Syrah Resources Limited · ASX:SYR
Syrah Resources — Shareholder Meeting (November 2015)
51 slides from Syrah Resources's shareholder meeting presentation, Nov 13, 2015
Slide 1: Welcome to the 2015 Annual General Meeting
Welcome to the 2015 Annual General Meeting of 11:00AM (AEDT) Friday, 13 November 2015 The Club Pavilion, RACV City Club Level 2 501 Bourke Street, Melbourne, Victoria 0
Slide 2: Agenda
Agenda Receipt and consideration of Accounts and Reports Resolution 1: Adoption of Remuneration Report Resolution 2: Re-election of Mr José Caldeira as a Director of the Company Resolution 3: Ratification of Prior Issue of Shares Resolution 4: Approval of the issue of securities under the Long Term
Slide 3: Agenda Item 1 – Receipt and consideration of Accounts & Reports
Agenda Item 1 – Receipt and consideration of Accounts & Reports To receive and consider the financial report of the Company and the related reports of the Directors and the auditor of the Company for the year ended 30 June 2015. Further information Mr David Corr, the Chief Financial Officer of Syrah
Slide 4: Resolution 1 – Adoption of Remuneration Report
Resolution 1 – Adoption of Remuneration Report To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That for the purpose of section 250R(2) of the Corporations Act and for all other purposes, the Remuneration Report for the financial year ended 30 June 2015 be
Slide 5: Resolution 2 – Re-election of Mr José Caldeira
Resolution 2 – Re-election of Mr José Caldeira To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That Mr José Caldeira, being a director who retires pursuant to the Constitution and, being eligible, offers himself for re-election, is hereby re-elected as a D
Slide 6: Resolution 3 – Ratification of Prior Issue of Shares
Resolution 3 – Ratification of Prior Issue of Shares To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That for the purpose of Listing Rule 7.4 and for all other purposes, approval is given to the issue of 30,001,032 Shares to institutional and sophisticated
Slide 7: Resolution 4 – Approval of the issue of securities under the Long Term Incentive Plan
Resolution 4 – Approval of the issue of securities under the Long Term Incentive Plan To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That for the purpose of section 259B(2) of the Corporations Act, section 260C(4) of the Corporations Act and Listing Rule
Slide 8: Resolution 5 – Increase in Aggregate Non-Executive Director Remuneration
Resolution 5 – Increase in Aggregate Non-Executive Director Remuneration To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That for the purposes of rule 8.3(a) of the Constitution, Listing Rule 10.17 and for all other purposes, the maximum aggregate annual D
Slide 9: Resolution 6 – Approve to issue Director Options to Mr James Askew
Resolution 6 – Approve to issue Director Options to Mr James Askew To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That for the purposes of Listing Rule 10.14 and all other purposes, approval be given to grant up to 600,000 Director Options to Mr James Ask
Slide 10: Resolution 7 – Approve to issue Director Options to Mr Sam Riggall
Resolution 7 – Approve to issue Director Options to Mr Sam Riggall To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That for the purposes of Listing Rule 10.14 and all other purposes, approval be given to grant up to 400,000 Director Options to Mr Sam Rigga
Slide 11: Resolution 8 – Change of Auditor
Resolution 8 – Change of Auditor To consider and, if thought fit, pass, the following resolution as an ordinary resolution: “That, subject to ASIC consenting to the resignation of Grant Thornton as auditor of the Company that, pursuant to section 327B of the Corporations Act and for all other purpos
Slide 12: Resolution 9 – Approval of Proportional Takeover Provisions
Resolution 9 – Approval of Proportional Takeover Provisions To consider and, if thought fit, pass, the following resolution as a special resolution: “That proportional takeover provisions in the form of clause 6 of the Constitution (as last approved by Shareholders) be included in the Constitution f
Slide 13: Annual General Meeting Presentation November 2015
Annual General Meeting Presentation 13 November 2015 12
Slide 14: Disclaimer
Disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in
Slide 15: Our vision and values
