CORPORATE PRESENTATION | May 2018
TS TSX-V: : SGMA MA
Mar arga gaux ux Cap apit ital al Inc. c.
- To Be Renamed -
Sigma gma Lithium thium Res esour
- urces
Sigma gma Lithium thium Res esour ources ces Inc. c. TSX-V: - - PowerPoint PPT Presentation
CORPORATE PRESENTATION | May 2018 Mar arga gaux ux Cap apit ital al Inc. c. - To Be Renamed - Sigma gma Lithium thium Res esour ources ces Inc. c. TSX-V: TS : SGMA MA Discl sclai aimer mer This presentation has been prepared
CORPORATE PRESENTATION | May 2018
TS TSX-V: : SGMA MA
www.sigmalithiumresources.com
This presentation has been prepared by Sigma Lithium Resources Inc. (“Sigma” or the “Company”) and is intended to assist prospective investors in evaluating a potential equity investment opportunity. It does not purport to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis. Furthermore, this Presentation does not constitute any form of commitment, recommendation, representation or warranty on the part of the Company or the agents. In making an investment decision, investors should not rely on the information contained in this Presentation. This Presentation does not contain all of the information that would normally appear in a prospectus under applicable Canadian securities laws. Neither the delivery of this Presentation, at any time, nor any sale made pursuant hereto, will imply that the information contained herein is correct as of any time subsequent to the date set forth on the cover page hereof or the date at which such information is expressed to be stated, as applicable, and, except as may be required by applicable law, neither the Company nor the agents are under any
limited to, any error or omission which may become apparent after this Presentation has been prepared). CAUTIONARY NOTE REGARDING FORWARD – LOOKING INFORMATION This presentation contains “forward-looking information” within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward- looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or indicates that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, “occur” or “be achieved”. Forward-looking information is based on certain factors and assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, lithium and other metal prices, the estimation of initial and sustaining capital requirements, the estimation of labour and production costs, the estimation of mineral reserves and resources, assumptions with respect to currency fluctuations, the timing and amount of future exploration and development expenditures, receipt of required regulatory approvals, the availability of necessary financing for the Sigma Project (as defined herein), permitting and such other assumptions and factors as set out herein. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from the forward-looking information set out in this presentation, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation and the Company does not undertake to update or revise any forward-looking information that is included herein, except in accordance with applicable securities laws. CONFIDENTIALITY This presentation and its contents are confidential and proprietary to the Company and no part of it or its subject matter may be reproduced, redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (as hereafter defined) or published in whole or in part for any purpose (collectively, “Disclose”) except as permitted hereby. The recipient of this presentation (the “Recipient”) by accepting this presentation hereby covenants with the Company that the Recipient: (i) shall maintain the information contained in this presentation (the “Confidential Information”) in the strictest confidence; and (ii) shall not, at any time, without the prior written consent of the Company, which consent may be unreasonably withheld, Disclose to any individual, firm, corporation, organization, government or government agency, or any other entity (collectively, “person”) this presentation or any Confidential Information. The Recipient further covenants that the Recipient and/or its representatives (as permitted by the Company) will not use the Confidential Information in any way detrimental to, or so as to obtain any commercial advantage over the Company. The Recipient agrees to be responsible for any breach of the covenants contained herein by the Recipient and/or its permitted representatives. The Recipient agrees to make all appropriate efforts to safeguard the Confidential Information from disclosure to any person other than as permitted hereby. If this presentation has been received in error then it must be returned immediately. THIRD PARTY INFORMATION This presentation includes market, industry and economic data which was obtained from various publicly available sources and other sources believed by Sigma to be true. Although Sigma believes it to be reliable, the Company 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 its market, industry and economic data is accurate and that its estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness thereof and Sigma does not make any representation as to the accuracy of such information.
1
3
A World ld Class ss Hard Rock Lithium ium Asse set With h Superior
Grade Mineralogy
6% Li2O, , placing Xuxa as one of the highest grade hard-rock projects globally
Fast Track k to to Producti tion
Leading ng Brazil ilia ian n Mining ing Exec xecut utive ives With h a Succ cces essful ful Track ck Recor cord of 30 y years Building lding Multi-Bill Billion
Dollar Busines inesse ses s in Brazil il
metallurgists in Brazil
American Highveld Steel
Signifi ificant cant Resour
ce Expans nsion
tent ntial ial
(1) Reader is cautioned that the technical data contained herein is management’s current internal estimates. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43-101”) and should not be relied upon. (2) Reader is cautioned estimates are based on limited geological information and can not be considered official figures in accordance with National Instrument 43-101. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential quantity and grade has been determined based on available drilling, channel samples, grab samples and surface mapping.
