Slides
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: SGML : SGML : S2GM34 First Quarter 2025 Earnings Release Presentation May 2025
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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 jurisdiction, including but not limited to Canada and the United States. The contents of this presentation should not be interpreted as financial, investment, tax, legal, or accounting advice. Readers should consult their own advisors. The contents of this presentation have not been approved or disapproved by any securities commission or regulatory authority in United States or Canada or any other jurisdiction, and Sigma expressly disclaims any responsibility to make disclosures or any filings with any securities commission or regulatory authority, beyond that imposed by applicable laws. Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of applicable United States securities laws (collectively referred to herein as “Forward Looking Information”). All such Forward Looking Information is made under the provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, may be Forward Looking Information, including, but not limited to, mineral resource or mineral reserve estimates (which reflect a prediction of mineralization that would be realized by development). When used in this presentation, such statements generally use words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date such statements were made. Forward Looking Information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and does not necessarily provide accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the Forward-Looking Information, which is based upon what management believes are reasonable assumptions, and there can be no assurance that actual results will be consistent with the Forward-Looking Information. In particular (but without limitation), this presentation contains Forward Looking Information with respect to the following matters: the lithium sector and long-term outlook thereof; the growth of European electric vehicle (“EV”) demand; anticipated trends relating to lithium structural supply tightness; development, construction and large scale production at Sigma’s Grota do Cirilo Lithium Project (the “Project”) and the phases and timing thereof; sustainability and environmental initiatives and the continued success thereof; processing production costs and other cost estimates; the quality and grades of lithium concentrates; publishing of additional pre-feasibility and feasibility studies; expansion of mineral resources and mineral reserves at the Project; intentions to fund construction using debt from commercial and development banks; anticipated start-up costs at the Project; relationships with engineering and construction companies; anticipated risk mitigation and execution plans; the adherence by Sigma to global environmental guidance; and economic performance, financial projections and requirements, and other expectations of Sigma. In addition, documents referred to in this presentation and filed publicly by Sigma may contain further Forward-Looking Information with respect to the following matters: anticipated decision making with respect to the Project; capital expenditure programs; estimates of mineral resources and mineral reserves; development of mineral resources and mineral reserves; government regulation of mining operations and treatment under governmental and taxation regimes; the future price of commodities, including lithium; the realization of mineral resource and mineral reserve estimates, including whether mineral resources will ever be developed into mineral reserves; the timing and amount of future production; entering into binding offtake arrangements; currency exchange and interest rates; expected outcome and timing of environmental surveys and permit applications and other environmental matters; Sigma’s ability to raise capital and obtain project financing; expected expenditures to be made by Sigma on its properties; successful operations and the timing, cost, quantity, capacity and quality of production; capital costs, operating costs and sustaining capital requirements, including the cost of construction of the processing plant for the Project; competitive conditions and anticipated trends post-COVID-19 pandemic and the ongoing uncertainties and effects in respect of the COVID-19 pandemic. Forward Looking Information does not take into account the effect of transactions or other items announced or occurring after the statements are made. Forward Looking Information is based upon a number of expectations and assumptions and is subject to a number of risks and uncertainties, many of which are beyond Sigma’s control, that could cause actual results to differ materially from those disclosed in or implied by such Forward Looking Information. With respect to the Forward Looking Information, Sigma has made assumptions regarding, among other things: General economic and political conditions; Stable and supportive legislative, regulatory and community environment in the jurisdictions where Sigma operates; Stability and inflation of the Brazilian Real, including any foreign exchange or capital controls which may be enacted in respect thereof, and the effect of current or any additional regulations on Sigma’s operations; Anticipated trends and effects in respect of the COVID-19 pandemic and post-pandemic; Demand for lithium, including that such demand is supported by growth in the EV market; Estimates of, and changes to, the market prices for lithium; The impact of increasing competition in the lithium business and Sigma’s competitive position in the industry; Sigma’s market position and future financial and operating performance; Sigma’s estimates of mineral resources and mineral reserves, including whether mineral resources will ever be developed into mineral reserves; Anticipated timing and results of exploration, development and construction activities; Reliability of technical data; Sigma’s ability to develop and achieve production at the Project; Sigma’s ability to obtain financing on satisfactory