Slide 1: Q1 2018 Quarterly Activities Report
For personal use only Q1 2018 Quarterly Activities Report Shaun Verner – Managing Director & CEO 30 April 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: Q1 2018 Highlights
Q1 2018 Highlights For personal use only Health, Safety - Strong safety record continues with Total Recordable Injury Frequency Rate (TRIFR) of 0.8 and - President of Mozambique, His Excellency Mr Filipe Nyusi, officially opening the Balama Graphite Operation at an onsite Community inauguration in A
Slide 4: Health, Safety, Community and Environment
Health, Safety, Community and Environment For personal use only Focus on Health, Safety & Community Ongoing Government Support • TRIFR 0.8 per million hours worked • President of Mozambique, His Excellency Mr Filipe Nyusi officially opened Balama in April • Well positioned to receive ISO certificati
Slide 5: Balama Inauguration April 2018
Balama Inauguration April 2018 For personal use only President of Mozambique, His Excellency Mr Filipe Nyusi, officially opening Balama Greeting Syrah MD & CEO, Shaun Verner Traditional tree planting Local community Bagging of graphite concentrate Unveiling of commemorative Balama plaque Balama inau
Slide 6: Balama Graphite Operation: Production
Balama Graphite Operation: Production For personal use only Q1 production below plan, recoveries, throughput and stability improving Production Plant Optimisation • 11.2k graphite produced • Ongoing flotation optimisation and minor design enhancements • Production below plan – improving flotation re
Slide 7: Balama Graphite Operation: Production rates improving
Balama Graphite Operation: Production rates improving For personal use only 2018 Production 160kt – 180kt • Targeting lower end of guidance 160kt to 180kt1 • Planed production ramp up 25% H1, 75% H2 – Q2 and H2 profiles broadly similar to original plan • Operating costs in line with expectations, we
Slide 8: Sales & Marketing – Shipping commenced, positive customer qualification feedback
Sales & Marketing – Shipping commenced, positive customer qualification feedback For personal use only Sales Pricing • Global shipping commenced in January • Average pricing for initial shipments lower than • More than 10 additional spot and term sales inferred from external consultants and reporter
Slide 9: Industrial and battery market demand was strong in 2017; has continued Q1 2018
Industrial and battery market demand was strong in 2017; has continued Q1 2018 For personal use only • World Steel Association expects global steel production growth of +1.8% in 2018. Down from +5.3% in 2017 as demand from China eases • In 2017, ~120,000 tonnes of flake graphite was used to produce
Slide 10: Battery sector demand growth for flake graphite driven by passenger vehicles and trucks
Battery sector demand growth for flake graphite driven by passenger vehicles and trucks in 2017 For personal use only Natural Flake Graphite Demand Battery Sector Demand Breakdown kt 2017 kt 2017 800 140 710 120 700 Other 30 120 • Applications that have large Bike & Tools10 unit sales but smaller ba
Slide 11: Natural flake graphite market outlook: Battery sector
Natural flake graphite market outlook: Battery sector For personal use only Rapid growth of lithium ion battery market expected • Syrah estimates an increase in demand of nearly 400kt from the battery sector between 2017 and 2021, to ~500kt • Assume an electric vehicle penetration rate of 5.5% (glob
Slide 12: Battery Anode Material (BAM) Project
Battery Anode Material (BAM) Project For personal use only BAM preferred site identified Benchmarking reconfirms battery suitability • Letter of Intent to purchase an industrial site in Testing reconfirms: Vidalia, Louisiana, exclusive rights to purchase • Precursor1 materials have core properties •
Slide 13: Finance and Corporate
Finance and Corporate For personal use only Finance Corporate • Cash balance as at 31 March 2018 US$80.5 • COO Julio Costa appointed million • Significant mining and operations expertise • Q2 2018 forecast net cash outflow US$25m, having worked for Alcoa, Rio Tinto and Vale 30 June 2018 cash ~ US$55
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 • Ongoing Government support for the Balama Operation • Balama first quarter of operations in ramp up, improving recoveries, plant th
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