Sigma Lithium : Presentation (69a71b22 2cde 49df 9887 5b6bd11c9a4b)

Published: 2025-05-14 22:37:11 ET SGML.V

Published on 05/14/2025 at 22:37

Earnings Release Presentation

May 2025

: SGML

: S2GM34

(…) to risks associated with its reliance on consultants and others for mineral exploration and exploitation expertise; The current COVID-19 pandemic could have a material adverse effect on Sigma's business, operations, financial condition and stock price; If Sigma is unable to ultimately generate sufficient revenues to become profitable and have positive cash flows, it could have a material adverse effect on its prospects, business, financial condition, results of operations or overall viability as an operating business 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 operations and financial condition. In order to obtain additional financing, Sigma may conduct additional (and possibly dilutive) equity offerings or debt issuances in the future; Sigma may be unable to achieve cash flow from operating activities sufficient to permit it to pay the principal, premium, if any, and interest on Sigma's indebtedness, or maintain its debt covenants; Sigma has not declared or paid dividends in the past and may not declare or pay dividends in the future; Sigma will incur increased costs as a result of being a public company both in Canada listed on the TSXV and in the United States listed on Nasdaq, and its management will be required to devote further substantial time to United States public company compliance efforts; If Sigma does not maintain adequate and appropriate internal controls over financial reporting as outlined in accordance with National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings or the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), Sigma will have to report a material weakness and disclose that Sigma has not maintained appropriate internal controls over financial reporting; As a foreign private issuer, Sigma is subject to different U.S. securities laws and rules than a domestic U.S. issuer, which may limit the information publicly available to its shareholders; Failure to retain key officers, consultants and employees or to attract and, if attracted, retain additional key individuals with necessary skills could have a materially adverse impact upon Sigma's success; Sigma is subject to currency fluctuation risks; From time to time, Sigma may become involved in litigation, which may have a material adverse effect on its business financial condition and prospects; Certain directors and officers of Sigma are, or may become, associated with other natural resource companies which may give rise to conflicts of interest; The market price for Sigma's shares may be volatile and subject to wide fluctuations in response to numerous factors beyond its control, and Sigma may be subject to securities litigation as a result; If securities or industry analysts do not publish research or reports about Sigma's business, or if they downgrade the common shares of Sigma (the "Common Shares"), the price of the Common Shares could decline; Sigma will have broad discretion over the use of the net proceeds from offerings of its securities; There is no guarantee that the Common Shares will earn any positive return in the short term or long term; Sigma has a major shareholder which owns 47.7% of the outstanding Common Shares and, as such, for as long as such shareholder directly or indirectly maintains a significant interest in Sigma, it may be in a position to affect Sigma's governance, operations and the market price of the Common Shares; As Sigma is a Canadian corporation but most of its directors and officers are not citizens or residents of Canada or the U.S., it may be difficult or impossible for an investor to enforce judgements against Sigma and its directors and officers outside of Canada and the U.S. which may have been obtained in Canadian or U.S. courts or initiate court action outside Canada or the U.S. against Sigma and its directors and officers in respect of an alleged breach of securities laws or otherwise. Similarly, it may be difficult for U.S. shareholders to effect service on Sigma to realize on judgments obtained in the United States; Sigma is governed by the corporate and securities laws of the Province of Ontario and of Canada, which in some cases have a different effect on shareholders than U.S. corporate laws and U.S. securities laws; Sigma is subject to risks associated with its information technology systems and cyber-security; Sigma may be a Passive Foreign Investment Company, which may result in adverse U.S. federal income tax consequences for U.S. holders of Common Shares.

Readers are cautioned that the foregoing lists of assumptions and risks is not exhaustive. The Forward-Looking Information contained in this presentation is expressly qualified by these cautionary statements. All Forward Looking Information in this presentation speaks as of the date of such statements were made, as applicable. Sigma does not undertake any obligation to update or revise any Forward-Looking Information, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additional information about these assumptions, risks and uncertainties is contained in Sigma's filings with securities regulators, including Sigma's then-current annual information form, which are available on SEDAR at https://www.sedar.com. and on EDGAR at https://www.sec.gov.

Cautionary Note Regarding Mineral Resource and Mineral Reserve Estimates

Technical disclosure regarding Sigma's properties included in this presentation has not been prepared in accordance with the requirements of U.S. securities laws. Without limiting the foregoing, such technical disclosure uses terms that comply with reporting standards in Canada and estimates are made in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Unless otherwise indicated, all mineral reserve and mineral resource estimates contained in the technical disclosure have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Reserves (the "CIM Definition Standards").