Our vision Syrah’s vision is to be the leading supplier of superior quality graphite products, working closely with our customers and supply chain to innovate and bring enhanced value to industrial and emerging technology markets globally Our values Syrah is committed to: • WORKING SAFELY at all tim
Slide 16: 2015 Highlights
FEASIBILITY STUDY: COMPLIANT KEY PRODUCTION GR RECEE GOVERNMENT AECK Mt APPROVALS 356 814 at 16.2% TGC over the first 10 years THREE YEAR NEW DIRECTORS — EcONoMic assessmeNT FULLY UNDERWRITTEN OFFTAKE AND EXECUTIVES ONFROROSED = AS)4 4] n AGREEMENT WITHEXTENSIVE © SPHERICAL GRAPHITE CAPITAL RAISING
Slide 17: Building the world's premier graphite company
Building the world’s premier graphite company • Feasibility Study confirms the world class potential of the Balama Project Balama • Low cost producer of superior quality graphite products • Targeting “traditional” industrial graphite markets and emerging technology markets • Development activities w
Slide 18: Corporate overview
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Slide 19: Capital structure
Capital structure Key details Share price and volume 7 18 Shares on issue 230.5m 16 (as at 12 November 2015) 6 Daily trading volume (m) 14 Share price (A$) 5 12 Options on issue 6.5m 4 10 (as at 12 November 2015) 3 8 6 Undiuted market capitalisation 2 A$756.0m 4 (Share price of A$3.28 as at 12 Novem
Slide 20: Board of Directors and Executive management team
Board of Directors and Executive management team Jim Askew Tolga Kumova Sam Riggall Non-Executive Chairman Managing Director Non-Executive Director Over 40 years of experience as Co-founder of Jacana Over 20 years of experience in a Director / CEO of Australian Resources and over 15 years mining pro
Slide 21: Balama Project
Balama Balama Project Balama Project Project Balama Project 20
Slide 22: Overview of Feasibility Study outcomes
Overview of Feasibility Study outcomes • 40+ year mine life, simple open-pit mining • Head grade of ~20% TGC(1) • Capital cost estimate of US$144 million(2) • Average production of over 350ktpa(1) • Average life of mine operating costs of US$286/t FOB(3) (1) Average over the first 10 years of operat
Slide 23: Reserves and Resources
Reserves and Resources • JORC Code (2012) Compliant Reserves of 81.4Mt at 16% TGC for 13.2Mt of contained graphite(1) • Reserves supports over 40 years of operations at estimated full production rates • World’s largest flake graphite reserve (1) Refer Appendices for details of the Company’s JORC Com
Slide 24: Timeline to production
Timeline to production Activity Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 BALAMA PROJECT Detailed design Commitment to long lead items Farmland relocation and land clearing Process plant bulk earthworks and roads Civil works Process plant construction Power generation Water supply Mining opera
Slide 25: Development activities progressing
Development activities progressing • Key site leadership appointments (Construction Manager, Mine Services Manager, Health & Safety Manager, Infrastructure Superintendent, Civil Superintendent, Principal Mining Engineer, Environment Specialist) • Farmland relocation and land clearing of process plan
Slide 26: Balama site layout
CHIPEMBE DAM MAIN ACCESS ROAD WATER PIPELINE CAMP SITE TAILINGS STORAGE VANADIUM FACILITY OPERATION NOISE BUND PROCESS PLANT ROM PAD BALAMA WEST PIT BALAMA EAST PIT 25 25
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Slide 28: Process plant access road being laid
Process plant access road being laid 27 27
Slide 29: Bulk earthworks at the Balama processing plant site
Bulk earthworks at the Balama processing plant site 28 28
Slide 30: Examples of screw classifier, mill, ore scrubber and flotation cell
Clockwise from top left: Examples of screw classifier, mill, ore scrubber and flotation cell mechanism ordered 29 29
Slide 31: Product marketing & offtake
Product marketing & offtake 30
Slide 32: Marketing strategy and product mix
Marketing strategy and product mix • Partnerships with major end users or key regional commodity traders • Technology markets (lithium ion battery applications) require -100 mesh graphite Balama Profile Average Size Expected Production Applications Mesh Size µm Distribution (%) (1) (Kta) (2) +50 >30
Slide 33: Key markets
Key markets • Offtake agreement with Chalieco for 80ktpa of flake graphite over 3 years • Product sales and marketing agreements with Morgan Hairong for 9ktpa of spherical graphite over 3 years • MOU with Marubeni for marketing of flake graphite and spherical graphite in Japan and Korea • MOU with A