terms to develop the Project; Sigma’s ability to obtain and maintain mining, exploration, environmental and other permits, authorizations and approvals for the Project; The timing and possible outcome of regulatory and permitting matters for the Project; The exploration, development, construction and operational costs for the Project; The accuracy of budget, construction and operations estimates for the Project; Successful negotiation of definitive commercial agreements, including off-take agreements for the Project; Sigma’s ability to operate in a safe and effective manner. Although management believes that the assumptions and expectations reflected in such Forward-Looking Information are reasonable, there can be no assurance that these assumptions and expectations will prove to be correct. Since Forward Looking Information inherently involves risks and uncertainties, undue reliance should not be placed on such information. Sigma’s actual results could differ materially from those anticipated in any Forward-Looking Information as a result of various known and unknown risk factors, including (but not limited to) the risk factors referred to under the heading “Risk Factors” in the most recent amended and restated annual information form of Sigma. Such risks relate to, but are not limited to, the following: Sigma may not develop the Project into a commercial mining operation; There can be no assurance that market prices for lithium will remain at current levels or that such prices will improve; The market for EVs and other large format batteries currently has limited market share and no assurances can be given for the rate at which this market will develop, if at all, which could affect the success of Sigma and its ability to develop lithium operations; Changes in technology or other developments could result in preferences for substitute products; New production of lithium hydroxide or lithium carbonate from current or new competitors in the lithium markets could adversely affect prices; The Project is at development stage and Sigma’s ability to succeed in progressing through development to commercial operations will depend on a number of factors, some of which may be outside its control; Sigma’s financial condition, operations and results of any future operations are subject to political, economic, social, regulatory and geographic risks of doing business in Brazil; Violations of anti-corruption, anti-bribery, anti-money laundering and economic sanctions laws and regulations could materially adversely affect Sigma’s business, reputation, results of any future operations and financial condition; Sigma is subject to regulatory frameworks applicable to the Brazilian mining industry which could be subject to further change, as well as government approval and permitting requirements, which may result in limitations on Sigma’s business and activities; Sigma’s operations are subject to numerous environmental laws and regulations and expose Sigma to environmental compliance risks, which may result in significant costs and have the potential to reduce the profitability of operations; Physical climate change events and the trend toward more stringent regulations aimed at reducing the effects of climate change could have an adverse effect on Sigma’s business and future operations; As Sigma does not have any experience in the construction and operation of a mine, processing plants and related infrastructure, it is more difficult to evaluate Sigma’s prospects, and Sigma’s future success is more uncertain than if it had a more proven history of developing a mine; Sigma’s future production estimates are based on existing mine plans and other assumptions which change from time to time. No assurance can be given that such estimates will be achieved; Sigma may experience unexpected costs and cost overruns, problems and delays during construction, development, mine start-up and operations for reasons outside of Sigma’s control, which have the potential to materially affect its ability to fully fund required expenditures and/or production or, alternatively, may require Sigma to consider less attractive financing solutions; Sigma’s capital and operating cost estimates may vary from actual costs and revenues for reasons outside of Sigma’s control; Sigma’s operations are subject to the high degree of risk normally incidental to the exploration for, and the development and operation of, mineral properties; Insurance may not be available to insure against all such risks, or the costs of such insurance may be uneconomic. Losses from uninsured and underinsured losses have the potential to materially affect Sigma’s financial position and prospects; Sigma is subject to risks associated with securing title and property interests; Sigma is subject to strong competition in Brazil and in the global mining industry; Sigma may become subject to government orders, investigations, inquiries or other proceedings (including civil claims) relating to health and safety matters, which could result in consequences material to its business and operations; Sigma’s mineral resource and mineral reserve estimates are estimates only and no assurance can be given that any particular level of recovery of minerals will in fact be realized or that identified mineral resources or mineral reserves will ever qualify as a commercially mineable (or viable) deposit; Sigma’s operations and the development of its projects may be adversely affected if it is unable to maintain positive community relations; Sigma is exposed to risks associated with doing business with counterparties, which may impact Sigma’s operations and financial condition; Any limitation on the transfer of cash or other assets between Sigma and Sigma’s subsidiaries, or among such entities, could restrict Sigma’s ability to fund its operations efficiently; Sigma is subject (…)
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Disclaimer (…) 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 www.sedar.com. and on EDGAR at 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 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.
