Sigma Lithium Corporation

Thank you. Good morning, everyone. Apologies for the delay. We had some issues connecting with us. Thank you all so much for joining today of quarter 2020 for the school. And our speakers today are Monica Bell, co-chairperson and chief executive officer, and Rogelio Martini, our chief financial officer. Before I hand it over to Anna for prepared remarks, I would like to remind you all that this course being recorded and is broadcast live. This presentation contains forward-looking statements that help guide financial measures. These statements meet current expectations but don't involve risk and uncertainties that could cause actual results for people materially. For more information, please refer to our official statements and our presentation on public filings with Canadian finance regulators. All these documents are available on our website. Now, I'll leave you with our Chief Executive Officer, Anna Figaro. Anna, please go.

Thank you, Evgenia. Good morning. Thank you all for joining us today for the first report of the audit of Trump's performance in 2020 progress. 2024 was an explosive year for Evgenia as it successfully scaled operations, delivered consistent products to the world, strengthen our financial values, and advance our international strategy. Today, when we look through our operations and the results of performance, we plot to a construction upgrade in our market for 2025. So, without further ado, we will go fast through the report. I encourage you to read them, as you learn that we can never afford any mistakes. during this present. Now, here is our litium . The story of this is essentially based on the necessary story throughout the main development . We own an integrated industrial mineral operation with the industry of the factory that is associated with MI. As you can tell, in my mind, when you fill the technical report with your file, you have a 100% of mineral resource effectiveness, and a 1.4% of female side grade. That ensures about 22 years of operational life. for the operation. Connected to demand, we have achieved this quarter is exceptional recovery at 70%, excellent level. This is being done in utilizing . It also meant a real certainty which basically makes it incredibly water-efficient. Here's a bit more detail about how the plant is actually structured. Once you move into industrial operations, we actually have to model this ReTAC plant. This equation we do with the ReTAC plant was the result of for the forms that we have. So, this one has had too many members of it. The first version was a version of the real one. And that version needed adjustments including the diaper stacking and water injection in order to actually deliver its production back into life in 2023. So, that's perfectly to total re-engineering during that period and it continues to be re-engineered throughout. Then we have the two-part book, The Great Background of Water, which we can operate since we began in July of 2003. We learned a lot about the Great Background of Water and we invested significantly in research and development through this process. they're a little more important, more effective. We added a brand new group that you would trust, which fully monetized the original investment we made in dry stacking. So this was all planned out here as we were running from July 23 to the fourth quarter of last year. with the version 2.0 of the cloud. Once we had our independence of Stockholm, we implemented the build of all that work, all the research and development that happened into that cloud. So, beginning in November of 2024, we've been operating with what we call the 3.0 version of the ReTAC cloud. That is the future that we're going into. We perfected it straight into the queue. We demonstrated what is going on to the fourth order as far as production. So this is the product you can associate with the design, the belt that you need to see here in Brazil that's going to become the second one, which we're going to build right next to it. It is on the picture. Now on to hardware. quarterly and annual results. Well, we demonstrated and continued to deliver operational excellence. In the fourth quarter, we delivered a 28% increase in production of about a feasible zero per unit. We reached $77,000. This was our highest total production today and exceeded previous governments. Sales volumes also broke down, increasing 29% in 2014 to 73,000. Our commercial strategy has been responsible for this incredible sales success. We've been focusing on value optimization, navigating seasonality, and as a result, the CIM China realized that order was $900 per time, well above the reported spot in the bulletin service. Also, as important for us, in fact, the most important for us, what safety from, we completed 600 days of accidents without lost time, which means we sent our workers back home to their families and back and stay awake. This is a testament to the operation of this plan, and it focuses on employee safety above all. As I mentioned, we already made quite a lot of progress over the last two years. Factors of video, I encourage you to see. We are doing some early support now, but more was put into this amount, especially earthworks and coal construction. After we completed earthworks, we were able to purchase some panels. on civil populations, and we finalized the structure of the Long Beach United States, negotiating over a three-week contract with the suppliers. We designed the contract so that we could provide the suppliers with better information. It's a mostly commercial commission. Lastly, we published a new package, the 40-year program, which is validated by the U.S., which confirms that there is an increase in marketable materials, which are key to support the raw materials that we've kept on 3.4 for 22 years. This report has an open floor. As we continue our industrial operations, we aim to maintain the visibility of Canada's raw materials that we've kept on Moving to financial performance, we delivered a very good performance. We demonstrated strong cost performance, basically monetized on a big scale. We upgraded the product line and even exceeded the current price of the product. 19 percent 13 13 and 18 dollars per cif cash 17 to 426 dollars per time we also are fully sustained just to demonstrate operationally So this is just operating underline, just to be done. At the end of the year, $4.6 million of capital was allocated in a very lean structure to our health and equity position. And our medium of working capital was referred to be very well-equipped as we ran for that. And we have delivered a lot of construction using our capital, generally. This slide is safety. I cannot agree more with that. It's the foundation of all of our work. For 600 days, we've had many fatalities and we've had many accidents in a long time. So we keep on sending our employees back to their families. So basically, our TRFIR is 2.35 million a year in 2024. So we created safety control systems.

that's caused technical issues. It sounds very bad.