Slide 34: Social responsibility
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Slide 35: Community and social development
Community and social development Initiatives undertaken to date include: • Community development plan progressing with input from key stakeholders • Opening of water bore holes in several villages • Establishment of solar panels in several schools and a maternity hospital • Provision of employment o
Slide 36: Community water facility installed at a local village
Community water facility installed at a local village 35 35
Slide 37: Proposed Spherical Graphite Project
Balama Balama Project Project Proposed Spherical Balama Project Graphite Project 36
Slide 38: Emerging technology markets
Emerging technology markets • Emerging macroeconomic theme – electric vehicles and grid storage • Significant lithium ion battery demand continues • Significant additional planned battery capacity has been announced globally • Coated spherical graphite used as anode material in lithium ion batteries
Slide 39: Tesla Model S and BYD Qin electric vehicles
Highly rated luxury electric vehicle, Tesla Model S (left) and BYD Qin (right), the top selling plug-in electric car in the PRC in 2014. 38 38
Slide 40: Ideal characteristics of flake graphite for battery applications
Ideal characteristics of flake graphite for battery applications • Optimal flake size – using -100 mesh maximises production yield • Degree of crystal order – Balama graphite has a fully ordered crystalline structure • Degree of spheroidisation – well rounded spherules increases anode efficiency • P
Slide 41: Proposed Spherical Graphite Project
Spherical graphite production Coated spherical graphite produced Proposed Spherical Graphite Project Coating Recarburiser by-product produced Purification (chemical) Spheriodisation Uncoated spherical graphite produced (physical) Milling Drying and bagging Balama Project Flotation -100 mesh graphite
Slide 42: Integrated spherical graphite production chain
Integrated spherical graphite production chain • 20 year, exclusive(1) licensing agreement signed with Hairong Morgan for its proprietary spherical graphite coating technology • Ability to build an integrated production chain from mine to anode quality material • Balama is the solution to a key comp
Slide 43: Recarburiser
Recarburiser • High quality carbon additive for steel making and iron casting industries • Opportunity to displace lower quality recarburisers (e.g. petroleum coke) • By-product of spherical graphite production Balama recarburiser customer samples 42 42
Slide 44: Vanadium
Vanadium 43
Slide 45: Vanadium
Vanadium • Vandium redox battery storage market and steel industry • Chalieco Scoping Study demonstrates viability of project • Ongoing pilot plant work • Samples being prepared for redox flow battery customer testing 44 44
Slide 46: The Balama Journey
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Slide 47: The future of graphite
The future of graphite • World’s largest, low cost producer, over 350,000 tpa(1) of superior quality graphite products • Rapid progress – concept to mine development in 4 years • Highly experienced Board and management team • Ideally positioned to innovate and bring enhanced value to industrial and
Slide 48: Key contacts
Key contacts Tolga Kumova Office Managing Director Syrah Resources Limited Syrah Resources Limited ASX: SYR Office contact - +61 3 9670 7264 ABN 77 125 242 284 Mobile contact - +61 421 707 155 Level 9, 356 Collins St Melbourne VIC Email – t.kumova@syrahresources.com.au Phone: +61 3 9670 7264 www.syr
Slide 49: Appendices
Balama Balama Project Project Appendices Balama Project 48
Slide 50: JORC Mineral Resources & Ore Reserves
JORC Mineral Resources & Ore Reserves Balama Graphite (JORC Code 2012) Mineral Resources(1) Ore Reserves(1) Classification Mt TGC (%) Contained Graphite (Mt) Classification Mt TGC (%) Contained Graphite (Mt) Balama West Balama West Measured 75.0 11.0 8.4 Proven 20.0 19.2 3.8 Indicated 110.0 8.1 9.1
Slide 51: Competent Person Statement – Balama Graphite
Competent Person Statement – Balama Graphite The information in this report that relates to Mineral Resources and Ore Reserves is extracted from the report titled “Syrah finalises Balama Graphite study and declares maiden ore reserve” released to the ASX on 29 May 2015 and available to view at www.s
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