Syrah Resources Limited · ASX:SYR
Syrah Resources — UBS Australasia Conference 2017
28 slides from Syrah Resources's conference presentation, Nov 13, 2017
Slide 1: Syrah Resources: Moving into Operations
For personal use only Syrah Resources: Moving into Operations November 2017 Shaun Verner, Managing Director and CEO
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 Introduction
For personal use only Corporate Introduction 22
Slide 4: Syrah Resources overview
Syrah Resources overview For personal use only Corporate & Development Natural Graphite Battery Anode Material Optionality • Australian Stock Exchange: SYR • The world’s largest and one of the • Aim to be the first integrated BAM • Balama expansion the lowest lowest cost flake graphite mines produce
Slide 5: Investment highlights
Investment highlights For personal use only First mover - Balama Graphite Project in Mozambique will be the largest natural graphite mine globally from 2018 advantage - Syrah is the only listed company with a major graphite project currently commissioning, moving to production - Long life asset, wit
Slide 6: Syrah's strategy is focussed on value
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 • Industrial for baseload demand • Low cost • First saleable product this month 1 flake graphite • Lithium-ion battery mark
Slide 7: Lithium-ion Battery Market
For personal use only Lithium-ion Battery Market 66
Slide 8: Global policy, sales momentum and industry investment continue to build for EVs
Global policy, sales momentum and industry investment continue to build for the electric vehicle market For personal use only Government regulations EV fleet surpassed 2 million in 2016, Traditional OEMs responding to driving change ~1 million more to be added in 2017 EV development and competition
Slide 9: Lithium-ion battery market size expected to grow to 500GWh in 2025
Lithium-ion battery market size expected to grow to 500GWh in 2025, from 60GWh in 2015; impact on flake graphite significant For personal use only Larger and lower cost lithium batteries Flake graphite demand from lithium-ion batteries Cost per kWh Natural graphite (US$) anode penetration +35% +25%
Slide 10: Anode material is ~15% of total battery cost
Anode material is 10 - 15% of the total battery cost, increasing natural graphite assists battery cost reduction For personal use only Materials Breakdown (NCA Lithium ion battery) 100% Silicon Silicon Electrolyte Synthetic Graphite Cathode 75% Synthetic Supporting Graphite Materials 50% Active Anod
Slide 11: Graphite anode concentration is battery chemistry agnostic
Graphite anode concentration is battery chemistry agnostic; more graphite per kWh than cathode commodities 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
Slide 12: Blending natural and synthetic graphite in anodes
Blending natural and synthetic graphite in anodes enables a balance of performance and cost For personal use only Natural graphite penetration expected to increase Anode composition by major anode producer Natural Synthetic 100% Silicon 55% 30% 12% 80% Synthetic 25% 100% 50% 60% 100% 25% Natural gra
Slide 13: Graphite Market
For personal use only Graphite Market 12 12
Slide 14: Baseload of demand in industrial markets; incremental demand driven by batteries
Baseload of demand in industrial markets; incremental demand driven by batteries; supply constraints in China impacting market dynamics For personal use only Global natural flake graphite Natural flake graphite supply forecast, China’s domestic supply to has demand growth +250kt to 2020 market short
Slide 15: China's demand for flake graphite is increasing as domestic supply reduces
China’s demand for flake graphite is increasing at a time of reducing domestic supply; prices beginning to reflect changing market dynamics For personal use only China to switch from an exporter to importer of graphite Commodity price changes in last 12 months Net Importer Net Exporter 2015 Cobalt F
Slide 16: Balama Graphite Mine
For personal use only Balama Graphite Mine 15 15
Slide 17: Balama commissioning underway, first saleable product this month
Balama commissioning underway, first saleable product this month For personal use only Crushing and primary milling Flotation Flakes and fines drying; screening and bagging Intermediate Concentrate production in October 15MW Power station Process water storage 16 16
Slide 18: Syrah's Balama graphite operation is a tier 1 asset
Syrah’s Balama graphite operation is a tier 1 asset by any measure For personal use only Reserves and - Reserves1: 114.5Mt at 16.6% Total Graphitic Carbon (TGC) - 18.9Mt of contained graphite Resources - Resources1: 1,191Mt at 11.0% TGC - 128.5Mt of contained graphite Mining - Simple, open pit minin
Slide 19: Balama has the largest defined graphite reserve globally
Syrah’s high grade Balama deposit has the largest defined graphite reserve globally; only major project nearing 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 Ful
Slide 20: Investment and operating metrics highlight Syrah's advantage
Investment and operating metrics highlight Syrah’s advantage over all other greenfield projects; Balama brownfield expansion possible For personal use only Capital Intensity Strip Ratio (US$’000 invested or proposed / tonne of capacity (tonne of waste per tonne of graphite ore) 4.0 2.00 3.0 1.50 2.0
Slide 21: Largest capacity, high quality and long life asset
Largest capacity, high and 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 Syrah capacity versus Total Graphitic Content Flake Graphite Cost Curve: kt 20 next
Slide 22: Battery Anode Material (BAM)
For personal use only Battery Anode Material (BAM) 21 21
Slide 23: 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 24: BAM production in USA provides strategic alternate source of anode material
BAM production in USA provides global battery supply chain a strategic and valuable alternate source of anode material For personal use only Syrah Resources’ value proposition Natural Flake Graphite Battery Anode Anode Battery Factory Electric Vehicle Material Kt, supply composition Kt, capacity com
Slide 25: Battery Anode Material (BAM) project summary
Battery Anode Material (BAM) project summary For personal use only Feedstock - High purity flake graphite concentrate from Balama (-100 mesh size material) Processing - Planned milling and purification capacity of 10kt per annum(1) capacity and product mix - Optionality to produce variety of saleabl
Slide 26: Syrah will provide global baseload supply of flake graphite and BAM
Syrah will provide global baseload of supply of high quality flake graphite and BAM to all key battery producing markets For personal use only 1 2 3 Flake graphite into key Battery Anode Material Flake graphite and BAM battery anode markets of for USA and export for Asia, Americas and Europe China,
Slide 27: Summary
Summary For personal use only Syrah Resources • Syrah will be the largest, one of the lowest cost and highest quality producers of natural flake graphite with up to 350ktpa capacity • Scheduled to deliver first saleable product this month • Production ramp up profile driven by value, not volume, dem
Slide 28: JORC Mineral Resources and Ore Reserves
JORC Mineral Resources and Ore Reserves For personal use only Balama Graphite (JORC Code 2012) – as at 15 November 2016 Mineral Resources Ore Reserves Contained Contained Classification Mt TGC (%) Classification Mt TGC (%) Graphite (Mt) Graphite (Mt) Balama West Balama West Measured 75.0 11.0 8.4 Pr