Syrah Resources Limited
2013 Graphite & Graphene Conference

Melbourne 19 November 2013
Image: Core from Ativa Zone being ...
Syrah Resources Overview




Syrah has identified and proven up the world’s
largest graphite deposit at Balama (100%)
co...
The Balama Resource: incredibly large, growing and versatile
 Global Inferred resource of 1.15Bt @10.2% TGC and 0.23% V2O...
Scoping Study results


The Scoping study, undertaken by Snowden Mining Industry Consultants, has
delivered and confirmed...
Phase

Feasibility

Our vision of the next 15 months to production
Q4 2013
Feasibility study released
with exceptionally r...
Metallurgy
Simple Graphite metallurgy

Vanadium – significant upside potential

 Metallurgical test work

 Vanadium is n...
Unsaved Document / 21/09/2012 / 20:01

‹#›
Key Infrastructure
Pemba Port

Road: Pemba to Balama

Chipembe Dam

Power Lines near Balama

 Located within close proxim...
Community development
 Significant investment has been made in local

infrastructure
−Water bores drilled for use in neig...
0
1
2
3
4

13
Nov
Oct
Sep
Aug
July
June
May
Apr
Mar
Feb

Current capital structure
Overview

Syrah price and volume – last...
10

Graphite Market

Unsaved Document / 21/09/2012 / 20:01

Market in General and Syrah Targets & Strategies
11

Definition of Graphite & Key Points
Graphite is a natural form of carbon with the chemical formula C
and is characteri...
12

Graphite types, applications and substitution
Natural Graphite
Flake

Vein

Secondary
Synthetic

Primary
Synthetic

Ba...
13

World Natural Graphite Production Statistics
Industrial Minerals

BGS World Mineral
Production

Production (2011) mt
(...
14

Graphite Consumption By Sectors 2011
Others, 7%
Batteries, 8%

Lubricants, 8%

Refractories, foundries
, crucible, 38%...
15

Some Questions We should Ask About the Market

1. What could be the market size in General?
2. What is the current mar...
16

Question 1& 2
Export Market Size
Quantity Exported
(metric tones)

Years

Unit Value in US$

2003

504,308.18

$302.95...
17

Quantity Exported vs Unit Value
$1200

1000000
900000

$1000

800000
700000

$800

600000
$600

500000
400000

$400

3...
18

3. Who are the main actors in the market and their current situation?
Major Natural graphite Exporting countries (quan...
19

4. What Happened in the Past?

In 1992, two important thing for the graphite market happened

1. China entered the gra...
20

Chinese Market Entrance
350000
NetWeight
(mt)

Unit Value

1990

$66,340,617.00

114,774.79

$578.01

1991

$60,895,41...
21

Collapse of Soviet Russia?
Petroleum Coke became substitute of natural graphite
22

5. What are the new Markets?

•

Li-ion Batteries

•

Graphene

•

Fuel Cells

•

Pebble Bed Nuclear Reactors

•

Expa...
23

6. What are the Alternative Markets?
Graphite Market

Carbon Market

Natural Graphite






Synthetic Graphite

13...
General Outlook of Graphite Market (% in value)
Graphite Market
Natural Graphite
8%
Synthetic Graphite Blocks
8%

Syntheti...
25

Some examples from alternative markets

- Calcined Petroleum Coke
- Graphite Electrodes

Unsaved Document / 21/09/2012...
Calcined Petroleum Coke
Trade Quantity
(tones)

Unit Value

2011

Calcined Petroleum
Coke imported
$4,537,105,000.00
(HS:2...
Synthetic Graphite Electrode
Trade Quantity : over 1.5 million mt/year (with considering
electrodes other than furnaces ov...
28

Aluminium Production & Aluminium Anodes
50 million tones of aluminum production
100 BBL CRUDE OIL

600 Kg COAL

450 Kg...
29

Syrah Strategies and Advantages

•

Competing with China for Traditional Markets
− Competitive Cost (lowest cost)
− Pr...
Syrah Resources Limited

Thank you

New York 26 November 2013
Image: Core from Ativa Zone being logged at Balama
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Syrah presentation for graphite conference November 2013

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Graphite and Graphene conference in New York, on 25-26th November 2013. This presentation explains comprehensive analysis of market and market capacity for Graphite.

