Syrah Resources Limited · ASX:SYR
Syrah Resources — Shareholder Meeting (May 2023)
25 slides from Syrah Resources's shareholder meeting presentation, May 19, 2023
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 19 May 2023 Shaun Verner – Managing Director & CEO syrahresources.com.au Syrah Resources | ASX: SYR1 19 May 2023
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: Our Position
Our Position Syrah is a major ex-China natural graphite and active anode material (AAM) supplier for global customers, with upstream and downstream expansion potential underpinned by its world-class Balama resource For personal use only Natural graphite and Syrah is the only Balama is a 350ktpa Syra
Slide 4: Our Value Proposition
Our Value Proposition For personal use only Vertical Operating and Cost Position ESG Position Expansion Integration Development Potential ▪ AAM from Vidalia ▪ Largest integrated ▪ Cost competitive ▪ Leading ESG ▪ Significant for battery makers natural graphite AAM supply from standards and downstrea
Slide 5: Our ESG Profile
Our ESG Profile For personal use only Consider new photo to right for solar Best practice Leading ESG standards Low carbon footprint Auditable back to source sustainability frameworks ✓ ISO:45001 and ISO:14001 certification at ✓ Sustainability frameworks guided by: ✓ Independent life cycle assessmen
Slide 6: Our ESG Dashboard
For personal use only Our ESG Dashboard 6
Slide 7: Syrah is committed to partnering with the community and stakeholders for sustainability
Syrah is committed to partnering with the community and stakeholders for sustainability For personal use only Local Development Economic Contribution Stakeholder Engagement Social Responsibility Delivering on local development $102M(1) USD paid in salaries in Strengthening relationships with key Ado
Slide 8: Syrah is invested in Balama community development
Syrah is invested in Balama community development 2017 - $849,097 2018 - $652,762 ✓ Chipembe MoU signed & commencement of ✓ Construction of the BPTC For personal use only repair works ✓ 17 community groundwater boreholes built ✓ Local Development Agreement established ✓ Expansion of power line to Nt
Slide 9: Health and Safety is Syrah's highest priority
Health and Safety is Syrah’s highest priority For personal use only Leading Practice Standards Training Compliance Malaria Mitigation Strategy Emergency Response ISO:45001 Occupational Health & Safety Training in mandatory competencies Several protocols and initiatives in place Drills and exercises
Slide 10: Health and Safety is Syrah's highest priority
Health and Safety is Syrah’s highest priority Group Safety Statistics 3.3 3.2 For personal use only 2.8 3.0 2.6 2.7 2.8 2.4 2.4 2.3 2.1 2.2 1.2 1.3 1.3 1.3 1.2 1.2 1.1 1.1 1.0 1.1 1.1 0.8 Group TRIFR 1.1 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Group TRIFR
Slide 11: Leading practice environmental standards are maintained across Syrah's operations
Leading practice environmental standards are maintained across Syrah’s operations For personal use only Environmental Monitoring Water Management Tailings Storage Facility Waste Management ISO:14001 Environmental Management Continued focus on reducing raw water Alignment with leading practice Waste
Slide 12: Balama Solar and Battery System
Balama Solar and Battery System For personal use only 12
Slide 13: Syrah supports and empowers its people to reach their full potential
Syrah supports and empowers its people to reach their full potential For personal use only Diversity & Inclusion Employee Engagement Learning & Development Local Employment Committed to achieving and maintaining Enhancing performance and engagement Prioritising the training, development 1,477(1) Moz
Slide 14: Syrah's global business to supply growing battery anode demand
Syrah’s global business to supply growing battery anode demand For personal use only Vidalia, Louisiana, USA Balama, Cabo Delgado Province, Mozambique Sales and Marketing Hub, Dubai, UAE Contract Sales Liaison, Shanghai, China Corporate Office, Melbourne, Australia 14
