Syrah Resources Limited · ASX:SYR
Syrah Resources — Investor Presentation (May 2014)
39 slides from Syrah Resources's investor presentation, May 20, 2014
Slide 1: Syrah Resources Limited Corporate Presentation – May 2014
For personal use only Syrah Resources Limited Corporate Presentation – May 2014 Image: Core from Ativa Zone being logged at Balama
Slide 2: Executive Summary
1 For personal use only Executive Summary Exceptional world class graphite and vanadium asset - LARGEST resource globally - Exceptional HIGH GRADE zones - OUTCROPPING deposit (low strip ratio) - Excellent infrastructure (deep water port, dam, grid power, all weather roads) - Expected to be the LOW
Slide 3: Overview and Syrah Price and Volume
2 For personal use only Overview Syrah Price and Volume – last 2 years Australian Stock Exchange listed Head office based in Melbourne 9,000,000 High: $3.99 $4.50 Market capitalisation (undiluted) of 8,000,000 $4.00 A$596 million at A$3.67 per share as 7,000,000 $3.50 at 16 May 2014 6,000,000
Slide 4: Board of Directors and Management Team
3 For personal use only Board of Directors and Management Team Tom Eadie Twenty years experience within the junior resources sector and at technical to senior executive levels with major Non-Executive Chairman mining companies He is a past board member of Royalco Resources Ltd, the Australasian
Slide 5: Project Locations
4 For personal use only Project Locations Uganda Kenya Excellent all-weather roads, dam and power Democratic Rwanda enabling strong project economics Republic Burundi of the Congo Tanzania Tanzania HM Container export through Port of Pemba Shikula Nachingwea Additional ports currently being plann
Slide 6: The Project
For personal use only The Project 5
Slide 7: Balama is the world's largest deposit of high grade graphite
6 For personal use only Balama is the world’s largest deposit of high grade graphite Balama is an exceptional resource - 1.15Bt of graphite resource at 10.2% TGC [1] and 0.23% V2O5 - 117Mt of contained graphite and V2O5 - Larger resource than the rest of the world’s reserves combined [2] - Large h
Slide 8: Comparison of flake graphite deposits globally
7 For personal use only Comparison of flake graphite deposits globally 80 Syrah High Grade Total 70 Contained Graphite in Resources (Mt) 60 50 Syrah East 40 Syrah West 30 20 Graphite One Mason Graphite Energiser/Malagasy 10 Northern Graphite Triton Kibaran Focus Stratmin Lamboo Castle Archer Lincoln
Slide 9: Overview of Balama Resource: Multiple zones and grades
8 For personal use only Overview of Balama Resource: Multiple zones and grades available for different end markets Global Inferred Resource 1.15 billion tonnes at 10.2% TGC and 0.23% V2O5 (Inferred) Ativa Zone – 51 million tonnes @ 19.9% TGC and 0.38% V2O5 (Measured, Indicated and Inferred) Me
Slide 10: Flake size distribution and spherical graphite
9 For personal use only Flake size distribution Metallurgical testwork on Balama East flake graphite shows that 58.3% of the processed material is coarse to very coarse (80+ mesh and above) Spherical Graphite The spherical graphite was produced from fine grained Balama graphite (100 μm) resultin
Slide 11: Syrah is expected to be the lowest cost producer in the world
10 For personal use only Syrah is expected to be the lowest cost producer in the world [1] Economic Assessment Results (from Snowden Mining Study) has confirmed: − Low capital cost of US$92 million (graphite only) − Mine gate cost of US$102/t − Total FOB costs of US$198/t to the port of Pemba. − T
Slide 12: Simple graphite metallurgy given quality of resource
11 For personal use only Simple graphite metallurgy given quality of resource Metallurgical test work has been conducted on Balama graphitic material by two international laboratories Uncomplicated graphite metallurgy via flotation achieved high grade concentrate (96-98% TGC) and high recovery (
Slide 13: Balama Vanadium - highlights
12 For personal use only Balama Vanadium - highlights Scoping Study on vanadium completed May 2014 The market size is currently 140,000t/year V2O5, due to rise 50% by 2017 [1] Syrah plans to produce 5,000-10,000t/year based on Scoping Study 98.5% vanadium pentoxide sells for between US$12.5
Slide 14: Metallurgy – Vanadium
13 For personal use only Metallurgy – Vanadium Initial test work indicates that high grade concentrate can be produced by simple magnetic separation and flotation with high recovery achieved Preliminary V2O5 hydrometallurgical test work indicates mature technology (soda bake and alkaline leach p
Slide 15: Key Infrastructure – Part 1
14 For personal use only Key Infrastructure – Part 1 PEMBA PORT Located within close proximity of deep water port facilities at Pemba (~240km) − Third largest port in Mozambique − Deepwater container port − Available capacity for initial volumes proposed to be shipped by Syrah ROAD Main road con
Slide 16: Key Infrastructure – Part 2
15 For personal use only Key Infrastructure – Part 2 WATER Large regional dam, Chipembe, located only 12km from the Balamba processing plant − Dam underutilised (local agriculture only) − Capacity required by Syrah have been contracted and allocated POWER Region currently being connected to the
Slide 17: Chalieco Memorandum of Understanding
16 For personal use only Chalieco Memorandum of Understanding MOU for offtake for 80,000-100,000 tonnes of graphite per annum and a quantity of vanadium to be determined, signed with Chalieco, a member of the Chinalco Group Parties to negotiate a legally binding offtake agreement within three mo
Slide 18: Asmet Memorandum of Understanding
17 For personal use only Asmet Memorandum of Understanding MOU for offtake for 100,000 – 150,000 tonnes of graphite per annum at a price of approximately US$1,000 per tonne over an initial 5 year period, signed with Asmet (UK) Limited, a European trader of metallurgical consumables (including carb