So I'm going to talk about technical issues. So we're going to talk about how we can solve the technical issues. And if we cannot solve the technical issues, immediately we're going to resolve the technical issues at a later moment. This is a very important part of the process. This is a very important part of the process. This is an important part of the process. In the call with me today, I have Rogério Marquini, my Chief Financial Officer. Before we begin, I want to remind everyone that this call is being recorded and webcast live, hence we're having the technical problems. The presentation will include forward-looking statements and non-GAAP financial measures. These statements reflect our current expectations, but they involve risks and uncertainties that could cause actual results to differ materially. For more detailed information, please refer to the cautionary statement included in this presentation, as well as in the public filings of Canadian and US regulators, all of which are available on our website. With that, I will begin. So it all begins with our industrial and mining operations. Here you can see how we have actually an integrated industrial and mining operation. We have a proprietary cleantech that processes the industry. And then we have this quarter we filed in addition to financial statements, the 43-101 updated technical report, which increases in about 40% the mineral reserves of our land, taking the ability of these mines to feed these green tech industrial plants to 22 years. In that report, we also audited the mineral resource estimate, which currently stands at 109 million tons of very high-grade, 1.4% of contained lithium oxide. which is the lithium oxide that the Green Tech plant separates, purifies, and concentrates. We continue to deliver the typical zero-green mixture, and we have made significant improvements in our Green Tech plant since we've made our first shift in July of 2023. These sequential improvements in the plant were responsible to deliver the outstanding production We posted it on Facebook. And to make it more explaining, we actually broke down the stages of improvement from 1 to 3. The version 1.6 was the version that was built. That version required us to do a lot of re-engineering. In fact, it was total re-engineering in the module that's here in Starhart. which is the module three, which eliminates tailings from our industrial. That module dissects those tails, and more importantly, it uses that water, making our operation one of the most water-efficient industrial lithium production plants in the world. So once we completed the re-engineering of module one, we made our first ship, and that became what we call version 2.0, which had been the version we'd been operating from July 23 until November of last year, until the fourth quarter. At that stage, we actually implemented over a year of research and development in improving that density separation, cyclone, and saturation process to increase the recovery of the lithium contained in that feed. we were able to do more, meaning use more lithium with the same amount of money fee by improving our coverage. Currently, the recoveries who stand alone for the current level are over 70%. That's a level that has never been achieved with the utilization of dense media separation that we employ here at our fund. In addition to that, we also on increasing the efficiency and calibrating the feed, the cross-feed to that plant. There are also improvements in module one. More importantly, we implemented a brand new circuit that reprocesses future vines and further increases the recovery level of this plant. Reprocessing of these vines is essentially recycling or reprocessing the dailies that sit piled outside of our plant. and would otherwise be wasted in a nut daily sale. By dry stacking it, we created a new source of steam, which now gets reprocessed by the plant. So this is the version 3.0, which we're now doubling and potentially tripling. The doubling, we're in production capacity expansion, we have underway at our industrial site. In a quarter, in addition to the improvements in the green technology that actually were implemented and made throughout the year, we also continued to deliver operational action. We delivered a 28% increase in production of zero green leaves, reaching 77 gallons a month. This was our highest production to date and exceeded greener. The sales volume rose sharply, increasing 29% quarter to quarter to 73,500 tons. Our commercial strategy has been driving our sales success in the current environment. We've been successfully navigating seasonality, focusing on value optimization. And as a result, by concentrating the sales through seasonality, we achieved an average CIF China price of $900 per time in the fourth quarter, well above what we thought. On the safety front, we also managed to continue to deliver on our zero-accident goal. Essentially, we crossed the barrier of 600 days without accidents with lost time, meaning we sent our employees home safely. We also continue to make progress on construction, as we're going to show you later here, and we published a updated Mineral Audit Technical Report, DNI 103-101. With that, we've sent increased reserves, a 22-year of property life, leading the equivalent years in industrial green energy production. Financially, our results were reflective. We demonstrated a very strong cost performance to the food board, highlighting this ability to monetize our economies of scale, generating low-cost cash flow, even in the current public pricing environment. Our plunking cost decreased 19% sequentially