Syrah Resources Limited · ASX:SYR
Syrah Resources — Bernstein Annual Strategic Decision Conference 2019
26 slides from Syrah Resources's conference presentation, Sep 25, 2019
Slide 1: Bernstein Annual Strategic Decision Conference
For personal use only Bernstein Annual Strategic Decision Conference Shaun Verner, Managing Director and CEO September 2019 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 0 0
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: Syrah is leveraging the globally significant Balama asset
Syrah is leveraging the globally significant Balama asset to develop an integrated battery anode material and industrial products business For personal use only 1 Global mega trend, the decarbonisation of economic growth continues • Decarbonisation of the transport sector, via Lithium-ion battery po
Slide 4: Graphite Market
For personal use only Graphite Market Development of the Lithium-Ion Battery, Electric Vehicle and Graphite Markets 3
Slide 5: Policy restriction on ICE vehicles driving transition to Electric Vehicles
Policy restriction on internal combustion engine (ICE) vehicles is driving a transition to Electric Vehicles (EV) – China and Europe leading the charge For personal use only 2020 2025 2030 2035 2040 2018 2020 2025 2030 2040 Europe already China targets Athens, Madrid, Mexico Fossil Fuel Free Street
Slide 6: Private sector response confirms momentum for electrification of transport
Private sector response to public policy signals, confirms positive momentum for electrification of transport; aggressive automotive targets For personal use only Region OEM Electric Vehicle Strategy / Targets Annual passenger EV sales forecast by region BYD Auto 500k units in 2020, from 248k in 201
Slide 7: Lithium-ion battery manufacturing capacity expansion driven by major investment
Lithium-ion battery manufacturing capacity expansion is being driven by major investment in Asia, Europe and the USA For personal use only Origin OEM Transport Sector Battery Major Customers Forecast global production capacity for existing and committed projects to 2023 16GWh produced in 2018, 50GWh
Slide 8: Li-ion battery market growth provides attractive outlook for natural graphite
Li-ion battery market growth provides a highly attractive outlook for natural graphite, even at conservative EV penetration levels For personal use only Global Li-ion Battery Demand (GWh) Lithium-ion battery supply chain – Natural Graphite 350 300 Balama Flake Graphite Production Graphite 1 Flake Gr
Slide 9: Graphite anode composition and mass in a Lithium-ion battery
Graphite anode composition and mass in a Lithium-ion battery is consistent and largely agnostic of cathode chemistry For personal use only Nickel Cobalt Aluminium (NCA) Nickel Manganese Cobalt (NMC1) Kg per kWh Preferenced by Preferenced by 1.50 1.00 1.00 1.00 0.70 0.45 0.25 0.50 0.15 0.10 0.12 0.12
Slide 10: Consistent, high quality natural graphite source can reduce battery cost
A consistent, high quality natural graphite source can contribute to Lithium-ion battery cost reduction and improved performance For personal use only Car OEM Targets – battery performance, cost and safety Natural vs synthetic graphite Anode composition $ / kg Customer Value: Competitiveness indicat
Slide 11: Balama is the largest integrated global producer of natural graphite
Syrah’s Balama operation is now the largest integrated global producer of natural graphite, providing strategic and complementary ex-China supply For personal use only 4 Estimated 2019 global natural flake graphite production (kt)1 500 3.5 ~50 to 100 Norway Russia operating Higher Production mines E
Slide 12: Natural graphite demand growth driven by battery anode material demand
Natural graphite demand growth is driven primarily by increasing battery anode material demand For personal use only Fines Coarse Fine Flake Graphite • Fines market growth driven by demand from anode producers to support 145 the increased capacity of Lithium-ion factories and the objective to lower
Slide 13: China commenced natural graphite import in 2018, now a net importer
China commenced natural graphite import in 2018, and has rapidly progressed to a net importer – a fundamental market shift For personal use only China graphite import growth mainly from Syrah China transitioned to net graphite importer in January 2019 China natural graphite imports vs exports gross
Slide 14: Company Overview
For personal use only Company Overview 13 Photo: Bagged Balama Graphite Product
Slide 15: Company Overview
Company Overview (ASX:SYR) The world’s first major graphite development in a generation For personal use only Highlights • Exposure to high growth Lithium-ion battery market • Graphite is key material in battery anodes • High quality product, with product range weighted Sales toward Lithium-ion batt
Slide 16: 5 year strategic growth plan
Subject to evolving market and price dynamics, Syrah has a clear view of the opportunities presented through a 5 year strategic growth plan For personal use only Syrah’s 5 year strategic plan targets significant shareholder value creation Balama Graphite Expansion Diversification Natural Graphite Ta
Slide 17: Balama Graphite Operation – a Tier 1 producing asset
Balama Graphite Operation – a Tier 1 producing asset: The world's largest integrated natural graphite mine and processing plant For personal use only Balama Graphite Operation Graphite Mineral Resources and Ore Reserves4 Location Cabo Delgado Province, Mozambique Classification Tonnes (Mt) TGC5 (%)
Slide 18: Committed to sustainable operations
Syrah is committed to sustainable operations – focussing on enduring safety, health, environmental and community outcomes For personal use only Health & Safety People • Strong safety record, TRIFR 0.3 Balama employees as at 30 June as at 30 June 2019 2019 • ISO:45001 Occupational Health • 96% Mozamb
Slide 19: Diversification of customers across country, sector and contract type
Syrah’s diversification of customers across country, market sector and contract type provides regular and global price discovery For personal use only Contract Pricing Country Products1 Sectorial and Geographical Sales Diversification Type Sale Strategy Mechanism Term, Spot and Spot, quarterly and F
Slide 20: Natural Graphite Market – a disaggregated market seeing major disruption
Natural Graphite Market – a disaggregated market in the midst of global supply/demand balance and pricing integration, seeing major disruption For personal use only Natural Graphite China Ex-China Current global natural graphite market Demand Growth Fines Marginal pricing influenced by China Pricing
Slide 21: Operational Summary and Update
Operational Summary and Update – Syrah faces a significant pricing and volume challenge in the short term, but is taking clear action For personal use only Production (kt) Operational Update1 FY18: 104kt 1H19: 92kt • Sudden and material decrease in spot prices in China Operations commenced Jan 48 20
Slide 22: Battery Anode Material (BAM) Strategy
For personal use only Battery Anode Material (BAM) Strategy 21 Photo: Syrah’s BAM plant in Louisiana
Slide 23: Spherical graphite supply was entirely Chinese – Syrah could provide alternative
Until recently, uncoated and purified natural spherical graphite supply was entirely Chinese – Syrah could provide an alternative source of supply For personal use only Source: Syrah Resources Internal Analysis 22
Slide 24: BAM production could provide strategic alternate source of anode material
BAM production from Syrah could provide a strategic alternate source of anode material to the ex-China Lithium-ion battery industry For personal use only Anode Supply Chain Natural Flake Graphite Natural Spherical (BAM) Finished Anode Active Material Battery Cell Manufacturing Electric Vehicle Manuf
Slide 25: Vidalia (USA) Battery Anode Material plant
Syrah's Vidalia (USA) Battery Anode Material plant is key for market progression, qualification, product and strategic partnership development For personal use only First production of Syrah precursor1 testing Vidalia BAM site Vidalia BAM site Phase 1 Commercial unpurified spherical Customer qualifi
Slide 26: Syrah is leveraging the globally significant Balama asset
Syrah is leveraging the globally significant Balama asset to develop an integrated battery anode material and industrial products business For personal use only 1 Global mega trend, the decarbonisation of economic growth continues • Decarbonisation of the transport sector, via Lithium-ion battery po
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