Sigma Lithium Corporation · NASDAQ:SGML
Sigma Lithium — Investor Presentation (June 2024)
25 slides from Sigma Lithium's investor presentation, June 2024
Slide 1: Sigma Lithium: The Leader in Sustainable Lithium
Sigma Lithium The Leader in Sustainable Lithium : 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: In 1Q24 Sigma Lithium Advanced Towards Key Catalyst of Doubling Production Capacity in 2025
In 1Q 24 Sigma Lithium Advanced Towards Key Catalyst of Doubling Production Capacity in 2025. 1. CAPTURING MORE VALUE IN PRICING: Achieved a fixed-floating formula of 9% of LME Lithium equivalent to $1,290 (11% increase to April 24, 30% of 1Q24 Realized) 2. LOW COST: Became the world’s 2nd LOWEST CO
Slide 5: Sigma's Demonstrated Production Consistency and Scale During 2023: Initiated Premium Pricing Through Auctions in 2024
Sigma’s Demonstrated Production Consistency and Scale During 2023: Initiated Premium Pricing Through Auctions in 2024 Price(1,2,3) Shipments Avg Realized Price 6% Benchmark ($/tonne) 25.000 3.500 22.860 22.050 22.157 22.000 22.000 22.000 21.624 3.093 3.093 21.000 8.75% X 9% X 3.000 LME LME 20.000 2.
Slide 6: First Quarter Financial Highlights ($USD)
First Quarter Financial Highlights ($USD) Avg Realized Price FOB / tonne (1) Adjusted EBITDA (2) 1Q24 Reported Revenue for 1Q Shipments $37.2mm $ 5.9 mm $930/t Margin of 15.8% Lithium Shipped 52,857 t Cash Operating Cost/t FOB Pro Forma Adjusted EBITDA (3) Lithium Produced $462/t $ 17.4 mm 54,168 t
Slide 7: Cash Costs Reaching Towards Guidance of $370 At Plant Gate
Cash Costs Reaching Towards Guidance of $370 At Plant Gate Costs are normalizing as operations advance in 2024 Costs Rapidly Reached Target Level After Only 3 Quarters of Phase 1 Production SG&A Dropping With Production Ramp-up (US$ / ton shipped) (US$ MM) The decline in SG&A is primarily due to pro
Slide 8: Lithium Demand is ROBUST: In 2024 Still Not Enough Low-Cost Supply
Lithium Demand is ROBUST: In 2024 Still Not Enough Low-Cost Supply The Top 6 Largest Producers Do NOT HAVE THE CAPACITY in 2024 to Supply this Demand Global Lithium Demand kmt LCE Global EV Outlook EVs in millions of units Average EV Battery Size in kWh Bearish Between 2024 As EVs grow so too does D
Slide 9: Phase 2 Initiation of Construction to Double Production Capacity to 520,000t/y
Phase 2 Initiation of Construction to Double Production Capacity to 520,000t/y
Slide 10: 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 10
Slide 11: 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 • Phase 2 flow sheet consistent with
Slide 12: 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$108.1 mn US$88.8 mn US$100.5 mn As of March 31th, 2024 As of March 31th, 2024 page 12
Slide 13: Capacity Forecast Lithium Concentrate (kt)
Ability to Scale Up Production Organically: 100,000 t LCE / year with +20 Years Operating Life of Large Mineral Reserve Production expansion is de-risked by operational and execution capabilities replicating previous implementation 770 750 P3: ~250 kt Phase 3: Production in 2026E Capacity in 2026 Ph
Slide 14: Sigma Generates Cash at Trough, a Lot at Mid Cycle
Sigma Generates Cash at Trough, a Lot at Mid Cycle • Unique Operational Efficiency • Low Costs Are Mainly Due to Low Processing Cost and Brazil Jurisdiction: • Utilization of DMS/ Low-Cost Renewable Power Bear Case(1) Base Case(1) Bull Case(1) CIF Price – SC 6.0% (US$/t) 1,000 1,300 1,600 Cost Scena
Slide 15: Closing Remarks
Closing Remarks ay
Slide 16: Sigma Became the 6th Largest Producer Globally… Sigma Did Not Reprice
Sigma’s Became the 6th Largest Producer Globally… Sigma Did Not Reprice From Developer to Producer 2024 Integrated Lithium Production x Market Cap Comparison Top 2024 Integrated Producers = Total Developers 18.0 250 Market Cap (US$ bn) US$15,2 2024E Production (LCE kt) 12.0 200 199 200 US$13,4 12.0
Slide 17: Quintuple Zero: The Leading Edge of Sustainability Ushering a New Era in EV Supply Chain Differentiation
Quintuple Zero: The Leading Edge of Sustainability Ushering a New Era in EV Supply Chain Differentiation ▪ Sigma’s Quintuple Zero paved the way forward for the metals and mining sector by effectively lowering its carbon footprint ▪ Considerably de-risks the operation from environmental and community
Slide 18: Delivering on our Vision to Combine Large Scale Production with Low Cost and Highest Sustainability Standards
Delivering on our Vision to Combine Large Scale Production with Low Cost and the Highest Environmental Sustainability Standards in Lithium Large Scale Traceability/State of the Art Low Production Cost Sustainability Standarts page 18
Slide 19: Appendix
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Slide 20: Dissecting Downstream Lithium Chemicals
Dissecting Downstream Lithium Chemicals There is an opportunity to disrupt the normal flow of business Pre-Chemical Purified Chemical China Brazil Water Water Water Reagents Reagents Reagents Reagents Energy Energy Energy Energy Energy Energy Spodumene Crystallization Battery Spodumene Crushing & Ro
Slide 21: Provisional Pricing Drives Volatility in Headlines Not to Business
Provisional Pricing Drives Volatility in Headlines Not to Business As prices rally from 1Q to 2Q, provisional pricing headwinds should lapse Reported Sales ($mn) "Harmonized" Sales ($mn) 3Q23 96,902 3Q23 66,951 4Q23 38,319 Adjustments 4Q23 56,270 1Q24 37,202 Revenue and EBITDA 1Q24 49,202 Sum 172,42
Slide 22: Phase 2 Expansion; Derisked Construction Replicating Plant 1
Phase 2 Expansion; Derisked Construction Replicating Plant 1 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 23: Income Statement Summary and EBITDA Bridge ('000)
Income Statement Summary and EBITDA Bridge (‘000)
Slide 24: Cash Flow Statement Summary ('000)
Cash Flow Statement Summary (‘000)
Slide 25: Balance Sheet Summary ('000)
Balance Sheet Summary (‘000)