Syrah Resources Limited · ASX:SYR
Syrah Resources — Q3 2022 Earnings Presentation
25 slides from Syrah Resources's earnings presentation, Oct 20, 2022
Slide 1: Q3 2022 Quarterly Activities Report
Q3 2022 Quarterly Activities Report 20 October 2022 Shaun Verner – Managing Director & CEO syrahresources.com.au Q3 2022 Quarterly Activities Report Syrah Resources | ASX: SYR1 19 October 2022
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, Investor Relations invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. Thi
Slide 3: Our Position
Our Position Syrah is a major ex-China natural graphite and active anode material (AAM) supplier for global customers, with upstream and downstream expansion potential underpinned by its world-class Balama resource Natural graphite and Syrah is the only Balama is a 350ktpa Vidalia is building an act
Slide 4: Our Value Proposition
Our Value Proposition Vertical Operating and Cost Position ESG Position Expansion Integration Development Potential ▪ AAM from Vidalia ▪ Largest integrated ▪ Cost competitive ▪ Leading ESG ▪ Significant for battery makers natural graphite AAM supply from standards and downstream and auto OEMs operat
Slide 5: Our ESG Profile
Our ESG Profile Best practice Leading ESG standards Low carbon footprint Auditable back to source sustainability frameworks ✓ ISO:45001 and ISO:14001 certification at ✓ Sustainability frameworks guided by the ✓ Lower carbon emissions footprint (life ✓ Fully integrated by Syrah from mine to Balama Gl
Slide 6: Q3 2022 Highlights
Q3 2022 Highlights Health & Safety Balama & Vidalia Market & Corporate – Positive Balama net operating profit after C1 and C2 costs – Global EV sales grew 68% in Q3 2022, 38 kt Balama production – Balama plant recovery of 80% for quarter and 85% in August 2022 – Balama C1 cash costs impacted by oper
Slide 7: EV sales and anode production volumes continue to strengthen
EV sales and anode production volumes continue to strengthen YTD 2022 Global EV Sales (‘000 Units)1 Chinese Anode Production (kt)2 1,000 +67% +76% +56% +67% on YTD 2021 130 +76% 61 +57% 38 800 +61% Mar 20 Mar 21 Mar 22 Nov 21 Sep 20 Nov 20 Sep 21 Sep 22 May 20 May 21 May 22 Jan 20 Jul 20 Jan 21 Jul
Slide 8: North American battery market is maturing rapidly
North American battery market is maturing rapidly Location of Planned Battery Manufacturing Capacity in North America North American battery manufacturing capacity1 2021 56 GWh LOCATION: OH LOCATION: TN LOCATION: MI LOCATION: Quebec SIZE: 35 GWh SIZE: 35 GWh SIZE: 50 GWh SIZE: 60 GWh STATUS: Plannin
Slide 9: Syrah aims to become a leading supplier of anode products
Syrah aims to become a leading supplier of anode products Our expansion strategy is underpinned by Balama’s world-class resource Vidalia, USA Potential Asia Tolling (>20ktpa) Europe Production Base and Vidalia Secondary Potential Further Vidalia Customer Vidalia Initial Target Expansion + Europe Exp
Slide 10: Q3 2022: Balama Production and Operations
Q3 2022: Balama Production and Operations ▪ 38kt natural graphite produced at 80% recovery during Q3 2022 ▪ Positive Balama net operating profit after C1 and C2 costs over the quarter ▪ Product quality consistent with previous quarter with stable grade and higher recovery ▪ New cyclone system in the
Slide 11: Q3 2022: Balama Production and Operations
Q3 2022: Balama Production and Operations Natural Graphite Production (kt) Product Mix (% Fines) 46 44 38 80% 83% 83% 83% 13 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2022 2022 2021 2022 2022 2022 Plant Recovery C1 Costs (US$/t3) 85%1 82% 82% 76% 80% 1,159 68%2 543 615 464 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022
Slide 12: Balama is the largest natural graphite mining/processing operation globally
Balama is the largest natural graphite mining/processing operation globally Ex-China Natural Graphite Reserves and Reserve Grade 1 BALAMA CUT-OFF GRADE2 20 Africa 18 North America Contained Graphite Reserves (Mt) 16 Other 14 BALAMA (7.2% TGC CUT-OFF GRADE)2 12 10 Asset Overview Location Southern Cab
Slide 13: Q3 2022: Balama Sales and Marketing