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Syrah presentation for graphite conference November 2013

  1. 1. Syrah Resources Limited 2013 Graphite & Graphene Conference Melbourne 19 November 2013 Image: Core from Ativa Zone being logged at Balama
  2. 2. Syrah Resources Overview   Syrah has identified and proven up the world’s largest graphite deposit at Balama (100%) containing high-grade zones combined with an exceptional quality product Rwanda Democratic Republic Burundi of the Congo Tanzania Wembere Tanzania HM Shikula The graphite has excellent metallurgy with a concentrate grade in excess of 96% and 98% Nachingwea Sasare Angola  Kenya Uganda A range of graphite flake sizes from jumbo size to fine Malawi Lunga Zambia Balama Mavuzi Zimbabwe Sena Madagascar Ngamiland   Potentially one of the world’s largest vanadium deposits with met testwork underway. Grades comparable to the world’s largest operating vanadium deposit Located close to key infrastructure (power, water, port) with low power costs anticipated Namibia Botswana Mozambique Swaziland Lesotho South Africa Syrah is focused on the development of its high grade Balama graphite and vanadium project in Mozambique 1
  3. 3. The Balama Resource: incredibly large, growing and versatile  Global Inferred resource of 1.15Bt @10.2% TGC and 0.23% V2O5 Ativa Zone – 51 million tones @ 19.9% TGC & 0.38% V2O5 at a 13% cutoff grade Mualia Zone – 136 million tonnes at 16.6% TGC and 0.43% V2O Mepiche Zone – 145 million tonnes at 15.1% TGC and 0.43% V2O5 The Balama Graphite resource is absolutely World Class 2
  4. 4. Scoping Study results  The Scoping study, undertaken by Snowden Mining Industry Consultants, has delivered and confirmed an exceptionally robust financial outlook for the Balama project:  Low capital cost of US$91.6 million, Mine gate cost of US$102/t, FOB costs of US$198/t at the port of Pemba. The projected operating costs are bottom of the cost curve for graphite production  High grade ore and simple metallurgy leads to a simple plant design. Equipment components are off the shelf, meaning straightforward construction with minimal technology risk at the commissioning phase  Favourable infrastructure is assisting strong project economics – water, roads, power, port  Only 1.2 Mtpa of mining required to produce 220,000 tpa of graphite concentrates Project economics are compelling due to high grades, simple metallurgy and favourable infrastructure 3
  5. 5. Phase Feasibility Our vision of the next 15 months to production Q4 2013 Feasibility study released with exceptionally robust numbers, a simple plant with correspondingly low capex and quick build time Preconstruction Infrastructure Q4 CY13 Financing Q2 2014 Construction Begins Equipment ordered Earthworks and infrastructure completed by Dec 2014 Plant facilities completed by Dec 2014 Mine prepared for production Q4 2013 Pre-construction crew onsite at Balama, preparing for construction phase Q1 CY14 Construction Q2 CY14 Q3 CY14 Q2 2014 Construction commences Q4 CY14 Q1 2015 Commissioning from December 2014 with a 3 month period to ramp up processing plant Commission Q1 CY15 Q1 2015 Commissioning Production Q2 CY15 Q2 2015 Production Q4 2013 Discussions with financiers, offtakers, existing investors and new investors with the expectation of finalising in Q1 2014 Syrah plans to have financing in place early in 2014 and to be in commercial production in Q2 2015 4
  6. 6. Metallurgy Simple Graphite metallurgy Vanadium – significant upside potential  Metallurgical test work  Vanadium is not in the current has been conducted on Balama graphitic material by Mintek, specialist graphite processors and potential offtake partners  Results show graphitic carbon concentrates will be high grade (96%-98%)  High recoveries with low levels of ash, volatile, moisture and sulphur  Balama orebody offers flexibility in mining customise product for clients scoping study  Initial testwork indicates that the vanadium minerals are highly amenable to clean recovery, in the form of a high grade concentrate  Potential to sell a concentrate or upgrade to vanadium pentoxide flake Processing flowchart - indicative Rod mill Flotation Feed Product Flotation Product Pebble mill Flotation Product Optimisation testwork underway to finalize plant design 5 5
  7. 7. Unsaved Document / 21/09/2012 / 20:01 ‹#›