to $300 a day, to $318 a time. The CIF cash cost fell 17% to $427 per ton. We also are publishing the all-in sustaining cost. Why? Because they're low. They decreased 22% to $592 per ton, all-in royalties, taxes, maintenance caps, interest expenses, which means we demonstrate our ability to make operating profit cash even in a current environment. That resulted in increased operating efficiency with a 42% cash operating margin and a 26% adjusted EBITDA margin for the quarter. And so we ended the year with $46 million in cash on our balance sheet in a very lean, short-term debt structure, basically export trade finance, supporting our healthy liquidity position, which supports our working capital needs and enable us to continue to deliver all the things due to construction. So here's our slide on safety. The 600 plus consecutive days without asking means a TRFIR of 2.35. This is one of the lowest among all metallurgical and mining companies globally. On to the operating performance highlights. We ended the year with a annual production of 240,000 tons of hyper-releasing fossil trade. On the fourth quarter, we analyzed over 300,000 tons as a result of 77,000 tons posted on the quarter. So backed by short quarter results, which are essentially delivered by the 3.0, and all the improvements achieved on that plant, we're very confident to deliver current production, annualized clients of 270,000 tons for the year. So on a quarterly basis, we're going to be producing an average of 67,500 tons of the lithium oxide concentrate. Given that we are in production, doubling production capacity, Once phase two is concluded by the end of the quarter, we're gonna have a 2025 full year production of 300,000 tons, 270,000 tons from plant one, and the balance expansion. In 26, the number goes up by 250,000 tons to 520,000 tons of centralized production. So we're very confident about the progress of our infrastructure, we're probably going to deliver it on time and on budget, as we have done in the past. Now on to quality. These increasing volumes allow us to capitalize on the economy. So we got here the three steps on our cost bill. First, at the end, we have a plump cash cost of $318 a month for the quarter. Then we go back to the ports in each of China. So that leads us to $127 a gallon at Asian Pools. And then, we have all-in, same cost for all of our offerings. Again, we have China Pools, plus interest, capex maintenance, royalties, all-in. And that leads us to $530 per gallon. If you compare the average of the interest to the low demonstrated how far we have come in operating throughout 2024. That's my result. Here, you have production levels. So we demonstrate graphically how we achieved the 28% of increase in the fourth quarter. And the annualized, I was referring to earlier. Look at this. He goes up to 28%. But then annually, we're able to demonstrate that we can relatively easily back up your guidance for phase one for the 3.0 production plant. So we already analyzed over 300,000 of that plant in the guiding two sets. So that's an achievable guidance level. Once the plant goes into commissioning, we are expecting to produce another 30,000 from that point in the fourth quarter. Once that happens, we get to 300,000 pounds for the first year of 2025. Here is the mobile cost. So we've got the phone gate cost, which lowered further, increasing the cost in the first year. I mean, that is to demonstrate the operational strength and resilience of the company throughout the crisis. As a result, very low position. We show again, three costs. We got blanket costs. We got CIL costs, which includes royalties. And then we have rolling costs. And you can see that if we've been showing these costs, we managed to reduce them further in the fourth quarter as a result of what we just said. Here's just a brief that shows how it goes from CIF China costs to COGS. Number two, you have CIF China costs, right? That includes loyalties, food and fry, trucking expenses, port expenses. Then to get to COGS, which is reported, what we do is we add back DNA, non-cash items, and then we account and other adjustments. So there's a straightforward bridge between CIF across China and the cost printed on the financial statements. Here is what I'm very proud of. Basically, all in sustained costs, showing our ability to maintain positive cash flow throughout any current pricing environment, and throughout the current pricing environment. Essentially here, with an all-in-sustaining product, we got the following results. We got the CIF loss, which is $427 a ton, and then we built it up. We're doing this in three different places. So, making tablets, $35 a ton. And then we evolved to any and others, $60 a ton. And then the financial expenses, approximately $70 a ton, and then we get $20, and then we get to $592 a ton. So on a normal day, we're still very cost competitive, and that enables us to deliver a great profit or done block that you sold. When we move forward to the forecast, We see similar components. We gave guidance for all the sustainable costs in 2005 and the same in 2006. And the purpose of 2006 is to demonstrate how scale further lowers our all-in sustainable costs. Again, monetization of the economy is a scale. Some of these costs are variable, increase with scale. Some of these costs are fixed. So we lower them at scale. And that includes, given that we have now in our balance sheet, the amount of interest, the amount of debt that encompasses the incorporation of NDS law as it gets dispersed, as you're gonna show from here with Roger. And with that, Thank you. Good morning.

