Syrah Resources Limited · ASX:SYR
Syrah Resources — Shareholder Meeting (May 2018)
19 slides from Syrah Resources's shareholder meeting presentation, May 17, 2018
Slide 1: Syrah Resources Annual General Meeting
For personal use only Syrah Resources Annual General Meeting Shaun Verner, Managing Director and CEO 17 May 2018 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: Focus on Health, Safety and Environment
Focus on Health, Safety and Environment For personal use only Health and Safety remains highest priority Environmental sustainability • Balama development underpinned by highest • Over 200 environmental licence conditions met standards of health and safety in 2017 • Continued development of health &
Slide 4: Community engagement strengthens as Balama ramps up operations
Community engagement strengthens as Balama ramps up operations For personal use only Employment Balama Employees >90% Mozambican • Highly skilled, experienced and well trained 800 Mozambican Nationals employed at Balama 600 Balama Direct Employees • Large number of employees from 8 local host 400 co
Slide 5: Syrah Resources: Only major new supplier of natural graphite
Syrah Resources: Only major new supplier of natural graphite For personal use only First mover advantage – operations commenced Largest natural graphite producer • First production November 2017 • Balama Tier 1 asset: 17% grade, LoM > 50 years, 350ktpa capacity • Customer shipments commenced January
Slide 6: Syrah's strategy is focussed on value; enabled by a world class deposit and fast growing market
Syrah’s strategy is focussed on value; enabled by a world class deposit and fast growing market For personal use only Goals Logic Enablers Timing Be the pre-eminent supplier of flake • Industrial for baseload demand • Low cost <US$400/t, toward • Transitioned to operations 1 graphite US$300/t Januar
Slide 7: Balama development 2017
Balama development 2017 For personal use only Jan 2017 - Plant site Mar 2017 – Primary milling May 2017 – Polishing mills and thickener Aug 2017- Primary Milling and Flotation Nov 2017 - Plant site Nov 2017 – First production of coarse graphite 77
Slide 8: Balama graphite operations commenced
Balama graphite operations commenced For personal use only Crushing and primary milling Flotation cells Polishing mills Thickener and process water storage Flakes and fines drying; screening and bagging 15MW Power station 88
Slide 9: Balama Graphite Operation: Production rates improving
Balama Graphite Operation: Production rates improving For personal use only 2018 Production 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 expectations, w
Slide 10: Balama Inauguration April 2018
Balama Inauguration April 2018 For personal use only President of Mozambique, His Excellency Mr Filipe Nyusi, officially opening Balama Greeting Syrah MD & CEO, Shaun Verner Traditional tree planting Local community Bagging of graphite concentrate Unveiling of commemorative Balama plaque Balama inau
Slide 11: Syrah to become the first truly global supplier of natural flake graphite
Syrah to become the first truly global supplier of natural flake graphite For personal use only Sales Agreements Customer end use markets • Additional binding sales agreements in 2017 • Battery anode material and 2018 • Steel making • Sales to Chinese anode material market – first • Industrial signi
Slide 12: Downstream strategy to produce spherical graphite is driven by an opportunity to be the first major integrated producer outside China
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 Source: Syrah Resources 12 12 12
Slide 13: Battery Anode Material (BAM) Project
Battery Anode Material (BAM) Project For personal use only BAM preferred site identified Benchmarking reconfirms battery suitability • Letter of Intent to purchase an industrial site in Testing reconfirms: Vidalia, Louisiana, exclusive rights to purchase • Precursor1 materials have core properties •
Slide 14: Finance and Corporate
Finance and Corporate For personal use only Finance Corporate • Cash balance as at 31 March 2018 US$80.5 • COO Julio Costa appointed million • Significant mining and operations expertise • Q2 2018 forecast net cash outflow US$25m, having worked for Alcoa, Rio Tinto and Vale 30 June 2018 cash ~ US$55
Slide 15: Graphite Market
For personal use only Graphite Market 15 15
Slide 16: China and the global flake graphite market is moving towards a supply deficit in the near term
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 17: Battery sector demand growth for flake graphite driven by passenger vehicles and trucks in 2017
Battery sector demand growth for flake graphite driven by passenger vehicles and trucks in 2017 For personal use only Natural Flake Graphite Demand Battery Sector Demand Breakdown kt 2017 kt 2017 800 140 710 120 700 Other 30 120 • Applications that have large Bike & Tools10 unit sales but smaller ba
Slide 18: 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 19: Summary
Summary For personal use only Syrah establishing solid foundation as only major new supplier of graphite to battery market Syrah Resources • Largest and one of the lowest cost and highest quality producers of natural flake graphite • Strong demand profile outlook for natural graphite from lithium io