Slide 1: Q3 2021 Quarterly Activities Report
Q3 2021 Quarterly Activities Report 28 October 2021 Shaun Verner – Managing Director & CEO -
Slide 2: Important notice and disclaimer
Important notice and disclaimer Investor Relations 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 of shares in any jurisd
Slide 3: Syrah's Value Proposition
Syrah’s Value Proposition Electric Vehicles require graphite ● Electric Vehicle (“EV”) adoption is gaining momentum ● Anodes in lithium-ion batteries used in EVs are made of graphite Syrah’s vision is to be the Graphite is a strategic critical mineral world’s leading supplier of ● Global anode suppl
Slide 4: Syrah's positive ESG profile
Syrah’s positive ESG profile ✓ ISO:45001 and ISO:14001 certification at Balama ✓ ISO:9001 certification at Vidalia Leading health and safety standards ✓ Vidalia expansion project being developed in line with best practice health, safety and environmental standards ✓ Critical Risk Management Framewor
Slide 5: Q3 2021: Highlights
Q3 2021: Highlights Health and Safety • Balama and Vidalia quarter end Total Recordable Injury Frequency Rate (“TRIFR”) was 0.0 • Continued strong EV sales, with 111%1 growth in Q3 2021, versus Q3 2020, to over 1.6 million units Market • Forecast global EV sales of 5.6 million units in 20212 versus
Slide 6: EV sales and anode material volumes continue to strengthen
EV sales and anode material volumes continue to strengthen Global EV Sales (‘000 Units) Chinese Anode Production (kt) Q3 2021: +111% pcp 59 58 59 60 +97% 51 52 54 600 46 44 47 42 41 41 +156% 38 +131% 31 27 +214% +111% 23 24 23 19 13 +209% +258% Jul-21 May-20 Feb-20 Mar-20 Jul-20 May-21 Apr-20 Feb-21
Slide 7: Battery capacity pipeline is increasing rapidly across regions
Battery capacity pipeline is increasing rapidly across regions – substantial localised anode material supply is required Battery Capacity Pipeline Change Over Last 12 Months (GWh)1 Graphite Battery Anode Material Requirement (kt) 5,000 Global 900 Europe USA China Europe Dotted line shows battery Dot
Slide 8: USA battery market is maturing rapidly to support large-scale EV manufacturing
USA battery market is maturing rapidly to support a large-scale EV manufacturing base in the region Location of Planned Battery Capacity in USA Planned Battery Capacity in USA (recent commitments highlighted) USA share Size of global Company (GWh) Location Status / Start 7% Stellantis / Samsung SDI
Slide 9: Syrah aims to be a leading supplier of value-added anode products
Syrah aims to be a leading supplier of value-added anode products for the rapidly growing global battery supply chain AAM Vidalia, USA Production Asia Tolling (>20ktpa) Base Europe Pilot and Initial USA USA Expansion + Further USA Expansion + Qualification Expansion Europe Exports Europe Option Targ
Slide 10: Q3 2021: Balama Production and Operations [CURRENT STATUS]
Q3 2021: Balama Production and Operations [CURRENT STATUS] • Delivered excellent monthly operational performance for September 2021 – 15kt natural graphite produced, 85% recovery and US$430/t C1 cash costs (FOB Nacala) • Costs are expected to reduce further as production increases above 15kt per mon
Slide 11: Q3 2021: Balama Production and Operations
Q3 2021: Balama Production and Operations Natural Graphite Production (kt) Product Mix (% Fines) Before temporary Before temporary suspension of production suspension of production 48 44 45 86% 88% 84% 91% 86% 80% 86% 80% 29 25 15 12 Sep: 5 15 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 2019 201
Slide 12: Q3 2021: Balama Sales and Marketing [CURRENT STATUS]
Q3 2021: Balama Sales and Marketing [CURRENT STATUS] • Sold and shipped 18kt natural graphite and practically all of 25kt finished product inventory contracted to customers • 12kt of sales planned to ship from Nacala in late September 2021 was delayed to after quarter end due to a schedule change by
Slide 13: Balama is the largest natural graphite mining/processing operation globally