2Q18 Q18 3Q18 Q18
Resourc urce Develop
nt Drilling & Measuring Resources
do Cirilo
4Q18 Q18 1Q19 Q19 2Q19 Q19 3Q19 Q19
Permitti ting ng DNPM Mining Plan (PAE) Environmental Impact Study Water Usage Concession Plant t Construc truction tion Plant Installation
Plant Start rt-Up Up
Infrastructure Installation
Mine Commission sionin ing
Overburden Removal
Plant Start- Up Up
Environmental Licensing Plant Design & Acquisition Infrastructure Design & Contract Feasibilit ibility Study y & Pilot t Plant Grota do Cirilo (Xuxa – in progress) Install Pilot Plant Grota do Cirilo (Other Ore Bodies) Production of Spodumene Concentrate from Other Ore Bodies from Grota do Cirilo Metallurgy Tests & 43-101 Update Pre - Produc uction tion
1 2 3
4
5
Validate according to NI 43101 with infill drilling, representing an additional 50% increase in the size of resource at XUXA to 18.4Mt (700,000t of LCE). Drilling resumes on May 21 at other deposits in Grota do Cirilo property targeting to validate at least an additional 20Mt
Resourc e Growth Feasibilit y
Initiated metallurgy tests at XUXA achieving 72% recovery with one step DMS processing Final phase of selection process of EPC Company to build commercial lithium plant (Engineering, procurement, construction)
Pilot Plant
Obtained all environmental licenses for pilot plant DMS processing unit on site by month-end Pilot Plant will be producing spodumene concentrate samples on site in July’ 18
Permits
Concluded Update of environmental impact study on wet season Update of mining plan for XUXA deposit (ANM-PAE) in progress.
*(Mt=million tonnes /t=tonnes)
Li Recove covery Result ults s From DMS Liberatio ion n Test for 2 F Feed Sizes es: : 9.5mm & 6.3mm (1)
DMS Produc ucts DMS Total l Concentra ntration tion
Assays % Li 2.85 Li2O 6.12 SiO2 67.3 Al2O3 23.5 Fe2O3 0.77 P2O5 0.32 Na2O 0.54 K2O 0.35 CaO 0.05 Li 73.1
Crushed to 9.5mm Crushed to 6.3mm
Both 6.3mm m & 9.5 .5mm mm parti ticles cles yielded lded simila lar r high h 73% % recov cover eries es
73.1% 6% Min. Concentrate @ 73% Recovery
Source: Company disclosure. (1) Reader is cautioned that the technical data contained herein is management’s current internal estimates. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43- 101”) and should not be relied upon. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral
6
Light Fraction Pile Form Dense Media Circuit Mineral Feeding Dense Media Pulp Heavy Fraction Silo 8m3, Grill 250mm Vibrating Feeder Belt Conveyor TC-1 Jaw crusher 6240 Jaw Rebreaker 8013 Belt Conveyor TC-2 Cone Crusher Belt Conveyor TC-3
Vibrating Screen 2 decks, screen 6,4 and 0,5mm
Fraction +6,4mm Fraction -0,5mm Pile Form Belt Conveyor TC-4
Fraction -6,4mm and +0,5mm Vibrating Screen 1 deck, 0,5mm, with Ferro Silicon washing
Light Heavy Dense Media Pulp Magnetic Drum Ferro Silicon Pulp Box Pulp Pump Water Fraction +250mm Pile Breaker
Prima imary Crush usher er Dense Media ia Drum: m: 10t/ t/h
Fraction -12mm and +2mm Vibrating Screen 2 decks, screen -12mm and +2mm Vibrating Screen 1 deck, 2mm, with Ferro Silicon washing Fraction +12mm
7
Note: As at [ ].
