Syrah Resources Limited · ASX:SYR
Syrah Resources — Macquarie Australia Conference 2016
45 slides from Syrah Resources's conference presentation, May 4, 2016
Slide 1: Macquarie Australia Conference
For personal use only MAIN Macquarie HEADING STYLE TO Australia Conference GO HERE MAIN HEADING Unsaved Document / 21/09/2012 / 20:01 4 - 6 May 2016 0
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: Our vision and values
Our vision and values For personal use only 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. Syrah is committed to: • WO
Slide 4: Investment highlights
Investment highlights For personal use only 33 3
Slide 5: Building the world's premier graphite company
Building the world’s premier graphite company For personal use only • Feasibility Study confirms the world class potential of the Balama Project • Low cost producer of superior quality graphite products • Targeting “traditional” industrial graphite markets and emerging technology markets • Developme
Slide 6: Corporate overview
For personal use only Corporate overview Corporate overview 55 5
Slide 7: Capital Structure
Capital Structure For personal use only Key details Research coverage Shares on issue 231.3m • Credit Suisse • Macquarie Bank (as at 31 March 2016) • Deutsche Bank • Canaccord Genuity Options on issue 7.0m (as at 31 March 2016) Share price and volume Undiuted market capitalisation 7 18 A$1.094.0m (S
Slide 8: Balama Project
For personal use only Balama Project Corporate overview 77 7
Slide 9: Feasibility Study overview
Feasibility Study overview For personal use only • 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
Slide 10: Reserves and Resources
Reserves and Resources For personal use only • 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
Slide 11: Timeline to production
Timeline to production For personal use only Activity Q2 2016 Q3 2016 Q4 2016 Q1 2017 BALAMA PROJECT Detailed design Farmland relocation and land clearing Civil works Process plant construction Power generation Tailings dam Water supply Mine development Production ramp up 10 10 10
Slide 12: Development activities significantly progressed
Development activities significantly progressed For personal use only • Detailed engineering and design is well advanced • Steelwork and plate work fabrication is well underway with deliveries commencing to site during Q2 2016 • Manufacture of principal mechanical equipment continues and will be rea
Slide 13: Access road construction
Access road construction For personal use only Completed section of the access road 12 12 12
Slide 14: Concrete works
Concrete works For personal use only Balama crushing facility foundations (left) and ore bin back wall (right) 13 13 13
Slide 15: Process water dam
Process water dam For personal use only Process water dam (right) and thickener footings (left) 14 14 14
Slide 16: 3D Model – Primary Milling Circuit
3D Model – Primary Milling Circuit For personal use only 3D Model – Balama Primary Milling Circuit 15 15 15
Slide 17: Equipment being manufactured
Equipment being manufactured For personal use only Clockwise from top left: Crushing plant, mill, ore scrubber and thickener in various stages of manufacture 16 16 16
Slide 18: Product marketing and offtake
For personal use only Product marketing and offtake Corporate overview 17 17 17
Slide 19: Marketing strategy and product mix
Marketing strategy and product mix For personal use only • Partnerships with major end users or key regional commodity traders • Technology markets (lithium ion battery applications) require -100 mesh graphite • General Manager – Sales & Marketing Antonio Assis appointed with over 28 years of experi
Slide 20: Offtake agreements
Offtake agreements For personal use only Flake graphite and recarburiser products • Offtake agreement with Chalieco for 80ktpa of flake graphite over 3 years • Offtake agreement with Marubeni for 20ktpa of flake graphite over 3 years • Statement of Sales Intent with a major global refractory produce
Slide 21: Proposed Spherical Graphite Project
For personal use only Proposed Spherical Graphite Project Corporate overview 20 20 20
Slide 22: Emerging technology markets
Emerging technology markets For personal use only • Emerging macroeconomic theme – electric vehicles and grid storage • Significant lithium ion battery demand continues • Coated spherical graphite used as anode material in lithium ion batteries • 1KWh requires ~1kg of spherical graphite • Increasing
Slide 23: Anode materials used in lithium ion batteries
Anode materials used in lithium ion batteries For personal use only Mesocarbon microbeads Silica or tin type Lithium titanate oxide 2% 1% 1% Amorphous graphite 5% Artificial graphite 24% Natural graphite 67% Composition of anode materials used in lithium ion batteries in 2014 (Source: Avicenne Energ
Slide 24: Significant planned battery capacity
Significant planned battery capacity For personal use only • Significant additional planned lithium ion battery capacity has been announced globally US$10 billion – US$12 billion invested during 2011 to 2014 Over US$6 billion is expected to be invested from 2014 to 2017 by Telsa, BYD and Amperex
Slide 25: Spherical graphite prices