Balama is the largest natural graphite mining/processing operation globally Asset Overview Ex-China Natural Graphite Reserves4 Location Southern Cabo Delgado Province, Mozambique Operations 150 Reserve & 108Mt (16% TGC) Graphite Ore Reserve SYRAH Reserve Tonnage (Mt) Greenfield Resource1 1,422Mt (10
Slide 14: Q3 2021: Vidalia
Q3 2021: Vidalia Market • US Government set a 50% EV share of all new vehicles sales in the USA from 2030, calibrated with key auto OEMs • Pace of battery capacity commitments is accelerating with auto OEMs positioning to create large-scale EV supply chains in the USA Customer Engagement and Product
Slide 15: Q3 2021: Vidalia
Q3 2021: Vidalia Operations and Production • Integrated spherical, purification and furnace operation is producing 16-micron and 12- micron AAM for qualification using Balama natural graphite • No damage or injuries at Vidalia from Hurricane Ida Expansion Project • Detailed engineering and procureme
Slide 16: De-risking Vidalia expansion
De-risking Vidalia expansion Date Key Milestones ✓ Commercial discussions for multi-year purchase commitments progressed ✓ Iterative customer testing advanced Q3 2021 ✓ Six months of detailed engineering completed ✓ Full chain LCA completed and in final review Jun 2021 Worley awarded detailed engine
Slide 17: Progressing Vidalia to become an integrated natural graphite AAM producer
Progressing Vidalia to become an integrated natural graphite AAM producer 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 commercial scale
Slide 18: Vidalia is well located for large-scale AAM production
Vidalia is well located for large-scale AAM production ✓ Proximity to potential customers ✓ Access to key utilities ✓ Options to expand facility size ✓ Direct barge/port access to Mississippi river ✓ Supportive government relations ✓ Access to key consumables (HF, HCL, Caustic) ✓ Capable workforce I
Slide 19: 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 Balama Graphite Vidalia AAM Benefits of vertical integration to Syrah: Operation1 Project2 Sites / Location ▪ Margin capture / cost protection ▪ Attractive financial returns ▪ Enhanced channel to
Slide 20: 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 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 ex-China supply chains
Slide 21: Q4 2021 outlook
Q4 2021 outlook EV sales growth and constructive demand environment for anode material has balanced the natural graphite market Increasing Balama production beyond 15kt per month with consideration of market demand and forward customer contracting Progressing to FID for expansion of production capac
Slide 22: APPENDIX
APPENDIX A SYRAH RESOURCES 22
Slide 23: Battery and natural graphite fines demand in early stages of growth
Battery and natural graphite fines (-100mesh) demand in early stages of growth – driven by EV adoption Global EV Sales (Millions) Lithium-ion Battery Capacity (GWh) Natural Graphite Demand (kt) 90 80% 8,000 12,000 80 70% 7,000 10,000 70 60% 6,000 60 8,000 50% 5,000 50 40% 4,000 6,000 40 30% 3,000 30
Slide 24: Graphite is a high intensity material in EV batteries
Graphite is a high intensity material in EV batteries – costs/emissions expected to drive shift towards natural graphite Battery Mineral Composition of Batteries Natural Graphite Demand for Batteries 2020 100% Silicon LTO Other 1% 1% 1% MCMB Metal Composition % Mass(1) 1% Natural 39% Synthetic 58% 2
Slide 25: EV makers committed to LiB technology for expansion
EV makers committed to LiB technology for expansion – advances required for commercial transition to solid state EV Manufacturers Targeting EV sales share of Targeting EV/hybrid sales Targeting zero-emission Targeting EV sales Targeting EV sales of 70% (Euro) / 50% (ex-Euro) by share of 50% by 2025
Slide 26: Syrah's global business to supply growing battery anode demand
Syrah’s global business to supply growing battery anode demand Contract Sales Liaison, Sales & Shanghai Marketing Hub, UAE Balama Graphite Vidalia Battery Anode Operation, Material Mozambique Project, Louisiana USA Head Office, Australia 26 26