Syrah Resources Limited · ASX:SYR
Syrah Resources — 2013 Graphite & Graphene Conference
32 slides from Syrah Resources's conference presentation, Nov 26, 2013
Slide 1: Syrah Resources Limited 2013 Graphite & Graphene Conference
Syrah Resources Limited 2013 Graphite & Graphene Conference New York 26 November 2013 Image: Core from Ativa Zone being logged at Balama
Slide 2: Important notice and disclaimer
Important notice and disclaimer This document has been prepared by Syrah Resources Ltd (“the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of general b
Slide 3: Important notice and disclaimer (cont.)
Important notice and disclaimer (cont.) The Company has prepared this document based on information available to it at the time of preparation and subject to the qualifications in this document. To the maximum extent permitted by law, none of the Company, its affiliates or any of their respective re
Slide 4: Syrah Resources Overview
Syrah Resources Overview Syrah has identified and proven up the world’s largest graphite deposit at Balama (100%) Uganda Kenya Rwanda containing high-grade zones combined with an Democratic Republic Burundi exceptional quality product of the Congo Tanzania Wembere Tanzania HM Shikula The graphit
Slide 5: The Balama Resource: incredibly large, growing and versatile
The Balama Resource: incredibly large, growing and versatile Global Inferred resource of 1.15Bt @10.2% TGC and 0.23% V2O5 Ativa Zone – 51 million tones @ 19.9% TGC & 0.38% V2O5 at a 13% cutoff grade Mualia Zone – 136 million tonnes at 16.6% TGC and 0.43% V2O Mepiche Zone – 145 million tonnes at
Slide 6: Scoping Study results
Scoping Study results The Scoping study, undertaken by Snowden Mining Industry Consultants, has delivered and confirmed an exceptionally robust financial outlook for the Balama project: Low capital cost of US$91.6 million, Mine gate cost of US$102/t, FOB costs of US$198/t at the port of Pemba. T
Slide 7: Our vision of the next months to production
Our vision of the next 15 months to production Q4 2013 Q2 2014 Q1 2015 Feasibility study released Construction Begins Commissioning from Feasibility with exceptionally robust Equipment ordered December 2014 with a 3 numbers, a simple plant Earthworks and infrastructure completed by Dec 2014 month pe
Slide 8: Metallurgy
Metallurgy Simple Graphite metallurgy Vanadium – significant upside potential Metallurgical test work has been conducted on Vanadium is not in the current scoping study Balama graphitic material by Mintek, specialist Initial testwork indicates that the vanadium graphite processors and potentia
Slide 9: Key Infrastructure
Key Infrastructure Pemba Port Road: Pemba to Balama Chipembe Dam Power Lines near Balama Located within close proximity of deep water port facilities at Pemba (~240km) − Third largest port in Mozambique. Ports of Africa confirmed available capacity for Balama product through Pemba Port Main road
Slide 10: Community development
Community development Significant investment has been made in local infrastructure −Water bores drilled for use in neighbouring villages and Infrastructure programs commenced at Balama hospital Strong supporter of local economies −Large employer of local labour and developing training programmes
Slide 11: Current capital structure
0 1 2 3 4 13 Nov Oct Sep Aug July June May Apr Mar Feb Current capital structure Overview Syrah price and volume – last 2 years ASX listed Market capitalisation (undiluted) of A$359 million at A$2.42/share as at 25 November 2013 148,410,123 shares on issue 4,209,467 options on issue ~$6m c
Slide 12: Graphite Market
11 Graphite Market Market in General and Syrah Targets & Strategies Unsaved Document / 21/09/2012 / 20:01
Slide 13: Definition of Graphite & Key Points
12 Definition of Graphite & Key Points Graphite is a natural form of carbon with the chemical formula C and is characterized by its hexagonal crystalline structure. The key point here is; Graphite = Carbon
Slide 14: Graphite types, applications and substitution
13 Graphite types, applications and substitution Natural Graphite Synthetic Graphite Micro Secondary Primary Application Flake Vein Crystalline Synthetic Synthetic Batteries (alkaline&Zinc Carbon) X X X X Batteries (Li-ion) X X X Carbon Brush X X X X Conductive Coating X X X X Expandable Graphite X
Slide 15: World Natural Graphite Production Statistics
14 World Natural Graphite Production Statistics BGS World Mineral USGS Mineral Com. Industrial Minerals Roskill Production Summary Production (2011) mt Production (2011) mt Production (2011) mt Production (2012) mt (x1000 mt) (x1000 mt) (x1000 mt) (x1000 mt) Potential Potential Country Flake Amorph
Slide 16: Graphite Consumption By Sectors 2011
15 Graphite Consumption By Sectors 2011 Others, 7% Batteries, 8% Lubricants, 8% Refractories, foundries, crucible, Parts and 38% components, 11% Metallurgy, 29% Source: Industrial Minerals Graphite Report 2012
Slide 17: Some Questions We should Ask About the Market
16 Some Questions We should Ask About the Market 1. What could be the market size in General? 2. What is the current market size? 3. Who are the main actors in the market and their current situation? 4. What happened in the past? 5. What are the new markets? 6. What are the altenative markets?
