Syrah Resources Limited · ASX:SYR
Syrah Resources — Credit Suisse Asian Investment Conference 2016
46 slides from Syrah Resources's conference presentation, April 2016
Slide 1: Asian Investment Conference
Credit MAIN Suisse HEADING STYLE TO GO HERE MAIN HEADING Asian Investment Conference Unsaved Document / 21/09/2012 / 20:01 5 - 8 April 2016 0
Slide 2: Disclaimer
Disclaimer 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. This presentation may not be distributed in
Slide 3: Our vision and values
Our vision and values Syrah’s vision is to be the leading supplier of superior quality graphite products, working closely with our customers and supply chain to innovate and bring enhanced value to industrial and emerging technology markets globally. Syrah is committed to: • WORKING SAFELY at all ti
Slide 4: Investment highlights
Investment highlights oe HD OVER LOW CAPITAL K Es WESIMENT «= SOm =» 4S AND CONCENTRATE FURTHER OPERATING COSTS PRODUCTION GROWTH OVER THE LIFE OF THE MINE OER eee OPPORTUNITIES LENS Les BALAMA PROJECT FIRST BALAMA ame" anne SIGNIFICANTLY PROGRESSED OFF TAKE A SYRAH RESOURCES
Slide 5: Building the world's premier graphite company
Building the world’s premier graphite company • Feasibility Study confirms the world class potential of the Balama Project • Low cost producer of superior quality graphite products • Targeting “traditional” industrial graphite markets and emerging technology markets • Development activities signific
Slide 6: Corporate overview
Corporate overview Corporate overview 55 5
Slide 7: Capital Structure
Capital Structure Key details Research coverage Shares on issue 231.3m • Credit Suisse • Macquarie Bank (as at 31 March 2016) • Deutsche Bank • Canaccord Genuity Options on issue 7.0m (as at 31 March 2016) Share price and volume Undiuted market capitalisation 7 18 A$939.1m (Share price of A$4.06 as
Slide 8: Balama Project
Balama Project Corporate overview 77 7
Slide 9: Feasibility Study overview
Feasibility Study overview • 40+ year mine life, simple open-pit mining • Head grade of ~20% TGC(1) • Capital cost estimate of US$144 million(2) • Average production of over 350ktpa(1) • Average life of mine operating costs of US$286/t FOB(3) (1) Average over the first 10 years of operations. (2) In
Slide 10: Reserves and Resources
Reserves and Resources • JORC Code (2012) Compliant Reserves of 81.4Mt at 16% TGC for 13.2Mt of contained graphite(1) • Reserves supports over 40 years of operations at estimated full production rates • World’s largest flake graphite reserve (1) Refer Appendices for details of the Company’s JORC Com
Slide 11: Timeline to production
Timeline to production Activity Q2 2016 Q3 2016 Q4 2016 Q1 2017 BALAMA PROJECT Detailed design Farmland relocation and land clearing Civil works Process plant construction Power generation Tailings dam Water supply Mine development Production ramp up 10 10 10
Slide 12: Development activities significantly progressed
Development activities significantly progressed • Detailed engineering and design is well advanced • Commenced pre-stripping of the Balama West orebody • All principal mechanical equipment and long lead items have been ordered which are now in various stages of manufacture • Bulk earth works complet
Slide 13: Access road construction
Access road construction Access road construction at the Balama Project 12 12 12
Slide 14: Concrete pour and fixing rebar
Concrete pour and fixing rebar Concrete pour for the ore bin retaining wall (top left), crusher wall (top right) and fixing rebar for the primary milling circuit (bottom) at the Balama process plant site 13 13 13
Slide 15: Expanded accommodation camp construction
Expanded accommodation camp construction Construction of the expanded accommodation camp at the Balama Project 14 14 14
Slide 16: 3D Model – Primary Milling Circuit
3D Model – Primary Milling Circuit 3D Model - Primary Milling Circuit 15 15 15
Slide 17: 3D Model – Flotation Circuit
3D Model – Flotation Circuit 3D Model – Flotation Circuit 16 16 16