Ticker TSXV: SGMA Share Price C$ 0.20 Shares Outstanding 669.7 million Broker Warrants Outstanding 2.7 million FD Shares Outstanding 672.4 million FD Market Capitalization C$ 134.5 million Cash C$ 18.5 million
Capital pital Structu ucture Pre-RTO O Sigma ma Shareh eholde lders
investor for C$2,00 was exchanged for 10 (“ten”) common shares es of Margau gaux x priced ed at C$ 0,20 20 each. h.
V). And TEMPOR ORAR ARIL ILY UNDER ER MARGAUX CAPITAL AL INC.
til a shareho eholder er meeting ng to to be held in June ne.
9
Post-RTO O Sigma ma Shareh eholde lders
A10 Natural Resources FIA 85,8% Other Management 3,7% Convertible Holders 10,5% A10 Natural Resources FIA 72,1% Other Management… Sigma Convertible Holders 8,8% Margaux Current 1,0% RTO Investors 15,0%
Shar ares es Outs tstandin ding 56.3 mm mm 10.0 mm mm 663 63 mm mm 669. 69.7 mm mm
Sigma ma Lithium ium (Pre re-RTO) RTO Equity ity Offerin ring g of Sub Receipts ipts Merg rger r with Margau gaux (10:1 :1 Exc xchan ange ge Ratio) io) Existing ting Margau gaux x Shar ares Margau gaux- (Sigma) ma) (Post-RTO)
C$ 0.20 20 C$ 2.00 00
10,00 000 0 Shar ares of Margau gaux x @ C$ C$ 0.20 Value = C$ 2,000 1,000 Shares of Sigma @ C$ 2.00 Value = C$2, 2,00 000
(1) Exchange ratio of 9.9997 Margaux shares per Sigma share results in post-financing Margaux ownership of 1.00%. (2) Broker Warrants outstanding and broker warrants to be issued as a result of private placement are not included.
6.7 mm mm
C$2.00 / 9.9997 Sigma Price / Exchange ratio C$20mm Raised
Share Pric ice Inve vestor r Examp mple le
Margaux Shares issued to Sigma Shareholders (99%)
66.3 mm mm ~10: 0:1 1
Sigma Post-RTO Offering Existing Margaux Shares (1%) Margaux Shares Outstanding Offering Price for Sigma
~10: 0:1 1
Margaux (Sigma) Share Price At Opening
~10: 0:1 1
10
$862 $708 $638 $551 $465 $302 $256 $246 $242 $174 $173 $62
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1.000
Galaxy Resources Kidman Tawana Mineral Resources Altura Nemaska Neometals Critical Elements Pilbara Frontier Lithium
EV/Resource (US$/t LCE) $964 $630 $176 $2,732 $524 $387 $93 $136 $1,144 $55 $116 $116 $1,101 $629 $190 $2,792 $500 $414 $122 $134 $1,206 $56 $134 $134 1.1 0.9 0.3 5.0 1.1 1.3 0.4 0.6 4.7 0.3 0.5 1.5
11
Select ct Publi blic c Mark rket t Hard d Rock ck Lithiu thium m Peers – EV/Resource e Valu luatio tion (US$/t $/t LCE)
(3) (5) (5) (7)
EV (C$mm) Market Cap (C$mm) Resource (Mt LCE)
Source: Company disclosure, Bloomberg, Factset. Note: Market data as at May 7, 2018. (1) Reader is cautioned that the technical data contained herein is management’s current internal estimates for illustration. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43-101”) and should not be relied upon. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential quantity and grade has been determined based on available drilling, channel samples, grab samples and surface mapping. (2) Excludes high and low values.(@RTO) (YE 2018)
(1)
(3) Includes James Bay resources of 0.7 Mt LCE and Mt Cattlin resources of 0.4 Mt LCE. (4) Kidman resource represents management’s current internal estimates for illustration purposes only, based(6)
Adj. . Peer Average age (2) = $420/t t LCE
(4)
Ave verage age Lithiu ium Oxide Grade e at Xuxa Deposit
Succ ccessful ssfully ly Produc uced Spodum umene ene Conc ncentra ntrate (1)
(1) Reader is cautioned that the technical data contained herein is management’s current internal estimates. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard
uncertain if further exploration will result in the target being delineated as a mineral resource. The potential quantity and grade has been determined based on available drilling, channel samples, grab samples and surface mapping.
