Slide 1: Q3 2023 Quarterly Activities Report
Q3 2023 Quarterly Activities Report 17 October 2023 Shaun Verner – Managing Director & CEO syrahresources.com.au Q3 2023 Quarterly Activities Report Syrah Resources | ASX: SYR1 17 October 2023
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, Investor Relations invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. Thi
Slide 3: Our Position
Our Position Syrah is a major ex-China natural graphite and active anode material (AAM) supplier for global customers, with upstream and downstream expansion potential underpinned by its world-class Balama resource Natural graphite and Syrah is the only Balama is a 350ktpa Syrah is nearing AAM deman
Slide 4: Our Value Proposition
Our Value Proposition Vertical Operating and Cost Position ESG Position Expansion Integration Development Potential ▪ Natural graphite ▪ Largest integrated ▪ Cost competitive ▪ Leading ESG ▪ Significant from Balama for natural graphite AAM supply from standards and downstream AAM producers operation
Slide 5: Our ESG Profile
Our ESG Profile Best practice Leading ESG standards Low carbon footprint Auditable back to source sustainability frameworks ✓ ISO:45001 and ISO:14001 certification at ✓ Sustainability frameworks guided by: ✓ Independent life cycle assessment (LCA) ✓ Fully integrated by Syrah from mine to Balama comp
Slide 6: Q3 2023 Highlights
Q3 2023 Highlights Health & Safety Balama & Vidalia Market & Corporate – Single Balama production campaign from late August 2023 – Global EV sales in Q3 2023 up 41% 18 kt continued past quarter end into October 2023 compared to Q3 2022 to ~4.1 million units5 1.0 Group TRIFR Balama production – Balam
Slide 7: Syrah has achieved major milestones over the last three years
Syrah has achieved major milestones over the last three years Achievements demonstrate Syrah’s unique market and asset position, and the significant head start the company has over other potential ex-China natural graphite and AAM suppliers ✓ Balama production ✓ FID on Vidalia Initial Expansion ✓ DF
Slide 8: Improving Chinese anode production in Q3 2023
Improving Chinese anode production in Q3 2023 Global Monthly EV Sales (‘000 Units)1 Q3 2023 EV Sales Chinese Anode Production (kt per Month)2 1,600 200 +40% +41% 180 Q3 Chinese Anode Production 165 1,400 1,200 +37% +58% +39% +37% +45% on Q3 2022 160 +37% on Q3 2022 140 1,000 +80% 120 +49% 800 100 +8
Slide 9: Ex-China natural graphite supply critical for growing Chinese anode market
Ex-China natural graphite supply critical for growing Chinese anode market Global EV sales1 vs. China AAM production2 China Natural Graphite Production2 vs. China AAM Production2 200 1,600 200 160 160 1,200 120 120 800 80 80 400 40 40 0 0 0 Jul-21 Jul-22 Jul-23 Jul-21 Jul-22 Jul-23 Jan-22 Jan-21 Nov
Slide 10: Natural graphite AAM market will be under supplied
Natural graphite AAM market will be under supplied Supply Demand Balances for natural and synthetic graphite AAM 1. Source: Benchmark Mineral Intelligence, June 2023. Q3 2023 Quarterly Activities Report 10
Slide 11: North American battery market is maturing rapidly
North American battery market is maturing rapidly Location of Planned Battery Manufacturing Capacity in North America North American battery manufacturing capacity1 LOCATION: OH LOCATION: TN LOCATION: MI LOCATION: TN LOCATION: SC LOCATION: KY LOCATION: Quebec 2022 SIZE: 40 GWh SIZE: 35 GWh SIZE: 50
Slide 12: Syrah aims to become a leading supplier of anode products
Syrah aims to become a leading supplier of anode products Our expansion strategy is underpinned by Balama’s world-class resource Vidalia, USA Potential Asia Tolling (>20ktpa) Europe Production Base and Vidalia Further Potential Further Vidalia Vidalia Qualification Vidalia Initial Target Expansion +
Slide 13: Q3 2023: Balama Production and Operations
Q3 2023: Balama Production and Operations ▪ All measures identified for the revised Balama operating mode fully implemented by end of Q3 ▪ 18kt natural graphite produced at 73% recovery during 32-day production campaign up to quarter end – Production campaign continued into October 2023 to increase
Slide 14: Q3 2023: Balama Production and Operations
Q3 2023: Balama Production and Operations Plant operations and production paused from start of May to late August 2023 Natural Graphite Production (kt) Product Mix (% Fines) 87% 91% 91% 88% 41 38 35 18 15 Q3 Q4 Q1 Apr Sep Q4 Q1 Apr Sep 2022 2022 2023 2023 2023¹ 2022 2023 2023 2023¹ Plant Recovery C1
Slide 15: Balama is the largest natural graphite mining & processing operation globally
Balama is the largest natural graphite mining & processing operation globally Ex-China Natural Graphite Reserves and Reserve Grade 1 BALAMA 25.0 CUT-OFF GRADE2 Africa North America 20.0 Other Contained Graphite Reserves (Mt) 15.0 BALAMA (7.2% TGC CUT-OFF GRADE)2 Asset Overview 10.0 Location Southern