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Resilient to Lithium Market Price Cycles • Low-Cost Producer “All-In Sustaining Costs” Leading Global Lithium Producer: Operational Excellence, Competitive Advantage of Low Costs & 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 Large Scale Traceability Low Cost Strategically Well Positioned • Industrializes Lithium Oxide Concentrate: Higher Margins Than Refining • Plant and Mine Located in Brazil: Established Industrial and Mining Jurisdiction, Strong Rule of Law
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Key Accomplishment of 1Q25: Increased Overall Resilience of the Business 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
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Outperformed Operational Targets in 1Q25, Positive Trajectory From 1Q24 QoQ: Increased EBITDA 4Q24 1Q25 Production Sales EBITDA 77kt 74kt $9.7 M $10.7 M 68kt 62kt +3% -16% YoY: Significantly Upward Trajectory 1Q251Q24 Production Sales EBITDA $10.7 M 68kt 62kt $3.1 M 54kt 53kt +223% +17%
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Production Levels Increase of 28% YoY Achieved in 1Q25 Reinforces FY2025 Production Guidance 54kt 49kt 60kt 77kt 68kt 67kt 53kt 53kt 57kt 74kt 62kt 270kt 216kt 196kt 240kt 308kt 273kt 1Q24 2Q24 3Q24 4Q24 1Q25 2025 Guidance Production Sales Annualized Production 100% Production Not Tied to Offtakes = Potential Cash Generation From Prepayments, Lower Cost of Debt Production Volume Unlocking Financing 80kt (10kt LCE) 80kt (10kt LCE) 80kt (10kt LCE) 30kt (10kt LCE)
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USD/Tonne Maintained Low-Cost Leading Position on an All-In Basis: Demonstrating Operational Strength Throughout Lithium Price Cycles (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. Plant Gate Cost CIF Cash Cost with Royalties All-In Sustaining Costs USD/Tonne (2)(1) USD/Tonne (3) $397 $364 $395 $318 $349 1Q24 2Q24 3Q24 4Q24 1Q25 -12% $551 $515 $513 $427 $458 1Q24 2Q24 3Q24 4Q24 1Q25 $775 $779 $761 $592 $622 1Q24 2Q24 3Q24 4Q24 1Q25 -17% -20%
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Sigma Lithium Delivered on the Challenge Achieved Low-Cost Production, Without Sacrificing Sustainability and Ethical Sourcing Source: Benchmark Minerals, 4Q24 quarterly report - 200 400 600 800 1,000 1,200 1,400 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 CIF China U$/t Cost of Lithium Concentrate Spodumene Concentrate, ktonne Hard-Rock C3 cost-curve
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All-In Sustaining Cost Better than Target: Ability to Generate Positive Cash Flow Across Lithium Price Cycles (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. Reported 1Q25 $500 $427 $35 $35 $55 $30 $70 $35 $660 $527 AISC 25E AISC 26E 68,308/Q = 273,200t/Y 520,000t/Y270,000t/Y Forecast 25E and 26E $458 $11 $72 $75 $6 $622 1Q25 CIF China w/ Royalties Maintenance Capex SG&A Financial Expenses Other Expenses AISC 1Q25 Financial Expenses SG&A Maintenance Capex -6%
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Operational Excellence Driven by a Culture of Safety and Processes (1) International Council on Mining and Metals (“ICMM”) metric of total recorded cases per worked hours. Data as of March 31, 2025 700+ Consecutive Days Without a Lost Time Injury (LTI) 1.23 1Q25 TRFIR One of ICMM’s Best Safety Records (1) ▪ Strengthening Health, Safety & Environment Strategy ▪ Employee Engagement & Safety Leadership ▪ Workshops & Safety Culture Development
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We Mastered The DMS Technology for Lithium Processing: Greater Efficiency and Reliability in 2025 ▪ 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
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Financial Performance
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1Q25 Financial Highlights: Significant EBITDA Growth and Margins 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 Margin 35% Cash Position $31 mm Revenue $48 mm COGS $34 mm Increase YoY 19% Increase YoY 28% EBITDA/ Adj. EBITDA Margin 21%/24% EBITDA/ Adj. EBITDA $10 mm/$11 mm Net Income $5 mm $0.04 per share Increase YoY 224% /113%
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Cash Gross Profit 1Q25 EBITDA 1Q25 Discipline in Execution Driving Strong Margins $ Millions $ Millions $10.0 $1.4 $11.4 Reported EBITDA Stock Compensation Adjusted EBITDA Adjusted EBITDA Margin: 24% $47.7 $3.2 $16.7 ($34.2) Net Revenue Cost of Good Sold D&A Cash Gross Profit Cash Gross Margin: 35%
