Syrah Resources Limited · ASX:SYR
Syrah Resources — Shareholder Meeting (November 2012)
37 slides from Syrah Resources's shareholder meeting presentation, Nov 13, 2012
Slide 1: Syrah Resources Limited AGM Presentation
For personal use only SYRAH RESOURCES LIMITED AGM PRESENTATION 13 November 2012 Syrah Resources
Slide 2: Important notice and disclaimer
For personal use only Important notice and disclaimer This document has been prepared by Syrah Resources Ltd (“the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this do
Slide 3: Important notice and disclaimer (cont.)
For personal use only Important notice and disclaimer (cont.) The Company has prepared this document based on information available to it at the time of preparation and subject to the qualifications in this document. To the maximum extent permitted by law, none of the Company, its affiliates or any
Slide 4: Company Overview
Unsaved Document / 21/09/2012 / 20:01 For personal use only 1. Company Overview 3 3
Slide 5: Syrah Resources
For personal use only Syrah Resources Strategic focus on exploration for and development of high value graphite and other Uganda Kenya Rwanda value creating mineral deposits in South East Democratic Africa Republic Burundi Tanzania of the Congo Wembere Tanzania HM Key focus is the Balama Graphit
Slide 6: Investment highlights
For personal use only Investment highlights Highly strategic flake graphite discovery at Balama, Mozambique A globally significant, large flake, high grade natural graphite deposit Over 7km strike distance and up to 2km of surface width of outcropping graphite and vanadium mineralisation High
Slide 7: Board of Directors
For personal use only Board of Directors Tom Eadie Non-Executive Chairman (since 2007) 30+ years experience in the Australian and international resource sector Also Executive Chairman of Copper Strike Ltd Paul Kehoe Managing Director (since 2011) 15+ years experience in corporate finance and r
Slide 8: Current capital structure
For personal use only Current capital structure Overview Syrah share price and volume – last 1 year ASX listed Market capitalisation (undiluted) of ~A$332 million at A$2.48/share as at 12 November 2012 133,869,590 shares on issue 17,500,000 options on issue ~$15m cash on hand at 31 October
Slide 9: Industry Overview
Unsaved Document / 21/09/2012 / 20:01 For personal use only 2. Industry Overview 8
Slide 10: Introduction to graphite
For personal use only Introduction to graphite Overview World graphite market based on graphite type Principal characteristics of graphite include: 2010 natural graphite world production − Resistant to corrosion and heat ~925,000 – ~1,100,000 tonnes − Excellent conductor of heat and electricity −
Slide 11: Characteristics of a good flake graphite deposit
For personal use only Characteristics of a good flake graphite deposit Characteristic Balama Large flake size – usually a higher purity of concentrate Latest metallurgy test work shows around half of concentrate in medium – jumbo flake size ranges High grade – determines project cash costs a
Slide 12: Current supply and uses for natural graphite
For personal use only Current supply and uses for natural graphite USGS estimated world resources: 77Mt Current natural graphite industry uses India 14% Other 10% Other Batteries Steel & 14% China 10% Refractory 72% 41% Carbon Brushes 11% Natural graphite production According to USGS, China’s Lubric
Slide 13: Non-Chinese sources of supply becoming increasingly strategic
For personal use only Significant, high quality, non-Chinese sources of supply are becoming increasingly strategic in nature Supply issues are appearing Range of emerging technology uses to drive demand Majority of Chinese production is low quality amorphous Traditional steel industry applicatio
Slide 14: Natural flake graphite pricing and demand
For personal use only Natural flake graphite pricing and demand Benchmark graphite prices have more than doubled since 2007 Some softening in Chinese refractory and steel demand has recently weakened prices Prices have dramatically increased over the past few years… …with battery technology expe
Slide 15: Refractories account for ~40% of current graphite demand
For personal use only Refractories account for ~40% of current graphite demand Graphite is used as an additive to boost the quality of the World crude steel consumption refractory Natural graphite is preferred trending towards the use of graphite with higher grades and higher flake sizes for bet
Slide 16: Battery market – up to 10% of current graphite market
For personal use only Battery market – up to 10% of current graphite market Overview of lithium-ion batteries Current uses of Li-ion batteries EVs Lithium-ion batteries is a fast growing battery segment 6.6% HEVs / PHEVs ~US$14 billion market in 2011 2.0% Consumer Expected to rapidly grow, dri
Slide 17: Major automaker PHEVs, HEVs and EVs scheduled for release
For personal use only Major automaker PHEVs, HEVs and EVs scheduled for release Company Model Category Overview Prius ɑ HEV HEV RAV 4 EV EV Japanese firms have lead the development of eco-cars, with iQ EV Toyota’s Prius (1997) and Honda’s Insight (1999) at the NS4 PHEV vanguard Civic HEV HEV Nic
Slide 18: Large-scale fuel-cell applications being developed
For personal use only Large-scale fuel-cell applications are being developed that could consume as much graphite as all other uses combined Unlike batteries, fuel cells both generate and store electricity Fuel cell design through chemical reactions Over 70MW of installed fuel cell capacity in th
Slide 19: Other emerging graphite uses – Pebble bed nuclear reactors
