Syrah Resources Limited · ASX:SYR
Syrah Resources — Q2 2020 Earnings Presentation
22 slides from Syrah Resources's earnings presentation, Jul 23, 2020
Slide 1: Q2 2020 Quarterly Activities Report
For personal use only Q2 2020 Quarterly Activities Report 23 July 2020 Shaun Verner – Managing Director & CEO -
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.
Slide 3: Company Overview
Company Overview For personal use only 3 Picture: Balama Graphite Operation
Slide 4: Investment highlights
Investment highlights For personal use only Long life asset, with over 50 years of mine life1 and 350kt per year of graphite concentrate production capability2 Balama: Balama is the largest integrated natural graphite mine and processing plant globally as measured by annual flake concentrate pro
Slide 5: Balama is a globally significant asset with increasing strategic importance
Balama is a globally significant asset with increasing strategic importance Leveraging the globally significant Balama asset to develop an integrated battery anode material and industrial products business For personal use only Balama a globally significant resource – Vertical integration Global meg
Slide 6: Making Syrah an important part of the EV value chain
Making Syrah an important part of the EV value chain Set to provide much needed supply chain independence to Europe and US in a post COVID 19 world For personal use only : Balama Graphite Operation • Ore Reserves 108Mt at 16% TGC1 (17Mt of contained graphite) • Simple open pit operation, low strippi
Slide 7: Q2 2020 Update
Q2 2020 Update For personal use only 7 Photo: Balama Graphite Operation Processing Plant
Slide 8: Q2 2020: Key Points
Q2 2020: Key Points For personal use only Quarter end Total Recordable Injury Frequency Rate (“TRIFR”) was 0.8 Ongoing focus on health and safety Ongoing focus on compliance with government directives and internal COVID 19 protocols. No cases of COVID 19 have been identified at any of Syrah’s gl
Slide 9: Q2 2020 Balama operations summary
Q2 2020 Balama operations summary Production at Balama remained suspended through Q2 2020 For personal use only Flake Graphite Production (kt) 50 44 45 Total Recordable Injury Frequency Rate (“TRIFR”) of 0.8 at Balama 40 at the end of Q2 2020 30 15 12 20 No natural graphite production during Q2
Slide 10: Battery market: Near-term stumble, long-term growth increasingly certain
Battery market: Near-term stumble, long-term growth increasingly certain High conviction of return to growth in lithium-ion battery demand, driven by EV sales growth, although timing uncertain For personal use only 1 Outlook for rest of 2020 challenged ● Potential for approx. flat annual EV sales 20
Slide 11: Positioning Balama for return of EV sales growth
Positioning Balama for return of EV sales growth Measures taken to preserve cash whilst retaining operational and marketing capability to support production re-start For personal use only Key outcomes of operational review Balama C1 Monthly Cost Base ($m) ● An operational review was undertaken in th
Slide 12: Ongoing commitment to sustainability & community
Ongoing commitment to sustainability & community Ongoing commitment to existing HSE standards and community projects For personal use only In June 2017, Syrah established a Local Development Agreement (“LDA”) with the Company’s eight Host Communities and the Balama District Administration The LD
Slide 13: BAM project de-risking towards commercial Active Anode Material production
BAM project de-risking towards commercial Active Anode Material production Anode precursor production at commercial scale demonstrated at Vidalia For personal use only Anode precursor to battery specification has been produced at Vidalia and will be dispatched to potential customers and supply cha
Slide 14: Syrah's site in USA is significantly de-risked for anode material production
Syrah’s site in USA is significantly de-risked for anode material production Site owned by Syrah in Vidalia (Louisiana, USA) has all the key requirements for large scale Active Anode Material production For personal use only Access to key utilities (Water/Gas/Power) Confirmed compliance with wat
Slide 15: Uniquely positioned to supply the ex-Asia anode supply chain
Uniquely positioned to supply the ex-Asia anode supply chain Significantly progressed in demonstrating capability to supply anode material at commercial scale For personal use only Focus to date on establishing production lines that are of adequate commercial scale to demonstrate Syrah’s capability
Slide 16: Co-location with planned USA battery factories
Co-location with planned USA battery factories Syrah plans to provide a co-located and ESG verifiable source of anode material supply to the USA battery supply chain For personal use only Planned 2029 GW Planned Capacity in USA Benefits of co-location: Bubble Size = 2029 GW Planned Capacity Increa
Slide 17: Syrah an alternate supply option for USA and Europe battery supply chains
Syrah an alternate supply option for USA and Europe battery supply chains Syrah aims to provide a complementary and alternate supply proposition to existing domestic China supply to meet growing demand For personal use only Battery Anode Material Project Export Markets • Planning to establish USA •
Slide 18: Benchmarking of anode material produced with natural graphite from Balama
Benchmarking of anode material produced with natural graphite from Balama Syrah anode material benchmarks favourably against comparable material available from existing major incumbent industry participants For personal use only Particle Shape Benchmarking Benchmarking of the physical and electroche
Slide 19: ESG and cost considerations are growing issues for synthetic graphite
ESG and cost considerations are growing issues for synthetic graphite Natural graphite has superior environmental and cost credentials compared to synthetic graphite For personal use only Synthetic graphite is made from the by-product of energy intensive coking and oil refinery processes Cost and LC
Slide 20: Natural graphite expected to gain share versus synthetic graphite
Natural graphite expected to gain share versus synthetic graphite Environmental credentials and cost to drive increased share of natural versus synthetic graphite in the anode For personal use only Source: Benchmark Minerals Intelligence 20
Slide 21: Near term BAM project milestones
Near term BAM project milestones Rapidly progressing to become the first vertically integrated natural graphite anode material producer ex-Asia For personal use only Note: AAM = Active Anode Material 21
Slide 22: Summary and outlook
Summary and outlook BAM progressing towards project milestones. Balama production to remain suspended, with the asset being positioned to preserve For personal use only cash whilst also retaining capability to respond when market conditions improve Anode precursor material to battery specification