Slide 1: Q1 2020 Quarterly Activities Report
For personal use only Q1 2020 Quarterly Activities Report 22 April 2020 Shaun Verner – Managing Director & CEO
Slide 2: Important notice and disclaimer
Important notice and 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.
Slide 3: Company Overview
Company Overview For personal use only 3 Picture: Balama Graphite Operation
Slide 4: Investment highlights
Investment highlights For personal use only Long life asset, with over 50 years of mine life1 and 350kt per year of graphite concentrate production capability2 Balama: Balama is the largest integrated natural graphite mine and processing plant globally as measured by annual flake concentrate pro
Slide 5: Building a position in the anode supply chain
Building a position in the anode supply chain Leveraging the globally significant Balama asset to develop an integrated battery anode material and industrial products business For personal use only Balama a globally significant resource – Vertical integration Global mega trend leading practice ESG S
Slide 6: Where Syrah participates in the global anode supply chain
Where Syrah participates in the global anode supply chain A global business to service the growing demand for natural graphite - a critical battery raw material For personal use only : Balama Graphite Operation • Ore Reserves 108Mt at 16% TGC1 (17Mt of contained graphite) • Simple open pit operation
Slide 7: Summary Q1 2020 Performance
Summary Q1 2020 Performance For personal use only 7 Photo: Balama Graphite Operation Processing Plant
Slide 8: Q1 2020: Key Points
Q1 2020: Key Points For personal use only Natural flake graphite production guidance for 2020 suspended from 19 March due to operational and market uncertainty associated with impacts of COVID 191 Production suspended due to impacts from COVID 19, 2020 Production at Balama (Mozambique) and BAM (
Slide 9: Coordinated response to date. Focused on near-term actions
Coordinated response to date. Focused on near-term actions For personal use only In January 2020, Syrah’s Crisis and Emergency Management Teams were activated in a preventative manner to assess, manage and where possible, minimise the impact of COVID 19 on employees, the business and key stakehold
Slide 10: Summary Q1 2020 business performance
Summary Q1 2020 business performance For personal use only Balama Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Total Recordable Injury Frequency Rate (“TRIFR”) of 0.6 at Balama at the end of Metric Units 31 Mar 2020 31 Dec 2019 30 Sep 2019 30 Jun 2019 31 Mar 2019 Q1 2020 Production of 12kt natural gr
Slide 11: Ongoing production moderation, product quality maintained
Ongoing production moderation, product quality maintained Production at Balama temporarily suspended with optionality retained to promptly restart operations, operational review in-progress For personal use only Production of 12kt of natural graphite Flake Graphite Production (kt) during the quart
Slide 12: Natural flake graphite prices and sales
Natural flake graphite prices and sales Lower Q1 2020 sales in line with moderated production strategy and impacted by China supply chain shut downs due to COVID 19 For personal use only Weighted Average Price (CIF US$/t) Q1 2020 average price was US$478 per tonne versus Q4 2019 US$458 500 per ton
Slide 13: Natural graphite geographic and product sales mix summary
Natural graphite geographic and product sales mix summary Sales into the China fines battery market in Q1 2020 impacted by COVID 19 For personal use only Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 0% 18% 15% 19% Sales by 45% Geography 55% (% Volume) 100% 82% 85% 81% 16% 15% 15% 18% 29% Sales by Product
Slide 14: Syrah's site in Vidalia (USA) is de-risked for anode material production
Syrah’s site in Vidalia (USA) is de-risked for anode material production Vidalia site owned by Syrah has all the key requirements for large scale Active Anode Material production For personal use only Access to key utilities (Water/Gas/Power) Confirmed compliance with water and air What we have
Slide 15: Battery Anode Material (BAM) plant in Vidalia (Louisiana, USA)
Battery Anode Material (BAM) plant in Vidalia (Louisiana, USA) Aiming to be the first major integrated ex-China producer of natural graphite active anode material For personal use only Operations at Vidalia suspended during Q1 2020 due to State-wide “Stay at Home Order” by the Governor of Louisian
