Syrah Resources Limited · ASX:SYR
Syrah Resources — Q1 2021 Earnings Presentation
25 slides from Syrah Resources's earnings presentation, Apr 21, 2021
Slide 1: Q1 2021 Quarterly Activities Report
Q1 2021 Quarterly Activities Report 21 April 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 Leading health and safety standards ✓ Vidalia being developed to ISO operating standards Sustainability frameworks guided by: ✓ Global Reporting Initiative (GRI) Best practice sustainability frameworks ✓ United Nations Su
Slide 5: Q1 2021: Highlights
Q1 2021: Highlights • Balama quarter end Total Recordable Injury Frequency Rate (“TRIFR”) was 0.0 Health and Safety • Ongoing focus on compliance with Government directives and Syrah’s COVID-19 protocols Market • Strong level of EV sales continued during the quarter, with 140% 1 growth in Q1 2021, v
Slide 6: Global EV sales (thousand units)
Increased natural graphite demand from EV sales growth supports Balama restart Q1 2021 +140% YoY 600 +168% Global EV sales (thousand units) 400 +113% +130% 200 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2018 2019 2020 2021 Source: All data except March 2021 from EV Sales (http://ev-sales.blo
Slide 7: Strong growth in AAM production volumes
Strong growth in AAM production volumes Resumption of EV sales growth 209% China AAM Production and Growth (% YoY) COVID impacts: 146% • Supply disruptions 119% • Moderated demand 96% 95% 57% 61% 57% 43% 7% -1% -4% -8% 23kt 24kt 23kt 27kt 31kt 38kt 42kt 41kt 46kt 44kt 47kt 41kt 51kt Mar-20 Apr-20 Ma
Slide 8: Q1 2021: Balama Graphite Operation
Q1 2021: Balama Graphite Operation [CURRENT STATUS] • Production recommenced at Balama in March 2021 ahead of schedule1 with restart decision guided by: • Easing of COVID-19 restrictions • Strengthening natural graphite market conditions • New enquiries and commitments from established customers • P
Slide 9: Balama is the largest integrated natural graphite 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 Location Southern Cabo Delgado Province, Mozambique Operations 150 Reserve & 108Mt (16% TGC) Graphite Ore Reserve SYRAH Reserv
Slide 10: Q1 2021: Vidalia AAM Project
Q1 2021: Vidalia AAM Project Operations and Production • Furnace commissioned to complete fully integrated commercial scale AAM facility at Vidalia1 • On-specification AAM to be produced from furnace and dispatched to potential customers from Q2 for ongoing product qualification processes • Progress
Slide 11: Q1 2021: Vidalia AAM Project
Q1 2021: Vidalia AAM Project Construction Funding • Progressing evaluation of potential strategic and financial partnership options, including customer commitments and funding for construction • Greenhill & Co appointed as financial advisor to assist in this process Product Development • R&D program
Slide 12: Vidalia expansion is de-risking
Vidalia expansion is de-risking Date De-risking Milestones Mar 2021 ✓ Transition to initial Detailed Design for 10ktpa AAM facility at Vidalia Q1 2021 Milestones Mar 2021 ✓ Installation and commissioning of furnace at Vidalia Achieved Dec 2020 BFS confirms robust economics for large scale AAM produc
Slide 13: Progressing to become an integrated natural graphite AAM producer
Progressing 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 toll pr
Slide 14: BFS confirms attractive margins at current AAM prices
BFS confirms attractive margins at current AAM prices 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 production ktpa 10 40 By-pro
Slide 15: 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 16: 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 Benefits of vertical integration to Syrah: Balama Graphite Vidalia AAM ▪ Margin capture / cost protection Operation(1) Project(2) Sites / Location ▪ Attractive financial returns ▪ Enhanced channel
Slide 17: USA and Europe are significantly underinvested in anode capacity
USA and Europe are significantly underinvested in anode capacity 1 2 3 Supply Chain Mining / Ore Processing Active Anode Material Precursor Active Anode Material Stages Value Add Processing Steps MILLING/ CARBON THERMAL MINING CONCENTRATION PURIFICATION COATING TREATMENT SHAPING 100% 83% Current sha
Slide 18: Vertically integrated anode production, co-located with planned USA battery factories
Vertically integrated anode production, co-located with planned USA battery factories Planned 2030 GW Planned Capacity in USA Battery capacity in USA Company Size (GWh) Location Status / Start Panasonic (PENA) 35 NV Operating Tesla 10 CA Pilot / Operating LG 5 MI Operating AESC Envision 3 TN Operati
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 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 20: Summary and Outlook
Summary and Outlook • Successfully recommenced production at Balama ahead of schedule with improving market balance and customer demand conditions • Reinstating the full contingent of labour and logistics/contractor capability at Balama Balama • Increasing plant utilisation and natural graphite prod
Slide 21: Appendix
APPENDIX A SYRAH RESOURCES 21
Slide 22: Battery demand in early stages of growth – driven by EV adoption
Battery demand in early stages of growth – driven by EV adoption We are here 22 22 22
Slide 23: Graphite has high intensity of use in batteries used in EVs
Graphite has high intensity of use in batteries used in EVs – costs/emissions expected to drive shift towards natural graphite Battery Mineral Composition of Batteries Natural Graphite Demand for Batteries 2020 100% Silicon Other MCMB 1% 1% 1% Metal Composition % Mass(1) Natural 39% Synthetic 58% 20
Slide 24: EV makers committed to LiB technology for expansion plans
EV makers committed to LiB technology for expansion plans - significant advances are required to enable any commercial transition to Solid State EV Manufacturers Current Battery Supplier Future Battery Supplier Transition LiB (AG anode) LiB LiB LiB LiB LiB LiB LiB LiB LiB LiB LiB Plan SSB from 2025
Slide 25: 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 25 25