Slide 1: Q4 2019 Quarterly Activities Report
For personal use only Q4 2019 Quarterly Activities Report 22 January 2020 Shaun Verner – Managing Director & CEO 22 January 2020 1
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: Q4 2019: Key Points
Q4 2019: Key Points For personal use only Company wide cost On track to achieve target of 20% to 25% cost reduction (at 15kt per month production rate), cost reductions of approximately restructure on track 15% implemented and realised from 1 January 2020. Production of 15kt flake graphite durin
Slide 4: Building a position in the anode supply chain
Building a position in the anode supply chain Leveraging the globally significant Balama asset to develop an integrated battery anode material and industrial products business For personal use only Balama a globally significant resource – Vertical integration Global mega trend leading practice ESG S
Slide 5: Where we participate in the anode supply chain
Where we participate in the anode supply chain A global business to service the growing demand for natural graphite - a critical battery raw material For personal use only : Balama Graphite Operation • Ore Reserves1 113.3Mt at 16.4% TGC2 (18.5Mt of contained graphite) • Simple open pit operation, lo
Slide 6: Summary Q4 2019
Summary Q4 2019 Production moderated and cost restructure undertaken in response to sudden and material reduction in prices in Q3 20191 For personal use only Balama Q2 2019 Q4 2019 Q3 2019 Q1 2019 Metric Units FY 2019 30 Jun Total Recordable Injury Frequency Rate (TRIFR) of 0.6 at Balama at the en
Slide 7: Production moderated, product quality maintained
Production moderated, product quality maintained Prevailing demand will drive Balama production volume through Q1 2020 For personal use only Flake Graphite Production (kt) Production of 15kt of flake graphite during the quarter (September 50 quarter: 45kt). 45 48 40 44 45 Plant reconfigurations
Slide 8: Company wide cost restructure
Company wide cost restructure On track for 20% to 25% cost reduction (at 15kt per month production rate), approx. 15% cost reduction achieved by end Q4 2019 For personal use only Indicative C1 unit costs @ 15 kt production per month Significant progress made on companywide cost restructure announc
Slide 9: Natural flake graphite prices
Natural flake graphite prices Signs of price stabilisation observed during the quarter For personal use only Weighted Average Price (CIF US$/t) Q4 2019 weighted average price was US$458 per tonne versus Q3 480 2019 US$391 per tonne. 460 440 Higher Q4 versus Q3 price 420 predominately due to prod
Slide 10: Long-term market fundamentals remain intact
Long-term market fundamentals remain intact Decarbonisation of the transport sector via lithium ion powered electric vehicles (EV) continues to gain momentum For personal use only Available trade import/export data shows China moving to a net import position through 2019. China Natural Flake Graphit
Slide 11: Our Environment, Social and Governance (ESG) credentials
Our Environment, Social and Governance (ESG) credentials Ongoing commitment to working at the highest standards of sustainability practices For personal use only Balama Training Centre Graduation Ceremony Focus and scrutiny of the Environmental, Social and Government (ESG) credentials of battery raw
Slide 12: First purified spherical graphite production in Q4 2019
First purified spherical graphite production in Q4 2019 Long-term commitment to value added processing of flake graphite to active anode material enabled by long mine life at Balama For personal use only Mar 2018 May 2018 Aug 2018 Sep 2018 Dec 2018 Q1 2019 Q4 2019 Ongoing (to end 2020) First product
Slide 13: Co-location with planned USA battery factories
Co-location with planned USA battery factories Syrah plans to provide a co-located and ESG verifiable source of anode material supply to the USA battery supply chain For personal use only Bubble Size = 2029 GW Planned Capacity * Graphite listed as one of the 35 minerals deemed critical to the Unit
Slide 14: Outlook
Outlook Prevailing demand will drive Balama production volume through Q1 2020 For personal use only Production from Balama will continue to be moderated through Q1 2020 until market conditions support the Balama cost base and increased production volume. Balama Balama product differentiators of prod