Under the SEC rules regarding disclosure of technical information, the definitions of "proven mineral reserves" and "probable mineral reserves" are substantially similar to the corresponding CIM Definition Standards, and the SEC recognizes "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" which are also substantially similar to the corresponding CIM Definition Standards. However, there are still differences in the definitions and standards under the SEC rules and the CIM Definition Standards. Therefore, Sigma's mineral resources and reserves as determined in accordance with NI 43-101 may be significantly different than if they had been determined in accordance with the SEC rules.

Third Party Information

This presentation includes market, industry, economic data and projections which was obtained from various publicly available sources and other sources believed by Sigma to be true. Although Sigma believes it to be reliable, it has not independently verified any of the data from third party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying economic and other assumptions relied upon by such sources. Sigma believes that the market, industry and economic data is accurate and that the estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness thereof. The accuracy and completeness of the market, industry and economic data in this presentation are not guaranteed, and Sigma does not make any representation as to the accuracy or completeness of such information.

Technical Information

Certain technical information in this presentation was derived from the technical report dated March 31, 2025, with an effective date of January 15, 20245 titled "Grota do Cirilo Lithium Project, Araçuaí and Itinga Regions, Minas Gerais, Brazil" and prepared for Sigma Lithium by Marc-Antoine Laporte, P.Geo, SGS Canada Inc., William van Breugel, P.Eng, SGS Canada Inc., Johnny Canosa, P.Eng, SGS Canada Inc., and Joseph Keane, P. Eng., SGS North America Inc. (the "Updated Technical Report"). The Updated Technical Report is available on the SEDAR profile of Sigma at https://www.sedar.com. Mineral resources in the Updated Technical Report are reported inclusive of mineral reserves. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. Some figures herein have been rounded for presentation purposes.

Other disclosures in this presentation of a scientific or technical nature at the Grota do Cirilo Project have been reviewed and approved by Iran Zan MAIG (Membership number 7566), who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Zan is not considered independent under NI 43-101 as he is Sigma Lithium Director of Geology.

Non-GAAP Measures

This presentation and the Updated Feasibility Study Report contain certain non-GAAP measures. The non-GAAP measures do not have any standardized meaning within IFRS and therefore may not be comparable to similar measures presented by other companies. These measures provide information that is customary in the mining industry and that is useful in evaluating the Project. This data should not be considered as a substitute for measures of performance prepared in accordance with IFRS.

Presentation Currency

The Company changed its presentation currency to the U.S. dollar, effective January 1, 2025. As a result, all financial information in this presentation is presented in U.S. dollars, unless otherwise indicated.

Disclaimer

Leading Global Lithium Producer: Operational Excellence, Competitive Advantage of Low Costs & Traceability

Strategically Well Positioned

Industrializes Lithium Oxide Concentrate: Higher Margins Than Refining

Large Scale

Plant and Mine Located in Brazil: Established Industrial and Mining Jurisdiction, Strong Rule of Law

Resilient to Lithium Market Price Cycles

Low-Cost Producer "All-In Sustaining Costs"

Low Cost

Traceability

Operational Efficiency At Scale on All Fronts

Perfected DMS Technology to Unprecedented 70% Recovery Levels

700+ Days with Zero Accidents with Lost Time

Rewarded with $100 million of Subsidized Government Debt from BNDES

Delivered "Shared Prosperity" to One of the Poorest Regions in the Country

"Social License" Environmental Permits Repeatedly Achieved on Schedule

100% Uncommitted Production: Potential Pre-Payment of Offtakes

Standard Financing Practice in the Mining Industry

Untapped Funding Source Readily Available from Clients Seeking Resilient Suppliers

Maintained Production Volumes Consistency, as Targeted:

Demonstration of Operational Efficiency at Greentech Industrial Plant

Delivered All-In Sustaining Costs Below Target

ASIC at $622/t: Includes Operating Costs, Mine Development, Sustaining

Capex, Royalties, Interest, SG&A

Generated Positive Cash Flow From Operations:

