Sigma Lithium (SGML) Nordic Funds & Mines Conference 2024 summary

Operational performance and growth plans

• Achieved status as the 10th largest lithium producer and 5th largest hard rock lithium site globally, with rapid transition from project to production in two years.

• Maintains the second lowest cost structure among hard rock lithium mines, with ongoing debottlenecking and incremental improvements in phase I.

• Fully funded for phase II expansion through subsidized debt from the Brazilian government, ensuring 25 years of resource longevity and operational consistency.

• Plans for further expansion with phase III and IV, leveraging a simple, capital-efficient plant design and strong government partnership.

• Consistent shipment cadence targeted at 22,000 tons every 31–35 days, with operational ramp-up among the industry's best.

Sustainability and product quality

• Delivers zero-carbon lithium concentrate with no tailings dams, no drinking water use, no toxic chemicals, and no coal power, supported by a green energy grid.

• Five-year hydroelectric power contract at $0.025/kWh, contributing to cost efficiency and sustainability leadership.

• Dense media separation process enables rapid, low-cost plant setup and eliminates need for flotation or tailings dams.

• Product purity (low iron, low mica) provides operational efficiencies for customers, supporting demand even in market downturns.

• ESG focus aligns with electric vehicle market trends, driving additional demand.

Market dynamics and financial outlook

• Lithium demand remains robust, with energy storage growing 50% year over year and batteries/EVs up 21% year over year through July.

• Even in bearish scenarios, global demand requires multiple new large-scale producers annually.

• Cost structure allows sustained profitability even at low lithium prices, with free cash flow potential rising significantly as production doubles.

• National Development Bank of Brazil provides 16-year financing at 2.5% interest, covering 99% of CapEx and supporting future expansions.

• Cash flow model enables self-funded growth, with potential to exceed 100,000 tons LCE by 2026–27.