Syrah Resources Limited · ASX:SYR
Syrah Resources — Q2 2018 Earnings Presentation
15 slides from Syrah Resources's earnings presentation, Jul 30, 2018
Slide 1: Q2 2018 Quarterly Activities Report
For personal use only Q2 2018 Quarterly Activities Report Shaun Verner – Managing Director & CEO 30 July 2018
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: Q2 2018 Highlights
Q2 2018 Highlights For personal use only Health and - Strong safety record continues with Total Recordable Injury Frequency Rate (TRIFR) of 1.0 Safety - ISO certification awarded for Health, Safety and Environment Balama - Q2 production 21.2kt and H1 32.4kt, recoveries in Q2 primarily impacted by in
Slide 4: Health, Safety, Community and Environment
Health, Safety, Community and Environment For personal use only Focus on Health and Safety Security • TRIFR 1.0 per million hours worked • Security procedures and protocols increased • ISO certification awarded for Health, Safety and • Recent incidents in northern Mozambique, Environment remote from
Slide 5: Balama Production
Balama Production For personal use only Production Summary H1 Q2 Q1 Q2 on Q1 30 Jun 2018 30 Jun 2018 31 Mar 2018 Change Ore Mined (>9% TGC1) Tonnes (‘000) 532 249 283 (12%) Mill Feed Tonnes (‘000) 444 258 186 39% Mill Feed Grade TGC1 16% 16% 17% (6%) Recovery 42% 49% 34% 44% Graphite Produced Tonnes
Slide 6: Balama Optimisation
Balama Optimisation For personal use only Process Plant and Operations Attrition Cells and Other • Detailed improvement plan focused on - • Attrition cells equipment utilisation, plant availability and • Installation completed in Q2 recoveries • Commissioning commenced July • Recoveries key actions
Slide 7: Balama Targets
Balama Targets For personal use only Revised Target Prior Graphite production 20181 135,000 – 145,000 tonnes 160,000 tonnes H2 ramp up production split ~Q3:40% Q4:60% C1 Cash Operating Costs2 by end 2018 US$430/t – US$450/t US$400/t Balama operational cash flow positive From late 2018 Mid H2 2018 Av
Slide 8: Sales & Marketing
Sales & Marketing For personal use only Sales Graphite tonnes (‘000) H1 2018 • Positive customer qualification feedback Tonnes (‘000) resulting in increased order volumes Graphite Sold and Shipped 16 • Further contractual negotiations ongoing Graphite Sold and Awaiting Shipment at Nacala 7 • H1 sale
Slide 9: Graphite Pricing
Graphite Pricing For personal use only Near Term China vs International Prices • Product weighted realised price remains lower • Syrah’s current fines price influenced by China than inferred by external reporters domestic market, inland logistic costs and VAT • Q2 basket price realisation impacted b
Slide 10: Global EV market growth strong; China accelerating
Global EV market growth strong; China accelerating For personal use only Electric Vehicle Market Share Lithium-ion Battery Sector % of total car sales • Jan to May 2018 (YTD), global total passenger electric vehicle sales were 573K (+69% YoY) 4.1 • Electric vehicle lithium-ion battery sales were Chi
Slide 11: Global flake graphite market balance in transition
Global flake graphite market balance in transition For personal use only Global Natural Flake Graphite Market Supply • Majority of incremental global supply is from Syrah Resources before 2021 • China’s higher cost supply to rationalise over the coming years due to resource depletion and environment
Slide 12: Battery Anode Material (BAM) Project
Battery Anode Material (BAM) Project For personal use only BAM Site Louisiana Product Development • Vidalia site purchase to complete in August • Testing of Syrah pilot plant coated spherical • Enabling utilities agreements nearing graphite in full cells commenced completion, will facilitate an attr
Slide 13: Finance and Corporate
Finance and Corporate For personal use only Cash 30 Sep 2018 30 Jun 2018 (Forecast) Cash at start of period US$m 56.7 80.5 Net Movement US$m (17) (23.8) Cash at end of period US$m 40 56.7 Finance Corporate • Balama forecast to achieve positive cash flows • COO Julio Costa commenced early June – from
Slide 14: Summary
Summary For personal use only Syrah establishing solid foundation as only major new supplier of graphite to battery market • Strong health and safety record continues • Balama detailed improvement plan to improve graphite recoveries and production ramp up volume • Positive customer product qualifica
Slide 15: Contact
Contact For personal use only For further information, please contact Investor Relations Nova Young Contact: +61 422 575 530 Email: n.young@syrahresources.com.au www.syrahresources.com.au 14 14