Enabled Repayment of Short-Term Debt

Key Accomplishment of 1Q25: Increased Overall Resilience of the Business

YoY: Significantly Upward Trajectory

QoQ: Increased EBITDA

+17%

+223%

68kt

62kt

54kt

53kt

$10.7 M

$3.1 M

-16%

77kt

+3%

74kt

68kt

62kt

$10.7 M

$9.7 M

1Q24

1Q25

4Q24 1Q25

Outperformed Operational Targets in 1Q25, Positive Trajectory From 1Q24

Production Volume

Unlocking Financing

100% Production Not Tied to Offtakes

Potential Cash Generation From Prepayments, Lower Cost of Debt

216kt

196kt

240kt

308kt

273kt

270kt

30kt

(10kt LCE)

80kt

(10kt LCE)

80kt

(10kt LCE)

54kt 53kt

77kt 74kt

49kt 53kt 60kt 57kt

68kt 62kt

67kt

80kt

(10kt LCE)

1Q24 2Q24 3Q24 4Q24 1Q25 2025 Guidance

Production Levels Increase of 28% YoY Achieved in 1Q25 Reinforces FY2025 Production Guidance

Plant Gate Cost

(1)

CIF Cash Cost with Royalties(2)

All-In Sustaining Costs(3)

USD/Tonne

-12%

$397

$364

$395

$318

$349

1Q24

2Q24

3Q24

4Q24

1Q25

USD/Tonne

-17%

$551

$515

$513

$427

$458

1Q24

2Q24

3Q24

4Q24

1Q25

USD/Tonne

-20%

$775

$779

$761

$592

$622

1Q24

2Q24

3Q24

4Q24

1Q25

(1) Plant Gate costs includes mining, processing and on-site G&A expenses. It is calculated on an incurred basis, credits for any capitalized mine waste development costs, and it excludes depreciation, depletion and amortization of mine and processing associated activities. (2) CIF reported cash costs include ocean freight, insurance and royalties. (3) Cash unit all-in sustaining cost includes unit CIF China cash operating cost, SG&A, maintenance capex and financial expenses.

Maintained Low-Cost Leading Position on an All-In Basis: Demonstrating Operational Strength Throughout Lithium Price Cycles

Hard-Rock C3 cost-curve

1,400

1,200

CIF China U$/t Cost of Lithium Concentrate

1,000

800

600

400

200

- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500

Spodumene Concentrate, ktonne

Source: Benchmark Minerals, 4Q24 quarterly report

Sigma Lithium Delivered on the Challenge

Achieved Low-Cost Production, Without Sacrificing Sustainability and Ethical Sourcing

Reported 1Q25 Forecast 25E and 26E

520,000t/Y

68,308/Q = 273,200t/Y

270,000t/Y

$458

$11

$622

$72

-6%

$75

$660

$500

$427

$35

$30

$35

$55

$70

$527

1Q25 CIF China w/ Royalties

Maintenance Capex

SG&A Financial Expenses

Other Expenses AISC 1Q25

AISC 25E AISC 26E

(1) CIF reported cash costs include ocean freight, insurance and royalties. (2) Cash unit all-in sustaining cost includes unit CIF China cash operating cost, SG&A, maintenance capex and financial expenses.

All-In Sustaining Cost Better than Target: Ability to Generate Positive Cash Flow Across Lithium Price Cycles

One of ICMM's Best Safety Records

(1) International Council on Mining and Metals ("ICMM") metric of total recorded cases per worked hours. Data as of March 31, 2025

Strengthening Health, Safety & Environment Strategy

Employee Engagement & Safety Leadership

Workshops & Safety Culture Development

Without a Lost Time Injury (LTI)

1Q25 TRFIR(1)

Operational Excellence Driven by a Culture of Safety and Processes

We have been recurringly achieving

unprecedented recovery levels :

Over 70% at plant level

Global recoveries well into 60%

Recovery efficiency achieved in our Greentech Plant, is a result of implementing the recycling for the lithium in the tailings:

We reprocess the dry stacked ultra fines from tailings and recover additional lithium units

These are incorporated into the final high-grade product, increasing the overall production volumes

We Mastered The DMS Technology for Lithium Processing: Greater Efficiency and Reliability in 2025

1Q25 Financial Highlights: Significant EBITDA Growth and Margins

Revenue

$48 mm

Increase YoY

28%

COGS

$34 mm

Increase YoY

19%

Cash Gross Margin

35%

EBITDA/ Adj. EBITDA

$10 mm/$11 mm

Increase YoY

224% /113%

EBITDA/ Adj. EBITDA Margin

21%/24%

Cash Position

$31 mm

Net Income

$5 mm

$0.04 per share

Note: Cash gross margin is revenue (excluding prior period provisional price adjustments) net of cost of products sold (excluding D&A), expressed as a percentage of reported revenues. Adjusted EBITDA is a measure of the Company's recurring core earnings profile. It is calculated as revenue minus cash operating and selling expenses. The calculation excludes non-cash items such as depreciation and amortization (D&A) and stock-based compensation expenses. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue for the period.