Slide 16: Outlook
Outlook Near term market impact of COVID 19 remains uncertain, review of options to further preserve cash is ongoing For personal use only Production at Balama likely suspended for duration Q2 2020, accounting for ongoing disruptions to global battery supply chains, Balama workforce travel restric
Slide 17: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) For personal use only 17
Slide 18: Syrah remains focused on positively contributing to our community
Syrah remains focused on positively contributing to our community For personal use only Supporting the Employment & Balama Health Local Development Economy Training Program Programs >US $54M paid in ~1,018 direct and Improving workforce Delivering sustainable salaries in Mozambique contract roles fo
Slide 19: Health, Safety and Environment
Health, Safety and Environment Syrah continues to commit to leading practice standards with ISO:45001 Occupational Health and Safety Management Systems and For personal use only ISO:14001 Environmental Management Systems certification In January 2020, Syrah’s Crisis and Emergency Management Teams
Slide 20: People Community and Stakeholder Engagement
People Community and Stakeholder Engagement Stakeholder engagement is central to open communication and mutual benefit For personal use only At quarter end, 96% of Balama’s direct employees are Mozambican nationals with 49% employed from the local Host Communities and 21% female employment Const
Slide 21: Sustainability & Community
Sustainability & Community Local Development Committee provides a framework to ensure Syrah is deploying resources responsibility and efficiently For personal use only Syrah adopts a risk and opportunities based approach to managing material sustainability matters across the business, with all rel
Slide 22: Balama Professional Training Centre (BPTC)
Balama Professional Training Centre (BPTC) Syrah aiming to maintain commitment to BPTC and other community programs through period of temporary suspension of production For personal use only Syrah built and runs the Balama Professional Training Centre Purpose to provide technical training to com
Slide 23: Battery Anode Material Market Overview
Battery Anode Material Market Overview For personal use only 23
Slide 24: Batteries are the largest cost driver of an electric vehicle
Batteries are the largest cost driver of an electric vehicle The cost of critical raw materials account for 79% of the total battery cost1 For personal use only Cost drivers of electric vehicle production Summary of critical raw materials Nickel Cobalt Aluminium (NCA)2 1.2 Kg per KWh Cathode: 0.76 -
Slide 25: A major increase in battery raw material production volume is required in future
A major increase in battery raw material production volume is required in future Demand for critical raw materials for battery manufacture will grow significantly over the next ten years; multiple sources needed For personal use only + 1,106% + 1,160% Million tonnes 2 2028 2028 1.5 + 1,229% 1 2028 +
Slide 26: Stages of anode material production from natural graphite
Stages of anode material production from natural graphite Syrah is aiming to be the first major integrated ex-China producer of natural graphite active anode material For personal use only 1 NATURAL GRAPHITE CONCENTRATE 2 ANODE PRECURSOR 3 ACTIVE ANODE MATERIAL MILLING/ CARBON THERMAL MINING CONCENT
Slide 27: China produces 100% global anode precursor
2 ANODE PRECURSOR China produces 100% global anode precursor MILLING/ PURIFICATION SHAPING China manufactured precursor is used domestically and exported to Japan and South Kora to manufacture Active Anode Material (AAM) For personal use only 100% Anode Precursor Supply (Other) Source: Syrah Resourc
Slide 28: Trade flows are reliant on Asia for Active Anode Material (AAM)
3 ACTIVE ANODE MATERIAL Trade flows are reliant on Asia for Active Anode Material (AAM) CARBON THERMAL COATING TREATMENT USA and European battery production supply chains are currently 100% reliant on supply of AAM from Asia For personal use only Battery Production Hubs AAM AAM AAM China S.Kor Japan
Slide 29: Global battery supply chain overly exposed to China supply
Global battery supply chain overly exposed to China supply – EU and USA diversification important for independence and risk mitigation Syrah vertically integrated Vidalia facility plans to provide emerging USA battery cell manufacturers with a domestic source of anode material supply For personal us