  8. 8. Key Infrastructure Pemba Port Road: Pemba to Balama Chipembe Dam Power Lines near Balama  Located within close proximity of deep water port facilities at Pemba (~240km) − Third largest port in Mozambique. Ports of Africa confirmed available capacity for Balama product through Pemba Port  Main road connects Project to Pemba Port − Sealed, well maintained road to Monte Puez (~200km). Remaining 40km currently unsealed with construction underway to seal remaining distance by end of CY2013  Large regional dam, Chipembe, located only 12km from the Balamba processing plant − Suitable available capacity and allocation for Syrah  Region currently being connected to the National Power Grid − Power lines currently being installed between Balama town and Monte Puez. Mozambique Government has indicated willingness to extend this supply to the Balama Project 7
  9. 9. Community development  Significant investment has been made in local infrastructure −Water bores drilled for use in neighbouring villages and Infrastructure programs commenced at Balama hospital  Strong supporter of local economies −Large employer of local labour and developing training programmes to develop a local workforce  Balama operations will invest in local agricultural development for food supplies  Strong focus on improving local community health and education Syrah is working proactively to engage the local community 8
  10. 10. 0 1 2 3 4 13 Nov Oct Sep Aug July June May Apr Mar Feb Current capital structure Overview Syrah price and volume – last 2 years  ASX listed  Market capitalisation (undiluted) of A$359 million at A$2.42/share as at 25 November 2013  148,410,123  4,209,467 shares on issue options on issue  ~$6m cash on hand at 30 September 2013  Directors’ direct and indirect interests total 31.79% of current shares on issue 9
  11. 11. 10 Graphite Market Unsaved Document / 21/09/2012 / 20:01 Market in General and Syrah Targets & Strategies
  12. 12. 11 Definition of Graphite & Key Points Graphite is a natural form of carbon with the chemical formula C and is characterized by its hexagonal crystalline structure. The key point here is; Graphite = Carbon
  13. 13. 12 Graphite types, applications and substitution Natural Graphite Flake Vein Secondary Synthetic Primary Synthetic Batteries (alkaline&Zinc Carbon) X X X X Batteries (Li-ion) X X X Carbon Brush X X X X Conductive Coating X X X X Expandable Graphite X X X X X X X Application Micro Crystalline Synthetic Graphite Foundry Coating X X X Friction Material X X X Fuel Cells X Gaskets&Seals X Pencils X X X Plastics X Powder Metals X X X Rerfactory X X Steel & Iron (Carbon Additive) X X Source: Asbury Carbon X X
  14. 14. 13 World Natural Graphite Production Statistics Industrial Minerals BGS World Mineral Production Production (2011) mt (x1000 mt) Country Production (2011) mt (x1000 mt) Flake Flake Amorph Amorph USGS Mineral Com. Summary Production (2011) mt (x1000 mt) Potential Total Flake Roskill Production (2012) mt (x1000 mt) Potential Total Flake China 380 400 308 352 1,800 990 750 412.5 Brazil 96 0,0 75 0.0 89.9 49.5 75 41.25 India 35 0.0 13.5 1.5 143.5 78.9 150 82.5 N. Korea 30 0.0 100.2 30 30 16.5 30 16.5 Canada 21 0.0 25 0.0 20 11 26 26 Norway 8 0.0 8 0.0 7.8 4.2 7 7 Zimbabwe 5 0.0 1 0.0 7.2 4 0.0 0.0 Madagascar 4 0.0 4 0.0 4 2.1 5 5 Russia 2 0.0 4.6 7.4 14 7.7 14 7.7 Ukraine 1.5 0.0 8 0.0 8 4.4 6 3.3 Germany 0.3 0.0 0.0 0.0 0.0 0.0 0.0 Austria 0.0 16 0.0 0.5 0.9 0.0 0.0 0.0 Mexico 0.0 12 0.0 8 7.3 0.0 8 0.0 Turkey 0.0 0.3 0.0 0.175 0.0 0.0 10 0.0 Sri Lanka 4.2 0.0 3 0.0 3.3 1.8 4 2.2 TOTAL 587 428 550 400 2136 1170 1085 604 World Total 1015 950 2136 1085
  15. 15. 14 Graphite Consumption By Sectors 2011 Others, 7% Batteries, 8% Lubricants, 8% Refractories, foundries , crucible, 38% Parts and components, 11% Metallurgy, 29% Source: Industrial Minerals Graphite Report 2012
  16. 16. 15 Some Questions We should Ask About the Market 1. What could be the market size in General? 2. What is the current market size? 3. Who are the main actors in the market and their current situation? 4. What happened in the past? 5. What is the new markets? 6. What is the altenative markets?