Slide 18: Export Market Size
17 Question 1& 2 Export Market Size Quantity Exported Years Unit Value in US$ (metric tones) 2003 504,308.18 $302.95 2004 669,274.00 $303.99 2005 660,882.00 $298.36 2006 672,931.00 $298.61 2007 939,297.00 $267.40 2008 803,015.00 $417.18 2009 681,464.00 $397.72 2010 790,885.00 $487.13 2011 738,707.00
Slide 19: Quantity Exported vs Unit Value
18 Quantity Exported vs Unit Value $1200 1000000 900000 $1000 800000 700000 $800 600000 $600 500000 400000 $400 300000 200000 $200 100000 $ 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unit Value Quantity
Slide 20: Who are the main actors in the market
19 3. Who are the main actors in the market and their current situation? Major Natural graphite Exporting countries (quantity in mt) Reporter 2007 2008 2009 2010 2011 2012 China 670,570.00 597,349.00 458,895.00 585,483.00 444,800.00 257,722.00 Brazil 16,390.00 17,692.00 13,189.00 22,015.00 24,202.00
Slide 21: What Happened in the Past?
20 4. What Happened in the Past? In 1992, two important thing for the graphite market happened 1. China entered the graphite market 2. Soviet Russia collapsed
Slide 22: Chinese Market Entrance
21 Chinese Market Entrance 350000 700 $ NetWeight 300000 600 $ Period Trade Value Unit Value (mt) 1990 $66,340,617.00 114,774.79 $578.01 250000 500 $ 1991 $60,895,412.00 102,097.82 $596.44 200000 400 $ 1992 $111,954,601.00 262,860.23 $425.91 150000 300 $ 100000 200 $ 1993 $106,076,400.00 250,535.61
Slide 23: Collapse of Soviet Russia?
22 Collapse of Soviet Russia? Petroleum Coke became substitute of natural graphite
Slide 24: What are the New Markets?
23 5. What are the new Markets? • Li-ion Batteries • Graphene • Fuel Cells • Pebble Bed Nuclear Reactors • Expandable Graphite
Slide 25: What are the Alternative Markets?
24 6. What are the Alternative Markets? Graphite Market Carbon Market Natural Graphite Petroleum Coke Green Petroleum Coke Synthetic Graphite Calcined Petroleum Coke Needle coke/Anode Grade Petroleum Coke 13Billion US$ Market 24 Billion US$ Market
Slide 26: General Outlook of Graphite Market (% in value)
General Outlook of Graphite Market (% in value) Graphite Market Synthetic Graphite Others Natural Graphite 11% 8% Synthetic Graphite Blocks 8% Synthetic Graphite electrode 42% Synthetic Carbon Fibers 31%
Slide 27: Some examples from alternative markets
26 Some examples from alternative markets - Calcined Petroleum Coke - Graphite Electrodes - Aluminium Anodes Unsaved Document / 21/09/2012 / 20:01
Slide 28: Calcined Petroleum Coke
Calcined Petroleum Coke Trade Quantity Period Definition Trade Value (tones) Unit Value Calcined Petroleum 2011 Coke imported $4,537,105,000.00 7,824,424.00 $580.00 (HS:271312) Calcined Petroleum 2012 Coke imported $3,648,701,000.00 6,753,684.00 $540.00 (HS:271312) Obtained by calcining green petrol
Slide 29: Synthetic Graphite Electrode
Synthetic Graphite Electrode Trade Quantity : over 1.5 million mt/year (with considering electrodes other than furnaces: over 3 million tones) Total Value : 5.5 Billion US$(est) Used in Electrical Arc Furnaces (EAF) 2.5 kg Electrode consumed for 1 mt steel – 570 million tones steel produced through
Slide 30: Aluminum Production & Aluminum Anodes
29 Aluminum Production & Aluminum Anodes 50 million tones of aluminum production 100 BBL CRUDE OIL 600 Kg COAL 13 MWh 4500 Kg Bauxite 450 Kg GREEN COKE 180 Kg COAL TAR 1920 Kg Alumina 360 Kg CALCINED COKE 90 Kg PITCH 560 Kg ANODES 1000 Kg 140 Kg BUTTS 6 Kg CATHODE ALUMINUM
Slide 31: Syrah Strategies and Advantages
30 Syrah Strategies and Advantages • Competing with China for Traditional Markets − Competitive Cost (lowest cost) − Premium Product − Consistent Quality − Regular Supply • Supplying the Altenative Markets − High Quality Graphite with High Grade − Low impurities (Sulphur <0.01%) − Ability to supply
Slide 32: Syrah Resources Limited Thank you
Syrah Resources Limited Thank you New York 26 November 2013 Image: Core from Ativa Zone being logged at Balama
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