Leadership Team Focused on Delivering Stakeholder Value
Diverse Leadership Team Focused on Delivering Stakeholder Value Experienced senior leadership team focused on creating stakeholder value, in a sustainable way Chief Executive Officer Gender Diversity ANA CABRAL-GARDNER BRIAN TALBOT RODRIGO MENCK Co-Chairperson & CEO Chief Operating Officer Chief Fin
Slide 58: Inflation Reduction Act of 2022
Inflation Reduction Act of 2022 The United States towards a net zero pathway IRA Summary Electric Vehicles and EV Infrastructure On August 16th, the IRA was signed, allocating ~$369 B in federal funding over the next decade to combat climate change ~$23 B allocated to EVs and EV infrastructure ✓ Mob
Slide 59: EV Demand Advances 5 Years in 2020-2022 and is Set to Increase Substantially in the Decade
EV Demand Advances 5 Years in 2020-2022 and is Set to Increase Substantially in the Decade Electric Car Sales (Millions of EVs) 56% 53% 53% 51% 47% 45% 42% 42% 41% 44% 35% 33% 36% 35% 34% 33% 19% 25% 17% 22% 16% 18% 12% 13% 7% 9% 9% 9% 7% 8% 5% 7% 0% 5% 5% 5% 25.80 2.10 20.80 4.60 1.50 China 16.30 3
Slide 60: Agnostic to Battery Technology
Agnostic to Battery Technology Sigma Lithium will deliver material before chemical conversion, enabling technological flexibility Lithium Weightage in Different Li-ion Batteries Chemistry Type Lithium Manganese Phosphate Cobalt Nickel Iron 11% 6% 8% 11% 11% 11% 11% 11% 11% 11% LCO LMO LFP NCM NCM NC
Slide 61: Recoveries Broken Down by Phase
Recoveries Broken Down by Phase Average Recoveries by Phase (%) 65.0% 57.9% 56.6% 50.6% Phase 1 Phase 2 Phase 3 Weighted Average High Purity Lithium, Responsibly Sourced page 61 Source: the Updated Technical Report.
Slide 62: Detailed Engineering Completed
Detailed Engineering Completed Phase 1 Feasibility Study completed to FEL3 level to minimize execution risk and detailed engineering concurrent with construction now completed Concurrent Detailed Engineering Progress (%) Phase 1 Feasibility Study Completed to FEL3 Level to Minimize Execution Risk St
Slide 63: Further Growth to be Unlocked: Next Steps on Mineral Development
Further Growth to be Unlocked: Next Steps on Mineral Development Phase 2 & 3 expansion is targeted to be delivered in 2024 Phase 3 and Project Updated Mineral Reserves ✓ Phase 2 & 3 Production Expansion Study ✓ Phase 2 & 3 Detailed Engineering and Construction ✓ Announced December 2022 ✓ • 2P Reserv
Slide 64: Mineral Reserves and Mineral Resources
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