For personal use only Other emerging graphite uses – Pebble bed nuclear reactors Generation IV nuclear reactors (pebble bed reactors) are smaller, safer and more economic to construct and operate Nuclear fuel comprises uranium dioxide particles embedded in machined graphite spheres Both synthe
Slide 20: Balama Project
Unsaved Document / 21/09/2012 / 20:01 For personal use only 3. Balama Project 19
Slide 21: Balama overview
For personal use only Balama overview Over 7km strike distance and up to 2km of surface Location width of outcropping graphite and vanadium Balama is a high quality graphite deposit − Coarse grained flakes − High grade zones >20% graphite Located 240 km west of Pemba port − 109 km2 granted Pro
Slide 22: Exploration targets for Balama West and Balama East
For personal use only Exploration targets for Balama West and Balama East * Balama West – 400 to 500 million tonnes at 10 % TGC and 0.20% V2O5 Balama East – 300 to 400 million tonnes at 11 % TGC and 0.30% V2O5 Exploration target based on depth of 200 metres over the areas drilled, and based on t
Slide 23: Indicative project timeline
For personal use only Indicative project timeline(1) CY2011 CY2012 CY2013 CY2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Acquisition of Balama project Drilling started First major drill results Metallurgical testing results JORC resource Scoping Study Feasibility Study Project development Co
Slide 24: Balama West
For personal use only Balama West Drilling results at Balama West were announced in Sep 2012, with wide intercepts of very high grade graphite and vanadium returned − BMDD0006: 196m @16.9% TGC and 0.41 V2O5 from 100m to 296m − BMDD0007: 186m @ 16.7% TGC and 0.46 V2O5 from 131 m to 318m − BMDD0009:
Slide 25: Balama West (cont.) Cross section
For personal use only Balama West (cont.) Cross section Two very high grade zones intersected to date at Balama West The first has widths up to 196m and averaging between 10 – 17% TGC. This zone is open to the west and east The second has widths up to at least 100m and averages between 15 – 22
Slide 26: Balama West (cont.)
For personal use only Balama West (cont.) Graphite rich drill core View of section BMDD0007 under the microscope. The 23.3% TGC and 0.455% V2O5 bronze coloured mineral shown is graphite. Gangue minerals shown are mostly quartz and calcite. The field of view is 2mm across indicating that almost
Slide 27: Balama East
For personal use only Balama East Syrah has completed 25 diamond drill holes at Balama East. Drill holes announced include: − BMDD0021: 218.4m @ 12.3% TGC and 0.39% V2O5 − BMDD0022: 290.4m @ 13.8% TGC and 0.41% V2O5 − BMDD0023: 302.6m @ 13.7% TGC and 0.38% V2O5 Very high grade zones of greater t
Slide 28: Balama East (cont.) Cross section
27 For personal use only Balama East (cont.) Cross section 27
Slide 29: Metallurgy
For personal use only Metallurgy Overview Flake size results Metallurgical test work has been conducted on a 58 kg 47% of the concentrate has a flake size in the medium to sample of Balama graphitic material by Mintek(1) jumbo range, with the mix of flake sizes considered ideal for Final resul
Slide 30: Processing flowchart
For personal use only Processing flowchart Rod mill Flotation Feed Product Flotation Graphite processing is very simple with graphite being highly Product amenable to flotation Vanadium expected to be present in tailings (methods for economical Pebble mill extraction currently under Flotation in
Slide 31: Balama infrastructure
For personal use only Balama infrastructure Balama is located 240 km west of deep water port facilities at Pemba − Third largest port in Mozambique − Anticipated that Balama graphite concentrate will be transported and shipped from Pemba Port Less than 1km from major road connecting the project
Slide 32: Community relations
31 For personal use only Community relations Water bores drilled for use in neighbouring villages Employed Mozambican geological students for work experience Large employer of local labour - over 50 local people working at Balama Infrastructure programs commenced at Balama Hospital Pumping w
Slide 33: Mozambique overview
For personal use only Mozambique overview Population 23 million, former Portuguese colony One of sub-Saharan Africa's fastest growing economies, Annual GDP growth averaging annual GDP growth of 7.2% over 2005-2011 15.0% − EIU forecast GDP growth of 7.4% for FY12 and average real growth of 8% in
Slide 34: Upside Opportunities
Unsaved Document / 21/09/2012 / 20:01 For personal use only 4. Upside Opportunities 33 33
Slide 35: Vanadium prospectivity at Balama
For personal use only Vanadium prospectivity at Balama Vanadium represents significant potential upside although economics are very favourable on the graphite alone − Roscoelite, the main vanadium ore mineral, has been shown to separate from the graphite during flotation − Roscoelite is metallurgi
Slide 36: Nachingwea graphite project
For personal use only Nachingwea graphite project Nachingwea is located in Tanzania Reported strike length of 2.8km, width 1km and hosted on hills rising 200m from the plains High grade, coarse flake graphite has been observed − Visual grades up to 60% graphite reported − Historical report ind
Slide 37: Other exploration opportunities
For personal use only Other exploration opportunities Tanzania mineral sands Syrah controls >1,000km2 of landholding − Strike extent of ~100km of prospective coastline Geology conducive to build up of mineral sands deposits World class Kwale deposit 70km to the north All prospects are lightl
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