Slide 1: Equity Capital Raising Presentation
For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES June 2016 Presentation Equity Capital Raising
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only IMPORTANT: You must read the following before continuing. This presentation has been prepared by Syrah Resources Limited (ABN 77 125 242 284) (and / or its subsidiaries, as the context requires, “Company”, “Syrah” or “Syrah Resources”)in relation
Slide 3: Important notice and disclaimer (cont'd)
Important notice and disclaimer (cont’d) For personal use only Past performance Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of the Company's views on its future NOT FOR DISTRISBUTION OR RE
Slide 4: Important notice and disclaimer
Important notice and disclaimer (cont’d) For personal use only Diagram, charts, graphs and tables Any diagrams, charts, graphs and tables appearing presentation are illustrative only and may not be drawn to scale. Investment risk An investment in New Shares is subject to investment and other known a
Slide 5: Table of contents
Table of contents For personal use only 1. Project Development and Funding Update NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES 2. Offer Details 3. Investment Highlights 4. Balama Graphite Project Update 5. Spherical Graphite Strategy Update 6. Appendices A. JORC Mineral Resources and Ore Re
Slide 6: Project development and funding update
For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES 1. Project development and funding update 55
Slide 7: Project development and funding update
Project development and funding update For personal use only Significant progress in the development of the Balama Project has materially de‐risked the construction of this strategic asset Balama Project update Project schedule revisited with input from prospective key contractors, first ore and
Slide 8: Offer details
For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES 2. Offer details 77
Slide 9: Equity raising overview
Equity raising overview For personal use only Offer size and Syrah Resources is offering 32 million New Shares at A$6.05 per New Share to raise approximately A$194 million structure via an Institutional Placement to professional and sophisticated investors New Shares issued will rank equally wit
Slide 10: A flexible funding solution for Syrah
A flexible funding solution for Syrah For personal use only Given the rapid evolution of Syrah’s key end markets, the Company is seeking to maximise flexibility and remain unconstrained in order to fully capture the strategic value of its assets Sources and Uses of funds: NOT FOR DISTRISBUTION OR RE
Slide 11: Indicative timetable
Indicative timetable For personal use only Event Date Thursday, 16 June 2016 Trading Halt (pre‐market open) Thursday, 16 June 2016 Announcement of Offer and Bookbuild opens NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES (pre‐market open) Bookbuild closes Friday, 17 June 2016 Trading halt lift
Slide 12: Investment highlights
For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES 3. Investment highlights 11 11
Slide 13: Investment highlights
Investment highlights For personal use only The Balama Graphite Project is a world class and globally strategic graphite asset The world class Balama Project is a strategic asset that positions Syrah to become a leading supplier of graphite to industrial and high growth, emerging technology market
Slide 14: Balama Graphite Project update
For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES 4. Balama Graphite Project update 13 13
Slide 15: Construction of the Balama Project significantly advanced
Construction of the Balama Project significantly advanced For personal use only Significant progress in the development of the Balama Project has materially de‐risked the construction of this asset, positioning Syrah to deliver on its advantage as one of the early movers in the sector Engineering
Slide 16: Balama Project schedule
Balama Project schedule Key milestones For personal use only Project schedule revisited with input from prospective key contractors, with first ore and production ramp up now scheduled for Q2 2017 Q2 CY16 Q3 CY16 Q4 CY16 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY17 NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED
Slide 17: Balama development cost update
Balama development cost update For personal use only Project cost estimates have been updated and decisions taken to enhance the project scope are expected to deliver a more robust operation and consistent production of a range of high quality graphite products Estimated total development cost r
Slide 18: Construction progress at site
Construction progress at site For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Clockwise from top left: 1. General view of primary crushing and milling 2. Ore storage with emergency feed apron in foreground 3. Ore storage area with bin base being cast 4. Process water, fil
Slide 19: Balama Project summary
Balama Project summary For personal use only The Balama Project is a world class graphite project NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Significant progress in the development of the Balama Project has materially de‐risked the construction of this asset, positioning Syrah to deli
Slide 20: Spherical Graphite Strategy Update
For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES 5. Spherical Graphite Strategy Update 19 19
Slide 21: Technology markets are key to Syrah's strategy
Technology markets are key to Syrah’s strategy For personal use only Syrah’s strategy is to capture enhanced value by positioning itself as a leading, high quality and consistent supplier to the high growth technology markets Demand for Li‐ion batteries increasing due to rapid Battery Anode Foreca
Slide 22: Anode materials used in lithium ion batteries
Anode materials used in lithium ion batteries For personal use only Composition of anode materials used in lithium ion batteries in 2014 NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Source: Avicenne Energy 2015. 21 21 21
Slide 23: Characteristics of Balama flake graphite
Characteristics of Balama flake graphite For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Purified, uncoated Balama spherical graphite Optimal flake size – using ‐100 mesh maximises Purity level – purification to 99.95%+ carbon production yield increases anode life and