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Decrease in Trade Finance Short-Term Debt As a Result of Continuous Working Capital Efficiency (1): Interest per tonne is calculated by dividing the interest paid on short-term debt during the quarter by the total production volume. $9 $90 $101 $59 $60 $51 15.3% 9.9% 9.7% 8.6% 8.7% 8.7% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% $- $20 $40 $60 $80 $100 $120 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Interest % per Year Export Prepayment Trade Finance Balance (US$ M) $613 $1,134 $1,801 $2,088 $1,434 $1,149 $9/t $21 /t $34 /t $36 /t $19 /t $17 /t $- $10 $20 $30 $40 $50 $60 $70 $80 $- $500 $1,000 $1,500 $2,000 $2,500 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Short-Term Interest per Ton Interest (Accrued) and Average Interest Rates (US$ M) Decreased Short-Term Trade Finance Facilities Decrease in Interest per Ton in 1Q25 -42% -15% (1)
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$100,000 Further Decreased Interest Expenses Towards Achieving 2025 Targets Production Expansion to be Financed with Lower-Cost Subsidized Debt from BNDES $59,631 $51,111 $50,000 $50,000 $114,090 $114,210 $113,999 $109,260 $87/t $75/t $70/t $39/t $0/t $20/t $40/t $60/t $80/t $100/t $120/t $- $50,000 $100,000 $150,000 $200,000 2024 1Q25 2025E 2026E Short-Term Debt Long-Term Debt Interest/ton 240kt 520kt270kt68kt $100,000 Guidance Provided FY 2025 E FY 2026 E Guidance Provided Non-Disbursed BNDES Financing Financial Statements Reported Guidance Provided
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Ability to Receive Prepayments for Offtake Agreements Enables Sigma to Lengthen Its Debt Maturity Profile Monthly Debt Repayment (Millions) $0.0 $0.0 $0.0 $16.2 $8.8 $0.0 $0.0 $0.0 $5.0 $0.0 $0.0 $20.1 $0.1 $0.1 $0.1 $0.1 $0.2 $0.2 $0.3 $0.2 $0.1 $0.2 $0.2 $100.3 Potential to Lengthen with Offtake Prepayments May-28 $100.0 2025 2026
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Proven Ability to Generate Operational Cash Flow *: Cash Proforma from operations is calculated as cash payments from customers, including 1Q25 customer receivables, less cash p ayments for operational cost. Cash Flow Bridge Description 1 Customer Receivables: ▪ Portion of Customer Receivables was Settled in 2Q25 due to Quarter Cutoff Timing 2 Cash from Financing Activities: ▪ Repaid $10.0M in Short- Term Trade Finance Debt $46 $32 $30 ($23) ($7) ($5) ($12) Cash Dec 2024 Payments from Customers Payments for Operating Costs SG&A Capex Finance Expenses & Debt Repayment Cash end of 1Q25 $15 $15 1 2 Cash Proforma from Operations: $24 M Cash Proforma from Operations Less SG&A: $17 M Increase in 1Q25 Trade Receivables Due to Quarter-End Cutoff Timing
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Update on Expansion
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Greentech Plant Infrastructure Existing Infrastructure and Mining Operations of Plant 1 will Expedite the Construction of Plant 2 Construction Progress P1 P2 Pre-Strip Mine 2026 Mine Infrastructure 2026 Water Pipelines In Place Power Substation In Place Support Infrastructure In Place Moving High Voltage Power Lines In Place Sewage Water Treatment Plant In Place Plant Equipment Assembly Civil Foundations Water Drainage/Recycling System Earthworks and Foundations In Place Testing & Commissioning Plant 2025 1Q25
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Plant 2 Fully Financed by BNDES Loan 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 Enabling Funding Opportunities for Future Capacity Growth (1) Terms: Maturity: 16 Years Grace Period: 18 Months Fixed Interest Rate: USD of ~2.5% No Required Assets in Collateral Created Long-Term Partnership for Development Funding Opportunity For Additional Funding of Expansions: - Tailings Up-Cycling - Phase 3 - Lithium Intermediates %
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Among the Lowest Capex-Intensive Projects in the World Sigma is the incremental supplier to meet growing demand Source: Company Reports Sigma’s P2 Leads in Capex IntensityProject Capex Intensity Comparison 0.40 0.54 0.62 0.76 0.77 0.89 0.89 1.10 1.18 1.48 2.05 2.33 2.98 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 Capex intensity ratio = capex (USD millions) / production capacity ( ktpa) Project 9 Project 7 Project 2 Project 1 Project 3 Project 10 Project 5 Project 6 Project 12 Project 8 Project 11 Project 4 0 100 200 300 400 500 600 700 800 900 1000 0 200 400 600 800 1000 1200 Capex (USD Millions) Production Capacity (ktpa) Bubble size = capex efficiency ratio (USD millions) / production capacity (ktpa) Australia Brazil Canada
