disclaimer - vanadiumcorp resource inc. · disclaimer this%presentaon%is ......
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Disclaimer This presenta,on is for informa,on purposes only. Neither this presenta,on nor the informa,on contained in it cons,tutes an offer, invita,on, solicita,on or recommenda,on in rela,on to the purchase or sale of shares in any jurisdic,on. This presenta,on may not be distributed in any jurisdic,on except in accordance with the legal requirements applicable in such jurisdic,on. Recipients should inform themselves of the restric,ons that apply in their own jurisdic,on. A failure to do so may result in a viola,on of securi,es laws in such jurisdic,on. This presenta,on does not cons,tute financial product advice and has been prepared without taking into account the recipient's investment objec,ves, financial circumstances or par,cular needs and the opinions and recommenda,ons in this presenta,on are not intended to represent recommenda,ons of par,cular investments to par,cular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securi,es transac,ons involve risks, which include (among others) the risk of adverse or unan,cipated market, financial or poli,cal developments. Certain statements contained in this presenta,on, including informa,on as to the future financial or opera,ng 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 es,mates and assump,ons that, whilst considered reasonable by Syrah Resources, are inherently subject to significant technical, business, economic, compe,,ve, poli,cal and social uncertain,es and con,ngencies; involve known and unknown risks and uncertain,es that could cause actual events or results to differ materially from es,mated or an,cipated events or results reflected in such forward-‐looking statements; and may include, among other things, Statements regarding targets, es,mates and assump,ons in respect of metal produc,on and prices, opera,ng costs and results, capital expenditures, ore reserves and mineral resources and an,cipated grades and recovery rates, and are or may be based on assump,ons and es,mates related to future technical, economic, market, poli,cal, social and other condi,ons. Syrah Resources disclaims any intent or obliga,on to update publicly any forward looking statements, whether as a result of new informa,on, future events or results or otherwise. The words “believe”, “expect”, “an,cipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “con,nue”, “budget”, “es,mate”, “may”, “will”, “schedule” and other similar expressions iden,fy forward-‐looking statements. All forward-‐looking statements made in this presenta,on are qualified by the foregoing cau,onary statements. Investors are cau,oned that forward-‐looking statements are not guarantees of future performance and accordingly investors are cau,oned not to put undue reliance on forward-‐looking statements due to the inherent uncertainty therein. Syrah Resources has prepared this presenta,on based on informa,on available to it at the ,me of prepara,on. No representa,on or warranty, express or implied, is made as to the fairness, accuracy or completeness of the informa,on, opinions and conclusions contained in the presenta,on. To the maximum extent permiQed by law, Syrah Resources, its related bodies corporate (as that term is defined in the Corpora&ons Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those en,,es do not accept any responsibility or liability including, without limita,on, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presenta,on Materials or its contents or otherwise arising in connec,on with it.
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Company Overview
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Shares on issue(as at 15 September 2015)
230.5m
Options on issue(as at 15 September 2015)
6.2m
Undiuted market capitalisation(Share price of A$2.62 as at 15 September 2015)
A$603.9
Cash as at 30 June 2015(1) A$8.9m
Net proceeds of August 2015 fully underwritten capital raising
A$203m
Debt as at 30 June 2015 Nil
Enterprise value A$392.0
Key details
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Jan-‐12 Sep-‐12 May-‐13 Jan-‐14 Aug-‐14 Apr-‐15
Daily trading volume (m
)
Share price (A$)
Daily Volume (m) Daily Closing Share Price (A$/share)
Share price and volume
Source: Company filings, IRESS
Balama Project locaAon
Balama
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Jim Askew Non-‐ExecuAve Chairman
q Over 40 years of interna,onal experience as a Director and/or Chief Execu,ve Officer for a wide range of Australian and interna,onal publicly listed mining, mining finance and other mining related companies
q Con,nuous involvement with the African Mining Industry since 1985 q Served as a Board member of over 30 publicly listed resource companies, including currently OceanaGold, Nevada
Copper Corpora,on, Evolu,on Mining and Asian Mineral Resources
Tolga Kumova Managing Director
q Co-‐founder of Jacana Resources (which was subsequently vended into Syrah Resources Limited) q 15 years experience in stockbroking, corporate finance and corporate restructuring q Specialised in Ini,al Public Offerings and capital requirements of mining focused companies
Sam Riggall Non-‐ExecuAve Director
Experienced Board of Directors with an extensive track record
