Syrah Resources Limited · ASX:SYR
Syrah Resources — Q2 2019 Earnings Presentation
14 slides from Syrah Resources's earnings presentation, Jul 17, 2019
Slide 1: Q2 2019 Quarterly Activities Report
For personal use only Q2 2019 Quarterly Activities Report Shaun Verner – Managing Director & CEO 17 July 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: Introduction – Syrah's investment case
Introduction – Syrah’s investment case For personal use only Upstream ❑ Balama Graphite Mine, Mozambique Downstream ❑ Battery Anode Material Project, Louisiana 2
Slide 4: Investment highlights (as at June 2019)
Investment highlights (as at June 2019) For personal use only ❑ Long life asset, with over 50 years of mine life(1) and 350kt per year of graphite concentrate production capability(2) ❑ Balama is the largest integrated natural graphite mine and processing plant globally as measured by annual flake c
Slide 5: Balama Graphite Operation – a Tier 1 producing asset
Balama Graphite Operation – a Tier 1 producing asset/largest integrated natural graphite mine/processing plant in the world (as at June 2019) For personal use only Location ❑ Mozambique (Cabo Delgado Province) Reserves and ❑ Graphite Reserves: 113.3Mt at 16.4% Total Graphitic Carbon (TGC) – 18.5Mt o
Slide 6: Louisiana, USA, Battery Anode Material plant – key for market progression
Louisiana, USA, Battery Anode Material plant – key for market progression through qualification and product development (as at June 2019) For personal use only Lithium-ion battery supply chain – Natural Graphite Balama Flake Graphite Production 1 Flake Graphite Ore 2 Graphite Concentrate BAM Product
Slide 7: Q2 2019 Activities Report
For personal use only Q2 2019 Activities Report 6
Slide 8: Q2 2019 Headlines
Q2 2019 Headlines For personal use only Safety ❑ Strong safety record with Total Recordable Injury Frequency Rate (TRIFR) of 0.3 as at end of quarter Balama Graphite ❑ Q2 2019 produced 44kt vs 48kt Q1 2019 - minor equipment issues Operation ❑ H1 2019 C1 operating cash cost1 US$567/t - lower than pla
Slide 9: Q2 2019 Sustainability Highlights
Q2 2019 Sustainability Highlights For personal use only Health, Safety and Environment People and Community ❑ Strong safety record with TRIFR per million hours worked of 0.3 at ❑ As at the end of the quarter over 96% of Balama’s direct employees are quarter end Mozambican nationals, 55% are from the
Slide 10: Balama - substantial progress on plant equipment management
Balama - substantial progress on plant equipment management to deliver improved performance For personal use only Q2 2019 Q1 2019 Q2 2018 Q2 2019 vs ❑ Q2 2019 production (8%) vs Q1 - minor equipment issues Production Summary 30 Jun 2019 31 Mar 2019 30 Jun 2018 Q1 2019 ❑ Despite lower production, sub
Slide 11: Sales & Marketing – strong demand and ongoing improvement in logistics
Sales & Marketing – strong demand and ongoing improvement in logistics key drivers of sales volume growth For personal use only Q2 2019 vs Q1 ❑ Sold and shipped 53kt natural graphite in Q2 2019 Q1 2019 Q2 2018 2019 Q2 2019, with an additional 7kt sales orders Graphite Sold and Shipped kt 53 48 12 10
Slide 12: Battery Anode Material (BAM) Project Louisiana
Battery Anode Material (BAM) Project Louisiana – key for market progression through qualification and product development For personal use only Mar 2018 Syrah precursor(1) testing and benchmarking completed May 2018 Vidalia BAM site purchase agreement(2) Aug 2018 Vidalia BAM site purchase completed(
Slide 13: Finance – Available liquidity to facilitate ongoing production ramp-up
Finance – Available liquidity to facilitate ongoing production ramp-up and orderly price negotiations For personal use only Q3 2019 Q2 2019 Q2 2019 (Forecast) (Actual) (Forecast) Comments US$m US$m US$m Cash at start of period 64.7 62.4 Group Net cash inflows/(outflows) (1.0) 2.3 (19.5) Q3 2019 plan
Slide 14: 2019 Outlook
2019 Outlook For personal use only Balama Graphite Operation Marketing ❑ 2019 target production range 205-245kt(1), to manage trade off ❑ Increases to weighted average CIF price to be achieved through between incremental production and quality performance and impact • Improved product mix on pricing