Slide 18: 3D Model – Filtration and bagging circuit
3D Model – Filtration and bagging circuit 3D Model – Filtration and bagging circuit 17 17 17
Slide 19: Equipment being manufactured
Equipment being manufactured Clockwise from top left: Crushing plant, mill, ore scrubber and thickener in various stages of manufacture 18 18 18
Slide 20: Product marketing and offtake
Product marketing and offtake Corporate overview 19 19 19
Slide 21: Marketing strategy and product mix
Marketing strategy and product mix • Partnerships with major end users or key regional commodity traders • Technology markets (lithium ion battery applications) require -100 mesh graphite • General Manager – Sales & Marketing Antonio Assis appointed with over 28 years of experience in the graphite a
Slide 22: Offtake agreements
Offtake agreements Flake graphite and recarburiser products • Offtake agreement with Chalieco for 80ktpa of flake graphite over 3 years • Offtake agreement with Marubeni for 20ktpa of flake graphite over 3 years • Statement of Sales Intent with a major global refractory producer for 15ktpa of flake
Slide 23: Proposed Spherical Graphite Project
Proposed Spherical Graphite Project Corporate overview 22 22 22
Slide 24: Emerging technology markets
Emerging technology markets • Emerging macroeconomic theme – electric vehicles and grid storage • Significant lithium ion battery demand continues • Coated spherical graphite used as anode material in lithium ion batteries • 1KWh requires ~1kg of spherical graphite • Increasing shift towards natural
Slide 25: Anode materials used in lithium ion batteries
Anode materials used in lithium ion batteries Mesocarbon microbeads Silica or tin type Lithium titanate oxide 2% 1% 1% Amorphous graphite 5% Artificial graphite 24% Natural graphite 67% Composition of anode materials used in lithium ion batteries in 2014 (Source: Avicenne Energy 2015) 24 24 24
Slide 26: Significant planned battery capacity
Significant planned battery capacity • Significant additional planned lithium ion battery capacity has been announced globally US$10 billion – US$12 billion invested during 2011 to 2014 Over US$6 billion is expected to be invested from 2014 to 2017 by Telsa, BYD and Amperex Technology Limited Hi
Slide 27: Spherical graphite prices
Spherical graphite prices • Benchmark Minerals (March 2016) reports: Spherical graphite prices continue to be more resilient than flake prices Mid prices and high prices for 99.95% C uncoated spherical graphite have risen Widening price ranges are a sign of a market that is seeing increasing d
Slide 28: Historical spherical graphite prices
Historical spherical graphite prices Historical 15 micron, 99.95% C FOB China uncoated spherical graphite prices (Source: Benchmark Minerals) 27 27 27
Slide 29: Global electric vehicle lithium ion battery market
Global electric vehicle lithium ion battery market • Global electric vehicle lithium ion battery market was US$5 billion in 2015; forecast to increase to US$11 billion in 2020 and US$15 billion in 2025(1) • Lithium ion battery market currently driven by consumer electronics (laptops, smartphones, sm
Slide 30: Historical and forecast global EV market – 2010 to 2025
Historical and forecast global EV market – 2010 to 2025 Global PHEV, HEV and EV forecast to 2025 – Base Case (left), China Growth Case (right) (Source: Avicenne Energy 2015) 29 29 29
Slide 31: Tesla Model 3
Tesla Model 3 Newly unveiled Tesla Model 3 which already has 276,000 orders equivalent to ~US$11.5 billion in revenue 30 30 30
Slide 32: Other potential lithium ion battery markets
Other potential lithium ion battery markets • Other potential lithium ion battery markets include energy storage, E-bikes, medical carts and power tools • In 2012, the lead acid battery market for these other applications was US$13 billion compared to US$3 billion for lithium ion batteries(1)(2) O
Slide 33: Historical and forecast global battery markets for other applications