We continue to follow the work that we are doing, and I invite you to take the possible approach to increase the production volume, which will be now 46 million hectares. Regarding the volume, with 1,062 hectares of substantial Substantially, it actually only forms at the current . Making it .

So then I go to . And then we walk . So here we have performance highlights here. We have the full quarter revenue of $47 million, which actually of four years for $181 million. That underlying value excludes about $29 million in provisional prices referring to the previous year, 2003. COGS in the quarter of 2024 was $32 million. And then the COGS in the quarter of 2024 was $125 million. That led us to a cash cross margin of 42% for the fourth quarter and 41% for the year. And again, going back to the cash position that was mentioned, and then more importantly, to an EBITDA margin underlying an adjusted of 25%. Underlying the previous year's charges, and then adjusted just because of the amount of non-bid, stock compensation. So here's a bit of a grid on how we go from quarterly revenues to the underlying annual revenue in these adjustments. We got futures, million US dollars. And then when you think about the underlying revenue, calculated going left to right. So we started with And that leads us to 181 million US dollars. Interestingly, that's a pretty good feature of our business today, because when we multiply the four quarter by four, as a check and balance, we end up with burgers of the magnitude of 181 million. Now, again, the bridge of the full quarter to the full year for operating payment basically begins with a reported operating investment for the quarter of 5 million US dollars, and then we adjust that for a non-cash-based loan extension, and we end up with a underlying operating investment of a dollar. Lo and behold, same sanity check, which again, demonstrate how the fourth quarter, because of the adjustments, pretty clean, stand-alone quarter, accurately represents what our opportunity could potentially be throughout the year with the price for Romania. So again, when we look at the fourth quarter, 2024, we begin the recorder operating levels, add back non-tech-based compensation, add back the $9 billion that comes from the previous year, the same number, is essentially a provisional price to account for charges that resulted from shipments in previous years as per IHR. And then we end up with an underlying operating profit of $32 million. Similar exercises Now, when you look at the bridge, it's essentially the same. So starting with the report, we add back $8 million for non-cash compensation. We have the report adjusted for RSUs, non-cash compensation. And then we add back a price adjustment fee. Provisional price adjustment is coming from the shipments made in the fourth quarter. And we got $9 million. In the fourth quarter, first shipments made in the previous year, 2023, and then settled in the current year. Now, when we look at the first quarter, we got the reported dividend of $10 million, and then stock-based compensation, and then the reported adjusted dividend of stock-based compensation. Now, as we get the balance, we multiply that by four, four quarters of repeated performance, we would end up with a similar arc or order of magnitude to the number posted for the year from the chart referring to ship in a previous year. So it's very helpful to have because assuming market prices would remain the same. Now, another interesting point is how our cash-cross margins have historically backed the numbers we've been posting over the years. Essentially, despite the lower average of the life-threatening risk that we achieved in the first quarter, if compared to the second quarter of 2024, we were able to actually post around the quarter-to-quarter margin. So we posted 32% of quarter-by-quarter cash-cross margin. And essentially, demonstrating the resilience of the business in our economy as a state. Okay. So, we are not going to be able to continue because apparently there have been issues on the South. So, we are now working with a platform to pause here, and then hopefully continue from here, and we're going to do that in the next couple of minutes. Thank you. you Thank you. Thank you. you

Recording in progress. And the sound is loud and clear. We would like to start our quarter earnings conference call of Sigma Lithium. And on the call today, we have our co-chairperson and chief executive officer, Anna Cabral, and our chief financial officer, Rogerio Marchini. I would like to remind you that the presentations that we're going through today will have some forward-looking statements and some non-GAAP financial measures. These statements reflect our current expectations and involve risks and uncertainties that may force actual results to matter materially. For more detailed information, please refer to all cautionary statements included in our filings, as well as these presentations, and all these documents are available on our website. With this, I'll turn the call over to Anna for prepared remarks. Anna, please go ahead. Thank you, Nina.