Forecast asted d Annual Lithiu ium 6% Concentr trat ate e Production ion (1)
Measured & Indicat ated and Inferred d Resource at Xuxa site: te: SGS Canada da
Explorati ration
tuniti ities es Identified tified at Target get Deposi sits ts
(1)
Hectar ares of Ground
Histor torica ical l Lithiu ium Mines
to to Production ion (1)
US$175
Estimated d FOB Mine Cost t to to Produce Lithiu ium 6% Concen entr trat ate (1)
US$0.06
Cost t of Hydr ydro Energy
13
Minas Gerais
Belo Horizonte Montes Claros 680km 327km Port Vitoria 700km Araçuaí
(1) Reader is cautioned estimates are based on limited geological information and can not be considered official figures in accordance with National Instrument 43-101. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential quantity and grade has been determined based on available drilling, channel samples, grab samples and surface mapping. (2) For full details refer to technical report filed on Sedar.
14
Location ation in Brazil
Hydr ydro Powe wer Dam Mining Port Vitor toria ia Highway to to Port
The port was purpose-built in Espírito Santo State for servicing the mining industry It has 14 wharfs and can receive Panamax- type ships Irapé Hydroelectric Power Plant 50km away 360MW of nominal power generation capacity
Aracuai ai
Araçuaí is linked to Port Vitoria via BR 116 Highway (Brazil main north-south axis)
15
Geology
/ Metal allu lurgy gy Business / Finance
Calvyn vyn Gardn dner (Exec ecut utive e Chairman an)
+ 20 years at Anglo American Group Former General Manager/COO of Highveld Steel and Vanadium
Itam amar ar Resend ende (Pres esiden dent t of Sigm gma a Braz azil) Former CEO of AMG Brazil and UK (+30 years) Master’s Degree in Electrometalurgy Ana na Cabr bral al (Direc ecto tor of Busine ness Devel velopment ent)
Former Head of Equity Capital Markets Latam at Goldman Sachs in New York. Completed over $100 Billion in Transactions (+24 years) MBA Columbia Business School
Alvar varo Barbosa a (Chi hief ef Legal al and Sustainab tainability ty Officer er)
Former Partner at Mattos Filho and Tozzini Freire (+30years) Associate at Skaden, Arps in New York
Ret.
. Ferna nand ndo Iasbe bech (Directo tor of Institut titutiona nal Relat ations) ns)
Held several strategic leadership roles during a distinguished 30- year career in the Brazilian army IR consultant to CBMM Niobium Moscow Geological Institute (specialization in Pegmatite formations), (+30 years of experience)
Max x Pogor gorel elov
nior
ist)
Former Portfolio manager Mittal Family Office CFA Charterholder – Level III
Mar arcel elo Paiva va (Chief hief Finan ancial al Officer er - Braz azil) Gregory gory Lear r (Seni nior
phisi sicist ist)
University of Sydney specialization in pure and applied geophysics (+40 years of experience)
Note: Reader is cautioned that the timeline show above is an estimate based on a number of factors and assumptions that could change or prove to be incorrect and should not be relied upon.
Calvy lvyn Gar ardn dner r Chief Executive Officer & Director Itamar ar Resende President & Director Tadeu Carn rneir iro Director
Non Non-Ex Executi ecutive e Direct ectors
16
Exe xecuti cutive e Direct ectors
Maryse Bélanger er Director Former CEO of CBMM Niobium (+30 years) Professor of Graduate School of Engineering at MIT (Boston) Chief Operating Officer at Atlantic Gold Corporation Former Chief Executive Officer and Managing Director of Mirabela Nickel Ltd. Senior Partner and Counsel at McCarthy Tétrault LLP in Toronto Over 30 years
law experience in Canada Gary Litwack ack Director Over 20 years at Anglo American Plc Former General Manager/COO
Highveld Steel and Vanadium Former CEO of AMG Brazil and UK (+30 years) Master’s Degree in Electrometallurgy
17
38 38-57Mt t Add dditi tion
al Resour
e Poten enti tial al from 9 Histor torical ical Workin rking g Lithi hium um Mine nes (1)
Project Development
Nine historical lithium mines (single ore body deposits) Four properties (over 200 pegmatites) NI 43-101 mineral resource estimate on Xuxa prospect within Grota do Cirilo property Feasibility study to be completed in Q3 2018 focused
(Xuxa, a historical lithium mine) Selected five top targets (all historical lithium mines) in Grota do Cirilo to validate additional resources by H1 2018 Jequitinh quitinhonha ha Rive ver
(1) Reader is cautioned estimates are based on limited geological information and can not be considered official figures in accordance with National Instrument 43-101.