Historical and forecast global battery markets for other applications Historical 2012 and forecast 2020 global lead acid battery and lithium ion battery markets for other applications (Source: Avicenne Energy 2013) (1) Market size is based on battery pack level 32 32 32
Slide 34: Ideal characteristics of flake graphite for battery applications
Ideal characteristics of flake graphite for battery applications • Optimal flake size – using -100 mesh maximises production yield • Degree of crystal order – Balama graphite has a fully ordered crystalline structure • Degree of spheroidisation – well rounded spherules increases tap density and anod
Slide 35: Balama spherical graphite
Balama spherical graphite Purified, uncoated Balama spherical graphite 34 34 34
Slide 36: Spherical graphite production
Spherical graphite production Coated spherical graphite Proposed Spherical Coating Graphite Project Recarburiser by-product Purification (chemical) Spheriodisation Uncoated spherical graphite (physical) Milling Drying and bagging Balama Project Flotation -100 mesh graphite Mechanical separation (cru
Slide 37: Integrated spherical graphite production chain
Integrated spherical graphite production chain • 20 year, exclusive(1) licensing agreement signed with Hairong Morgan for its proprietary spherical graphite coating technology • Ability to build an integrated production chain from mine to anode quality material • Balama is the solution to a key comp
Slide 38: Recarburiser
Recarburiser • High quality carbon additive for steel making and iron casting industries • Opportunity to displace lower quality recarburisers (e.g. petroleum coke) • By-product of spherical graphite production • Creates another revenue stream for the Proposed Spherical Graphite Facility High qualit
Slide 39: The Balama journey
The Balama journey Corporate overview 38 38 38
Slide 40: The future of graphite
The future of graphite • World’s largest, low cost producer, with a capacity over 350,000 tpa(1) • Balama has the ability to become a long term, consistent and high quality graphite supplier • Rapid progress – concept to mine development in 4 years • Highly experienced Board and management team • Id
Slide 41: Key contacts
Key contacts Tolga Kumova Managing Director Syrah Resources Limited Office contact - +61 3 9670 7264 Mobile contact - +61 421 707 155 Email – t.kumova@syrahresources.com.au Office Syrah Resources Limited ASX: SYR ABN 77 125 242 284 Level 9, 356 Collins St Melbourne VIC Phone: +61 3 9670 7264 www.syr
Slide 42: Appendices
Appendices 41 41
Slide 43: Board of directors and Executive management team
Board of directors and Executive management team Jim Askew Tolga Kumova Sam Riggall Non-Executive Chairman Managing Director Non-Executive Director Over 40 years of experience Co-founder of Jacana Over 20 years of experience in as a Director / CEO of Resources and over 15 years mining project genera
Slide 44: Feasibility Study – detailed operational and financial metrics
Feasibility Study – detailed operational and financial metrics Operational metrics Financial metrics Total initial capex (2) Operational period years 42 US$m 144 (including 10% contingency) Assumed weighted average (3) (4) Plant feed rate tpa 2,000,000 (5) US$/t (FOB) 1,000 basket price (LOM) (1) Av
Slide 45: JORC Mineral Resources and Ore Reserves
JORC Mineral Resources and Ore Reserves Balama Graphite (JORC Code 2012) Mineral Resources(1) Ore Reserves(1) Classification Mt TGC (%) Contained Graphite (Mt) Classification Mt TGC (%) Contained Graphite (Mt) Balama West Balama West Measured 75.0 11.0 8.4 Proven 20.0 19.2 3.8 Indicated 110.0 8.1 9.
Slide 46: Competent Person Statement – Balama graphite
Competent Person Statement – Balama graphite The information in this report that relates to Mineral Resources and Ore Reserves is extracted from the report titled “Syrah finalises Balama Graphite study and declares maiden ore reserve” released to the ASX on 29 May 2015 and available to view at www.s
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