And I'll be joined by Rogerio, who is going to be sharing the presentation of the financials with me. So without further ado, I'll start with the GreenTag plant. Essentially, we are an integrated and mineral operation, and we use proprietary GreenTag in our lithium oxide processing plant. So we have two distinct operations. We have a mine, and we have a GreenTag industrial plant. At that mine, what we've achieved last year was basically to file, together with this set of documents, a technical report which increased the mineral reserve estimates of our mines to what it is equivalent of 22 years of feed of spodumene ore into the Greentech lithium industrial plant. So the 43-01 audited by an external QP that information. More so, we also increased significantly the mineral resources of the company. putting it at 107 million tons and 1.4% of the team oxide contained. So there is sufficient years and sufficient amounts of spodumene ore feed to actually ensure a very long operating life to the green tech plant. And then on to the green tech plant. What we have achieved in this quarter was to essentially take the plant to its third version, reaching levels of efficiencies, such as the 70% lithium recovery at DMS plant level. That puts us in a very unique position as an innovator in the sector of lithium processing materials. Now, the green deck plant has had three distinct stages since it began, since it was commissioned in April 2023. The first version, which is what was built, had to be totally re-engineered in one of the circuits that steers to us, which is the circuit that I strike daily. So the dry stacking and water reuse circuit had a full re-engineer that would allow us then to make the first shipment. That became version 2.0, which is the first in which we initiated operations in Brazil. That version then was a continuum of progress in our research and development on efficiencies. And so it has received significant improvements in the cyclones and the centrifugation, the dense media separation, lithium recovery circuit of that plant that enabled us to get to the 70%. The module one, the crusher, also had its efficiency increase, especially given the introductions of changes in the way the systems work within the crusher circuit. The implementation of all these two changes was also followed by the incorporation of a new circuit, the lithium reprocessing circuit, the recycling circuit, that allows us to do ore production with less mined ore. Well, that circuit was the main driver of the increased levels of production we demonstrated in the fourth quarter at 77,000 tons. So that plant, the three circuits, the Green Tech 3.0 in its, you know, improved version of continuing innovation is the plant that we're going to build again. And we are in process of setting out torques and construction, as you can see in the chart below. So on to the operational excellence. The main operational highlights is that in the fourth quarter, we delivered a 28% increase in production of the quintuple zero green lithium, reaching over 77,000 tons. This was our highest quarterly production ever to date, and it exceeded the previous guidance. The sales also rose sharply, increasing 29% quarter-on-quarter to 73,900 tons. I have to highlight that this sales success is a result of our fine-tuning of our commercial strategy, aligning ourselves with IRH, in the United Arab Emirates so that we together focus on value optimization by navigating the seasonality of the purchasing cycles in the downstream market in Asia, in China. So the result of this successful focus on commercial strategy enabled us to achieve an average SIP China realized price of $900 per ton in the fourth quarter, well above SPAR. On the safety front, we have quite a lot of progress. We reached over 600 days without a lost time injury. And we also made progress on Plan 2 construction, remaining on schedule for commissioning in the fourth quarter of 25. So as we reach speed in execution, we do not do that at the sacrifice of health and safety of our team members. Another important highlight of this presentation is the financial results, the robust financial performance we demonstrated in the fourth quarter. I mean, we've shown the significant quarterly cost decrease for our costs from Blountgate to All In Sustaining Costs, and we're very proud to actually highlight our All In Sustaining Costs at $592 a ton. We also reported robust margins, essentially reaching 42% of a cash and operating margin in the fourth quarter and a 26% adjusted EBITDA margin in the fourth quarter. So this demonstrates the resilience of the business to the cash cycles, the pricing cash cycles. Therefore, our ability to generate cash flows, even in the current price environment. This ability to generate cash flows in the current price environment is what allows us to build H2 to the stages where we are of earthworks and civil construction, and also allows us to have an operating cash duration in the bank with a healthy liquidity position. We have $46 million in cash in the bank. That was also a result of improved working capital efficiency throughout the quarter, where we basically lower short-term debt costs to $19 a ton. Here is a slide, again, that we're very proud and that's why we keep showing it. We reached a 2.35 TRFIR ratio, which places at the very top of the rankings of the ICMM. for metallurgy and mining. So we've been prioritizing safety first as we build, we build responsibility and we respect to our collaborators. So this excellence, this culture of excellence is driven by this day by day culture of safety in the processes. So now we move on to the operating financial performance. So we talk about volumes, and then we talk about the cash cost. Volumes-wise, we basically are annualizing more than 270,000 tons of lithium production. And that's demonstrated by the strong quarterly results of the fourth quarter at 77,000 tons of lithium production. If we continue at this pace, we will be able to meet this target of 270,000 tons for 2025 and then deliver the additional 30,000 tons that would come from the early commissioning of Plant 2 to a total of 300,000 tons for the forward year, for the current year. Once phase two is fully constructed and ramped up, we're gonna have expecting 520,000 tons of phase two production. That's delivered with an across the board low cost of 318 tons per ton plant gate, which translates into a $427 per ton CIF China, which then gets interest GNS, GNA, maintenance capex, and royalties to