Sigma Lithium Corporation · NASDAQ:SGML
Sigma Lithium — Investor Presentation (October 2024)
28 slides from Sigma Lithium's investor presentation, October 2024
Slide 1: Sigma Lithium: The Leading Edge of Sustainability
Sigma Lithium The Leading Edge of Sustainability October, 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: Sigma's Unique Record-Breaking Trajectory From 2022-2024
Sigma’s Unique Record-Breaking Trajectory From 2022-2024 Everything changed... ... world’s 5th largest producing mineral A construction site... industrial complex 2 years page 4
Slide 5: We Demonstrated Our Ability to Execute
We Demonstrated Our Ability to Execute… 1 Large Scale: 5th Largest Mineral-Industrial Lithium Complex (Rock); Top 10 Global Producer (Brine & Rock) 2 Low Production Cost: Second lowest amongst peers 3 Premium Lithium: Efficiency, Savings, “Value in Use” for Customers 4 Fully Funded Capex at 3% Doubl
Slide 6: Positioned Within the Supply Chain to Withstand Price Shocks
Sigma Lithium is Positioned Within the Supply Chain to Withstand Price Shocks: Segment Generates the Largest Value Creation Mining Concentrate Chemical 0.20 t 9t to 10t Integrated Gross Margin: Integrated Gross Margin: Gross Margin: 10% 50% 30% Standalone Margins: Price: $900 Close to 5% Price: $11,
Slide 7: Leading Scale: 5th Largest Lithium Industrial Mining Complex
Leading Scale: 5th Largest Lithium Industrial Mining Producing Complex 150Mt of Estimated Projected Mineral Resource – 109Mt Audited NI-43101 12.0 2.20% Contained Lithium Tonnage (Mt LCE) M&I Grade (Li2O%) 10.7 Average Grade 10.0 9.8 1.70% Contained Lithium in Resources M&I (Mt LCE) 1.40% 1.40% 1.40
Slide 8: Consistent Production = Consistent Shipments
Consistent Production = Consistent Shipments ▪ Sigma has orchestrated one of the industry’s most successful operational ramps in industry history ▪ Export credit lines fostered commercial assertiveness and diversification Trader as PRINCIPAL End User Trader as AGENT 3Q23: 45,205 t 4Q23: 59,368 t 1Q2
Slide 9: Interest Rates Falling As Consistency is Proven
Interest Rates Falling As Consistency is Proven Cost of capital at Sigma has declined considerably over the past twelve months Interest Rate Profile of Existing Trade Line Facilities Interest Rate Profile of Debt Structures 18% 15.5% 12.3% 16% 15.3% 14% 12% 8.6% 9.9% 9.7% 10% 8.6% 8% 5.5% 6% 4% 2.5%
Slide 10: Achieved Target Cost Guidance Ahead of Schedule
Achieved Target Cost Guidance Ahead of Schedule Sigma is the second lowest cost hard rock lithium mine in the world (1) CIFe Cash Cost FOB Cash Cost Plant Gate Cost SG&A USD/Tonne USD/Tonne USD/Tonne USD mm -22% -24% $658 $12.4 $11.2 -22% $551 $549 $515 -24% $478 $462 $424 $397 $5.2 $5.0 $364 4Q23 1
Slide 11: High Quality = Premium Pricing While Delivering Cost Savings to Clients
High Quality = Premium Pricing While Delivering Cost Savings to Clients Unique High Grade, High Purity And Coarse-Grained Lithium Chemistry of High Quality Physical Properties and Visibility of High Quality Iron Mica Sigma Dry Coarse Australian Wet Fines Canadian Wet Fines 2.1% 10.0% 1.6% 7.2% 6.5%
Slide 12: One Year Into Production, Targeting Brownfield Investment at Greentech Plant
One Year Into Production Sigma Targeting Brownfield Investment at Greentech Plant Shipment Targets Every 30-35 days Driving Efficiency Module 3 - Dry Stacking: Fines Recovered Should Increase Yields Module 2 - Further Perfected Greentech DMS ▪ Ultrafines processed at 1.5% from April 23 to July 23 ar
Slide 13: Large Scale Production, Low Cost, Highest Environmental Standards
Combining Large Scale Production, Low Cost, Highest Environmental Standards in Lithium...... Large Scale 1. Zero Carbon 2. Zero Tailing Dams 3. Zero Drinking Water 4. Zero Toxic Chemicals 5. Zero Dirty Power Traceability/State of the Art Sustainability Low Production Cost Standarts page 13
Slide 14: Spearheading the Industry's ESG Standards Has Led to Recognition
