Slide 1: Q2 2021 Quarterly Activities Report
rsonal use only Q2 2021 Quarterly Activities Report 21 July 2021 Shaun Verner – Managing Director & CEO -
Slide 2: Important notice and disclaimer
Important notice and disclaimer Investor Relations This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, Viren Hira invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisd
Slide 3: Syrah's Value Proposition
Syrah’s Value Proposition Electric Vehicles require graphite rsonal use only ● Electric Vehicle (“EV”) adoption is gaining momentum ● Anodes in lithium-ion batteries used in EVs are made of graphite Syrah’s vision is to be the Graphite is a strategic critical mineral world’s leading supplier of ● Gl
Slide 4: Syrah's positive ESG profile
Syrah’s positive ESG profile ✓ ISO:45001 and ISO:14001 certification at Balama rsonal use only ✓ ISO:9001 certification at Vidalia Leading health and safety standards ✓ Vidalia expansion project being developed in line with best practice health, safety and environmental standards ✓ Critical Risk Man
Slide 5: Q2 2021 Quarter: Highlights
Q2 2021 Quarter: Highlights • Balama and Vidalia quarter end Total Recordable Injury Frequency Rate (“TRIFR”) was 0.0 Health and Safety • No positive COVID-19 cases have been reported at Balama rsonal use only • Continued strong EV sales, with 165%1 growth in H1 2021, versus H1 2020, to over 2.3 mil
Slide 6: EV sales and anode material volumes rebalancing the natural graphite market
EV sales and anode material volumes rebalancing the natural graphite market Global EV Sales (‘000 Units) Chinese Anode Production (kt) rsonal use only H1 2021 +165% YoY 59 52 54 51 46 47 600 42 44 41 38 41 31 +134% 24 27 +211% 23 23 19 +207% 13 +254% 400 Mar-20 Mar-21 Jul-20 May-20 May-21 Apr-20 Apr
Slide 7: Q2 2021: Balama - Operations and Production
Q2 2021: Balama [CURRENT STATUS] rsonal use only Operations and Production • Ramping up ahead of plan • Produced 29kt natural graphite • Plant recovery was above 80% in June 2021 and is expected to benefit from improvement projects • Product quality matched the best performance during 2019 with bett
Slide 8: Q2 2021: Balama - Production, Recovery and Costs
Q2 2021: Balama Natural Graphite Production (kt) Product Mix (% Fines) rsonal use only Before temporary Before temporary suspension of production suspension of production 48 45 88% 91% 44 86% 84% 86% 80% 86% 29 15 12 5 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q1 Q2 2019 2019 2019 2019 2020 2021 2021 2019
Slide 9: Q2 2021: Balama - Sales and Marketing
Q2 2021: Balama [CURRENT STATUS] Sales and Marketing • Market re-entry is well progressed rsonal use only • Sold and shipped 15kt natural graphite and practically all of 20kt finished product inventory contracted to customers • Positive demand conditions with additional end-user customers, higher co
Slide 10: Balama is the largest natural graphite mining/processing operation globally
Balama is the largest natural graphite mining/processing operation globally Asset Overview Ex-China Natural Graphite Reserves4 Location Southern Cabo Delgado Province, Mozambique Operations 150 rsonal use only Reserve & 108Mt (16% TGC) Graphite Ore Reserve SYRAH Reserve Tonnage (Mt) Greenfield Resou
Slide 11: Q2 2021: Vidalia
Q2 2021: Vidalia Operations and Production • Fully integrated production of on-specification AAM from the furnace line1 rsonal use only • Integrated spherical, purification and furnace operation is producing 16-micron and 12- micron AAM for qualification using Balama natural graphite • New organisat
Slide 12: Q2 2021: Vidalia Expansion Project
Q2 2021: Vidalia Expansion Project • Transitioned to detailed engineering and procurement for expansion of production capacity to 10ktpa AAM rsonal use only • Worley awarded services contract for detailed engineering and procurement1 • Proceeding with procurement and fabrication of selected long-lea
Slide 13: De-risking Vidalia expansion
De-risking Vidalia expansion Date Key Milestones Jun 2021 ✓ Worley awarded engineering and procurement services contract rsonal use only Jun 2021 ✓ Transitioned to detailed engineering for 10ktpa AAM facility Q2 2021 Milestones Jun 2021 ✓ Integrated AAM dispatched to potential customers for qualific