Slide 30: Co-location with planned USA battery factories
Co-location with planned USA battery factories Syrah plans to provide a co-located and ESG verifiable source of anode material supply to the USA battery supply chain For personal use only Planned 2029 GW Planned Capacity in USA Why Louisiana for Anode Material Production Bubble Size = 2029 GW Planne
Slide 31: Syrah an alternate supply proposition for battery supply chain participants
Syrah an alternate supply proposition for battery supply chain participants Syrah aims to provide a complementary and alternate supply proposition to existing domestic China supply to meet growing demand For personal use only Battery Anode 100% of existing anode precursor production Material Project
Slide 32: Governments recognise the strategic importance of battery raw materials
Governments recognise the strategic importance of battery raw materials For personal use only The Central People’s Government of the People’s Republic of China1 “Accelerating the cultivation and development of energy-saving vehicles ... a strategic measure to accelerate the transformation and upgrad
Slide 33: Government policy continue to be supportive of EV adoption
Government policy continue to be supportive of EV adoption For personal use only Regions 2025/2030 Targets Policies • Direct subsidies for passenger vehicle and tax exemptions for manufacturers to be extended till 20221 25% EV penetration by 2025 • Guangzhou and 3 other cities announces extended sub
Slide 34: Chinese firms commit US$26 billion to battery value chain investments
Chinese firms commit US$26 billion to battery value chain investments1 Several examples of China public market capital raisings during Q1 2020 with use of proceeds for ongoing build-out of battery supply chains For personal use only Selected Cases Company Capital Raise Use of Proceeds • 150mn USD to
Slide 35: Battery supply chain investment ex-China ongoing
Battery supply chain investment ex-China ongoing Significant commitments to build-out of battery supply chains in Europe and USA during Q1 2020 For personal use only 5bn EUR (5.44bn USD) investment into 64GWh of battery capacity by PSA and SAFT. 3.2bn EUR (3.53bn USD) for battery tech R&D approved b
Slide 36: COVID caused global supply chain shutdowns
COVID 19 caused global supply chain shutdowns First China then US and Europe, shutdowns highlight the importance of diversification in creating resilient supply chains For personal use only Ex-China OEMs remain disrupted end of Q, duration of shutdowns not yet clear OEM Comments Remain Shutdown Euro
Slide 37: China EV sales summary: Q1 2020 actuals and FY2020 forecasts
China EV sales summary: Q1 2020 actuals and FY2020 forecasts China Q1 2020 EV sales significantly impacted by COVID 19. Many analysts currently forecasting a catch-up in sales through 2020 For personal use only China Q1 2020 sales negatively impacted by COVID 19 Full year Passenger EV^ sales growth
Slide 38: Europe EV sales summary: Q1 2020 actuals and FY2020 forecasts
Europe EV sales summary: Q1 2020 actuals and FY2020 forecasts Europe EV sales growth in Q1 2020 pre COVID 19 impacts. Full year uncertain, some analysts maintaining YoY growth for full year For personal use only Strong EV Sales Growth in Europe Q1 2020 Potential for full year EV sales growth in Euro
Slide 39: Global EV sales summary: Q1 2020 actuals and FY2020 forecasts
Global EV sales summary: Q1 2020 actuals and FY2020 forecasts Some analysts maintaining YoY EV sales growth for 2020 For personal use only European sales helped out in Q1 Full year global EV sales growth expected to average 20% YoY 3,500 250 EV Sales (thousand units) EV Sales (thousand units) 2020 E
Slide 40: Anode Evolution
Anode Evolution Significant expected long term growth in natural graphite driven by Electric Vehicles and an increasing share of the anode mix For personal use only 2020 2025 2030 1% 2% 1% 1% 1% 3% 3% 2% 5% 39% 49% 49% 45% 58% 41% Natural Synthetic MCMB Silicon Other Flake Graphite Demand for LiB 19
Slide 41: Long term of growth in EVs remains intact, COVID a near term challenge
Long term of growth in EVs remains intact, COVID 19 a near term challenge Decarbonisation of the transport sector, via battery powered EV remains ongoing – near term growth will be impacted by COVID 19 For personal use only Long Term global battery sector demand (GWh) Comments Natural graphite is