Syrah Resources Limited · ASX:SYR
Syrah Resources — Shareholder Meeting (May 2021)
20 slides from Syrah Resources's shareholder meeting presentation, May 21, 2021
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 21 May 2021 Shaun Verner – Managing Director & CEO -
Slide 2: Important notice and disclaimer
Important notice and disclaimer Investor Relations For personal use only 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 o
Slide 3: Syrah's Value Proposition
Syrah’s Value Proposition For personal use only Electric Vehicles require graphite Syrah’s vision is to be the world’s leading supplier of Graphite is a strategic critical mineral superior quality graphite and anode material products, working closely with customers and the supply Balama Graphite Ope
Slide 4: Syrah's positive ESG profile
Syrah’s positive ESG profile For personal use only ISO:45001 and ISO:14001 certification at Balama Vidalia project being developed in line with best practice health, safety Leading health and safety standards and environmental standards Critical Risk Management Framework embedded across the Gr
Slide 5: Syrah is positively contributing to communities through a challenging time
Syrah is positively contributing to communities through a challenging time For personal use only 1. As at 31 March 2021 5 5
Slide 6: Health and Safety is Syrah's highest priority
Health and Safety is Syrah’s highest priority For personal use only 6 6
Slide 7: Health and Safety is Syrah's highest priority
Health and Safety is Syrah’s highest priority For personal use only • Health, safety and wellbeing of employees, contractors and key Total Recordable Injury Frequency Rate (TRIFR) stakeholders remains Syrah’s highest priority • Successfully passed the second compliance audit for ISO:14001 0.8 0.9 0.
Slide 8: Making Syrah an important part of the EV value chain
Making Syrah an important part of the EV value chain For personal use only : Balama Graphite Operation • Ore Reserves 108Mt at 16% TGC1 (17Mt of contained graphite) underpinning a 50+ year mine life2 • Simple open pit operation, low stripping ratio, design Contract production capability 350kt flake
Slide 9: 2020 operational focus areas
2020 operational focus areas For personal use only Maintain Balama operational readiness and marketing capability to promptly restart Restructure costs to underpin resilient operations at Balama Advance Syrah’s downstream strategy at Vidalia Manage and minimise the impacts of COVID-19 on Syrah’s ope
Slide 10: 2020 financial results summary
2020 financial results summary For personal use only Revenue (US$m) Net Profit/(Loss) After Tax (US$m) 72 2018 2019 2020 (29) (61) 11 0 2018 2019 2020 (131) Free Cash Flow1 (US$m) Cash and Cash Equivalents (US$m) 2018 2019 2020 77 81 75 (45) (70) (105) 2018 2019 2020 1. Free Cash Flow comprises Net
Slide 11: EV sales and anode material volumes rebalancing the natural graphite market
EV sales and anode material volumes rebalancing the natural graphite market For personal use only Global EV Sales (‘000 Units) China Total Anode Production (kt) Q1 2021 +144% YoY 51 46 47 42 44 41 600 +168% 41 38 31 24 27 23 23 400 +113% May-20 Mar-20 Jul-20 Feb-21 Mar-21 Apr-20 Oct-20 Nov-20 Dec-20
Slide 12: Balama is the largest integrated natural graphite mining/processing operation globally
Balama is the largest integrated natural graphite mining/processing operation globally with project capital fully invested Asset Overview Ex-China Natural Graphite Reserves4 For personal use only 150 Operations Location Southern Cabo Delgado Province, Mozambique SYRAH Reserve Tonnage (Mt) Greenfield
Slide 13: Balama cost base restructured underpinning resilient operations
Balama cost base restructured underpinning resilient operations For personal use only 20% to 25% reduction 100 • Cost base review undertaken in late 2019 and savings implemented through 2020 C1 cash cost at 15kt per month production rate 90 80 • 20 - 25% cost reductions at 15 kt per month production
Slide 14: Vidalia expansion is de-risking
Vidalia expansion is de-risking For personal use only Date Key Milestones May 2021 First production of fully integrated AAM at Vidalia Mar 2021 Transition to initial Detailed Design for 10ktpa AAM facility at Vidalia Mar 2021 Installation and commissioning of furnace at Vidalia 2020 and 2021 YTD Dec
Slide 15: Progressing to become an integrated natural graphite AAM producer
Progressing to become an integrated natural graphite AAM producer For personal use only 2020 2021 Post FID Q3 Q4 Q1 Q2 Q3 Q4 H1 H2 H3 H4 Product Qualification First purified spherical graphite (anode precursor) to full specification Dispatch of anode precursor to supply chain participants First co
Slide 16: BFS confirms attractive margins at current AAM prices
BFS confirms attractive margins at current AAM prices For personal 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$5,479/t Annual processed ktpa 18 73 graphite AAM produc
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 For personal use only Balama Graphite Vidalia AAM Operation1 Project2 Benefits of vertical integration to Syrah: Sites / Location Margin capture / cost protection Attractive financial returns
Slide 18: Vertically integrated anode production, co-located with planned USA battery factories
Vertically integrated anode production, co-located with planned USA battery factories For personal use only Location of Planned Battery Capacity in USA Planned Battery Capacity in USA Company Size (GWh) Location Status / Start Panasonic (PENA) 35 NV Operating Tesla 10 CA Pilot / Operating LG 5 MI Op
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 For personal use only Vidalia Battery Anode Material Project Export Markets • Establishing USA-based AAM production • Potential for Syrah to export from USA to ex-USA markets vertically integrated with Balama • Potential to provide
Slide 20: 2021 outlook
2021 outlook Significant growth in EV sales and constructive demand For personal use only environment for anode material in the year to date Increasing Balama production towards 15kt per month with consideration of market demand and customer contracting Progressing to FID for 10ktpa expansion of pro