Slide 14: Progressing Vidalia to become an integrated natural graphite AAM producer
Progressing Vidalia to become an integrated natural graphite AAM producer 2020 2021 Post FID Q3 Q4 Q1 Q2 Q3 Q4 H1 H2 H3 H4 rsonal use only Product Qualification First purified spherical graphite (anode precursor) to full specification ✓ Dispatch of anode precursor to supply chain participants First
Slide 15: Vidalia BFS confirms attractive margins at current AAM prices
Vidalia BFS confirms attractive margins at current AAM prices rsonal use only BFS key outcomes Operating cost – US$/t AAM 3D BFS model (10ktpa facility) 10ktpa 40 ktpa Observable natural graphite spot AAM price4: Metric Units Facility Facility US$5,400/t Annual processed ktpa 18 73 graphite AAM prod
Slide 16: Vidalia is well located for large-scale AAM production
rsonal use only Vidalia is well located for large-scale AAM production ✓ Proximity to potential customers ✓ Access to key utilities ✓ Options to expand facility size ✓ Direct barge/port access to Mississippi river ✓ Supportive government relations ✓ Access to key consumables (HF, HCL, Caustic) ✓ Cap
Slide 17: Vertical integration through to AAM in USA will be a key differentiator
Vertical integration through to AAM in USA will be a key differentiator for Syrah as the market matures rsonal use only Balama Graphite Vidalia AAM Benefits of vertical integration to Syrah: Operation1 Project2 Sites / Location ▪ Margin capture / cost protection ▪ Attractive financial returns ▪ Enha
Slide 18: Vertically integrated anode production, co-located with planned USA battery factories
Vertically integrated anode production, co-located with planned USA battery factories Location of Planned Battery Capacity in USA Planned Battery Capacity in USA rsonal use only Company Size (GWh) Location Status / Start Construction / 2022 Panasonic (PENA) 49 NV (35 GWh operating) Tesla 10 CA Pilot
Slide 19: Syrah is a near-term AAM supply option for USA and European markets
Syrah is a near-term AAM supply option for USA and European markets Vidalia Battery Anode Material Project Export Markets rsonal use only • Establishing USA-based AAM production • Potential for Syrah to export from USA to ex-USA markets vertically integrated with Balama • Potential to provide ex-Chi
Slide 20: H2 2021 outlook
H2 2021 outlook EV sales growth and constructive demand environment for anode material is balancing the natural graphite market rsonal use only Increasing Balama production towards at least 15kt per month with consideration of market demand and forward customer contracting Progressing to FID for exp
Slide 21: Appendix
rsonal use only APPENDIX 21 21
Slide 22: Battery and natural graphite fines demand in early stages of growth
Battery and natural graphite fines (-100mesh) demand in early stages of growth – driven by EV adoption Global EV Sales (Millions) Lithium-ion Battery Capacity (GWh) Natural Graphite Demand (kt) rsonal use only 90 80% 9,000 12,000 80 70% 8,000 10,000 70 7,000 60% 60 6,000 8,000 50% 50 5,000 40% 6,000
Slide 23: Graphite is a high intensity material in EV batteries
Graphite is a high intensity material in EV batteries – costs/emissions expected to drive shift towards natural graphite Battery Mineral Composition of Batteries Natural Graphite Demand for Batteries rsonal use only 2020 100% Silicon LTO Other 1% 1% 1% MCMB Metal Composition % Mass(1) 1% Natural 39%
Slide 24: EV makers committed to LiB technology for expansion
EV makers committed to LiB technology for expansion – advances required for commercial transition to solid state EV rsonal use only Manufacturers Current Battery Supplier Future Battery Supplier BlueOvalSK Targeting supply arrangements and Targeting partnerships in Targeting partnerships in US Targe
Slide 25: Syrah's global business to supply growing battery anode demand
Syrah’s global business to supply growing battery anode demand rsonal use only Contract Sales Liaison, Sales & Shanghai Marketing Hub, UAE Balama Graphite Vidalia Battery Anode Operation, Material Mozambique Project, Louisiana USA Head Office, Australia 25 25