Syrah Resources Limited · ASX:SYR
Syrah Resources — Diggers and Dealers Mining Forum 2019
22 slides from Syrah Resources's conference presentation, Aug 7, 2019
Slide 1: Diggers and Dealers Mining Forum
For personal use only Diggers and Dealers Mining Forum Shaun Verner, Managing Director and CEO August 2019 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 0 0
Slide 2: Company Overview
For personal use only Company Overview 1 Photo: Bagged Balama Graphite Product
Slide 3: Syrah's growth potential and optionality is focussed on value
Syrah's growth potential and optionality is focussed on value For personal use only • Long life asset, with over 50 years of mine life(1) and 350kt per year of graphite concentrate production capability(2) • Balama is the largest integrated natural graphite mine and processing plant globally as meas
Slide 4: Balama Graphite Operation – a Tier 1 producing asset
Balama Graphite Operation – a Tier 1 producing asset: The world's largest integrated natural graphite mine and processing plant For personal use only Location • Mozambique (Cabo Delgado Province) Reserves and • Graphite Reserves: 113.3Mt at 16.4% Total Graphitic Carbon (TGC) – 18.5Mt of contained gr
Slide 5: Balama Graphite Operation and Marketing Update
For personal use only Balama Graphite Operation and Marketing Update 4 Photo: Balama Graphite Operation Process Plant
Slide 6: Syrah is committed to sustainable operations
Syrah is committed to sustainable operations – focussing on enduring safety, health, environmental and community outcomes For personal use only Health, Safety and Environment People and Community • Strong safety record, TRIFR 0.3 as at 30 June 2019 • 96% Mozambican nationals, 55% from the local Host
Slide 7: Operational performance improvement at Balama
Operational performance improvement at Balama is underpinned by enhanced equipment management and increasing process control For personal use only • Continued delivery of production improvement plan expected, target of 82% flake graphite recovery by the end of 2019 (1) • Balama dispatch, cross-dock-
Slide 8: Price realisation impacted by higher fines sales into China
Price realisation has been impacted by higher than planned fines sales into a competitive China market, but growth and product range are favourable For personal use only Product Price Ranges Achieved in 2019 YTD (US$/t, CIF basis) Coarse Flake Products (+50#, +80#, +100#) • Coarse flake products ach
Slide 9: Key variables of weighted average price realisation have strong upside
Key variables of Syrah's weighted average price realisation have strong upside potential, and the focus is on those within Syrah's control For personal use only • In the short term, production and marketing flexibility needs to be maintained to react to supply / demand dynamics and conduct orderly p
Slide 10: Syrah is now the largest integrated producer globally
Syrah is now the largest integrated producer globally, and provides a strategic ex-China source of supply, as demand growth increases For personal use only 4 Estimated 2019 global natural flake graphite production (kt) (1) 500 3.5 Norway Russia Higher Production Estimated 2019 flake graphite product
Slide 11: Natural graphite demand growth supports Balama reaching full capacity
Natural graphite demand growth supports Balama reaching full capacity; driven by battery anode material demand and the China market balance For personal use only Significant fines growth driven by battery anode material demand China expected to soon become a net importer of natural graphite Fines Co
Slide 12: China has become a net importer of natural graphite
China has become a net importer of natural graphite for the first time in 2019 and exports are stable - demonstrating strong market growth For personal use only Growth in China natural graphite imports almost entirely from Syrah China continues to lead EV adoption China natural graphite imports vs e
Slide 13: China has structurally changed the trade flow of commodities before
China has structurally changed the trade flow of commodities before; market balance and quality differentials will drive imports For personal use only • Despite having its own significant natural endowment of iron ore and coal, China has shown a growing preference for higher grade imported material
Slide 14: Battery Anode Material (BAM) strategy
For personal use only Battery Anode Material (BAM) strategy 13 Photo: Syrah’s BAM plant in Louisiana
Slide 15: Li-ion battery growth is highly attractive
Li-ion battery growth is highly attractive; a consistent, high quality natural graphite source contributes to cost reduction and improved performance For personal use only Global Li-ion Battery Demand (GWh) Car OEM Targets – battery performance, cost and safety 350 Competitiveness indicators 300 Cus
Slide 16: Graphite anode composition consistent across cathode chemistry
The graphite anode composition and mass in a lithium-ion battery is consistent and largely agnostic of cathode chemistry For personal use only Nickel Cobalt Aluminium (NCA) Nickel Manganese Cobalt (NMC(1)) Kg per kWh Preferenced by Preferenced by 1.50 1.00 1.00 1.00 0.70 0.45 0.25 0.50 0.15 0.10 0.1
Slide 17: Uncoated natural spherical graphite supply was entirely Chinese
Until recently, uncoated natural spherical graphite supply was entirely Chinese – Syrah can provide an alternative source of supply For personal use only Source: Syrah Resources Internal Analysis 16
Slide 18: Vidalia (USA) Battery Anode Material plant
Syrah's Vidalia (USA) Battery Anode Material plant is key for market progression, qualification, product and strategic partnership development For personal use only Lithium-ion battery supply chain – Natural Graphite Mar 2018 Syrah precursor(1) testing and benchmarking completed May 2018 Vidalia BAM
Slide 19: Vanadium Resource
For personal use only Vanadium Resource 18 Photo: Balama Graphite Open Pit Mining Operation
Slide 20: Syrah's Vanadium Opportunity
Syrah’s Vanadium Opportunity For personal use only • Vanadium in the processed graphite ore, which currently reports to tailings, can be refined into a saleable product (V 2O5)(1) and presents a medium term, high value opportunity • Balama is a globally significant vanadium Resource, with potential
Slide 21: Finance
For personal use only Finance 20 Photo: Balama Ore
Slide 22: Funding position supports production and market development
Syrah's funding position supports production and market development, providing for orderly price negotiations and cost optimisation For personal use only Unit Cost vs Price tradeoff Available Cash and Liquidity • Cash as at 30 June 2019: US$64.7m • Forecast cash as at 30 September 2019(1): ~US$63.7m
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