Slide 19: Community Development
18 For personal use only 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 dev
Slide 20: Timeline to Production
19 For personal use only Timeline to Production Q2 CY14 Q3 CY14 Q4 CY14 Q1 CY15 Q2 CY15 Q3 CY15 Q4 CY15 Q1 CY16 Vanadium Scoping Study Environmental Approval In just 5 years, Syrah Resources will have progressed from a grass roots explorer to a leading graphite producer Bankable Feasibility Study De
Slide 21: Investor Education
For personal use only Investor Education 20
Slide 22: Syrah has the ability to serve multiple segments of the market
21 For personal use only Syrah has the ability to serve multiple segments of the market as a result of size and low cost Price Volume Market Size Low Cost Traditional Graphite Market • Natural Flake US$700-3000/t 1Mt US$1 billion • Batteries/new applications US$3500+/t 80Kt US$320 million Substituti
Slide 23: Traditional Natural Graphite Market Overview
22 For personal use only Traditional Natural Graphite Market Overview Natural Graphite Market by Region, 2011 Natural Graphite Market by Sector/Application, 2011 5% 9% 3% Others 7% Refractories, Foundries, 2% Batteries Crucible 8% 37% 13% Lubricants 8% Parts and Components 11% New Markets Li-Ion B
Slide 24: Estimations for Graphite Market
23 For personal use only Estimations for Graphite Market Demand Forecasts Average 3.3% per year growth by 2016 Global Graphite Demand (k tonnes) Average 8.8% per year growth for Batteries 1,300 Additional 1.4 million tonnes demand by 2020 1,200 1,100 3,000,000 1,000 900 2,500,000 2.5Mtpa+ from
Slide 25: Pricing Forecasts (Industrial Minerals)
24 For personal use only Pricing Forecasts (Industrial Minerals)
Slide 26: Spherical Graphite – Battery Anode
25 For personal use only Spherical Graphite – Battery Anode High quality spherical graphite was produced from Balama flake graphite Spherical graphite was produced from fine grained Balama graphite (100 microns) resulting in finer grained sphere which is most ideal for lithium ion battery applic
Slide 27: Alternative Markets
26 For personal use only Alternative Markets Synthetic Graphite Market Carbon Market US$12 billion market US$24 billion market Annual Consumption (Mt) 7Mt 38% Synthetic Carbon 13Mt Calcined Petroleum Coke 43% Synthetic Graphite Others Anodes for Aluminium Others (GPC etc) Synthetic Graphite Blocks 5
Slide 28: Anode Blocks for Aluminum
27 For personal use only Anode Blocks for Aluminum Green petroleum coke is used in anode blocks after calcinations by aluminium smelters Used in reduction process of Al2O3 to aluminium metal (Al) Low sulfur and high carbon material is required High quality raw material is scarce in the marke
Slide 29: Recarburiser—Carbon Raiser
28 For personal use only Recarburiser—Carbon Raiser Calcined petroleum coke is the main source Main use is as a carbon additive in iron and steel production mainly in electrical arc furnaces Low sulfur, high carbon material is required Graphite is the best material for this application as it
Slide 30: Graphite Electrodes
29 For personal use only Graphite Electrodes Used in electrical arc furnaces for steel and iron production Special grade petroleum coke called “Needle Petroleum Coke” is used High carbon grade and very low sulfur material is required with crystalline structure (after graphitising) Required 1
Slide 31: Expandable Graphite
30 For personal use only Expandable Graphite +50 mesh, 98% C minimum, flake graphite required for expandable graphite production Mainly used in graphite foils, flame retardants and insulation material Increasing use in technology product (in tablets and mobile phones) as a heat transfer agent
Slide 32: Electrical Graphite
31 For personal use only Electrical Graphite Uses include carbon brushes and lamp carbon Very high grade, very low impurity synthetic graphite is used Crystalline structure is very important for electrical application and natural flake graphite has the perfect crystalline structure Over two
Slide 33: Other Potential Future Markets
32 For personal use only Other Potential Future Markets Fuel Cells Toyota intending to commence production of hydrogen fuel cell car by 2015 Honda, Hyundai and Renault intend to commercialise hydrogen fuel cell cars About 80 kg of graphite in each fuel cell car Nuclear Reactors Large users o
Slide 34: Vanadium Consumption
33 For personal use only Vanadium Consumption 2012 (85,000 tonnes) Energy Storage Cast Iron 1.0% Chemicals 2.0% Other [PERCENTAGE] 3.0% Super Alloys/Titanium Alloys 3.0% Special Steel 30.0% HSLA Steel 60.0% Source: Merchant Research and Consulting.
Slide 35: Vanadium Production
34 For personal use only Vanadium Production Global Vanadium Production in 2012 Other Countries 3.2% Russia China 25.4% 36.5% South Africa 34.9% Source: Merchant Research and Consulting.
Slide 36: Global Vanadium Supply and Demand Forecast
35 For personal use only Global Vanadium Supply and Demand Forecast 140,000 120,000 Tonnes Vanadium (Metric) 100,000 80,000 60,000 40,000 20,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Consumption Production Source: Merchant Research and Consulting. T
Slide 37: Vanadium Redox Battery (VRB)
36 For personal use only Vanadium Redox Battery (VRB) Potential large driver of vanadium demand for grid storage applications VRBs can better match electricity supply and demand in real time Increases grid efficiency and potentially reduces the number of power plants required VRBs could capt
Slide 38: Disclaimer
37 For personal use only 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
Slide 39: Thank you
For personal use only Thank you 38