Slide 16: Q3 2023: Balama Sales and Marketing
Q3 2023: Balama Sales and Marketing ▪ 23kt natural graphite sold and shipped to 3rd party customers – Increased sales to Chinese anode customers as AAM inventory rebalanced and spherical graphite producers increased capacity utilisation – Breakbulk shipment in September 2023 and sufficient container
Slide 17: Q3 2023: Vidalia Customer Engagement and Product Qualification
Q3 2023: Vidalia Customer Engagement and Product Qualification ▪ Offtake agreement with Tesla to supply 8ktpa AAM from Vidalia at a fixed price for an initial term of four years1 – offtake sales timing determined by production ramp-up and qualification processes from commercial-scale facility ▪ Prog
Slide 18: Q3 2023: Vidalia
Q3 2023: Vidalia Vidalia Further Expansion (45ktpa AAM Facility) ▪ DFS confirms project is financially robust and has compelling economics1 ▪ Transition engineering and optimisation activities, permitting and other long lead procurement activities underway to progress readiness for a FID ▪ FID expec
Slide 19: 11.25ktpa AAM Vidalia facility offers competitive operational metrics
11.25ktpa AAM Vidalia facility offers competitive operational metrics Vidalia Initial Expansion Project Parameters Operating Margin (US$/kg AAM, real) Global Warming Potential (kg CO2 eqv./kg AAM)4 Observable spot natural graphite AAM price2: Vidalia 7.3 11.25 ktpa 21 ktpa $5.75/kg AAM Natural graph
Slide 20: Vidalia Initial Expansion
Vidalia Initial Expansion Key Project Milestones Achieved Defined Schedule to 11.25ktpa AAM Production at Vidalia Final Mechanical 11.25ktpa AAM Offtake Investment Completion and Start of Run-rate Agreement Decision Construction Commissioning Production Production Dec 2021 Feb 2022 Q2 2023 Q4 2023 Q
Slide 21: Vidalia 45ktpa AAM facility DFS illustrates compelling economics
Vidalia 45ktpa AAM facility DFS illustrates compelling economics at realistic AAM prices1 Vidalia Further Expansion Project Parameters Operating Margin (US$/kg AAM, real) Facility Economics5 Observable spot natural graphite AAM AAM price price3: US$5.00 – 7.00/kg (2023 real) 45 ktpa 75 ktpa $5.75/kg
Slide 22: Vertically integrated supply chain underpins Syrah strategy
Vertically integrated supply chain underpins Syrah strategy Syrah’s vision is to be the world’s leading supplier of superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets Sites/Location Balama Graphite
Slide 23: Syrah's sales strategy for Balama natural graphite products
Syrah’s sales strategy for Balama natural graphite products Balama will be a ‘market critical’ supplier of fines natural graphite to emerging ex-China customers ▪ USA and European demand for diversification of AAM sourcing Ex-China merchant natural graphite anode processing hubs ex-China is accelera
Slide 24: Syrah is developing a vertically integrated ex-China natural graphite and AAM supply chain
Syrah is developing a vertically integrated ex-China natural graphite and AAM supply chain Balama Natural Graphite Offtake and Marketing Strategy Geographic diversification in Balama natural graphite sales to AAM and battery markets from 2024, through developing AAM facilities in the US, Canada, Sou
Slide 25: Q4 2023 outlook
Q4 2023 outlook End-market growth ‒ Improving near-term Chinese natural graphite anode market conditions and strong medium and long-term outlook for ex-China AAM demand Balama production and costs ‒ Further production campaign expected to be needed in Q4 2023 ‒ Maintaining capability to quickly retu
Slide 26: Appendix
Appendix Q3 2023 Quarterly Activities Report 26
Slide 27: Battery and natural graphite fines demand is in the early stages of growth
Battery and natural graphite fines (-100mesh) demand is in the early stages of growth – driven by EV adoption Global EV Sales (Millions) Lithium-ion Battery Capacity (GWh) Natural Graphite Demand (kt) 100 90% 8,000 9,000 90 80% 8,000 7,000 80 70% 7,000 6,000 70 60% 6,000 5,000 60 50% 5,000 50 4,000
Slide 28: Graphite is a high intensity material in EV batteries
Graphite is a high intensity material in EV batteries, with costs / emissions expected to drive shift towards natural graphite Battery Mineral Composition of Batteries1 Natural Graphite Demand for Batteries2 100% 2023 Other Silicon 1% 4% Natural 25% Metal Composition % Mass Synthetic 70% 2040 Other
Slide 29: Syrah's global business to supply growing battery anode demand
Syrah’s global business to supply growing battery anode demand Vidalia, Louisiana, USA Balama, Cabo Delgado Province, Mozambique Sales and Marketing Hub, Dubai, UAE Contract Sales Liaison, Shanghai, China Corporate Office, Melbourne, Australia Q3 2023 Quarterly Activities Report 29