Annual General Meeting Shaun Verner – Managing Director & CEO 24 May 2019 0
Important notice and disclaimer 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 not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. Certain statements contained in this presentation, including information as to the future financial or operating performance of Syrah Resources Limited (Syrah Resources) and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of estimates and assumptions that, whilst considered reasonable by Syrah Resources, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, Statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Syrah Resources disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and other similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Syrah Resources has prepared this presentation based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in the presentation. To the maximum extent permitted by law, Syrah Resources, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth )) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it. 1
Syrah at early stage of attractive 5 year strategic growth plan Syrah’s 5 year strategic plan targets significant shareholder value creation Balama Graphite Expansion Diversification Natural Graphite Target State Operation • Critical material for vehicle • Balama graphite • Battery material & • Stable operations at full capacity and vanadium supply chain electrification, energy storage expansion scoping opportunities ~350ktpa and emissions reduction study • Attractive margins, • Alternative power • Battery industry growth positive free cash flow generation source review leading to ~35% forecast increase in natural graphite demand next 3 years • Specialty carbon in advanced materials development • Battery anode cost – natural BAM Project Vanadium Project versus synthetic • Growth optionality – the only strategic operating asset • Trade and strategic sourcing – in the sector, first mover advantage • Commercial scale • Constructed and sustainability and production operational diversification • Funding options • Funding options through customer through offtakes commitment and/ and/ or or strategic partnerships partnership 2
Underpinned today by foundations for sustainable growth • Strong safety record • Tier 1 producing asset • Health programs • Largest natural graphite producer • Local employment • Growth optionality • Environmental compliance • Significant vanadium Resource • Community programs • Binding Mining Agreement • Governance protocols • Life of mine ~ 50 years Balama Sustainability Graphite Operation Battery Anode Sales and Material (BAM) Marketing Project • UAE Marketing & Logistics Hub • Establishing ex Asia BAM supply • Sales contracts to all major regions & • Developed downstream production site end use segments in Louisiana, USA • Major exporter of graphite into China • Unpurified spherical graphite production for customer qualification • Price discovery in opaque market • Product development • Positive product quality feedback 3
2019 focus to ensure long term success Sustainability Production Market Penetration BAM Project • Maintain strong safety • Recovery performance • Price discovery • Production and record qualification of purified • Product mix • Market share growth spherical graphite • Stakeholder • Grade • Strategic relationship Engagement • Development runs of development in BAM • Structural cost final BAM products • Community Programs and vanadium reduction • Commercial BAM case • Training • Key player in global • Sustainable operations battery supply chain • Employment underpinning positive cashflows Maintain balance sheet strength 4
Syrah is committed to making a long term positive impact in Mozambique Supporting the Employment Health & Environment Economy Community Direct and contract roles World class >US$41m paid in for Mozambicans Programs to improve environmental salaries in Mozambique education, health and protection plan with to date skills training facilities zero non-compliances Local jobs Balama Professional Training Centre Environmental Monitoring Program 96% Mozambican employment 5
Sustainability Highlights 2018 Health & Safety Environment • • Strong health and safety record with TRIFR of 0.3 as at 31 December 2018 Environmental Monitoring Program continuing to meet over 200 license conditions • • Syrah achieved accreditation in ISO 14001:2015 & OHSAS 18001:2007 in May Native seedlings from the Balama Nursery donated to local stakeholders as part of Syrah’s Reforestation Project and Livelihood Development Program 2018 • • Malaria screening program proving effective with over 6,000 screening tests with Additional groundwater boreholes installed across local Host Communities 444 averted cases since program commenced in September 2018 • Review of the Balama Tailings Storage Facility (TSF) over past 12 months for • potential transition from wet deposition to dry stacking as part of Syrah’s TSF Emergency Preparedness training ongoing with internationally certified Advance Firefighting and Command & Control training provided to all Emergency Response Governance Framework Team members • Occupational hygiene monitoring results remain well controlled Health screening Water boreholes in local communities Balama Nursery Cashew seedlings provided to local schools 6
Sustainability Highlights 2018 People Government and Community • • Syrah’s Mozambique workforce comprises of 96% Mozambican nationals with Binding Mining Agreement finalised with Government of Mozambique 55% from the 8 local Host Communities • Balama Graphite Operation was officially opened by the President of Mozambique, • Female employment at Balama ~19%, versus 2018 target of 15% His Excellency Mr Filipe Nyusi at the onsite event • • Achieved 99.6% mandatory training compliance (such as Business Conduct and Local Development Committee established consisting of key stakeholders from the Risk & Hazard Management) by year end across Balama employees and Community, Company and District Government contractors • Balama Professional Training Centre opened in December • Zero industrial disputes • Livelihood Development Program commenced with agricultural training Employees at Balama Balama Graphite Operation update provided to the President of Mozambique, Minister of Mineral Resources and the District Governor 7
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