Cash Gross Profit 1Q25

EBITDA 1Q25

($34.2)

$ Millions $ Millions

Cash Gross Margin: 35%

Adjusted EBITDA Margin: 24%

$3.2

$16.7

$47.7

$10.0

$11.4

$1.4

Net Revenue Cost of Good Sold D&A Cash Gross Profit Reported EBITDA Stock Compensation Adjusted EBITDA

Discipline in Execution Driving Strong Margins

Decreased Short-Term Trade Finance Facilities

Decrease in Interest per Ton in 1Q25

(1)

$101

-42%

$90

15.3%

-15%

$59

$60

$51

8.7%

8.6%

9.9%

9.7%

Export Prepayment Trade Finance Balance (US$ M)

Interest (Accrued) and Average Interest Rates (US$ M)

Short-Term Interest per Ton

$2,088

$1,801

$1,434

$1,134

$1,149

$613

$9/t

$21 /t

$17 /t

$19 /t

$34 /t

$36 /t

Interest % per Year

FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025

(1): Interest per tonne is calculated by dividing the interest paid on short-term debt during the quarter by the total production volume.

FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025

Decrease in Trade Finance Short-Term Debt As a Result of Continuous Working Capital Efficiency

FinancGiaulidSatantceemPernotvsidReedported

Guidance Provided

FY 2025 E

FY 2026 E

Short-Term Debt Long-Term Debt Interest/ton

Non-Disbursed BNDES Financing

$87/t

$75/t

$100,000

$70/t

$100,000

$59,631

$114,090

$51,111

$114,210

$50,000

$113,999

$39/t

$109,260

$50,000

2420024kt

61Q82k5t

2270025kEt

5220026kEt

Further Decreased Interest Expenses Towards Achieving 2025 Targets

Production Expansion to be Financed with Lower-Cost Subsidized Debt from BNDES

Monthly Debt Repayment (Millions)

Potential to Lengthen with Offtake Prepayments

$100.3

$100.0

$16.2

$20.1

$8.8

$0.0 $0.0 $0.0

$5.0

$0.0 $0.0

$0.1 $0.1 $0.1 $0.1 $0.2 $0.2 $0.3 $0.2 $0.1 $0.2 $0.2

May-28

2025 2026

Ability to Receive Prepayments for Offtake Agreements Enables Sigma to Lengthen Its Debt Maturity Profile

Cash Flow Bridge

Description

Customer Receivables:

Portion of Customer

1 Receivables was Settled in 2Q25 due to Quarter Cutoff Timing

Increase in 1Q25 Trade Receivables Due to Quarter-End Cutoff Timing

($7)

Cash Proforma from Operations:

$24 M

Cash Proforma from Operations Less SG&A:

$17 M

$32

$46

$30

$15

($12)

($23)

$15

Cash from Financing Activities:

Repaid $10.0M in Short-Term Trade Finance Debt

($5)

Cash Dec 2024 Payments from

Customers

Payments for Operating Costs

SG&A Capex Finance Expenses & Debt Repayment

Cash end of 1Q25

*: Cash Proforma from operations is calculated as cash payments from customers, including 1Q25 customer receivables, less cash payments for operational cost.

Proven Ability to Generate Operational Cash Flow

Infrastructure

Greentech Plant

Construction Progress

Water Pipelines

Power Substation

Moving High Voltage Power Lines

Sewage Water Treatment Plant

Support Infrastructure

Pre-Strip Mine

Mine Infrastructure

Earthworks and Foundations

1Q25

Water Drainage/Recycling System

Civil Foundations

2025

Plant Equipment Assembly

Testing & Commissioning Plant

In Place

2026

In Place

Existing Infrastructure and Mining Operations of Plant 1 will Expedite the Construction of Plant 2

Highly Attractive Development Loan for Project Financing

Financial Committment:

BRL 487 mm

99% Capex

First loan disbursement pending bank guarantee. Will reimburse capex spent since 1Q24

Terms:

Maturity: 16 Years Grace Period: 18 Months

Fixed Interest Rate: USD of

(1)

~2.5%

No Required Assets in Collateral

Opportunity For Additional Funding of Expansions:

