Syrah Resources Limited · ASX:SYR
Syrah Resources — Shareholder Meeting (May 2020)
23 slides from Syrah Resources's shareholder meeting presentation, May 22, 2020
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 22 May 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: Balama is a superior asset with increasing strategic importance
Balama is a superior asset with increasing strategic importance 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 lead
Slide 4: Making Syrah an important part of the EV value chain
Making Syrah an important part of the EV value chain Set to provide much needed supply chain independence to Europe and US in a post COVID 19 world For personal use only : Balama Graphite Operation • Ore Reserves 108Mt at 16% TGC1 (17Mt of contained graphite) • Simple open pit operation, low strippi
Slide 5: 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 6: 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 Total Recordable Injury Frequency Rate (TRIFR) Continued strong
Slide 7: Local Development Committee facilitating community engagement
Local Development Committee facilitating community engagement LDC provides a framework to ensure Syrah is deploying resources responsibility and efficiently For personal use only In June 2017 Syrah established a Local Development Agreement (“LDA”) with the Company’s eight Host Communities and the
Slide 8: 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 Purpose to provide technical training to community to enable employment opportunities – not necessarily by
Slide 9: LDC programs provide real value to local community
LDC programs provide real value to local community Stakeholder engagement is central to open communication and mutual benefit For personal use only Grain storage units being handed over to community members Mine open doors program The Livelihood Development Program Beekeeper training with the Host C
Slide 10: Summary 2019 business performance
Summary 2019 business performance For personal use only Q4 2019 Q3 2019 Q2 2019 Q1 2019 Strong health and safety record with Total Metric Units FY2019 31 Dec 2019 30 Sep 2019 30 Jun 2019 31 Mar 2019 Recordable Injury Frequency Rate (TRIFR) of 0.6 as TRIFR 0.6 0.6 0.3 0.3 0.6 at end of 2019 and end
Slide 11: End user demand slowed during 2019 – resulting in a market imbalance
End user demand slowed during 2019 – resulting in a market imbalance Production moderated in response to market conditions from Q4 2019 For personal use only China year-on-year (YoY) EV sales volume contracted in H2 2019, then weakness Negative end user demand flowed through Syrah responded by moder
Slide 12: Company wide cost reduction program implemented
Company wide cost reduction program implemented Beginning in Q3 2019, first phase cost out completed Q1 2020. Further review underway to preserve cash under COVID-19 scenarios. For personal use only Indicative C1 unit costs @ 15kt production per month Cost measures taken to prepare for extended peri
Slide 13: COVID impacts and response
COVID 19 impacts and response Staged approach to responding to impacts of COVID 19 to best manage uncertainties For personal use only The early stages of COVID 19 crisis and associated lockdowns were largely contained to China. Due to the extreme concentration of the battery supply chain in Market
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) What we have – infrastructure Confirmed compliance wi
Slide 15: 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 Balama (Mozambique) Vidalia (USA) Process 1 NATURAL GRAPHITE CONCENTRATE 2 ANODE PRECURSOR 3 ACTIVE ANODE MATER
Slide 16: China currently produces 100% of global natural graphite anode precursor
China currently produces 100% of global natural graphite anode precursor China manufactured precursor is used domestically and exported to Japan and South Kora to manufacture Active Anode Material (AAM) For personal use only 2 ANODE PRECURSOR MILLING/ PURIFICATION SHAPING 100% Anode Precursor Supply
Slide 17: Current trade flows are reliant on Asia for Active Anode Material (AAM)
Current trade flows are reliant on Asia for Active Anode Material (AAM) USA and European battery production supply chains are currently 100% reliant on supply of AAM from Asia For personal use only 3 ACTIVE ANODE MATERIAL Battery Production Hubs CARBON THERMAL COATING TREATMENT AAM AAM AAM China S.K
Slide 18: 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 Material Project Export Markets • Planning to establish USA
Slide 19: 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 Benefits of co-location: Bubble Size = 2029 GW Planned Capacity Increa
Slide 20: 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 Natural Graphite Demand for LiB
Slide 21: 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 22: 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 Syrah is focused on maintaining existing market and operational capability during challenging near term market conditions For personal use only Long term growth in demand for battery minerals, driven by end user Syrah 2
Slide 23: Outlook
Outlook Operational review in progress to assess options to best navigate period of near term market uncertainty For personal use only Long life asset, with over 50 years of mine life1 and 350kt per year of graphite concentrate production capability2 Balama is the largest integrated natural grap