Spherical graphite prices For personal use only • Benchmark Minerals (March 2016) reports: Spherical graphite prices continue to be more resilient than flake prices Mid prices and high prices for 99.95% C uncoated spherical graphite have risen Widening price ranges are a sign of a market that
Slide 26: Historical spherical graphite prices
Historical spherical graphite prices For personal use only Historical 15 micron, 99.95% C FOB China uncoated spherical graphite prices (Source: Benchmark Minerals) 25 25 25
Slide 27: Global electric vehicle lithium ion battery market
Global electric vehicle lithium ion battery market For personal use only • Global electric vehicle lithium ion battery market was US$5 billion in 2015; forecast to increase to US$11 billion in 2020 and US$15 billion in 2025(1) • Lithium ion battery market currently driven by consumer electronics (la
Slide 28: Historical and forecast global EV market – 2010 to 2025
Historical and forecast global EV market – 2010 to 2025 For personal use only Global PHEV, HEV and EV forecast to 2025 – Base Case (left), China Growth Case (right) (Source: Avicenne Energy 2015) 27 27 27
Slide 29: Spherical graphite demand – an illustrative example
Spherical graphite demand – an illustrative example For personal use only • The recent unveiling of the Tesla Motors’ Model 3 is illustrative of the increasing demand for spherical graphite • The Model 3 had pre-orders of almost 400,000 vehicles three weeks after launching, which will require almost
Slide 30: Tesla Model
Tesla Model 3 For personal use only Newly unveiled Tesla Model 3 which had nearly 400,000 pre-orders three weeks after launching on 31 March 2016 29 29 29
Slide 31: Other potential lithium ion battery markets
Other potential lithium ion battery markets For personal use only • Other potential lithium ion battery markets include energy storage, E-bikes, medical carts and power tools • In 2012, the lead acid battery market for these other applications was US$13 billion compared to US$3 billion for lithium i
Slide 32: Historical and forecast global battery markets for other applications
Historical and forecast global battery markets for other applications For personal use only Historical 2012 and forecast 2020 global lead acid battery and lithium ion battery markets for other applications (Source: Avicenne Energy 2013) (1) Market size is based on battery pack level 31 31 31
Slide 33: Ideal characteristics of flake graphite for battery applications
Ideal characteristics of flake graphite for battery applications For personal use only • 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 increase
Slide 34: Balama spherical graphite
Balama spherical graphite For personal use only Purified, uncoated Balama spherical graphite 33 33 33
Slide 35: Spherical graphite production
Spherical graphite production For personal use only Coated spherical graphite Proposed Spherical Coating Graphite Project Recarburiser by-product Purification (chemical) Spheriodisation Uncoated spherical graphite (physical) Milling Drying and bagging Balama Project Flotation -100 mesh graphite Mech
Slide 36: Integrated spherical graphite production chain
Integrated spherical graphite production chain For personal use only • 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
Slide 37: Recarburiser
Recarburiser For personal use only • 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 • Creates another revenue stream for the Proposed Spherical Graphit
Slide 38: The Balama journey
For personal use only The Balama journey Corporate overview 37 37 37
Slide 39: The future of graphite
The future of graphite For personal use only • World’s largest, low cost producer, with a capacity over 350,000 tpa(1) • Balama has the ability to become a long term, consistent and high quality graphite supplier • Rapid progress – concept to mine development in 4 years • Highly experienced Board an
Slide 40: Key contacts
Key contacts For personal use only Tolga Kumova Managing Director Syrah Resources Limited Office contact - +61 3 9670 7264 Mobile contact - +61 421 707 155 Email – t.kumova@syrahresources.com.au Office Syrah Resources Limited ASX: SYR ABN 77 125 242 284 Level 9, 356 Collins St Melbourne VIC Phone: +
Slide 41: Appendices
For personal use only Appendices 40 40
Slide 42: Board of directors and Executive management team
Board of directors and Executive management team For personal use only Jim Askew Tolga Kumova Sam Riggall Non-Executive Chairman Managing Director Non-Executive Director Over 40 years of experience Co-founder of Jacana Over 20 years of experience in as a Director / CEO of Resources and over 15 years
Slide 43: Feasibility Study – detailed operational and financial metrics
Feasibility Study – detailed operational and financial metrics For personal use only Operational metrics Financial metrics Total initial capex (2) Operational period years 42 US$m 144 (including 10% contingency) Assumed weighted average (3) (4) Plant feed rate tpa 2,000,000 (5) US$/t (FOB) 1,000 bas
Slide 44: JORC Mineral Resources and Ore Reserves
JORC Mineral Resources and Ore Reserves For personal use only 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
Slide 45: Competent Person Statement – Balama graphite
Competent Person Statement – Balama graphite For personal use only 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 avai
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