Slide 1: Q4 2022 Quarterly Activities Report
Q4 2022 Quarterly Activities Report 31 January 2023 Shaun Verner – Managing Director & CEO syrahresources.com.au Q4 2022 Quarterly Activities Report Syrah Resources | ASX: SYR1 31 January 2023
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, Investor Relations invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. Thi
Slide 3: Our Position
Our Position Syrah is a major ex-China natural graphite and active anode material (AAM) supplier for global customers, with upstream and downstream expansion potential underpinned by its world-class Balama resource Natural graphite and Syrah is the only Balama is a 350ktpa Syrah is building an AAM d
Slide 4: Our Value Proposition
Our Value Proposition Vertical Operating and Cost Position ESG Position Expansion Integration Development Potential ▪ AAM from Vidalia ▪ Largest integrated ▪ Cost competitive ▪ Leading ESG ▪ Significant for battery makers natural graphite AAM supply from standards and downstream and auto OEMs operat
Slide 5: Syrah is uniquely positioned with market evolution, battery supply chain development and EV adoption
Syrah is uniquely positioned with market evolution, battery supply chain development and electric vehicle adoption ▪ Balama is a “market-critical” natural graphite operation ▪ Vidalia is the first ex-China integrated AAM production ▪ Global anode material production increased by 94% in 2022 year on
Slide 6: Our ESG Profile
Our ESG Profile Best practice Leading ESG standards Low carbon footprint Auditable back to source sustainability frameworks ✓ ISO:45001 and ISO:14001 certification at ✓ Sustainability frameworks guided by the ✓ Independent life cycle assessment (LCA) ✓ Fully integrated by Syrah from mine to Balama G
Slide 7: Q4 2022 Highlights
Q4 2022 Highlights Health & Safety Balama & Vidalia Market & Corporate – Balama production, C1 cash costs and sales impacted by – Global EV sales in Q4 2022 up 63% 35 kt Balama production unplanned operational interruptions1 – Balama plant recovery at 78% for quarter versus Q4 2021 to ~3.7 million u
Slide 8: EV sales and anode production volumes continue to strengthen
EV sales and anode production volumes continue to strengthen Global Monthly EV Sales (‘000 Units)1 +64% Chinese Anode Production (kt per Month)2 2022 EV Sales +63% 2022 Chinese Anode Production 1,200 140 1,000 +64% on 2021 +59% +72% +65% +61% 120 +94% on 2021 +76% 110 +58% 100 800 +56% +92% 80 600 +
Slide 9: North American battery market is maturing rapidly
North American battery market is maturing rapidly Location of Planned Battery Manufacturing Capacity in North America North American battery manufacturing capacity1 2021 56 GWh LOCATION: OH LOCATION: TN LOCATION: MI SIZE: 40 GWh SIZE: 35 GWh SIZE: 50 GWh STATUS: Operating STATUS: Planning / 2023 STA
Slide 10: Syrah aims to become a leading supplier of anode products
Syrah aims to become a leading supplier of anode products Our expansion strategy is underpinned by Balama’s world-class resource Vidalia, USA Potential Asia Tolling (>20ktpa) Europe Production Base and Vidalia Secondary Potential Further Vidalia Customer Vidalia Initial Target Expansion + Europe Exp
Slide 11: Q4 2022: Balama Production and Operations
Q4 2022: Balama Production and Operations ▪ 35kt natural graphite produced at 78% recovery during Q4 2022 – Impacted by the timing and sequence of operational interruptions caused by illegal industrial action in October1 and a precautionary security measure in November2 ▪ Good operational performanc
Slide 12: Q4 2022: Balama Production and Operations
Q4 2022: Balama Production and Operations Natural Graphite Production (kt) Product Mix (% Fines) 83% 83% 83% 87% 46 44 38 35 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2022 2022 2022 2022 Plant Recovery C1 Costs (US$/t1) 82% 80% 709 76% 78% 615 543 464 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 20
Slide 13: Balama is the largest natural graphite mining & processing operation globally
Balama is the largest natural graphite mining & processing operation globally Ex-China Natural Graphite Reserves and Reserve Grade 1 BALAMA CUT-OFF GRADE2 20 Africa 18 North America Contained Graphite Reserves (Mt) 16 Other 14 BALAMA (7.2% TGC CUT-OFF GRADE)2 12 Asset Overview 10 Location Southern C