  17. 17. 16 Question 1& 2 Export Market Size Quantity Exported (metric tones) Years Unit Value in US$ 2003 504,308.18 $302.95 2004 669,274.00 $303.99 2005 660,882.00 $298.36 2006 672,931.00 $298.61 2007 939,297.00 $267.40 2008 803,015.00 $417.18 2009 681,464.00 $397.72 2010 790,885.00 $487.13 2011 738,707.00 $816.47 2012 473,468.00 $1,037.21 2013- 1st Half 185,027.91 $1,198.41 Source: http://www.trademap.org
  18. 18. 17 Quantity Exported vs Unit Value $1200 1000000 900000 $1000 800000 700000 $800 600000 $600 500000 400000 $400 300000 200000 $200 100000 $ 0 2003 2004 2005 2006 2007 Unit Value 2008 2009 Quantity 2010 2011 2012
  19. 19. 18 3. Who are the main actors in the market and their current situation? Major Natural graphite Exporting countries (quantity in mt) Reporter 2007 2008 2009 2010 2011 2012 China 670,570.00 597,349.00 458,895.00 585,483.00 444,800.00 257,722.00 Brazil 16,390.00 17,692.00 13,189.00 22,015.00 24,202.00 22,993.00 Canada 20,301.00 22,000.00 9,793.00 14,972.00 18,184.00 17,892.00 Mexico 16,083.00 13,347.00 9,379.00 11,576.00 18,300.00 21,284.00 Austria 7,319.00 8,962.00 5,192.00 9,519.00 Madagascar 5,351.00 4,899.00 3,417.00 3,782.00 3,873.00 N/A Sri Lanka 5,152.00 5,192.00 3,018.00 3,027.00 3,341.00 N/A Czech Rep, 4,028.00 4,075.00 2,150.00 3,154.00 4,421.00 Source: UN Trade Statistics N/A N/A 4,126.00
  20. 20. 19 4. What Happened in the Past? In 1992, two important thing for the graphite market happened 1. China entered the graphite market 2. Soviet Russia collapsed
  21. 21. 20 Chinese Market Entrance 350000 NetWeight (mt) Unit Value 1990 $66,340,617.00 114,774.79 $578.01 1991 $60,895,412.00 102,097.82 $596.44 1992 $111,954,601.00 262,860.23 $425.91 1993 $106,076,400.00 250,535.61 $124,227,851.00 307,424.76 250000 500 $ 200000 400 $ 150000 300 $ 200 $ 100 $ $423.40 1994 600 $ 100000 Trade Value 300000 50000 Period 700 $ $404.09 0 0$ 1990 1991 1992 NetWeight (mt) 1993 Unit Value 1994
  22. 22. 21 Collapse of Soviet Russia? Petroleum Coke became substitute of natural graphite
  23. 23. 22 5. What are the new Markets? • Li-ion Batteries • Graphene • Fuel Cells • Pebble Bed Nuclear Reactors • Expandable Graphite
  24. 24. 23 6. What are the Alternative Markets? Graphite Market Carbon Market Natural Graphite     Synthetic Graphite 13Billion US$ Market Petroleum Coke Green Petroleum Coke Calcined Petroleum Coke Needle coke/Anode Grade Petroleum Coke 24 Billion US$ Market
  25. 25. General Outlook of Graphite Market (% in value) Graphite Market Natural Graphite 8% Synthetic Graphite Blocks 8% Synthetic Graphite Others 11% Synthetic Graphite electrode 42% Synthetic Carbon Fibers 31%
  26. 26. 25 Some examples from alternative markets - Calcined Petroleum Coke - Graphite Electrodes Unsaved Document / 21/09/2012 / 20:01 - Aluminium Anodes
  27. 27. Calcined Petroleum Coke Trade Quantity (tones) Unit Value 2011 Calcined Petroleum Coke imported $4,537,105,000.00 (HS:271312) 7,824,424.00 $580.00 2012 Calcined Petroleum Coke imported $3,648,701,000.00 (HS:271312) 6,753,684.00 $540.00 Period Definition Trade Value Obtained by calcining green petroleum coke at temperatures as high as 1400 0C ~ 4 billion US$ trade value ~ 7 million tones trade quantity One of the main application is in Steel Mills as carbon raiser and recarburiser
  28. 28. Synthetic Graphite Electrode Trade Quantity : over 1.5 million mt/year (with considering electrodes other than furnaces over 3 million tones) Total Value : 5.5 Billion US$(est) Used in Electrical Arc Furnaces (EAF) 2.5 kg Electrode consumed for 1 mt steel – 570 million tones steel produced through EAF Needle Petroleum Coke is the main raw material for electrodes
  29. 29. 28 Aluminium Production & Aluminium Anodes 50 million tones of aluminum production 100 BBL CRUDE OIL 600 Kg COAL 450 Kg GREEN COKE 180 Kg COAL TAR 360 Kg CALCINED COKE 90 Kg PITCH 140 Kg BUTTS 560 Kg ANODES 6 Kg CATHODE 13 MWh 4500 Kg Bauxite 1920 Kg Alumina 1000 Kg ALUMINIUM
  30. 30. 29 Syrah Strategies and Advantages • Competing with China for Traditional Markets − Competitive Cost (lowest cost) − Premium Product − Consistent Quality − Regular Supply • Supplying the Altenative Markets − High Quality Graphite with High Grade − Low impurities (Sulphur <0.01%) − Ability to supply large quantities − Price flexibility (low cost) • New Markets; − Focus on Battery applications
  31. 31. Syrah Resources Limited Thank you New York 26 November 2013 Image: Core from Ativa Zone being logged at Balama

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