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Q&A
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Appendix
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Description1Q25 Unit Operating Cash Cost Bridge Reported Cash Cost Better than Target: Achieved “Economies of Scale” from Increased Production Volumes (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 Freight is Recognized in COGS Upon Delivery. Accordingly, 1Q25 COGS Includes Ocean Freight for Shipments from the Prior Quarter Delivered During 1Q25 2 CIF Cost 8% Lower than Target of $500/t 1 ~10% Higher Q/Q Cost Plant Gate as a Result of Lower Production Volumes Includes Operating Personal Stock-Based Compensation, Effective 2025 $349 $51 $400 $22 $36 $458 $46 $23 $28 $556 Cost Plant Gate Freight & Port Cost FOB Brazil Royalties Ocean Freight Cost CIF China D&A Cost Incurred for Delivery Services Inventory & Others COGS 1 2 4 3 4 COGS = (+) D&A (+) Inventory & Other Adjustments (+) Cost Incurred for Delivery Services
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We Successfully Solved The “Puzzle of Competitive Advantage” Scale + Low Costs = Price Cycle Resilience Traceability + Low Costs = Competitive Advantage to Africa Scale + Traceability = Sells to Largest Supply Chains Management Speed of Execution = Builds, Commissions on Time, on Budget Location in Developed Mining Province = Vast Availability of Skilled Workers Low Construction Capex = Zero External Capex Low Energy Costs Low Labor Costs Low Equipment Costs
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Appendix Financial Statements
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Consolidated Statements of Income (Loss) Summary Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 Consolidated Statements of Income (Loss) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 ($ 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 ($0.06)
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EBITDA Bridge Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 EBITDA Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 ($ 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% 8% Stock-based compensation 1,416 2,266 Adjusted Cash EBITDA 11,426 5,355 Adjusted EBITDA (%) 24% 14%
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Consolidated Statements of Financial Position Summary Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 Consolidated Statements of Financial Position As of March 31, 2025 As of December 31, 2024 ($ 000s) Assets Cash and cash equivalents 31,111 45,918 Trade accounts receivable 27,035 11,583 Inventories 21,232 16,140 Other current assets 21,208 19,129 Total current assets 100,585 92,771 Property, plant and equipment 152,533 141,025 Other non-current assets 98,815 93,322 Total Assets 351,934 327,118 Liabilities & Shareholder Equity Financing and export prepayment 55,786 61,596 Suppliers & accounts payable 41,289 32,627 Other current liabilities 20,248 14,548 Total current liabilities 117,323 108,771 Financing and export prepayment 112,880 112,003 Other non-current liabilities 14,736 14,004 Total non-current liabilities 127,617 126,007 Total shareholders' equity 106,994 92,340 Total Liabilities & Shareholders' Equity 351,934 327,118
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Consolidated Statements of Cash Flow Summary Unaudited Condensed Interim Consolidated Financial Statements for the Three-Month Periods ended March 31, 2025 and 2024 Consolidated Statements of Cash Flows Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 ($ 000s) Operating Activities Net income (loss) for the period 4,728 (6,909) Adjustments, including FX movements 3,203 15,198 Interest payment on loans and leases (1,149) (11,392) Adjustments to income (loss) for the period 2,054 3,806 Change in working capital (8,968) (8,369) Net Cash from Operating Activities (2,186) (11,472) Investing Activities Purchase of PPE (3,454) (3,976) Addition to exploration and evaluation assets (296) (1,748) Other (1,043) (40) Net Cash from Investing Activities (4,793) (5,764) Financing Activities Proceeds of loans, net (10,193) 79,273 Other (579) (663) Net Cash from Financing Activities (10,772) 78,610 Effect of FX 2,944 (1,767) Net (decrease) increase in cash (14,807) 59,607 Cash & Equivalents, Beg of Period 45,918 48,584 Cash & Equivalents, End of Period 31,111 108,191