Syrah Resources Limited · ASX:SYR
Syrah Resources — Q4 2021 Earnings Presentation
23 slides from Syrah Resources's earnings presentation, Feb 1, 2022
Slide 1: Q4 2021 Quarterly Activities Report
Q4 2021 Quarterly Activities Report 31 January 2022 Shaun Verner – Managing Director & CEO -
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: 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 ESG standards ✓ Vidalia expansion project being developed in line with best practice health, safety and environmental standards ✓ Critical Risk Management Framework embedded acr
Slide 5: Q4 2021: Highlights
Q4 2021: Highlights Health and Safety • Total Recordable Injury Frequency Rate (“TRIFR”) of 0.5 for Balama and 0.0 for Vidalia at quarter end • Positive momentum in EV sales and penetration, a key leading indicator for natural graphite and active anode material (“AAM”) demand growth • Continued stro
Slide 6: EV sales and anode volumes have continued to strengthen
EV sales and anode volumes have continued to strengthen Global EV Sales (‘000 Units) Chinese Anode Production (kt) 2021: +115% pcp 67 71 +59% 59 58 59 60 58 +93% 51 52 54 46 44 47 42 41 41 38 31 700 +97% 23 24 23 27 +84% 19 13 600 +156% +131% +214% +111% Jan-20 Jun-20 Jan-21 Jun-21 Jul-20 Jul-21 Mar
Slide 7: China domestic graphite fines price has increased due to Chinese supply disruptions
China domestic graphite fines price has increased due to Chinese supply disruptions and strong demand flowing through the supply chain ▪ A constructive market is supporting increasing China Natural Graphite Fines Prices (US$/t)1 domestic graphite fines price 800 Asian Metal ▪ Spot graphite pricing i
Slide 8: Battery manufacturing capacity pipeline is rapidly increasing across key regions
Battery manufacturing capacity pipeline is rapidly increasing across key regions, with substantial localised anode material supply required Battery Manufacturing Capacity Pipeline Change Since October 2020 (GWh)1 Graphite Battery Anode Material Requirement (kt)2 6,000 Global 900 Europe USA 6,000 Chi
Slide 9: USA battery market is maturing rapidly to support a large-scale EV manufacturing base
USA battery market is maturing rapidly to support a large-scale EV manufacturing base in the region Location of Planned Battery Manufacturing Capacity in USA Planned Battery Manufacturing Capacity in USA1 North American Size share of global Company (GWh) Location Status / Start battery manufacturing
Slide 10: Q4 2021: Balama Production and Operations [CURRENT STATUS]
Q4 2021: Balama Production and Operations [CURRENT STATUS] • December 2021 quarter production constrained by maximum inventory positions and container shipping market disruption – additional breakbulk shipment option expected to materially improve production and sales from the March 2022 quarter • 1
Slide 11: Q4 2021: Balama Production and Operations
Q4 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% 80% 29 25 15 12 13 5 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 201
Slide 12: 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 13: Q4 2021: Balama Sales and Marketing [CURRENT STATUS]
Q4 2021: Balama Sales and Marketing [CURRENT STATUS] • Sold and shipped 19kt natural graphite and all 20kt finished product inventory contracted to customers • Unprecedented container shipping market disruption continued to impact the Company’s ability to secure container capacity for Balama product
Slide 14: Syrah has developed a major additional export option in breakbulk shipments through Pemba port
Syrah has developed a major additional export option in breakbulk shipments through Pemba port ▪ Whilst Syrah expects container shipping availability to improve, a major new logistics option has been developed to commence breakbulk shipments through Pemba port ▪ Breakbulk shipments through Pemba por
Slide 15: Q4 2021: Vidalia
Q4 2021: Vidalia • US$79m capital invested1 in Vidalia de-risking Syrah’s entry into the downstream AAM market • Offtake agreement executed with Tesla to supply 8ktpa AAM from Vidalia at a fixed price for an initial term of four years2 • Detailed engineering on the Vidalia Initial Expansion project
Slide 16: Syrah has significantly advanced detailed engineering and long-lead equipment procurement
Syrah has significantly advanced detailed engineering and long-lead equipment procurement • Bankable Feasibility Study on the Vidalia Initial Expansion was completed in December 20201 • Subsequently, Syrah has completed front-end engineering and design, detailed engineering and long-lead equipment p
Slide 17: De-risking Vidalia expansion
De-risking Vidalia expansion Date Key Milestones Dec 2021 ✓ Tesla offtake agreement executed Dec 2021 ✓ Detailed engineering ~50% completed Nov 2021 ✓ “Balama origin to Vidalia gate” lifecycle assessment completed Jun 2021 Worley awarded detailed engineering and procurement services contract Jun 202
Slide 18: Q1 2022 outlook
Q1 2022 outlook EV sales growth, constructive demand environment for anode material and Chinese supply disruption driving strong demand and pricing for Balama products Increasing Balama production beyond 15kt per month with consideration of market demand, forward customer contracting and Nacala / Pe
Slide 19: Appendix
Appendix 19 Photo: Balama Ore
Slide 20: Battery and natural graphite fines demand in early stages of growth – driven by EV adoption
Battery and natural graphite fines (-100mesh) demand in early stages of growth – driven by EV adoption Global EV Sales (Millions) Global Battery Manufacturing Capacity (GWh) Global 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
Slide 21: 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 Batteries Natural Graphite Demand for Batteries 2020 100% Silicon LTO Other 1% 1% 1% MCMB 1% Metal Composition % Mass1 Natural 39% Synthetic 58%
Slide 22: 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 23: 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 23 23