deliver us an all-in sustaining cost, which is a true measure of operational cash profitability, which at the fourth quarter reached $592 per ton. We're very proud of this number. Here's now a schematics on production levels. I mean, the 28% increase achieved in the fourth quarter basically reinforced the 2025 production guidance we are given. But twice the way. In other words, with plant one, we're guiding $270,000 to 270,000 tons, which essentially triangulates well with the annualized fourth quarter production. If one is to add the material coming from plant two, we would again get to 300,000 tons, which triangulates very well with results we already achieved with plant one in the fourth quarter. And that is why we're very proud of the fourth quarter results. To the right, there's the guidance in blue. Here is the reported low costs. These low costs on an all-in basis demonstrate operational strength and the resilience of the business throughout the price cycles. So we go from a very low plant gate cost, which is then lower further to yield the plant gate cost for business. the full quarter with an annual picture here at $318 a ton. Now, when we go into the O-Link sustaining costs, we again are able to lower on a quarter-to-quarter basis, this cost further lowered 22%, again, mainly a result of the monetization of economies of scale. Here is the buildup to make it easy to connect the COGS with these cash costs. COGS printed in the financial statements are equivalent to $434 a ton. So that's COGS printed in financials. Then we move in to the CIF China. The changes are DNA and the shipment accounting and other adjustments. So very straightforward. It demonstrates we stand to gain from scale as we increase production because ocean fry costs less once we hire bigger holes, bigger ships. Here we have another very important bridge, which is the bridge from CIF cash costs to all in sustaining costs in 2024. Again, very straightforward. We have the CIF China costs, and then we add maintenance cap. We ask SG&A, and then we add financial expenses. So all in sustaining cash costs. Royalties are inside CIF China. So of all in, $592 a ton, which essentially validate in a current price environment of between $800 and $900, how we are quite profitable per ton, in fact. That gives us confidence in a forecast we're putting in for 2025 on an all-in sustaining cost basis and how conservative the forecast that is because it refers to cost levels that we have already delivered on the fourth quarter. So again, it also shows in 2026 how economies of scale work to our favor. As we increase production scale, we are able to lower our cost per ton as a result of a monetization of economies of scale. Here on to financial updates, and I'll go through that very quickly. The main message on our financial performance highlights is how rich, how incredible our cash gross margins are. We are showing in the fourth quarter, a 42% cash gross margin, basically printed. And then that bodes well with the underlying cash gross margin for the year, again, at over 40%. And that, again, translates quite well to validate the EBITDA, adjusted EBITDA margin for the fourth quarter. We've shown 26% gross margin over an EBITDA of 12 million U.S. dollars. So triangulating really well with the adjusted EBITDA for the year of 46 million U.S. dollars at an underlying 25%, which leads us to this very healthy cash distribution of 46%. These financial results, when we discuss underlying financial results, all we're doing here is adjusting them for a accounting charge that refers to 2023 from settlement of provisional prices that related to materials that had been shipped in the period year 2023 in the fourth quarter. So that amount is $29 million. So that's basically the difference between the reported revenue and underlying revenue where we appropriate charges for shipments in 2023. Why is that? Because this represents a picture of our business accurate for that year. devoid of charges from previous years. Then the same takes place in the operating profit. So we go from a $5 million operating loss to then adding back $8 million of non-cash RSU stock-based compensation. We get to three, and then we add back the 29 million US dollars referring to the previous year, and then we get to an underlying number of 32 million US dollars. So interestingly, when we compare the quarter to the annual, both for the year, and as well for both revenues and as well for operating profit, we can see how it triangulates well as the underlying triangulates well as a good demonstration of what our business looks like, because it's essentially that revenue of the fourth quarter times four, conceptually speaking. So there's an order of magnitude validation corroboration that takes place here because we posted a very straightforward, simple to read full quarter. Similar element with the EBITDA and the EBITDA underlying margins. Again, we begin to report the EBITDA, added back stock-based compensation, non-cash. We get to a reported adjusted EBITDA, and then we put in the 29 million, referring to previous year's provisional price adjustments that settled this year from shipments last year. That gives us to the 46 million U.S. dollar underlying EBITDA for the full year. In the quarter, we didn't have those adjustments, so we get to a 12 million U.S. dollar adjustment. reported EBITDA in the quarter, which again, triangulates in order of magnitude quite well with the numbers posted for the full year 2024. And here again, still on the thematic of cash margins, the numbers were posted in the fourth quarter just demonstrates how out of the curve, how much of an outlier the third quarter numbers were, because that was the year where we made all those charges the accounting settlements for the $29 million for the settlements of shipments that took place in 2023. So again, it shows that the trend over 30% for our realized shipments cross margin reported is actually very much in line with the previous quarters. So the same happens to the reported EBITDA margin on a quarter to quarter basis. So this demonstrates incredible operating consistence that Sigma has had because as the price is somewhat stabilized for lithium, we were able to maintain on an operational side, which is what we control, this operational consistency. So now we're going to talk about our liquidity and our debt position. And I call here Rogério Marquini, our chief financial officer, who is going to start discussing our cash position and our liquidity position.

