Sigma Lithium Announces Significant Progress ON Construction, Completing 94% of Concrete and 76% of Steel FOR Greentech Plant, Commissioning to Be Initiating December 2022 Highlights of Construction Advancement During Third Quarter
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SIGMA LITHIUM ANNOUNCES SIGNIFICANT PROGRESS ON
CONSTRUCTION, COMPLETING 94% OF CONCRETE AND 76%
OF STEEL FOR GREENTECH PLANT, COMMISSIONING TO BE
INITIATING DECEMBER 2022
HIGHLIGHTS OF CONSTRUCTION ADVANCEMENT DURING THIRD QUARTER
• Sigma Lithium construction activities advanced significantly on multiple fronts during the
third quarter of 2022. Construction progress movie can be viewed here.
• Sigma Lithium remains on track to initiate commissioning of the crushing plant by year
end, planning to commence commercial production in April 2023:
o Expected to generate significant free cash flows in the second quarter of 2023, as
one of the lowest cost producers of battery grade lithium concentrate.
o Further benefits from extremely r obust current lithium pricing environment
throughout 2023.
▪ Most recent BMX auction achieved US$8, 575 per ton ne of 6 .0% lithium
concentrate, equivalent to US$7,805 per tonne of 5.5% lithium concentrate
on November 16.
• Mining activities are ongoing, with the opening of the Phase 1 mine:
o Completed ‘pre-stripping’ of the mine.
o Ongoing preparation for operational readiness and initiation of spodumene ore
mining this month.
• The Company has practically completed all civil construction of the Greentech Plant.
o Finalized over 99% of concrete works for the crushing module and 9 4% for the
dense media separation (“DMS”) module of the Greentech Plant.
o Finalized 98% of steel rebars for the Greentech Plant.
• The Company achieved significant progress on each area of mechanical assembly of the
Greentech Plant.
o Completed to 76% the assembly of the steel structure for the crushing module.
o Advanced significantly to 75% the assembly of the platework for the crushing
module.
o Advanced significantly to 75% the assembly of the conveyor belt of the crushing
module, while advancing as scheduled to 15% the assembly of the conveyor belt
linking the crushing module to the DMS module.
• The Company also made significant progress on the electrical sub-station, achieving 50%
completion.
• The construction of the piping system to bring the water from the Rio Jequitinhonha is
also significantly advanced as follows:
o 97% of pipe distribution completed.
o 75% of welding completed.
o 58% of pipe excavation completed.
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• A core element of the environmental sustainability of the Company is its conservation of
drinking water for its communities.
o As such, the Greentech Plant utilizes the “raw sewage grade water” from Rio
Jequitinhonha piped from 5km.
o The Company also utilizes this “raw sewage grade water” in its current
construction activities.
o The Inbound water for the Greentech Plant will be cleaned by a sewage treatment
station to make the “raw sewage grade water” suitable for industrial utilization
• Increased workforce on site to 750 professionals , as construction significantly
accelerated, entering the ramp up stage with concurrent areas in execution:
o Workforce expected to further increase to >1,000 as activity continues to
accelerate during the balance of 2022.
o Approximately 50% of the workforce will continue to be from the region, as part of
the homecoming program.
AT COP-27, SIGMA LITHIUM STRENGTHENED ITS LEADERSHIP IN ENVIRONMENTAL
& SOCIAL SUSTAINABILITY IN THE CRITICAL MINERALS SUPPLY CHAIN
• Sigma Lithium actively participated with its entire ESG leadership team at COP-27 in Egypt.
The team collectively participated in over 26 events, panels and workshops.
o Ana Cabral-Gardner, Sigma Lithium’s co-CEO was invited by UN-DESA to host at the
SDG Pavilion at COP27 a workshop where it presented a framework to apply UN -
SDGs to mining proje cts globally, in order to measure sustainability and overall
economic and social impact.