Slide 14: Q4 2022: Balama Sales and Marketing
Q4 2022: Balama Sales and Marketing ▪ 28kt natural graphite sold and shipped – Timing of operational interruptions at Balama impacted the availability of finished product for shipment, with most inventory only available at port in December – Sales were unconstrained by Nacala container shipments wit
Slide 15: China graphite fines price stable with market balanced
China graphite fines price stable with market balanced ▪ Strong demand and disrupted domestic supply Natural Graphite Fines Prices (US$/t)3 supported increased China domestic graphite 900 fines pricing in 2022 ▪ Graphite fines demand 800 – EV sales increased 64% in 20221 – Chinese anode production i
Slide 16: Q4 2022: Vidalia
Q4 2022: Vidalia Customer Engagement and Product Qualification ▪ Offtake agreement with Tesla to supply 8ktpa AAM from Vidalia at a fixed price for an initial term of four years1 – final AAM specifications agreed fulfilling a key offtake condition2 ▪ Tesla option exercised for an additional 17ktpa A
Slide 17: Q4 2022: Vidalia
Q4 2022: Vidalia Vidalia Further Expansion (45ktpa AAM Facility) ▪ Demand for Vidalia AAM expected to significantly exceed 11.25ktpa ▪ DFS with Worley Group on expansion of Vidalia’s production capacity to 45ktpa AAM, inclusive of 11.25ktpa AAM is nearing completion ▪ Detailed engineering, procureme
Slide 18: Vidalia offers competitive operational metrics
Vidalia offers competitive operational metrics Vidalia Initial Expansion Project Parameters Operating Margin (US$/kg AAM Real) Global Warming Potential (kg CO2 eqv./kg AAM)4 Observable Spot Natural Graphite AAM Prices3: Vidalia AAM 7.3 ~$7.23/kg 11.25 ktpa 21 ktpa AAM production Graphite processed -
Slide 19: Vidalia Initial Expansion
Vidalia Initial Expansion Key Project Milestones Achieved Defined Schedule to 11.25ktpa AAM Production at Vidalia Offtake Final Construction on Construction Start of 11.25ktpa AAM Agreement Investment Schedule and Completion and Production Run-rate Decision Budget Commissioning Production Dec 2021 F
Slide 20: Vertically integrated supply chain underpins Syrah strategy
Vertically integrated supply chain underpins Syrah strategy Syrah’s vision is to be the world’s leading supplier of superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets Sites/Location Balama Graphite
Slide 21: 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 AAM Facility Export Market and European AAM Facility ▪ Establishing US-based AAM ▪ Potential for AAM exports from Vidalia to Europe supply ▪ Potential European AAM facility vertically integrated ▪ Vertically integrated with
Slide 22: Q1 2023 outlook
Q1 2023 outlook End-market growth ‒ EV sales growth, constructive demand environment and Chinese supply challenges driving good demand and supportive pricing for Balama products Balama production and costs ‒ Increasing Balama production to at least 20kt per month and moving towards a sustainable C1
Slide 23: Appendix
Appendix Q4 2022 Quarterly Activities Report Photo: Balama Ore 23
Slide 24: Battery and natural graphite fines demand is in the early stages of growth
Battery and natural graphite fines (-100mesh) demand is in the early stages of growth – driven by EV adoption Global EV Sales (Millions) Lithium-ion Battery Capacity (GWh) Natural Graphite Demand (kt) 100 90% 8,000 10,000 90 80% 9,000 7,000 80 8,000 70% 6,000 70 7,000 60% 5,000 60 6,000 50% 50 4,000
Slide 25: Graphite is a high intensity material in EV batteries
Graphite is a high intensity material in EV batteries, with costs / emissions expected to drive shift towards natural graphite Battery Mineral Composition of Batteries1 Natural Graphite Demand for Batteries2 100% 2022 Silicon LTO Other 0% 1% 0% MCMB 0% Natural 42% Metal Composition % Mass Synthetic
Slide 26: Syrah's global business to supply growing battery anode demand
Syrah’s global business to supply growing battery anode demand Vidalia, Louisiana, USA Balama, Cabo Delgado Province, Mozambique Sales and Marketing Hub, Dubai, UAE Contract Sales Liaison, Shanghai, China Corporate Office, Melbourne, Australia Q4 2022 Quarterly Activities Report 26