Slide 1: 2023: A Transformational Year – Became the 4th Largest Lithium Industrial Mining Complex
2023: A Transformational Year – Became the 4th Largest Lithium Industrial Mining Complex in the World : SGML : SGML
Slide 2: Disclaimer
Disclaimer UNAUDITED FINANCIAL INFORMATION FOR 4Q AND FY2023 The results and financial information contained in this presentation have been based on unaudited financial statements of the Company. The Company does not anticipate that it will be necessary to adjust or make material changes to the unau
Slide 3: 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 4: 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 5: In 2023 Sigma Surpassed Every Lithium Industry Record
In 2023 Sigma SURPASSED Every Lithium Industry Record : Achieved full Production Capacity at 2nd Quarter of Operations 270,000 t: Sep 23-Sep 24 12mo capacity reached within 6 months of commissioning (1) 105,000 t: 6 months in 2023 Lithium production for full year of 2023 Premium Price: U$1,160 (ex-V
Slide 6: Industrial Plant Cleantech Innovation and Delivery of Quintuple Zero Lithium
Industrial Plant Cleantech Innovation and Delivery of “Quintuple Zero Lithium”: Low Cost & Green Lithium for Green Cars 1. Zero Toxic Chemicals 2. Zero Carbon 3. Zero Drinking Water 4. Zero Tailings Dams 5. Zero Dirty Power page 6
Slide 7: Became the 4th Largest Lithium Industrial Mining Complex
Became the 4th Largest Lithium Industrial Mining Complex 150Mt of Estimated Projected Mineral Resource – 109Mt Audited NI-43101 47.0% 20.9% Source: Company Reports High Purity Lithium, Responsibly Sourced page 7
Slide 8: Sixth Largest Producer Globally: 2024 Production x Market Cap Comparison
Sigma’s Became the 6th Largest Producer Globally… But As Commissioned in Bottom of Lithium Cycle, Not Repriced as Large-Scale Producer 2024 Production x Market Cap Comparison Producers Developers 18.0 250 Market Cap (US$ bn) 230 225 2024E Production (LCE kt) 12.0 US$15.5 200 US$14.0 12.0 Market Cap.
Slide 9: Resilience & Product Quality: Shipment Cadence Through Bottom Cycle
Resilience & Product Quality : Shipment Cadence Through Bottom Cycle Established a track record of reliable large scale supplier to EV battery chain Production 22,860 22,050 21,624 22,157 22,000 22,000 21,000 Shipments 15,000 Metric Tones 13,950 4,073 1,984 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Nov-23
Slide 10: Sigma Achieved a Meaningful Premium Final Price
Sigma Achieved a Meaningful Premium Final Price: Validates Outstanding Metallurgical and Chemical Properties of Product ▪ Increased premium fixed price ▪ US$ 1,160 /t (net of VAT) Prices are Increasing at Rapid Speed (U$/t of SC6) ▪ for its 8th shipment of 22,000 tonnes (2) for delivery within 2 wee
Slide 11: High Quality and Low-Cost Lithium Concentrate
High Quality and Low-Cost Lithium Concentrate Unique high grade, high purity and coarse-grained concentrate enables low-cost lithium chemical production and cost savings Low Impurities Coarse Spodumene Iron Mica Sigma’s Dry Coarse Australian Wet Fines Canadian Wet Fines 2.1% 10.0% 1.6% 7.2% 6.5% 1.2
Slide 12: Quintuple Zero: The Leading Edge of Sustainability
Quintuple Zero: The leading edge of sustainability Zero Carbon, Chemicals, Tailing Dams, Potable Water Use, Carbon Intensive Electricity Tailings Recycling Water & No Chemicals Clean Energy Usage Dry Stacking (if not sold) 100% 100% Leads to low environmental Of water used in production Hydroelectri
Slide 13: Built to Last with Financial Discipline: Production Consistency Drives Revenue
Sigma is “Built to Last” with Financial Discipline: Production Consistency Drives Revenue, Low Costs Create Commodity Cycle Resilience 2023 FY Revenue FOB Adj. Cost at Plant(1) FOB Plant Margin (1) U$135.1mm U$ 427/t 67.7% Lithium Shipped FOB Adj. Cost at Port(1) FOB Port Margin (1) 102,535 t U$ 485
Slide 14: Low Production Cost Drives Significant Financial Margins
Low Production Cost Drives Significant Financial Margins and the Ability to Generate Free Cash Flow EBITDA Accounting (FY23) (1) EBITDA Margin (1) 2023 FY Revenue (FOB Revenues) U$ 24.5 mm U$135.1mm 18.2% Earned From Jul-Dec23 Lithium Shipped 102,535 t Adjusted EBITDA Margin (3) EBITDA Adjusted (FY2
Slide 15: Operations and Shipments Supported by Low Cost Structure
Operations and Shipments Supported by Low Cost Structure 4Q costs approaching targets, cost initiatives will drive it home • Reported 4Q Cash Unit Operating Costs of Concentrate per tonne FOB Vitoria(1) of $542/t • Non-recurring commissioning expenses of $94/tonne • Pro forma 4Q Cash Unit Operating
Slide 16: Operations and Shipments Supported by Low Cost Structure (Cont'd)
Operations and Shipments Supported by Low Cost Structure (Cont’d) 4Q costs approaching targets, cost initiatives will drive it home 4Q’23 COGS Bridge (US $/tonne) 800 non-recurring 700 $94 600 $549 ($149) $521 $542 $76 500 ($94) $455 $50 $16 400 ($71) $384 $71 300 200 100 0 (1) 384/t is the Company’
Slide 17: Sigma Lithium Delivered an Adjusted EBITDA of US$49.1M
