Syrah Resources Limited · ASX:SYR
Syrah Resources — Q3 2024 Earnings Presentation
28 slides from Syrah Resources's earnings presentation, Nov 4, 2024
Slide 1: Q3 2024 Quarterly Activities Report
Q3 2024 Quarterly Activities Report 30 October 2024 syrahresources.com.au Q3 2024 Quarterly Activities Report Syrah Resources | ASX: SYR1 30 October 2024
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 an up to Ramping up AAM demand is op
Slide 4: Syrah's Positive ESG Profile
Syrah’s Positive ESG Profile Leading ESG standards Best practice sustainability Low carbon footprint Auditable back to source frameworks ✓ ISO:45001 and ISO:14001 ✓ Sustainability frameworks guided ✓ Independent life cycle assessment ✓ Fully integrated by Syrah from certification at Balama by: (“LCA
Slide 5: Q3 2024 Highlights
Q3 2024 Highlights Balama & Vidalia Corporate & Market Health & Safety – No natural graphite production at Balama due to low fines – US$150m binding loan with US DFC to provide 0 kt demand and operations are awaiting improved demand and sales long-term working and sustaining capital support to Balam
Slide 6: Volatile China anode production continues
Volatile China anode production continues Global Monthly EV Sales (‘000 Units)1 Q3 2024 EV Sales China Monthly Anode Production (kt)2 1,800 +17% 220 Q3 2024 Chinese Anode Production 1,600 +32% +25% on Q3 2023 200 180 +9% on Q3 2023 1,400 +11% 160 +17% +19% +14% 1,200 +24% 140 1,000 +50% 120 -3% 100
Slide 7: Market conditions remain challenging
Market conditions remain challenging Global EV sales1 vs. China Anode Production2 China Natural Graphite Production vs. China Anode Production2 240 1,800 220 1,600 200 180 1,400 1,200 140 160 1,000 100 800 120 600 60 400 80 20 200 40 0 -20 Jul-21 Jul-22 Jul-23 Jul-24 Jan-21 Jan-22 Jan-23 Jan-24 Nov-
Slide 8: Short-term headwinds for North American battery market
Short-term headwinds for North American battery market North America EV sales growth has slowed… Location and status of planned battery manufacturing capacity in North America North America EV sales (000s) 180 LOCATION: OH LOCATION: TN LOCATION: MI LOCATION: TN LOCATION: KY LOCATION: IL LOCATION: Qu
Slide 9: Intersection of Government and market factors
Intersection of Government and market factors Developments in any one of these factors could materially change near-term requirements for Syrah’s products, as there are limited other ex-China suppliers that can meet near-term demand Discretionary Chinese license controls on graphite Clarification pe
Slide 10: US Inflation Reduction Act – Section 30D consumer credits
US Inflation Reduction Act – Section 30D consumer credits Spherical graphite ▪ IRA requires sourcing of non-FEOC (i.e. ex-China) graphite for US EVs to AAM supply Ore extraction and and purification Finished potentially qualify for New Clean Vehicle consumer credits under Section 30D routes concentr
Slide 11: China graphite export volumes no longer constrained under licensing
China graphite export volumes no longer constrained under licensing China natural graphite exports (kt) China spherical graphite exports (kt) China natural graphite AAM exports (kt) Japan USA South Korea India Japan South Korea USA Japan USA South Korea 150 Germany Other Average Price Column1 $1.5 O
Slide 12: Syrah Market Position
Syrah Market Position Q3 2024 Quarterly Activities Report 12
Slide 13: Syrah can capitalise on a graphite market in structural flux
Syrah can capitalise on a graphite market in structural flux Geopolitical and commercial developments in graphite and AAM drive increased opportunities for Syrah margin and volume Market developments Syrah advantages Attractive graphite market outlook relative to other battery Long-term, large scale
Slide 14: Ex-China market size and growth opportunity for Syrah is clear
Ex-China market size and growth opportunity for Syrah is clear Syrah’s existing and planned production capacities represent only a fraction of the opportunity in the ex-China addressable market – lead time advantage creates further opportunity Ex-China natural graphite Natural graphite AAM for ex-Ch
