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SIGMA LITHIUM ANNOUNCES 2Q 24 RESULTS: REDUCED CASH COSTS BY 22%, INCREASED FOB MARGINS TO 54% ACHIEVING GUIDANCE AHEAD OF SCHEDULE

Published: 2024-08-16 08:30:00 ET

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2Q OPERATIONAL HIGHLIGHTS (USD)

Sigma Lithium achieved "all-around" operational efficiency in 2Q24, reaching metrics of larger seasoned producers:
- Further increased cadence of volumes sold of Quintuple Zero High Purity Lithium Concentrate ("5.0 Green Lithium")
- Achieved sales volumes of 52,572t in 2Q24
The Company expects total production of 5.0 Green Lithium in 3Q 24 of 60,000t
Continues to increase sales price premium relative to peer lithium producers:
- Maintained average of 10% price premiumization year to date
Established track record of delivering high quality lithium materials to leading supply chains, increasing commercial assertiveness and flexibility
- Diversified commercial relationships by selling and engaging with new South Korean industrial, trading and battery manufacturing companies
- Sigma's 11th shipment sold to a large Japanese large industrial conglomerate
Implemented culture of excellence and high standards, driving overall productivity and top global indexes of employee safety & health:
- 1 Year: ZERO fatalities, ZERO acidentes
- 2nd place amongst world's largest metals and mining companies (ICMM ranking)

2Q FINANCIAL HIGHLIGHTS (USD)

Revenues from volumes of lithium concentrate sold in 2Q totaled $54.4 million
- Reported revenue totaled $45.9 million
Achieved cost guidance ahead of schedule: 22% reduction in unit cash costs year to date, amongst the lowest in the sector
- CIF equivalent (1) cash costs of $515/t / (2024 Guidance: $510/t)
- FOB cash costs of $424/t / (2024 Guidance: $420/t)
- Cash costs at industrial plant gate averaging $364/t / (2024 Guidance: $370/t)
Robust adjusted cash EBITDA margins of 29%, up from 16% in 1Q 24
Consistent operational performance and reliability of monthly shipments results in robust access to liquidity via export-linked credit lines at attractive interest rates:
- Comfortable liquidity position with cash balances as of August 14 of $99 million
- Decreased cost of debt linked to export financing:
  - From 15% per year in Jan. 24 to

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.