Sigma Lithium Delivered an Adjusted EBITDA U$49.1 M The Company ended its first year of production with positive cash adjusted EBITDA and cash operating profit, particularly given the market volatility 160 140 $135 120 135 ($57) EBITDA Bridge (USD 000) 100 80 ($12) $66 60 66 ($42) $49 40 49 $25 $24
Slide 18: Breakdown of Non-Recurring General and Administrative Expenses FY23
Breakdown of Non-Recurring General and Administrative Expenses FY23 Taxes and Fees 5.5% • Non recoverable VAT Taxes 5.5% 7.2% Audit and Accounting Services 26.4% Others 7.2% • Overrun in 2023 due to technical discussions (late filling) 21.1% Transaction Costs and 21.1% Commercial Development • Trave
Slide 19: 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 FY24E Run Rate Cost Scenarios Current Price Mid-Cycle Estimated Run-Rate Cash Operating Margin
Slide 20: Phase 2 Initiation of Construction to Double Production Capacity
Phase 2 Initiation of Construction to Double Production Capacity to 520,000t/y
Slide 21: 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 21
Slide 22: 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$109.4 mn US$88.8 mn US$100.5 mn As of March 30th, 2024 As of March 30th, 2024 page 22
Slide 23: Sigma Board Approved Initiation of Construction of Phase 2
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 ~$100mn for 250kmt of capacity • P2 enough lithium for 850k EVs • EPCM is mobilizing fleet for earthw
Slide 24: Phase 2 Expansion Builds on Phase 1 Success
Phase 2 Expansion; Imitation is the Highest Form of Flattery Phase 2 builds on Phase 1 success Phase 1 Phase 2 Construction Items USD M Totals USD M Totals Industrial Site Earthworks 7.2 7.2 Construction 16.6 16.4 Infrastructure 9.4 9.2 Crushing System 19.9 21.2 DMS System 31.0 30.8 Industrial Plant
Slide 25: Staged Capex Distribution Creates Manageable Cash Expense Profile
Stagged Capex Distribution Creates Manageable Cash Expense Profile MONTHLY DISBURSEMENT PHASE 2 - TOTAL 14,000 12,000 USD / US$ MM 10,000 8,000 6,000 4,000 2,000 - PLANT & PRE-PRODUCTION COMISSIONING ACCELERATION PLAN EPCM-PROCUREMENT TEAM EPCM CIVIL WORKS ASSEMBLY SUPPLY TOTAL page 25
Slide 26: Sigma to Start Construction Activities on Site this Month
Sigma to Start Construction Activities on Site this Month for Earth Civil Works, Foundation, and Infrastructure Installation Mobilizing Equipment and Approximately 200 Workers Capital Structure 04 BNDES LOI is expected to provide incremental backstop– reimbursing the capex post disbursement, as cust
Slide 27: Phase 2 Flow Sheet with Efficiency Improvements
Phase 2 Flow Sheet with Efficiency Improvements Implemented During Current Operations Should also Translate to a Faster Commissioning and Ramp Schedule of the Phase 2 Plant ✓ Licenses ▪ Mine and plant construction and plant commissioning environmental licenses ▪ Sigma owns permanent mining license C
Slide 28: Ability to Scale Up: Integrate Into Intermediate Lithium Chemicals
Ability to Scale Up: Integrate Into Intermediate Lithium Chemicals Significant growth profile utilizing Phase 1 infrastructure and processing flowsheet 770 Phase 3: Production in 2026 2026 P1: 270 kt Capacity P2: 250 kt Capacity P3: ~250 kt in 2026 in 2026 Capacity in 2026 Phase 1, 2 & 3 = 770 ktpa
Slide 29: Closing Remarks
Closing Remarks ay
Slide 30: Completely Transformed the Company from a Construction Site into the 4th Mining Complex
Completely Transformed the Company from a Construction Site into the 4th Mining Complex in the World Completed FID Phase 2 and operational DMS plant Mobilitzation commissioning Initial production April ‘23. Nameplate Begin Phase 2 capacity by 4Q construction Dry stacking and/or selling tailings to m
Slide 31: Appendix
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Slide 32: Differentiated Risk Mitigation Plan
Differentiated Risk Mitigation Plan: Detailed Execution Approach without Sacrificing Time to Market Others Pre Detailed Project Stage Feasibility Feasibility Implementation Engineering Definitive Feasibility IPA Front End FEL1 FEL2 FEL3 Study Loading AACE Usage Initial Capex Final Investment Basic S
Slide 33: Preliminary Unaudited Income Statement
Preliminary Unaudited Income Statement (‘000) Twelve Months Twelve Months Income Statement Summary Ended Dec. 31 Ended Dec. 31 2023 2023 ($000) CAD USD Revenue 181,231 135,128 Operating Costs (76,740) (57,218) Trucking, insurance, and port costs (15,595) (11,628) Gross profit 88,896 66,282 G&A expen
Slide 34: Preliminary Unaudited Cash Flow Statement
Preliminary Unaudited Cash Flow Statement (‘000) Twelve Months Twelve Months Cash Flow Statement Summary Ended Dec. 31 2023 Ended Dec. 31 2023 ($000) CAD USD Operating Activities Net income (loss) for the period (37,923) (28,276) Adjustments 65,237 48,343 Adjusted income (loss) for the period 27,314
Slide 35: Preliminary Unaudited Balance Sheet Statement
Preliminary Unaudited Balance Sheet Statement (‘000) Twelve Months Twelve Months Balance Sheet Summary Ended Dec. 31 2023 Ended Dec. 31 2023 ($000) CAD USD Assets Cash and cash equivalents 64,403 48,584 Accounts Receivable 29,693 22,400 Other current assets 48,580 36,647 Total current assets 142,676