Slide 15: Syrah is a global vertically integrated graphite supplier
Syrah is a global vertically integrated graphite supplier Additional AAM capacity development strategy Balama Natural Graphite Offtake and Marketing Strategy Syrah aims to become a leading supplier Vidalia AAM Facility Geographic diversification in Balama natural graphite sales to AAM and battery ma
Slide 16: Syrah fundamentally changing Balama sales composition
Syrah fundamentally changing Balama sales composition Driving toward higher and more stable utilisation of Balama’s production capacity Balama sales Balama sales Target Balama sales composition (2022) composition (2023) composition (2027) 1 Ex-China Integrated Ex-China 1 Customers Chinese Integrated
Slide 17: Balama is the premier graphite resource and operation
Balama is the premier graphite resource and operation Ex-China natural graphite reserves and reserve grade1 Balama operating costs (US$/t FOB) at different production rates 25 BALAMA CUT-OFF 10kt 15kt 20kt 25kt ~30kt GRADE2 Africa per month per month per month per month per month 800 North America 2
Slide 18: Vidalia is the cornerstone of Syrah's downstream business
Vidalia is the cornerstone of Syrah’s downstream business Downstream expansion is underpinned by Balama’s world-class resource Vidalia, USA Asia (ex-China) Joint Venture / Tolling (>20ktpa) Technology Support to Third-Party (ex-China) Partners (>50ktpa) Europe Joint Ventures (>20ktpa) Production Bas
Slide 19: Vidalia AAM technical performance
Vidalia AAM technical performance Particle size and surface area Graphite purity Full cell cycle life testing 20 100.00 4.8 ▪ Cycle life testing of customers’ 4.4 19 4.0 99.98 proprietary cells is the longest 3.6 lead time test, typically taking d50 (microns) SSA (m2/g) 3.2 Purity (%) 18 99.96 2.8 u
Slide 20: Vidalia's attractive economics are built on cost and price experience
Vidalia’s attractive economics are built on cost and price experience Potential for significant margin upside as new project inducement drives marginal pricing Economics of Vidalia facility (45ktpa AAM capacity)1 Long-term natural graphite AAM price assumption (US$/kg)3 Observable AAM prices shown $
Slide 21: Syrah's ESG position provides lower emissions & traceability
Syrah’s ESG position provides lower emissions & traceability Global warming potential of graphite products (kg CO2 eqv./kg product)1 Syrah Major Chinese ESG element (as proxy for ex-China suppliers) suppliers Vidalia AAM 7.3 >3x ~2x IRMA5 independent Chinese natural graphite AAM 14.2 Responsible Min
Slide 22: Syrah's incumbent position has key advantages
Syrah’s incumbent position has key advantages New ex-China demand, low alternative supply; upstream natural graphite and downstream AAM operations Syrah’s opportunity Stakeholders and customers Customer driven product Transition to higher margin motivated to underpin further iteration and government
Slide 23: Syrah's targets embedding unique advantages
Syrah’s targets embedding unique advantages Recent milestones Key targets Capital Structure Dec-21 – Binding offtake agreement with Tesla for the supply of natural graphite AAM from Vidalia Commercial and offtake sales from 11.25ktpa AAM facility at Vidalia Jul-22 – Received a US$102m binding loan
Slide 24: Our Valuation Proposition
Our Valuation Proposition Syrah is leading ex-China natural graphite and anode material production capacity and sales growth Vertical Operating and Cost Position ESG Position Expansion Integration Development Potential ▪ Natural graphite ▪ Largest integrated ▪ Cost competitive ▪ Leading ESG ▪ Signif
Slide 25: Appendix
Appendix Q3 2024 Quarterly Activities Report 25
Slide 26: Battery and natural graphite fines demand in 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) 90 90% 9,000 8,000 80 80% 8,000 7,000 70 70% 7,000 6,000 60 60% 6,000 5,000 50 50% 5,000 4,000 40 4
Slide 27: 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% 2024 Other Silicon 0% 5% Natural 27% Metal Composition % Mass Synthetic 68% 2040 Other
Slide 28: 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 2024 Quarterly Activities Report 28