CORRECTION FROM SOURCE: Sigma Lithium Announces the Resumption of Mining Activities at Mine 1, with over 600 People Working on Site

Executive Summary

• Sigma Lithium has resumed mining activities at its Mine 1 in Vale do Jequitinhonha, Brazil, following a restructuring of mining operations aimed at increasing safety, efficiency, and earth-moving capabilities to match the Greentech Industrial Plant's capacity.
• The company provided illustrative cash flow guidance for Phase 1 (220,000 tpy and 270,000 tpy) and Phase 2 (520,000 tpy), demonstrating robust cash flow generation under various lithium price scenarios ($1,000/t to $1,800/t) and highlighting low all-in sustaining costs.
• The restructuring was partially financed by the commercial success of high-purity low-grade lithium oxide concentrate fines, with inventory valued at potential proceeds equivalent to ~70,000t of high-grade concentrate, alongside financial support from clients and financiers.

Key Details

• Operational Status: Mining activities at Mine 1 have resumed as scheduled. The restructuring concluded in 4Q25, with technical leadership managing activities and incorporating a larger off-road mining fleet to triple previous earth-moving capabilities.
• Production Ramp-Up: A staged equipment deployment plan is in effect (third-party equipment followed by leased equipment) to ensure a controlled ramp-up in 1Q26. Full steady-state production guidance for FY2026 will be provided once operations reach full capacity.
• Phase 2 Construction: The new structure supports the planned increase in production scale over the next 12 months, including the resumption of construction and commissioning of the Phase 2 Greentech Industrial Plant.
• Financing & Inventory:
  • Sale of high-purity low-grade lithium oxide concentrate fines ("Fines") generated meaningful gross proceeds.
  • Inventory of 950,000t of Fines (priced illustratively at US$140/t) could generate proceeds equivalent to selling ~70,000t of high-grade lithium oxide concentrate (US$1,800/t).
  • Financial support includes contractual collateral and working capital lines from global clients/financiers totaling 70.5kt of future production.
• Cash Flow Guidance (Illustrative):
  • Phase 1 (220,000 tpy): All-In Sustaining Cost (AISC) of US$599/t. Cash flows: $78M @ $1,000/t; $156M @ $1,400/t; $233M @ $1,800/t.
  • Phase 1 (270,000 tpy): AISC of US$599/t. Cash flows: $96M @ $1,000/t; $191M @ $1,400/t; $286M @ $1,800/t.
  • Phase 2 (520,000 tpy): AISC of US$511/t. Cash flows: $225M @ $1,000/t; $408M @ $1,400/t; $592M @ $1,800/t.
  • Cost Breakdown (Phase 1): CIF China Cash Cost (US$440/t), Maintenance Capex + Other (US$12/t), ESG/G&A (US$80/t), Interest (US$67/t).
  • Cost Breakdown (Phase 2): CIF China Cash Cost (US$440/t), Maintenance Capex + Other (US$12/t), ESG/G&A (US$32/t), Interest (US$27/t).
• Current Capacity: Nameplate capacity is 270,000 tonnes of lithium oxide concentrate annually (~38,000-40,000 tonnes LCE). Phase 2 aims to double this capacity.

Notable Quotes

• Ana Cabral, CEO and Co-Chairperson: "The restructuring of our mining operations underscores Sigma Lithium's commitment to safety-first, as well as disciplined execution during the downcycle and intense price volatility of 2025. This operational approach highlights our focus on efficiency and continuous pursuit of higher margins and cash generation."
• Ana Cabral, CEO and Co-Chairperson: "The resumption of mining activities on schedule was the result of the relentlessness focus of our team of 600 people at Vale do Jequitinhonha... We are honored to have a core group of clients and financiers who have been steadfast in their commitment to support Sigma Lithium."