▪ The workshop applied Sigma Lithium’s ESG framework to demonstrate how
SDGs were utilized to assess the effectiveness of the deployment of equity
"impact investment” and debt funding.
o Ana Cabral-Gardner made the keynote presentation on “circular economy” at COP
Investments (hosted by the world climate fund), presenting the Sigma Lithium
strategy to become the first “ZERO TAILINGS” lithium producer by upcycling 100%
its “hazardous chemicals free” tailings from the Greentech Plant
o She also participated at the prestigious “Acceleration to Net Zero Series” of
McKinsey & Co at COP-27 with leading sustainability professionals across fields
• Sigma Lithium has continued to contribute significantly to the climate dialogue both in Brazil
and globally:
o Sigma Lithium’s co-CEO, Ana Cabral Gardner was part of the host leadership of the
Climate Summit at Columbia University;
o Sigma Lithium participated at the United Nations High Level Energy Dialogue
submitting an “SDG7 energy compact”; and
o Sigma Lithium participated at the Future Investment Initiative both in Riyadh and i n
New York
CORPORATE UPDATES
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• Sigma Lithium ended the third quarter with C$85 million in cash & cash equivalents as of
September 30, 2022. The current cash position as of November 18, 2022 is C$58 million.
• As result of the extremely robust current lithium pricing environment Sigma Lithium
decided to preserve maximum commercial flexibility for the commercialization of its
Battery Grade Sustainable Lithium.
o Therefore, obligations under the heads of agreements entered into with Mitsui in
March 2019 (the “Mitsui HOA”) were terminated, and the Company decided to
repay C$4.0 million drawn under the Mitsui HOA.
• Board of Directors and management team further strengthened with the appoi ntment of
Dana M. Perlman as an independent director and the appointment of Brian Talbot as Chief
Operating Officer.
INVESTOR VIDEO CONFERENCE CALL
November 21, 2022 at 10:00 AM (ET)
Registration Link for Zoom video call below:
https://us06web.zoom.us/j/81639641671
Zoom Meeting ID: 816 3964 1671
VANCOUVER, CANADA -- (November 18, 2022) - SIGMA Lithium Corporation ("Sigma Lithium " or the
"Company") (NASDAQ: SGML, TSXV: SGML), dedicated to powering the next generation of electric vehicles with
environmentally sustainable and high-purity lithium, is pleased to provide an update on the construction activity at
its wholly owned Grota do Cirilo project (the “ Project” or “ Grota do Cirilo ”), with activity accelerating and the
Company completing the run of mine wall and structural steel for all four areas of the crushing plant. The financial
statements and management’s discussion and analysis (“MD&A”) for the three and nine -month periods ending
September 30, 2022 are available on SEDAR ( www.sedar.ca), EDGAR ( www.sec.gov) and the Company’s
corporate website.
“The operational team led by the co -CEO and the COO achieved exceptional construction progress this quarter,
concluding several key milestones and remaining on track to initiate commissioning of the Greentech Plant by
December 2022”, says Ana Cabral-Gardner, Co-CEO and Co-Chairperson of Sigma Lithium.
“Equipment deliveries are arriving at a substantial pace and activity further accelerates into Q4 -2022. As our
construction is taking place in Brazil and over 70% of the equipment is sourced in country and was secured with
financial deposits at the commencement of construction as either long lead items or as medium lead items, Sigma
Lithium was less affected by the equipment shortages and inflation and lack of qualified labor that have become
common in the industry. We expect the number of workers at site to increase to over 1,000 this quarter, further
accelerating construction speed and bringing significant economic opportunities to the Jequitinhonha Valley region
where we operate.”
“Our operating team continues to work tirelessly to establish Sigma Lithium as one of the world’s largest lithium
producers next year, benefiting from one of the most robust lithium markets of all time , enabling the Company to
generate revenues by the secon d quarter of 2023, and enjoy substantial cash flows from operations on the same
quarter. The Greentech Plant construction remains on track for commissioning to commence by the end of th is
year.”
Ana Cabral-Gardner, Co-CEO and Co-Chairperson of Sigma Lithi um added, “Additionally, we remain focused on
unlocking significant organic growth beyond Phase 1 production and expect to announce the results of our
combined Phase 2 & 3 expansion in the coming months, which could potentially triple production by 2024, i f
warranted by a feasibility study.”