Thank you, Linda. Good morning, everyone. We closed the year with a low working capital requirement, driving by our discipline cost control and increased production volumes, which resulted in 46 million cash positions. Regarding the long-term debt maturity, while the 2026 maturity may appear substantial, it actually represents only four months of sales at the current slitting price. making it manageable within the context of our business. Moving to the next slide, we have successfully reduced short-term debt levels, which are now lower than in the first half of 2024, while actively recording production's level. Additionally, we have maintained financial costs at the low levels reached in the third quarter of 2024. When we look at the financial cost per ton, we have seen a significant reduction in short-term death costs. With higher production volumes projected for 2025, we expect financial costs per ton to align more closely with the level observed in the fourth quarter of 2024, rather than choose from earliest portals. Now moving to the next slides, Throughout 2024, we reduced financial costs per tonne as we increased our production volumes. In 2025, while we plan to significantly ramp up productions, the impact on financial costs per tonne may not be as pronounced as we expect to this growth in the S-loan, and we will not yet see the full impact of long-term productions. as it not be fully operational. However, by 2026, when Plan Q is operating at full capacity, we anticipate a sharp reduction in financial costs per ton. Back to you.

Thank you. Well, so here we're now reporting the forecasts. And we left a message here where we say the forecasts are consistent with what we've already done. In fact, it's more conservative than what we have achieved in the fourth quarter. So essentially, these forecasts also demonstrate at the bottom table the cash flow per ton calculated, the cash flow total calculated calculated that based on the cost per ton we showed above, which basically shows how resilient Sigma Lithium is even in a current price environment. And that resilience further increases as we increase economies of scale. So wrapping up here, when we see $100 in price movements, you see a disproportionately higher increase in our cashflow generation, given that we're such a low cost producer and all the gains that come from prices above a certain level go straight to the operational profitability. Now we're gonna go quickly to operational performances. Again, we can build fast. Building plot two is essentially replicating Sigma's speed of execution in successful track record in building plot Y. We have an advantage. We have to do a lot less construction between plant one and two, because here, when you show this picture, it's clear to see all of what's in green doesn't need to be rebuilt. In fact, it's been constructed to support three yellow lines. So here, on the table here, you get to see which of the construction work streams of Plant 1 are actually common to Plant 2. And those marked in red are those that relate to the existing infrastructure. So it's almost half of the time we economize in construction and a significant amount of CapEx that has already been built upon which we're taking advantage of in order to operate. So much simpler construction and faster process. So I think with that, we're just going to quickly show one slide around the NI43101 that we published for the Canadians. It just shows a present value of USD $6 billion. It showed the price curve that we use, which begins at $900. continues in $900 for next year. That was reported by Benchmark Minerals. So we took it from Benchmark Minerals and the significant changes in the way the project, which was then the project when the NI43-101 was outlined and the company delivered. So that there's this dislocation of beginning of operations in a much more conservative forecast in dark green in the 2025 report because we're now an operating company and we have the certainty of our numbers, cost, comics, and the production. It's actually a privilege to be able to put out a model from the vantage points that we're in, where we sit now delivering, basically, on what we put out as far as visibility. So the model we put forward in January 2023 is dislocated, and it had much, much higher lithium prices. given the current market environment at the time it was published. So the differences in NPV are due to these two elements. Changes in the prices, significant changes in prices, which they were different. But, you know, we're doing well with those prices, as the whole presentation showed, and the changes in the timelines of development. because it was a function of changing prices and our conservative approach. As the prices decreased in 2023, we actually didn't stop our plans. We just stretched them out one year further by decoupling the construction of Phase II and Phase III, which were outlined in the previous NI4301 report. So with that, we close for questions. Go straight to the Q&A. And I really want to thank you for your patience, for being here, waiting for us patiently throughout this presentation and the various deliveries we had at this presentation. And now we're here to answer all your questions. So I'll start with Joel. Joel Holstead is in Miami. Just recently, Eden and I

Hi, do you hear me?

Yes. Okay.

I had to make sure there, I had to make sure you could hear me. Okay. I'm trying to make sense of a lot. It's gone the last couple hours, but I like to really focus Anna and team as specifically as possible as we can on the different cost buckets that you're talking about. As we've seen in the last quarter and the guidance in 25, in 2025, I'm looking specifically at, at slides 13 and 14 in your presentation, but you've spoken about this verbally and you have lots of comments in your various releases today. The first question I'd like to ask, as I'll ask them one by one is, And if you don't get 270,000 tons of production this year, if you get 250, no, or 240, sorry, 240, similar to 2024, let's just say you get that. How do the per ton costs look in 25? What happens with all unsustaining costs? What happens with CAF China costs? How does that change specifically if you go to 240,000 tons again in 25 and not 270,000?

