Syrah Resources Limited · ASX:SYR
Syrah Resources — Macquarie Bank Australia Conference 2018
23 slides from Syrah Resources's conference presentation, May 3, 2018
Slide 1: Syrah Resources and Graphite Market
For personal use only Syrah Resources and Graphite Market Macquarie Bank Australia Conference, May 2018 Shaun Verner, CEO and Managing Director 1
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: Corporate Background
For personal use only Corporate Background 33
Slide 4: Syrah Resources: Only major new supplier of natural graphite
Syrah Resources: Only major new supplier of natural graphite For personal use only First mover advantage – operations commenced Largest natural graphite producer • First production November 2017 • Balama Tier 1 asset: 17% grade, LoM > 50 years, 350ktpa capacity • Customer shipments commenced January
Slide 5: Syrah's strategy is focussed on value; enabled by a world class deposit and fast growing market
Syrah’s strategy is focussed on value; enabled by a world class deposit and fast growing market For personal use only Goals Logic Enablers Timing Be the pre-eminent supplier of flake • Industrial for baseload demand • Low cost <US$400/t, toward • Transitioned to operations 1 graphite US$300/t Januar
Slide 6: Largest capacity, high consistent quality, and a long life asset
Largest capacity, high consistent quality, and a long life asset enables Syrah Resources to be the global graphite leader For personal use only Unprecedented capacity World class ore grade First quartile position Mine Capacity Total Graphitic Carbon Flake Graphite Cost Curve: 2018 kt 400 20% 17% 300
Slide 7: Balama deposit has the largest defined graphite reserve globally
Syrah’s high grade Balama deposit has the largest defined graphite reserve globally; only major project in operations For personal use only Graphite Reserves Syrah Resources’ low-grade stockpiles at 2 – 9% TGC will be greater than most other 160 proposed projects’ head grade Syrah Resources Fully fu
Slide 8: Balama is a tier asset
Balama is a tier 1 asset For personal use only Commodity Flake Graphite Copper Iron Ore Zinc Largest Balama Escondida S11D (Carajas) Rampura Agucha mine Mozambique Chile Brazil India Market 15 – 20% in 2018 ~5% in 2017 ~5% at full capacity ~5% in 2017 share 35 – 40% at full capacity Source: Syrah Re
Slide 9: Q1 2018 Highlights
Q1 2018 Highlights For personal use only Health, Safety - Strong safety record continues with Total Recordable Injury Frequency Rate (TRIFR) of 0.8 and - President of Mozambique, His Excellency Mr Filipe Nyusi, officially opening the Balama Graphite Operation at an onsite Community inauguration in A
Slide 10: Balama Graphite Operation: Production rates improving
Balama Graphite Operation: Production rates improving For personal use only 2018 Production 160kt – 180kt • Targeting lower end of guidance 160kt to 180kt1 • Planned production ramp up 25% H1, 75% H2 – Q2 and H2 profiles broadly similar to original plan • Operating costs in line with expectations, w
Slide 11: Balama Inauguration April 2018
Balama Inauguration April 2018 For personal use only President of Mozambique, His Excellency Mr Filipe Nyusi, officially opening Balama Greeting Syrah MD & CEO, Shaun Verner Traditional tree planting Local community Bagging of graphite concentrate Unveiling of commemorative Balama plaque Balama inau
Slide 12: Graphite Market
For personal use only Graphite Market 12 12
Slide 13: Industrial and battery market demand was strong in 2017; has continued Q1 2018
Industrial and battery market demand was strong in 2017; has continued Q1 2018 For personal use only • World Steel Association expects global steel production growth of +1.8% in 2018. Down from +5.3% in 2017 as demand from China eases • In 2017, ~120,000 tonnes of flake graphite was used to produce
Slide 14: Battery sector demand growth for flake graphite driven by passenger vehicles and trucks
Battery sector demand growth for flake graphite driven by passenger vehicles and trucks in 2017 For personal use only Natural Flake Graphite Demand Battery Sector Demand Breakdown kt 2017 kt 2017 800 140 710 120 700 Other 30 120 • Applications that have large Bike & Tools10 unit sales but smaller ba
Slide 15: Natural flake graphite market outlook: Battery sector
Natural flake graphite market outlook: Battery sector For personal use only Rapid growth of lithium ion battery market expected • Syrah estimates an increase in demand of nearly 400kt from the battery sector between 2017 and 2021, to ~500kt • Assume an electric vehicle penetration rate of 5.5% (glob
Slide 16: How much natural graphite is in an electric vehicle?
How much natural graphite is in an electric vehicle? It depends on battery size and natural graphite content in the anode material For personal use only Source: Syrah Resources 1616
Slide 17: Graphite anode mass in Li-ion battery per kWh is consistent
Graphite anode mass in Li-ion battery per kWh is consistent and agnostic of cathode chemistry For personal use only Nickel Cobalt Aluminium (NCA) Nickel Manganese Cobalt (NMC1) Preferenced by Preferenced by Kg per kWh 1.50 1.00 1.00 1.00 0.70 0.45 0.50 0.25 0.12 0.12 0.15 0.10 0.02 0.00 Graphite Nic
Slide 18: Lithium ion battery technology likely to remain the base load of energy delivered
Scale and economics means lithium ion battery technology likely to remain the base load of energy delivered to meet future demand from electric vehicles For personal use only Source: Syrah Resources, IDtechex 1818
Slide 19: Increased penetration of natural graphite in anode material supports future demand
Increased penetration of natural graphite in anode material supports future demand and prices for natural graphite; facilitates reduction in battery costs For personal use only Source: Syrah Resources, Bernstein 1919
Slide 20: China's demand profile and declining domestic graphite resources
China’s demand profile and declining domestic graphite resources means a structural change to a net importer of natural graphite will occur For personal use only Source: Syrah Resources, Woodmackenzie, CRU, Metal Bulletin 2020
Slide 21: Anode supply chain margins driven by development of intellectual property
Anode supply chain margins driven by the development of intellectual property by anode material and anode producers For personal use only Source: Syrah Resources 2121 21
Slide 22: BAM strategy leverages product quality, location and timing
BAM strategy leverages product quality, location and timing to establish position and maximise value For personal use only Electric Vehicle driven battery growth of 23% CAGR (in GWh) to 2025 Market and Strategy Value BAM market opportunity and margins are driven by: Potential EBITDA contribution • A
Slide 23: Summary
Summary For personal use only Syrah establishing solid foundation as only major new supplier of graphite to battery market Syrah Resources • Largest and one of the lowest cost and highest quality producers of natural flake graphite • Strong demand profile outlook for natural graphite from lithium io
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