Slide 15: 2022 focus areas
2022 focus areas Balama ‒ Strengthen Balama’s position in the global natural graphite market For personal use only ‒ Increase Balama production beyond 15kt per month with consideration of market demand, forward customer contracting and shipping availability Vertical integration ‒ Advance constructio
Slide 16: Syrah aims to become a leading supplier of anode products
Syrah aims to become a leading supplier of anode products Our expansion strategy is underpinned by Balama’s world-class resource Vidalia, USA Potential Asia Tolling (>20ktpa) For personal use only Europe Production Base and Vidalia Further Potential Further Vidalia Vidalia Qualification Vidalia Init
Slide 17: Vidalia Initial Expansion
Vidalia Initial Expansion Key Project Milestones Achieved Defined Schedule to 11.25ktpa AAM Production at Vidalia For personal use only Offtake Final Construction Construction Start of 11.25ktpa AAM Agreement Investment on Schedule Completion and Production Run-rate Decision Commissioning Production
Slide 18: Vidalia Initial Expansion construction progress
Vidalia Initial Expansion Construction progress Milling Permanent Building Vidalia AAM Facility For personal use only Furnace Permanent Building Chemical Treatment Area Link to Vidalia Construction Timelapse Video 18
Slide 19: Vidalia 45ktpa AAM facility DFS illustrates compelling economics
Vidalia 45ktpa AAM facility DFS illustrates compelling economics at realistic AAM prices1 Vidalia Further Expansion Project Parameters Operating Margin (US$/kg AAM, real) Facility Economics5 For personal use only Observable Spot Natural Graphite AAM price AAM Prices3: US$5.00 – 7.00/kg (2023 real) 4
Slide 20: 11.25ktpa AAM Vidalia facility offers competitive operational metrics
11.25ktpa AAM Vidalia facility offers competitive operational metrics Vidalia Initial Expansion Project Parameters Operating Margin (US$/kg AAM, real) Global Warming Potential (kg CO2 eqv./kg AAM)4 For personal use only Observable Spot Natural Graphite AAM Prices2: Vidalia 7.3 11.25 ktpa 21 ktpa ~$6
Slide 21: 2022 Financial Results Summary
2022 Financial Results Summary Revenue (US$m) Net Profit / (Loss) After Tax (US$m) For personal use only 2019 2020 2021 2022 106 72 (27) 29 (61) (57) 11 2019 2020 2021 2022 (131) Free Cash Flow (US$m)1 Cash and Cash Equivalents (US$m) 2019 2020 2021 2022 90 81 75 53 (45) (54) (70) (135) 2019 2020 20
Slide 22: Volatile Chinese anode production in Q1 2023 following outpaced growth in 2022
Volatile Chinese anode production in Q1 2023 following outpaced growth in 2022 Global Monthly EV Sales (‘000 Units)1 Chinese Anode Production (kt per Month)2 For personal use only 1,400 Q1 2023 EV Sales 140 Q1 Chinese Anode Production 1,200 +36% +32% on Q1 2022 120 +32% on Q1 2022 112 1,000 100 +50%
Slide 23: Ex-China natural graphite supply into the growing Chinese anode market is critical
Ex-China natural graphite supply into the growing Chinese anode market is critical due to stagnating and seasonal Chinese natural graphite supply Global EV sales1 vs. China AAM production2 China Natural Graphite Production2 vs. China AAM Production2 160 1,600 100 160 140 1,400 140 80 120 1,200 120 F
Slide 24: North American battery market is maturing rapidly
North American battery market is maturing rapidly Location of Planned Battery Manufacturing Capacity in North America North American battery manufacturing capacity1 For personal use only 2022 107 GWh LOCATION: OH LOCATION: TN LOCATION: MI LOCATION: MI LOCATION: Ontario SIZE: 35GWh SIZE: 90GWh ~450kt
Slide 25: 2023 outlook
2023 outlook End-market growth ‒ Volatile near-term Chinese anode market conditions / customer sales For personal use only order performance in contrast to strong medium and long-term outlook for ex-China AAM demand Balama production and costs ‒ Optimising Balama sales and operations through near-te