(1) Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. Inferred mineral resources are exclusive of the Measured and Indicated resources. A fixed density of 2.72 t/m3 was used to estimate the tonnage from block model volumes. Geological CoG estimated from Li2O values of the composite vs. value in block. (2) Reader is cautioned estimates are base on limited geological information and can not be considered official figures in accordance with National Instrument 43-101. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential quantity and grade has been determined based on available drilling, channel samples, grab samples and surface mapping.
Measur ured ed and Indicated ated Leng ngth Width Depth Avg Grade 12.9Mt 1700 12-13 250 1.56% Infer ferred 0.6Mt 1700 12-13 250 1.47% Estimated ed Volum ume Leng ngth Width Depth Grade e of Inter ersect ection
12-15Mt 400 300 40 1.45% Estimated ed Volum ume Leng ngth Width Depth Grade e of Inter ersect ection 5-7Mt 550 30 150 1.00% Estimated ed Volum ume Leng ngth Width Depth Grade e of Inter ersect ection 6-8Mt 450 35 200 1.21%
Barreiro Xuxa Murial Lavra do Meio
Estimated ed Volum ume Leng ngth Width Depth 3-5Mt 200 300 17
Nezinho do Chicao
Jequit quitin inho honha nha River er
Estimated ed Volum ume Leng ngth Width Depth Grade e of Inter ersect ection 1-2Mt 200 11 175 0.8%
Maxixe
27 27–37Mt 37Mt of Add ddit ition
al Poten enti tial al Resour
e (2)
18
Ove vervie view of Xuxa 3D Geolo logi gical al Block k Model
Colors Indicating Grade
Grade ade is relati ativel ely y consis isten ent t throu
ghout the ore body dy
19
Grota ta Ciril ilo - Xuxa xa Grota ta Ciril ilo - Xuxa xa Grota Ciril ilo - Barr rreir iro
High Grade Large Coarse Crystals Low Level Impurities Low CAPEX High Grade Near Surface Mineralization Low Level Impurities Low OPEX
Low Cost t of Lithi hium um Concentr entrate te
20
Source: Company disclosure, Bloomberg. (1) Galaxy includes Mt. Cattlin only. (2) Reader is cautioned that the technical data contained herein is management’s current internal estimates. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43-101”) and should not be relied upon.
(1) (2)
0,92% 1,00% 1,05% 1,08% 1,18% 1,25% 1,37% 1,40% 1,44% 1,56% 1,88%
0,00% 0,50% 1,00% 1,50% 2,00% 2,50%
Resource Grade (% Li2O)
High h grade, ade, near-sur urface ace depos
it to to drive e leading ding operat ating ng costs ts
21
13,5 13,5 7 6 4 1,5 45,5
Sigma Current (Xuxa) Barreiro Murial Lavra do Meio Nezinho Maxixe Sigma North
Validati idating ng Exis isti ting ng Resour
es: : Drill lled ed Ore Bodie ies at Grota ta do Cirilo rilo Proper erty ty Were e Previ evious usly ly Lithi hium m Worki rking ng Mine nes
(1) Reader is cautioned estimates are based on limited geological information and can not be considered official figures in accordance with National Instrument 43-101. Illustration based on approximate mid-points from NI 43-101 estimated range of additional potential resource by deposit. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral
(2) Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. Inferred mineral resources are exclusive of the Measured and Indicated resources. A fixed density of 2.72 t/m3 was used to estimate the tonnage from block model volumes. Geological CoG estimated from Li2O values of the composite vs. value in block.
