Syrah Resources Limited · ASX:SYR
Syrah Resources — Q1 2019 Earnings Presentation
12 slides from Syrah Resources's earnings presentation, Apr 29, 2019
Slide 1: Q1 2019 Quarterly Activities Report
For personal use only Q1 2019 Quarterly Activities Report Shaun Verner – Managing Director & CEO 29 April 2019 0
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: Q1 2019 Headlines
Q1 2019 Headlines For personal use only Safety • Strong safety record with Total Recordable Injury Frequency Rate (TRIFR) of 0.6 as at end of quarter • Produced 48kt, up 45% relative to Q4 2018, with record production in March of ~19kt Balama Graphite • C1 operating cash cost1 continues to decline O
Slide 4: Q1 2019 Sustainability Highlights
Q1 2019 Sustainability Highlights For personal use only Health, Safety and Environment People and Community • Strong safety record with TRIFR per million hours worked of 0.6 at quarter end • As at the end of the quarter 96% of Balama’s direct employees are Mozambican nationals with 55% from the loca
Slide 5: Balama - Increased consistency and performance
Balama- Increased consistency and performance For personal use only Production Summary Q1 2019 Q4 2018 Q1 2018 Q1 2019 vs • Q1 2019 up 45% versus Q4 2018 reflecting production consistency, delivery from ongoing 31 Mar 2019 31 Dec 2018 31 Mar 2018 Q4 2018 optimisation programs 295 416 283 (29%) • Equ
Slide 6: Sales & Marketing – strong demand and ongoing improvement in logistics
Sales & Marketing – strong demand and ongoing improvement in logistics key drivers of sales volume growth For personal use only Q1 2019 Q4 2018 Q1 2018 Q1 2019 vs • Sold and shipped 48kt natural graphite with an additional 18kt sales orders at Nacala awaiting Natural Graphite Sales Summary shipment
Slide 7: Pricing Expectations – key variables of Syrah weighted average price
Pricing Expectations – key variables of Syrah weighted average price have strong upside potential over the short and medium term For personal use only Pricing factor Extent Currently Expected Expected price development Priced-In Forward Impact Market entry pricing & Reduced qualification and entry p
Slide 8: EV growth and battery capacity investment continues to support natural graphite demand
EV growth and battery capacity investment continues to support natural graphite demand For personal use only Graphite key end market growth data CY 2018 CY18 vs CY17 Demand Lithium ion battery segment Global Steel Production Mt 1,809 4.6% • Graphite is anticipated to remain the key material for anod
Slide 9: Syrah's natural spherical graphite competition is entirely Chinese
Syrah’s natural spherical graphite competition is entirely Chinese; Li-ion battery capacity expanding across regions For personal use only 4 88 18 23 GWh GWh GWh GWh 31 119 GWh GWh 105 349 10 GWh GWh GWh Syrah Natural Battery spherical graphite (for Anode battery anode) Material suppliers Project Ch
Slide 10: Battery Anode Material (BAM) Project progress provides foundation for commercialisation
Battery Anode Material (BAM) Project progress provides foundation for commercialisation opportunities For personal use only BAM Site Louisiana Commercial plant project and anode product development accelerated in Q1 • Initial production capacity remains focussed on customer qualification of spherica
Slide 11: Finance – Balama operational and BAM cash draw to reduce significantly from Q3 2019
Finance – Balama operational and BAM cash draw to reduce significantly from Q3 2019 For personal use only Cash Net cash outflow profile Q2 2019 Q1 2019 Q1 2019 Further major reduction in Balama operational and BAM cash draw (Forecast) (Actual) (Forecast) US$m US$m US$m • Q2 2019 last significant BAM
Slide 12: 2019 Outlook
2019 Outlook For personal use only Balama Graphite Operation Marketing • Syrah will continue to review and manage the trade off between additional supply • Increased production consistency and stabilised logistics throughput provide a solid through production volume increase and realised prices to e