Syrah Resources Limited · ASX:SYR
Syrah Resources — BMO 27th Global and Metals Mining Conference, February 2018
19 slides from Syrah Resources's conference presentation, Feb 26, 2018
Slide 1: Syrah Resources: In Production, Focussed on Value
For personal use only Syrah Resources: In Production, Focussed on Value BMO 27th Global and Metals Mining Conference, February 2018 Shaun Verner, Managing Director and CEO
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: Syrah Resources: The only major new supplier of natural graphite
Syrah Resources: The 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, • Customer shipments commenced January 2018 350ktpa
Slide 4: Balama Graphite Operation, Mozambique
Balama Graphite Operation, Mozambique For personal use only Plant site Primary crusher (overhead view) Flotation cells Polishing mills Filtration Drying, screening and bagging First saleable bagged product November 2017 Loading product to truck to port 33
Slide 5: Corporate overview
Corporate overview For personal use only Issued Capital Share Price A$/share and volume2 ASX Code SYR ADR SRHYY Shares issued 297.0m Options 6.8m Performance Rights 0.7m Market Cap (undiluted)1 A$1,035m (US$810m) Cash and Debt Cash as at 31 Dec 2017 US$112m Debt - (1) As at 22 February 2018 (2) Dail
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 • Industrial for baseload demand • Low cost <US$400/t, toward • Transitioned to operations 1 flake graphite US$300/t Januar
Slide 7: Global public policy, infrastructure and industry investment continue to build for the electric vehicle market
Global public policy, infrastructure and industry investment continue to build for the electric vehicle market; >1 million EVs sold in 2017 For personal use only Government regulations driving change Infrastructure build out continues to enable All traditional auto makers are now targeting EVs in th
Slide 8: Lithium ion battery market expected to grow to 500GWh in 5 years, from 120GWh in 2017
Lithium ion battery market expected to grow to 500GWh in 2025, from 120GWh in 2017; impact on flake graphite significant and imminent For personal use only Larger and lower cost lithium batteries1 Flake graphite demand from lithium-ion batteries2 Drivers of demand for natural graphite Cost per kWh N
Slide 9: Graphite anode mass in Li-ion battery per kWh is consistent and agnostic of cathode chemistry
Graphite anode mass in Li-ion battery per kWh is consistent and agnostic of cathode chemistry For personal use only Nickel Cobalt Aluminium (NCA) Nickel Manganese Cobalt (NMC1) Preferenced by Preferenced by Kg per kWh 1.50 1.00 1.00 1.00 0.70 0.45 0.50 0.25 0.12 0.12 0.15 0.10 0.02 0.00 Graphite Nic
Slide 10: Scale and economics mean lithium ion battery technology likely to remain the base load
Scale and economics mean lithium ion battery technology likely to remain the base load of energy delivered to meet future demand from electric vehicles For personal use only Current State 2025 Scale Investment Application Cost Commercialisation Application Market Years of Cumulative EV Market Value
Slide 11: Increased penetration of natural graphite in anode material supports future demand and prices
Increased penetration of natural graphite in anode material supports future demand and prices for natural graphite; facilitates reduction in battery costs For personal use only Significant difference in prices for natural and Greater use of natural graphite expected which will assist in overall batt
Slide 12: Syrah's BAM production will provide a strategic and valuable alternate source of anode material
Syrah’s BAM production will provide a strategic and valuable alternate source of anode material For personal use only Anode Supply Chain Natural Flake Graphite Battery Anode Material Anode Battery Factory Electric Vehicle kt, supply composition kt, capacity composition GWh, capacity composition GWh,
Slide 13: How much natural graphite is in an electric vehicle?
How much natural graphite is in an electric vehicle? It depends on battery size and natural graphite content in the anode material For personal use only 2017 unit sales Lithium ion Anode Material per unit Natural Flake Graphite per unit (global, thousands) battery size (natural & synthetic combined)
Slide 14: New markets provide major demand growth opportunity for natural flake graphite
New markets provide major demand growth opportunity for natural flake graphite; Mature markets base load of demand but with lower demand growth outlook For personal use only Natural Flake Graphite Demand New Markets Mature Markets Electric Vehicles Energy Storage Steel kt kt kt 1,000 940 1,000 800 6
Slide 15: China's demand profile and declining domestic graphite resources mean structural change to net importer
China’s demand profile and declining domestic graphite resources means a structural change to a net importer of natural graphite will occur For personal use only China’s domestic supply of natural flake graphite has been China’s switch from an exporter to importer of natural will declining due to re
Slide 16: Natural graphite price traditionally driven by steel market dynamics
Natural graphite price traditionally driven by steel market dynamics; more recently has moved in sync with other lithium ion battery linked commodities For personal use only Long term historical natural graphite price1 Commodity basket price movements in last 12 months2 Source: Bloomberg, Trading Ec
Slide 17: Largest capacity, high and consistent quality, and a long life asset enables Syrah to be the global graphite leader
Largest capacity, high and consistent quality, and a long life asset enables Syrah Resources to be the global graphite leader For personal use only Unprecedented capacity World class ore grade First quartile position Syrah capacity versus Total Graphitic Carbon Flake Graphite Cost Curve: 2018 kt 20
Slide 18: Syrah's high grade Balama deposit has the largest defined graphite reserve globally
Syrah’s high grade Balama deposit has the largest defined graphite reserve globally; only major new project in operations For personal use only Graphite Reserves Syrah Resources’ low-grade stockpiles at 2 – 9% TGC will be greater than most other 160 proposed projects’ head grade Syrah Resources Full
Slide 19: Summary
Summary For personal use only Syrah Resources • Largest and one of the lowest cost and highest quality producers of natural flake graphite with up to 350ktpa capacity • Strong demand profile outlook for natural graphite • Signed sales agreements with traditional and battery market customers • Opport
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