Sigma Lithium Marked Its First Production Year And Industrial Greentech Plant Ramp-Up, Detailing Plans To Expand To ~125,000 t/Year LCE By 2026, Showcasing Capital Investments For Increased Production Efficiency; Highlights $420M EBITDA Target For 2025; Projecting An Adjusted Cash EBITDA Of Up To $700M By 2027; Recognized By Nasdaq As Climate Pioneer For Reaching Net Zero Targets 25 Years Ahead Of Industry Standards

Benzinga · 09/27 20:21

- Investor Day

 

 

  • On 24 September, Sigma Lithium hosted its 2024 Investor Day, marking the first year of production and its record-setting ramp-up of its industrial Greentech Plant.
  • The Company outlined its capital-efficient construction plans to reach approximately 125,000 t/y LCE of industrial capacity by 2026, cementing Sigma as a lasting industry leader.
    • Projections are underpinned by higher production from two new industrial lines, a first production expansion with capacity of 34,000t LCE /250,000t of lithium concentrate, commissioning in 2025 and our phase 3 expansion with capacity of 54,000t LCE /400,000t of lithium concentrate commissioning in 2026.
    • These two additional production lines are extensions of the current Greentech plant in operation, leveraging upon existing infrastructure installed at the Sigma Lithium industrial park.
    • Growth strategy is predicated on maximizing Sigma's unique competitive cost position through economies of scale, subsidized financing, and an unwavering commitment to maintaining its carbon neutrality and social inclusion initiatives.
  • Presented the expected results of capex investments already made at its Greentech plant this year to further increase production by optimizing its installed capacity. Cumulative incremental initiatives target a boost to production of >10%.
    • Incorporation of a reprocessing screening circuit to monetize ~200,000t of inventoried processed ore at 1.5% Li2O, delivering ~22,000t of lithium concentrate.
    • Pre-screening steps to increase production yields by an additional 10%.
  • Leveraging this greater scale and robust margin profile, Sigma expects to reach an adjusted cash EBITDA(1) of $420mm by 2025 and nearly $700mm by 2027 (based on the commissioned portion of the installed production capacity for each year, with price forecast based on consensus analyst estimates).
  • Detailed the maiden subsidized financing commitment from, and lasting financing partnership forged with, the Brazilian National Development Bank (BNDES) to support the Company's capital investments to industrialize carbon neutral lithium materials in Brazil.
    • Provided a long-term financial plan based on a strengthened balance sheet, with attractive additional low-interest funding alternatives to provide flexibility in current market conditions.
  • Industrial processing growth is supported by the Company's large mineral reserves and resources, comprising the world's fifth largest mineral industrial complex in operations.
    • Sigma's low-cost operational mining opportunities include an extension to mine 2, creating a large, 45mmt, mining pit, and the joint development of mines 3 and 4 to create a substantial consolidated 60mmt mining site.

UNITED NATIONS CLIMATE WEEK IN NEW YORK

  • Sigma Lithium was once again invited by Nasdaq to ring the closing bell during the opening day of United Nations Climate Week in New York on September 23.
    • Nasdaq recognized the Company for reaching its Net Zero targets, 25 years ahead of the industry, demonstrating its pioneer climate action leadership in lithium and battery materials.
  • Sigma Lithium CEO was invited to participate in the "Building the Future Summit" in recognition of the Company's net zero achievement and longstanding commitment to sustainability.
  • The Company's climate leadership was demonstrated by the participation of its senior executives in several key events including the United Nations Energy Commission's SDG7 Summit, The United Nation Global Pact for Humanity, Columbia University's Brazil Climate Conference, Financial Times Climate Summit, and the World Climate Summit (previewing "Investment COP29")