Q3 2022: Balama Sales and Marketing ▪ Record quarter with 55kt natural graphite sold and shipped ▪ Container shipping market disruption continued to impact access to container capacity and freight cost for Balama products on vessels sailing from Nacala ▪ Very strong demand and forward contracting wi
Slide 14: China graphite fines price stable with constructive market balance
China graphite fines price stable with constructive market balance Natural Graphite Fines Prices (US$/t)2 ▪ Strong demand and disrupted domestic supply 900 Asian Metal has supported increased China domestic graphite Benchmark Mineral Intelligence fines pricing 800 ▪ Graphite fines demand is strong –
Slide 15: Q3 2022: Vidalia
Q3 2022: Vidalia Vidalia Initial Expansion ▪ Detailed engineering more than 89% completed with Worley Group ▪ Procurement substantially completed with contracts for more than ~US$130 million in total installed capital costs awarded1 ▪ Key construction activities were piling, fencing, buried water se
Slide 16: Q3 2022: Vidalia
Q3 2022: Vidalia Customer Engagement and Product Qualification ▪ Offtake agreement with Tesla to supply 8ktpa AAM from Vidalia at a fixed price for an initial term of four years1 ▪ MOUs with Ford / SK On2 and LG Energy Solution3 to evaluate AAM supply from Vidalia and target binding offtake agreemen
Slide 17: Vidalia offers competitive operational metrics
Vidalia offers competitive operational metrics Vidalia Initial Expansion Project Parameters Operating Margin (US$/kg AAM Real) Global Warming Potential (kg CO2 eqv./kg AAM)4 Observable Spot Natural Graphite AAM Price Range3: Vidalia AAM 7.3 11.25 ktpa 21 ktpa ~$4.53/kg – $7.10/kg AAM production Grap
Slide 18: Vidalia Initial Expansion
Vidalia Initial Expansion Key Project Milestones Achieved Defined Schedule to 11.25ktpa AAM Production at Vidalia Offtake Final Construction on Construction Start of 11.25ktpa AAM Agreement Investment Schedule and Completion and Production Run-rate Decision Budget Commissioning Production Dec 2021 F
Slide 19: Vertically integrated supply strategy
Vertically integrated supply strategy Syrah’s vision is to be the world’s leading supplier of superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets Balama Graphite Benefits of vertical Sites/Location
Slide 20: Syrah is a near-term AAM supply option for USA and European markets
Syrah is a near-term AAM supply option for USA and European markets Vidalia AAM Facility Export Market and European AAM Facility ▪ Establishing US-based AAM ▪ Potential for AAM exports from Vidalia to Europe supply ▪ Potential European AAM facility vertically integrated ▪ Vertically integrated with
Slide 21: Q4 2022 outlook
Q4 2022 outlook End-market growth EV sales growth, constructive demand environment for anode material and ongoing Chinese supply challenges driving strong demand and sustained higher pricing for Balama products Balama production Increasing Balama production to 20kt per month with consideration of ma
Slide 22: Appendix
Appendix Q3 2022 Quarterly Activities Report Photo: Balama Ore 22
Slide 23: Battery and natural graphite fines demand is in the early stages of growth
Battery and natural graphite fines (-100mesh) demand is in the early stages of growth – driven by EV adoption Global EV Sales (Millions) Lithium-ion Battery Capacity (GWh) Natural Graphite Demand (kt) 100 80% 8,000 10,000 90 9,000 70% 7,000 80 8,000 60% 6,000 70 7,000 50% 5,000 60 6,000 50 40% 4,000
Slide 24: Graphite is a high intensity material in EV batteries
Graphite is a high intensity material in EV batteries, with costs / emissions expected to drive shift towards natural graphite Battery Mineral Composition of Batteries1 Natural Graphite Demand for Batteries2 100% 2022 Silicon LTO Other 1% 1% 0% MCMB 0% Natural 35% Metal Composition % Mass Synthetic
Slide 25: Syrah's global business to supply growing battery anode demand
Syrah’s global business to supply growing battery anode demand Vidalia, Louisiana, USA Balama, Cabo Delgado Province, Mozambique Sales and Marketing Hub, Dubai, UAE Contract Sales Liaison, Shanghai, China Corporate Office, Melbourne, Australia Q3 2022 Quarterly Activities Report 25