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Figure 1: General View of Greentech Plant Construction
CONSTRUCTION UPDATE
Sigma Lithium continues to rapidly advance construction of the Greentech Plant, achieving the highest monthly
progress to date in September and reaching the following significant milestones:
• Construction of the run of mine wall and structural steel for all four areas of the crushing plant completed
(total construction of the crushing and run of mine pad areas expected to be completed in early to mid-
November);
• 99% and 94% of the concrete works completed for the crushing and dense media separation areas,
respectively;
• 76% of the steel structure assembly for the crushing area completed, with assembly work expected to be
rapidly advanced in November at the dense media separation plant area;
o Assembly is planned to continues to advance in November at the DMS plant area;
• 99% of the detailed engineering for the Greentech Plant construction completed; and
• Phase 1 North Pit opened, as Sigma Lithium completes pit pre -stripping and p repares for operational
readiness.
Significant progress in electromechanical assembly and civil construction was made during September, as shown
in Figure 2 below. Additionally, Sigma Lithium continues to pre -assemble prefabricated Greentech Plant parts as
they arrive at site in order to increase the efficiency of construction and assembly.
Detailed engineering work for the Greentech Plant build continues to be concurrently advanced by Primero Group
Ltd and Promon Engenharia Ltda , providing Sigma Lithium with strong confidence related to timing and capital
expenditures remaining for construction completion.
Refer to Table 1 for an overview of the significan t progress completed broken down by area and Table 2 for a
summary of detailed engineering completion levels.
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Table 1: Greentech Plant Construction Progress Broken Down by Area
Category Specific Area Progress
Civil
Concrete Works
Dry Plant (Crusher) 99%
DMS Plant 94%
Electrical Substation 50%
Steel Reinforcement
Dry Plant (Crusher) 98%
DMS Plant 98%
Mechanical
Steel Structure Assembly
Dry Plant (Crusher) 76%
DMS Plant 9%
Platework Assembly Dry Plant (Crusher) 75%
Conveyor Assembly
Dry Plant (Crusher) 75%
DMS Plant 15%
Equipment Assembly Dry Plant (Crusher) 52%
Water Intake (Pipe) Construction General Infrastructure 53%
Table 2: Detailed Engineering Progress Summary
Discipline Progress
Structural 100%
Concrete 100%
Mechanical 100%
Platework 100%
Procurement 100%
Safety 100%
Planning 100%
Process Design 100%
Piping 100%
Civil 100%
Controls 99%
General Engineering 98%
Electrical & Instruments 98%
Total 99%
Additionally, Sigma Lithium completed pre-stripping of the Phase 1 North Pit in October (progress to date shown
in Figure 3 below). Pre-stripping will commence for the Phase 1 South Pit now that the Company has exposed
sufficient ore in the North Pit. The Phase 1 North Pit ore will be stockpiled until initial production, which is expected
to start by the end of March 2023.
Going forward, as activity continues to accelerate, the operating team is focused on completing the following key
workstreams:
• Finalizing the construction of the crushing area and fast-tracking progress of the DMS concentration plant
construction;
• Installation of the equipment components of the Greentech P lant (crushing plant area, dense media
separation plant);
• Construction of the Company’s own high voltage substation on site; and
• Electromechanical assembly of raw water supply piping and installation of equipment , including water
tanks.
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Figure 2: Installation of Dry Plant (Crusher) Equipment
Figure 3: Phase 1 North Pit Mining Activities
Note: The Phase 1 North Pit is on the left and a waste pile is in the central area.
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SIGMA LITHIUM CLIMATE ACTION AND SOCIAL SUSTAINABILITY LEADERSHIP IN
BATTERY MATERIALS
Sigma Lithium actively participated with its entire ESG leadership team at COP -27 in Egypt.
Ana Cabral-Gardner, Sigma Lithium’s co-CEO was invited by UN -DESA to host at the SDG Pavilion at COP-27 a
workshop where it presented a framework to apply UN -SDGs to mining projects globally, in order to measure
sustainability and overall economic and social impact.
• The workshop applied Sigma Lithium’s ESG framework to demonstrate how SDGs were utilized to assess
the effectiveness of the deployment of equity "impact investment” and debt funding.
The SDG Pavilion at COP-27 is hosted by the United Nations DESA (Department of Economic and Social Affairs)
and provides a platform for all stakeholders to strengthen synergies between climate action and all the
Sustainable Development Goals.
The Company repeated the initiative started at COP26 in Glasgow, and hosted at COP27 in its delegation two
representatives of the towns in Vale do Jequitinhonha (Itinga and Aracuai) in order to share knowledge and
experiences and jointly develop new regional economic development initiatives for 2023 with maximum impact to
lift the community.
