Syrah Resources Limited · ASX:SYR
Syrah Resources — Benchmark Minerals Intelligence, Graphite and Anodes Conference, October 2018
24 slides from Syrah Resources's conference presentation, Oct 22, 2018
Slide 1: Syrah Resources
For personal use only Syrah Resources Benchmark Minerals Intelligence, Graphite and Anodes Conference, October 2018 Shaun Verner, CEO 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 strongly positioned to grow shareholder value as the world's largest natural graphite supplier
Syrah is strongly positioned to grow shareholder value as the world’s largest natural graphite supplier For personal use only 1 Global mega trend, the decarbonisation of economic growth continues, despite short term politics • Decarbonisation of the transport sector, via lithium ion powered electric
Slide 4: Syrah Resources
For personal use only Syrah Resources 3
Slide 5: Balama flyover
For personal use only Balama flyover 4
Slide 6: Positive underlying progress overshadowed by first year ramp-up issues
Positive underlying progress overshadowed by first year ramp-up issues For personal use only Balama Progress Market Progress - Primary Classifier timing for repair on track - Syrah’s ramp up profile initially impacted contract volumes - Excellent Health and Safety results TRIFR = 1.0 - Battery and i
Slide 7: Leveraging the Balama asset to develop integrated battery and industrial material options
Syrah Resources is leveraging the Balama asset to develop integrated battery and industrial material options – BAM and Vanadium For personal use only Multi-generation asset One of the largest Downstream graphite mines in the Strategy Over 50 year mine life1 world High grade, low Production of Batter
Slide 8: Syrah is one of the largest resource sector employers in Mozambique
Syrah is one of the largest resource sector employers in Mozambique and is having a meaningful and positive impact in the country For personal use only Supporting the Employment Health & Environment Economy Community >US$30 million in ~1,400 direct and Programs to improve World class salaries and ta
Slide 9: Balama is a strategic asset for both the graphite and battery industries
Balama is a strategic asset for both the graphite and battery industries For personal use only ~15% in 20181 1 Source: Syrah Resources, CRU, Wood Mackenzie (1) Based on FY18 production target 101kt to 106kt, 350ktpa capacity and page 6 footnote 1 8
Slide 10: Diversification of customers across country, market 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 Sectorial and Geographical Sales Diversification Global Price Discovery % of sales by sector Industrial Battery Source: Syrah Resources, Sales Jan –
Slide 11: Macro Environment and Natural Graphite Market
For personal use only Macro Environment and Natural Graphite Market 10
Slide 12: Social, economic & environmental consequences of emissions a global issue
Social, economic & environmental consequences of emissions a global issue For personal use only Source: NASA, Financial Times, Economic Times, Forbes, Economist, Reuters, Bloomberg, Brookings, Morgan Stanley 11
Slide 13: Decarbonisation of the transport sector gaining profile and momentum
Decarbonisation of the transport sector gaining profile and momentum For personal use only Global Carbon Emissions Fuel Emission Standards Country / Regional Targets Buildings 6% Other Electricity 10% & Heating (grams of CO2 / km) 25% Industry 21% Transport 14% Land Use / Forestry 24% Source: United
Slide 14: Auto sector is responding to government regulation and consumer demand
Auto sector is responding to government regulation and consumer demand For personal use only Region OEM Electric Vehicle Strategy BYD 500k units in 2020, from ~100k in 2017 BAIC 500k units in 2020, no ICE engines by 2025 SAIC 600k sales by 2020 Annual passenger EV sales by region JAC 30% of fleet by
Slide 15: Battery manufacturing expansion will facilitate greater EV production
Battery manufacturing expansion will facilitate greater EV production For personal use only Lithium ion battery manufacturing capacity Origin OEM Electric Vehicle Batteries Major Customers market share for transport sector CATL 12GWh produced in 2017, 50GWh planned by 2020 Japan 11% BYD 3.5GWh produ
Slide 16: EV penetration forecasts vary widely, but EV growth is increasing rapidly
EV penetration forecasts vary widely, but EV growth is increasing rapidly For personal use only 2025 Electric Vehicle Penetration Rates % of light vehicle sales 36 Banks Mining & Oil industry groups and companies 30 Consultants Auto OEMs (fleet targets) 25 25 Governments 22 20 20 20 20 20 20 18 15.5
Slide 17: Electric vehicles expected to be the major driver of lithium battery demand
Electric vehicles expected to be the major driver of lithium battery demand For personal use only Lithium ion battery demand <2% EV penetration in 2017 10% EV penetration forecast in 2025 Source: Bloomberg New Energy Finance 16
Slide 18: Steel production in 2018 has supported natural graphite demand
Steel production in 2018 has supported natural graphite demand For personal use only Mt Source: Syrah Resources, World Steel Association, Morgan Stanley 17
Slide 19: Natural graphite market in structural transition, driven by battery demand
Natural graphite market in structural transition, driven by battery demand For personal use only Global Natural Flake Graphite Market 1 3 Supply Market oversupplied in 2018 • Majority of incremental global supply is from Syrah Resources to 2020. Potential global deficit in 2020 2 • China’s supply is
Slide 20: China has structurally changed the trade flow of commodities before
China has structurally changed the trade flow of commodities before; natural graphite is poised to follow as China’s anode production rises For personal use only China’s import of key commodities Thermal Coal • ~50% of global supply, #1 global producer • Moved from a net exporter to net importer in
Slide 21: Battery Anode Material (BAM) Development
For personal use only Battery Anode Material (BAM) Development 20
Slide 22: Graphite is expected to maintain dominance in anode composition
Graphite is expected to maintain dominance in anode composition; natural graphite expected to increase market share as cost pressures increase For personal use only Emerging but currently still a graphite dominant mix banning the internal combustion Source: Cadenza Innovation 21
Slide 23: Syrah BAM strategy underpinned by Vidalia BAM plant development
Syrah BAM strategy underpinned by Vidalia BAM plant development; strategic opportunities to accelerate entry to final anode product market For personal use only Strategic Context Installation progress at Vidalia, Louisiana BAM facility Syrah’s BAM strategy reflects: Rapidly evolving • Evolving Batte
Slide 24: Syrah strongly positioned to grow shareholder value as ramp up continues
Syrah strongly positioned to grow shareholder value as ramp up continues and demand from lithium ion batteries increases For personal use only 1 Global mega trend, the decarbonisation of economic growth continues, despite short term politics • Decarbonisation of the transport sector, via lithium ion