Slide 24: Key milestones achieved in spherical graphite strategy
Key milestones achieved to date in Syrah’s spherical graphite strategy For personal use only Syrah has achieved a number of key milestones in its spherical graphite strategy NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Significant testwork undertaken to demonstrate the characteristics of
Slide 25: Marubeni spherical graphite offtake agreement
Marubeni spherical graphite offtake agreement For personal use only Marubeni offtake agreement positions Syrah to become a major supplier of high quality, enhanced value graphite products Offtake agreement – key terms(1) Strategic implications NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES
Slide 26: Spherical graphite strategy update
Spherical graphite strategy update For personal use only Syrah intends to accelerate its spherical graphite strategy in response to significant market demand NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Key milestones achieved to date positions Syrah to become a major non‐Chinese producer
Slide 27: Spherical graphite summary
Spherical graphite summary For personal use only Emerging technology markets continue to develop at rapid pace and represent a key end market for Syrah’s fine flake graphite product NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Syrah’s strategy is to capture enhanced value by positioning
Slide 28: Appendices
For personal use only NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES 6. Appendices 27 27
Slide 29: A. Resources and Reserves
A. Resources and Reserves For personal use only JORC Mineral Resources & Ore Reserves Balama Graphite (JORC Code 2012) Mineral Resources(1) Ore Reserves(1) NOT FOR DISTRISBUTION OR RELEASE IN THE UNITED STATES Classification Mt TGC (%) Contained Graphite (Mt) Classification Mt TGC (%) Contained Grap
Slide 30: B. Key risks
B. Key risks For personal use only This section discusses some of the risks associated with an investment in Syrah. Syrah’s business is subject to a number of risk factors both specific to its business and of a general nature which may impact its future performance and forecasts. Before subscribing
Slide 31: Key risks
Key risks (cont’d) For personal use only Mineral Mineral Resources and Ore Reserves are estimates of mineralisation that have reasonable prospects for eventual economical extraction in Resources and the future, as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Resu
Slide 32: Key risks
Key risks (cont’d) For personal use only Counterparty risk The ability of Syrah to achieve its stated objectives will depend on the performance of the counterparties under the various agreements it has. While the Balama licence is currently held by a 100% owned subsidiary of the Company, as explaine
Slide 33: Key risks
Key risks (cont’d) For personal use only Development of Syrah is in the development stage of the Balama Project. The development of any resources project comes with inherent risks, such as the Balama Project risks associated with construction of a mine processing plant and associated infrastructure,
Slide 34: Key risks
Key risks (cont’d) For personal use only Cost inflation Higher than expected inflation rates generally, or specific to the mining industry in particular, could be expected to increase operating and development costs and potentially reduce the value of future project developments. While, in some case
Slide 35: Key risks
Key risks (cont’d) For personal use only Environmental Environmental regulation in the jurisdictions in which Syrah has operations impose significant obligations on companies that conduct the regulation exploration for and mining of commodities. These regulations also cover the processing of ores in
Slide 36: Key risks
Key risks (cont’d) For personal use only Currency and Syrah’s activities may generate revenues, and Syrah may incur expenses, in a variety of different currencies, meaning its financial exchange rate performance and position are impacted by fluctuations in the value of relevant currencies and exchan
Slide 37: Key risks
Key risks (cont’d) For personal use only Political risk, war Syrah’s operations could be affected by political instability in Australia, Mozambique or other countries or jurisdictions in which it has and terrorism, operations, investment interests, or conducts exploration activities. Syrah is theref
Slide 38: Key risks
Key risks (cont’d) For personal use only Regulatory risk Syrah’s businesses are subject, in each of the countries in which it operates, to various national and local laws and regulations relating to, among other things, construction and exploration and mining activities. A change in the laws which a
Slide 39: Key risks
Key risks (cont’d) For personal use only Insurance risk Syrah maintains insurance coverage as determined appropriate by its board and management, but no assurance can be given that Syrah will continue to be able to obtain such insurance coverage at reasonable rates (or at all) for certain events, or
Slide 40: C. International offer restrictions
C. International offer restrictions For personal use only International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any per
Slide 41: International offer restrictions
International offer restrictions (cont’d) For personal use only Statutory rights of action for damages and rescission Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may have at law, rights of rescission or to damages, or both, whe
Slide 42: International offer restrictions
International offer restrictions (cont’d) For personal use only France This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411‐1 of the French Monetary and Financial Code (
Slide 43: International offer restrictions
International offer restrictions (cont’d) For personal use only Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and
Slide 44: International offer restrictions
International offer restrictions (cont’d) For personal use only Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any ot
Slide 45: International offer restrictions
International offer restrictions (cont’d) For personal use only United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of secti