FINANCIAL UPDATE
Cash and Cash Equivalents
Sigma Lithium ended the third quarter with C$85.2 million in cash and cash equivalents as of September 30, 2022.
During the quarter, the Company continued to focus spending on advancing the Greentech Plant construction
and repaid the C$4.0 million deposit that Mitsui made under the Mitsui HOA, in order to preserve maximum
commercial optionality for sales of the Project’s Battery Grade Sustainable Lithium.
Restatement of Prior 2022 Interim Financial Statements to Include of Stock-Based Compensation, in Prior
Periods
The Company reports that as a result of a recalculation of the Company’s non -cash stock-based compensation
(“SBC”) expenses, awarded during the periods (most of which were recently granted), under the Equity Incentive
Plan of the Company (the “ EIP”) it has restated its financial statements and MD&A for the three and six -month
periods ended June 30, 2022 as well as the three -month period ended March 31, 2022. Such restatements
became necessary as a result of the substantial increase in the share price of the Company during the periods,
therefore increasing the materiality of the non-cash stock-based compensation during the periods.
The identification of the need for the restatement arose out of the Company’s normal quarterly close and review
procedures for the quarter ended September 30, 2022.
Pursuant to these procedures, management of the Company, in consultation with the Company’s external
auditors, assessed the Company's accounting policies, as well as the presentation and accounting for the non-
cash stock-based compensation expenses incurred by the Company.
The restatement has the following effects on the Company’s financial statements:
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Periods ending June 30, 2022 Period ending March 31, 2022
As
Previously
Reported
Restatement
Impacts
As
Restated
As
Previously
Reported
Restatement
Impacts
As
Restated
(in C$ million)
SBC for the 3-Month Period ($10.7) ($1.3) ($12.0) ($10.7) ($2.0) ($12.6)
Net Loss for the 3-Month Period ($20.2) ($1.3) ($21.5) ($10.2) ($2.0) ($12.2)
Loss Per Common Share for the 3-Month Period ($0.20) ($0.01) ($0.21) ($0.10 ($0.02) ($0.12)
SBC for the 6-Month Period ($21.3) ($3.3) ($24.6)
Net Loss for the 6-Month Period ($30.4) ($3.3) ($33.7)
Loss Per Common Share for the 6-Month Period ($0.30) ($0.04) ($0.34)
Property, Plant & Equipment $52.8 $1.4 $54.2
Other Liabilities $0.01 $0.3 $0.4
Contributed Surplus $48.1 $4.4 $52.5 $39.0 $2.0 $41.0
Accumulated Deficit ($97.5) ($3.3) ($100.8) ($77.3) ($2.0) ($79.3)
Note: For further details see Note 2 in the restated financial statements for the quarters ended June 30, 2022 and March 31, 2022.
Restricted Share Units Grant
Sigma Lithium is pleased to announce the granting of restricted share units (“ RSUs”) to certain officers and
directors pursuant to the EIP.
A total of 5,739,000 RSUs were granted as follows:
• 5,000,000 RSUs were granted to the senior management of the Company ; and
• 739,000 RSUs were granted to the directors of the Company.
The grants of RSUs to senior management and the directors described above, while recently granted, were RSU
entitlements included in agreements entered into previously, and which have been previously announced and
reflected in previously filed MD&A and shareholder meeting materials.
The EIP was amended on May 31, 2022 to increase the maximum number of Common Shares that are issuable to
participants and that may be subject to awards under the EIP from 13,393,499 to 18,120,878 (being 18% of the
issued and out standing Common Shares at the time of approval of the amended EIP), and certain other
housekeeping amendments. The shareholders of the company approved such amendments to the EIP at the
annual and special meeting of shareholders held on June 30, 2022.
QUALIFIED PERSONS
Mr. Wes Roberts, P.Eng., a member of the technical committee of the Company, is the “qualified person” under
NI 43-101 who reviewed and approved the other technical information included in this news release.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian company dedicated to powering the next generation
of electric vehicle batteries with environmentally sustainable and high-purity lithium.
Sigma Lithium is currently in construction at its wholly owne d Grota do Cirilo Project in Brazil, which includes a
state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100%
dry-stack tailings. The project also represents one of the largest and highest-grade hard rock lithium spodumene
deposits in the Americas. Sigma Lithium has been at the forefront of environmental and social sustainability in