Enabling Funding Opportunities for Future

Created Long-Term Partnership for Development Funding

Tailings Up-Cycling

Phase 3

Lithium Intermediates

Capacity Growth

Plant 2 Fully Financed by BNDES Loan

Project Capex Intensity Comparison

Sigma's P2 Leads in Capex Intensity

Bubble size = capex efficiency ratio (USD millions) / production capacity (ktpa)

Capex intensity ratio = capex (USD millions) / production capacity (ktpa)

Australia

1000

900

800

Capex (USD Millions)

700

600

500

400

300

200

100

Project 12

Project 2

Project 4

Project 5

Project 1

Project 9

Project 3

Project 7

Project 10

Project 11

Project 8

Project 6

0 200 400 600 800 1000 1200

Production Capacity (ktpa)

Sigma Lithium

Project 1

Project 2

Project 3

Project 4

Project 5

Project 6

Project 7

Project 8

Project 9

Project 10

Project 11

Project 12

0.40

0.54

0.62

0.76

0.77

0.89

1.10

1.18

1.48

2.05

2.33

Brazil

Canada

2.98

Source: Company Reports

Among the Lowest Capex-Intensive Projects in the World

Sigma is the incremental supplier to meet growing demand

1Q25 Unit Operating Cash Cost Bridge

Description

~10% Higher Q/Q Cost Plant Gate as a Result of Lower Production Volumes

Includes Operating Personal Stock-Based Compensation, Effective 2025

CIF Cost 8% Lower than Target of $500/t

Freight is Recognized in COGS Upon Delivery. Accordingly, 1Q25 COGS Includes Ocean Freight for Shipments from the Prior Quarter Delivered During 1Q25

COGS = (+) D&A (+) Inventory & Other Adjustments (+) Cost Incurred for Delivery Services

Cost Plant

Freight &

Cost FOB

Royalties

Ocean

Cost CIF

D&A

Cost

Inventory & COGS

Gate

Port

Brazil

Freight

China

Incurred for

Others

Delivery

Services

$23

$46

$36

$22

$556

$458

$349

$400

$51

$28

Reported Cash Cost Better than Target: Achieved "Economies of Scale" from

Increased Production Volumes

Scale + Low Costs

Price Cycle Resilience

Traceability + Low Costs

Competitive Advantage to Africa

Scale + Traceability

Sells to Largest Supply Chains

Management Speed of

Execution

Builds, Commissions on Time, on Budget

Location in Developed Mining Province

Vast Availability of

Skilled Workers

Low Construction Capex

Zero External Capex Low Energy Costs Low Labor Costs

Low Equipment Costs

We Successfully Solved The "Puzzle of Competitive Advantage"

Consolidated Statements of Income (Loss)

Three Months Ended March

31, 2025

Three Months Ended March

31, 2024

($ 000s)

Revenue

47,673

37,202

Cost of goods sold & distribution

(34,217)

(28,642)

Gross profit

13,456

8,560

Sales expense

(205)

(861)

G&A expense

(4,759)

(4,363)

Stock-based compensation

(805)

(2,266)

ESG and other operating expenses

(896)

(1,400)

EBIT

6,791

(329)

Financial income and (expenses), net

(5,447)

(4,190)

Non-cash FX & other income (expenses), net

8,384

(2,860)

Income (loss) before taxes

9,728

(7,380)

Income taxes and social contribution

(5,000)

471

Net Income (loss) for the period

4,728

(6,909)

Weighted average number of common shares outstanding

111,271

110,752

Earnings per share

$0.04

($0.06)

Consolidated Statements of Income (Loss) Summary

Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024

EBITDA

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

($ 000s)

Revenues

47,673

37,202

Cost of goods sold & distribution

(34,217)

(28,642)

Gross Profit

13,456

8,560

Sales expenses

(205)

(861)

G&A expense

(4,759)

(4,363)

Stock-based compensation

(805)

(2,266)

ESG & other operating expenses, net

(896)

(1,400)

EBIT

6,791

(329)

Depreciation & Amortization

3,219

3,419

EBITDA

10,010

3,089

EBITDA (%)

21%

Stock-based compensation

1,416

2,266

Adjusted Cash EBITDA

11,426

5,355

Adjusted EBITDA (%)

24%

14%

EBITDA Bridge

Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024

Disclaimer

Sigma Lithium Corporation published this content on May 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 15, 2025 at 02:36 UTC.