Syrah Resources Limited · ASX:SYR
Syrah Resources — JP Morgan Clean Energy Conference 2018
17 slides from Syrah Resources's conference presentation, May 15, 2018
Slide 1: Syrah Resources and Graphite Market
For personal use only Syrah Resources and Graphite Market JP Morgan Clean Energy Conference 17 May 2018 Shaun Verner, Managing Director & CEO 1
Slide 2: Disclaimer
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. This presentation may
Slide 3: Corporate Background
For personal use only Corporate Background 33
Slide 4: Syrah Resources: Only major new supplier of natural graphite
Syrah Resources: Only major new supplier of natural graphite For personal use only Operations Largest natural graphite producer • First production November 2017 • Balama Tier 1 asset: 17% grade, LoM > 50 years, 350ktpa capacity • Customer shipments commenced January 2018 • Targeting first quartile c
Slide 5: Q1 2018 Highlights
Q1 2018 Highlights For personal use only Health, Safety - Strong safety record continues with Total Recordable Injury Frequency Rate (TRIFR) of 0.8 and - President of Mozambique, His Excellency Mr Filipe Nyusi, officially opening the Balama Graphite Operation at an onsite Community inauguration in A
Slide 6: Balama Graphite Operation: Production rates improving
Balama Graphite Operation: Production rates improving For personal use only 2018 Production target of 160kt – 180kt • Targeting lower end of guidance 160kt to 180kt1 • Planned production ramp up 25% H1, 75% H2 – Q2 and H2 profiles broadly similar to original plan • Operating costs in line with expec
Slide 7: Largest capacity, high consistent quality, and a long life asset
Largest capacity, high consistent quality, and a long life asset enables Syrah Resources to be the global graphite leader For personal use only Unprecedented capacity World class ore grade First quartile position Mine Capacity (ktpa) Total Graphitic Carbon Flake Graphite Cost Curve: 2018 350 17% Syr
Slide 8: Balama is a tier asset – simplicity and scale give access to market share
Balama is a tier 1 asset – simplicity and scale give access to market share without complexity For personal use only Commodity Flake Graphite Copper Iron Ore Zinc Largest Balama Escondida S11D (Carajas) Rampura Agucha mine Mozambique Chile Brazil India Market 15 – 20% in 2018 ~5% in 2017 ~5% at full
Slide 9: Graphite Market
For personal use only Graphite Market 99
Slide 10: China and the global flake graphite market moving towards a supply deficit
China and the global flake graphite market is moving towards a supply deficit in the near term For personal use only Global flake graphite market Supply • Majority of incremental global supply is from Syrah Resources before 2021 • China’s higher cost supply to rationalise over the coming years due t
Slide 11: Steel remains a major market; lithium ion battery demand fastest growing
Steel remains a major market; lithium ion battery demand the fastest growing demand sector for graphite For personal use only 2017 demand (kt) 2017 battery sector demand (kt) 800 710 120 700 Other 30 • Applications that have large Bike & Tools 10 unit sales but smaller batteries Battery 600 120 Truc
Slide 12: Natural flake graphite market outlook: Battery sector
Natural flake graphite market outlook: Battery sector For personal use only Rapid growth of lithium ion battery market expected • Syrah estimates an increase in demand of nearly 400kt from the battery sector between 2017 and 2021, to ~500kt • Assume an electric vehicle penetration rate of 5.5% (glob
Slide 13: Natural flake graphite is transforming into a commodity
Natural flake graphite is transforming into a commodity driven by lithium ion battery demand For personal use only • Natural graphite market is structurally shifting from a market influenced by industrial applications towards one that is driven by applications using lithium ion batteries • Demand fo
Slide 14: Downstream strategy to produce spherical graphite
Downstream strategy to produce spherical graphite is driven by an opportunity to be the first major and integrated producer outside China For personal use only Anode supply chain Source: Syrah Resources 14 14 14
Slide 15: Syrah's downstream strategy continues to target first spherical production in 2018
Syrah’s downstream strategy continues to target first spherical production in 2018 For personal use only Downstream strategy checklist 2016 2017 2018 Downstream strategy Agreement with Cadenza Testing and benchmarking communicated to the for testing and research results released market USA and Louis
Slide 16: Graphite anode mass in lithium ion battery is consistent across cathode chemistry
Graphite anode mass in lithium ion battery is consistent and largely agnostic of cathode chemistry For personal use only Nickel Cobalt Aluminium (NCA) Nickel Manganese Cobalt (NMC1) Preferenced by Preferenced by Kg per kWh 1.50 1.00 1.00 1.00 0.70 0.45 0.50 0.25 0.12 0.12 0.15 0.10 0.02 0.00 Graphit
Slide 17: Syrah establishing solid foundation as only major new supplier of graphite
Syrah establishing solid foundation as only major new supplier of graphite to battery market For personal use only Summary • Syrah remains the only major new supplier of flake graphite to world’s lithium ion battery market • The largest, one of the lowest cost and highest quality producers of natura
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