Spearheading the Industry’s ESG Standards Has Led to Recognition Across the Globe Global Recognition Sigma became Global Case Study on “Green Mining” Sigma at the Forefront of the Climate Discussion Globally Scope 1 Impact Minimal water impact No hazardous chemicals Tailings are 100% dry stacked Pot
Slide 15: Market Update
Market Update ay
Slide 16: Global EV Battery Installment (GWh)
Focus on the Numbers… Battery Demand +23% ytd (1) January to July amount of energy held in EVs worldwide was 434.4 Gwh, +23% 800 Global EV Battery Installment (GWh) 700 701 600 500 400 2017 – 2023 CAGR = 51% 509 434 300 355 303 200 Jan - Jul + 23% 100 147 100 118 59 0 2017 2018 2019 2020 2021 2022 2
Slide 17: EV Market (cont'd)
EV Growth in China Driving Global Lithium Demand: 60% of EV Market (cont’d) Global Lithium Demand kmt LCE Supply Demand Imbalance kmt LCE Lithium market balance and price forecast ('000 tonnes LCE (LHS), $/kg (RHS)) Bearish Demand INCREMENT forecasted for 2024 is larger than the industry's 2,882 200
Slide 18: Phase 2 Initiation of Construction to Double Production Capacity
Phase 2 Initiation of Construction to Double Production Capacity to 520,000t/y
Slide 19: Among the Lowest Capex-Intensive Projects in the World
Among the Lowest Capex-Intensive Projects in the World Lowest quartile in capex per production capacity Project Capex Intensity Comparison Sigma’s P2 Leads in Capex Efficiency Bubble size = capex efficiency ratio (USD millions) / production capacity Capex efficiency ratio = capex (USD millions) / pr
Slide 20: BNDES Has Committed to P2 Expansion Loan
Brazilian National Development Bank (BNDES) Has Committed to P2 Expansion Loan Project is FULLY FUNDED and Powerful Long-Term Relationship Solidified Loan Commitment Terms: BRL $487 mm ▪ Maturity: 16 years ▪ Opportunity to partner with ▪ Amortization Grace Period: 18 months Sigma For Our Expansions
Slide 21: Greentech Line Infrastructure Expansions
Expansions Greentech Line ✓ Double production to 520ktpa of Green Lithium within a year Infrastructure ✓ Phase 2 Capex Fully Funded ~$100mm page 21
Slide 22: Expects to Reach 100,000 t/y LCE by 2026
Sigma Lithium Expects to Reach 100,000 t/y LCE by 2026, Cementing Industry Leading Position Executing a Low Risk, Low Capex Strategy Nameplate Capacity (kt LCE) 2024: Efficiency 2025: Completion of 2026: Completion of 2027: Completion of Initiatives Phase 2 Concentration Phase 3 Concentration Interm
Slide 23: Scale Levers Fixed Costs Across the Business Model
Scale Levers Fixed Costs Across the Business Model Cash flow potential is considerable should consensus price forecast come to fruition Cash Scenarios 2025E 2026E 2027E Estimated Cash Operating Margin/Tonne Headline Price - 6% Basis (1) (SC 6.0) $1,077 $1,200 $1,413 Product Tonnes Phase 1 270,000 27
Slide 24: Opportunity to Become a Key Missing Link in the Western Chemical Lithium Chain
Opportunity to Become a “Key Missing Link” in Supplying the Western Chemical Lithium Chain, While Capturing Value From Concentrate and Saving Transport in Supplying China Lithium Chemicals Basic Specialty Chemicals Chemicals 100% Lithium Hydroxide Industrial Battery Lithium Pre- Lithium Mine 55% + E
Slide 25: Closing Remarks
Closing Remarks ay
Slide 26: Sigma Did Not Benefit in Valuation From Becoming A Large Producer
Sigma Did Not Benefit in Valuation From Becoming A Large Producer Re-Rate of Valuation did not take place: Ramped up production against lithium prices sharp decline in 2H24 Proportional Comparison: Valuation to Production SGML x ALB SGML x PLS 199Kt $9.3 bn 4/5 77kt $5.5 bn 4/5 1/2 1/2 37kt 37kt $2.
Slide 27: Transforming from a construction site to an Industry Leader
Transforming from a construction site to an Industry Leader Completed FID Phase 2 and operational DMS plant Mobilitzation commissioning Initial production April ‘23. Nameplate Increase Mineral capacity by 4Q Reserves by 40% Dry stacking and/or selling tailings to market Begin Phase 2 Construction Ze
Slide 28: Sigma Lithium
W\4 SIGMA LITHIUM