Current
H2 2018
Illustrative Resource Growth (Mt) (1)
12.9 (M&I) 0.6 (Inf.) (2)
Grota do Cirilo Total
22
(1) Reader is cautioned that the technical data contained herein is management’s current internal estimates. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43- 101”) and should not be relied upon. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral
Inte ternal nal estima imate of ~220k k to tonnes s spodumene producti tion
(approxima imately ely 25,00 000-30 30,00 ,000 0 to tonnes LCE) Give ven world-clas lass s properties ties, , Sigma a will subseque quently tly assess ss production tion expan ansi sion
tuniti ities s incorpor
ating g additi ition
al Grota do Cirilo
ies into to mine and process ssin ing plans
50 100 150 200 250 300 350 400 450
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Spodumene Produced (k Tonnes) Pilot lot Plant ant
Phase 1
Full commer ercial producti uction
S plant nt at Xuxa
Phase 2
Pote tent ntia ial l to increa ease se produc ucti tion
er deposit
s; would d requi uire re addit itional ional minin ing g and plant nt capac acit ity and capex Commis issioni sioning ng
Sigma ma Illust ustrativ ive Conso nsoli lida dated ed LOM Produ ductio ction
23
Estima imated ed Futur ture e Capex pex (C$65 $65 milli lion) n)
Uses C$ milli lion (1)(2)
Plant Construction C$6.5 Plant & Installation C$19.0 Plant Infrastructure & Mine Development (Power Sub-Station, Weight Bridges, Offices) C$12.5 Water Circuit & Treatment C$5.0 Dry Staking C$12.5 Working capital and Corporate G&A C$4.5 Treasury Buffer for Contingencies C$5.0 Tota tal l Uses C$65 65.0
Illus lustrativ trative Initi itial al Capex pex Finan anci cing
Debt C$35 mm 54% Equity C$30 mm 46%
(1) Assumes USD/CAD = 1.25 (2) Reader is cautioned that the technical data contained herein is management’s current internal estimates. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43- 101”) and should not be relied upon. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral
Earma mark rked C$2 million
nt cash posit itio ion for r certain ain long lea ead ite tems ms
24
$9.269 $6.181 $5.410 $3.738 $3.360 $3.083 $1.840 $17.000 $10.840 $0 $2.000 $4.000 $6.000 $8.000 $10.000 $12.000 $14.000 $16.000 $18.000 $20.000 Lithium Americas Orocobre (Phase 2) Critical Elements Nemaska Pilbara Altura Tawana Kidman Initial Capex/Production Rate (US$/tpa LCE)
Sigma’s low upfront capex required to generate peer-lead ading ng lithium m produ ducti ction
per capital al inve vest sted: d: flexib xibility ility in funding ng the capex x throug
h multip iple le sources
Select ct Peer ers – Initia tial l Capex pex/Production uction Rate (US$/ $/tp tpa LCE)
Source: Company disclosure. Note: Assumed 8 to 1 conversion from spodumene concentrate to LCE; Currency conversion as at March 1, 2018. (1) Bacanora and Pilbara multiples based on each project’s Stage 1 capex and average production figures. (2) Orocobre multiple based on Olaroz project’s Phase 2 capex and average production figures. (3) Nemaska production rate of 34k tpa LCE based on 23k tpa of lithium hydroxide and 11k tpa of lithium carbonate, Capex based on Whabouchi mine and concentrator only. (4) Reader is cautioned that the technical data contained herein is management’s current internal estimates. This technical data cannot, therefore, be treated as compliant with National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43-101”) and should not be relied upon.(3) (1) (4) (2)
Capex/process to produce Li2CO3
25
Significa nificant nt addit ditional ional potent ential ial +18,000 00 ha proper erty & only ly 1 of 10 targeted geted lithiu hium-bea bearin ing g pegma matit ites es dril ille led d to to measur ured ed resour urces ces Strategica egicall lly positio itioned d in Brazil zil providing viding high gh-qu quali lity batter ery-grade rade spodum dumene ene conce ncent ntrate Excell ellent nt infrastruct ctur ure e and nd proje ject ct acces ess - Expect pected ed to to resul ult t in mana nageab geable le capita pital l costs to produ duct ction ion Seasoned ned Brazil zil-based ed manag nagement ment te team m & board d with th complement lementary skillset lsets to bring ing Sigma to produc duction ion Poten ential ial low-co cost t high gh-ma margin in produ ducer er Past-pr produ duci cing ng lithi hium m mine e – Suppo ports ts fast-tr track ck to to comme merci cial l product duction ion
26