Well, basically a number that would go back to what we had in the second quarter, for example. So at 240, the numbers become pretty similar to the second quarter because essentially that's sort of what we had at that time without the one-off items that contributed to increase the cost in the third quarter. So it's already, we've already been through it. And I think, I love your question because when you think about the picture of what we've achieved on an only in sustaining costs where we actually have the ability to actively decreasing these costs, the main effect is from a reduction of short-term debt. Because prior to getting the final sign off of the NDS, we maintained a hundred million of this burst short-term debt in a balance sheet as to mimic what we would need to spend and how we would need to fund shall we progress throughout the construction without the BNDES loan. We had the cash there. We would just keep fully drawing upon our short-term trade lines. Now, what has changed Once BNDES was announced as fully committed and signed a loan contract, we no longer needed to demonstrate that we would have cash in the bank. Just a certain amount that would cover for two months of working capital plus four months of, let's say, any delays in reimbursements by BNDES. So we kind of rounded out this map in terms of working capital. And we believe that the levels at which we close short-term debt in 2024, around 60 million, represent well, together with 100 million of BNDS, what the interest costs would look like in the following quarters. And then what would happen with further scale. So, Rock Hoffman, please, I'll take your question.

Hi, can you hear me?

Yes.

Hello. Sorry, can you guys hear me now? Yes.

Yes, we hear loud and clear.

Oh, perfect. Given carbon prices have fallen roughly high from the hits since November, while spodumene's been somewhat sideways, just wondering how you view the interplay or pricing between these two commodities and whether or not we should expect spodumene to fall of carbon it stays at current levels?

Well, the current levels are a consequence of inventories, unfortunately. It's not a story of demand. As we all know, demand is incredibly robust. The inventories built during the high cycle mainly are now being washed out and absorbed by the market. So we haven't increased demand, but inventories keep on being absorbed. So that's why... you don't see the laws of supply-demand working because you need to add up the inventory. Essentially, what you got here is the search for that inflection point when you have supply and demand driving the pricing without interference of inventories economically. So that is actually what's to monitor. So we still have a picture, a long way to say that we still have a picture of sizable inventories within the system throughout 2025. The question is how robust to beat them on because the depletion rate of those inventories will drive will push, we believe, closer to where we are now, the moment of pricing flex.

Thank you. And just a quick clarification, did you guys expect to get the first loan disbursement from the BNDES? And has it taken longer than expected?

Yeah, we believe it will happen around the disbursement around mid-year because then the next step is to send them the packages of what has been purchased, has been utilized for reimbursement purposes. And then they would evaluate and then they go back around sending us a reimbursement back. The way BNDES works is on a reimbursement basis. It isn't as if they're going to transfer $100 million back. be at once, almost like invoice reporting. We send them the batches, they review, and then they effect the reimbursement. Next one will be, Joe, you still have a remaining question.

Yeah, it was weird. It disconnected. Sorry, I want to go back to the specific, I'm just going back to find the next slide, 13 and 14. I'm having trouble getting some of your numbers. Like financial expenses, you're saying are $70 a ton in the fourth quarter. Now, what are we talking about as financial expenses? Like I have to look again, but I think your fourth quarter numbers are 16 million or 20 million Canadian. I divide that. you know, by 77,000 tons, I get way higher than $70 a ton. I'm just trying to understand how you get to that. Can you give me the exact numbers? I mean, I can do 70 times 77,000 tons, but it seems like your financial expenses were higher in the quarter.

Well, what we can do, we can get Irina, get back to you, because I don't have the exact numbers in front of me. But what I think it's interesting to highlight, and that's a very important point. In the third quarter, we paid the interest for the 50 million US ACE for Citibank. So we had a dislocation of interest for one period. There's a slide here. If you look at the, I don't know the number of the slide, but I'll get to you. So let me go here. It's gonna be on your screen in a second. Yeah, so you see there? So these are the closest to exact numbers I can give you, and that's on a short-term interest per ton. So it's just a short-term debt. Perhaps that's kind of where it doesn't mismatch. So you see the actual interest number and then the interest dollar per ton. So that's your 19 that we put on that other page. Short term, because then on the long term, there's a considerable change, because then we're changing 10% a year trade finance lines, the 100 million average that we had disbursed, because you see the disbursement change throughout the year, but on the annual is an average, right? And then that becomes subsidized ultra low cost debt. So I go from 10 to two and a half cent in dollars per year. So the long-term debt has beneficial impact from the NDS entering as reimbursement here.

Just my last question would be, are there any trends or things you're working on happening in ocean freight or road freight, like things cost up, down, flat, things you're working on to improve that, or it's pretty steady state?

For us, there are opportunities in ocean freight, significant. And we don't want to talk much about it, but it's kind of obvious. We hired our first Supra Max for the Carnival shipment. That was 47,000 tons. It's more space, yes, but it costs us less per ton than contracting a smaller vessel, sharing space in a smaller vessel, which calls on many ports for the usual shipments we were sending of 22,000 tons, right? So when you go 47,000 tons, you know, there are efficiencies to gain in ship contracting and whole usage that we wouldn't have when we were just hiring the smaller vessels.

Thank you very much.

on schedule. And we're going to be able to, again, to commission a blonde before Christmas. So thank you so much. And I hope you have a great day. Thank you for your patience.