RheL Brans Non-‐ExecuAve Director
q Operated a consultancy providing project management services to the mining industry for the past 20 years q Over 40 years experience in the design and construc,on of mineral processing facili,es q Extensive African experience (with Perseus Mining and Tiger Resources)
José Caldeira Non-‐ExecuAve Director
q Pre-‐eminent legal and regulatory professional in Mozambique with over 25 years experience q Currently a senior partner at Sal & Caldeira Advogados, Lda, a leading legal firm in Mozambique q Extensive experience in supplying legal and regulatory consul,ng services in natural resources, foreign investment,
infrastructure, civil, administra,ve, commercial and labour law, as well as li,ga,on
q Almost 20 years of experience in mining project genera,on and evalua,on, business development and capital market transac,ons
q Previously held various execu,ve roles at Rio Tinto and Ivanhoe Mines including Chief Nego,ator for Rio Tinto in rela,on to the Investment Agreement for the US$8 billion Oyu Tolgoi Project in Mongolia
q Currently Chairman and Chief Execu,ve Officer of Clean TeQ Holdings Limited
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Strong management and technical team to deliver Balama Darrin Strange Chief OperaAng Officer
q Previously a General Manager for Rio Tinto managing the West Angelas and Robe River iron ore opera,ons
q 25 years of experience in mining, manufacturing and engineering firms in Australia and interna,onally
David Corr Chief Financial Officer
q Previously Chief Financial Officer of Grange Resources Limited
q 11 years of experience with PricewaterhouseCoopers managing a poroolio of resource clients in Australia and interna,onally
Michael Chan General Manager – Project Development
q Previously held senior management roles at Kimberly Rare Earths, Arafura Resources and Lynas Corpora,on
q 35 years industry experience in senior opera,ons, project development and commercial roles
Kevin Horsley Project Manager – Balama
q Previously held senior management roles with the owners teams on copper and gold projects
q 40 years of experience in engineering and construc,on projects in Australia and interna,onally
Dinis Napido Country Manager – Mozambique
q Experienced mining and explora,on geologist
q 22 years of experience in the mining industry in Mozambique and southern Africa
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Dr. Jens Berkan Chief Technology Advisor
q Previously Senior Manager of Electric Energy Storage, Propulsion and Conversion Systems for Qoros Auto
q 15 years of experience in the automobile industry including specialist engineering roles at General Motors, BMW Group and several start up electric vehicle companies
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q JORC Code (2012) Compliant Graphite Ore Reserves(1) can support over 40 years of opera,ons; produc,on of ~356,000 tonnes per annum over the first 10 years
q Simple, open pit mining opera,on using conven,onal truck and shovel methods; low strip ra,o
q Conven,onal processing via crushing, grinding, flota,on, filtra,on, drying, screening and bagging
q Average head grade of ~19% total graphi,c carbon (“TGC”) during the first 10 years of opera,ons
q Low cost, 1st quar,le producer; average cash opera,ng costs of ~US$286 per tonne(3) FOB over life of mine
q Key approvals are in place, including Mining Concession, Environmental License, Water License and Land Access (DUAT) License
q Pre-‐construc,on works substan,ally complete to enable construc,on to commence
q 3 year Osake agreement for 80,000 tonnes per annum in place with China Aluminium Interna,onal and Engineering Corpora,on (“Chalieco")
q A$211m (pre-‐fees) fully underwriQen capital raising successfully completed to fund project development
(1) Refer to Appendix C for details of the Company’s JORC Compliant Reserves and Resources and Competent Persons Statement. (2) FOB from Port of Nacala 5
Balama Graphite Project
Investment Highlights
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q Balama graphite products can be used in tradi,onal market uses and high growth baQery applica,ons
q -‐100 US mesh Balama graphite can be used to manufacture coated spherical graphite; targets the high value Li-‐ion baQery segment
q Recarburisers by-‐product from spherical graphite produc,on; targets the steel and cast iron industries
q Benchmark Minerals forecasts that global Li-‐ion baQery capacity will reach 120 GWh by 2020; equivalent to 240,000(2) tonnes of demand for -‐100 US mesh graphite
q Internal Economic Assessment in rela,on to Coated Spherical Graphite Facility has been completed
q The Balama ore-‐body also contains a JORC Code (2004) Compliant Vanadium Resource of 1.15Bt at 0.24% V2O5
(1)
q Vanadium scoping study completed by Chalieco supports the viability of vanadium extrac,on at Balama(3)
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Investment Highlights (cont.) PotenAal future projects -‐ Spherical Graphite Facility, Recarburiser Products and Vanadium Project
(1) Refer to Appendix A for details of the Company’s JORC Compliant Reserves and Resources and Competent Person Statements. (2) Assuming 0.8 kg of spherical graphite is required per 1 KWh baQery and ~2.9 tonnes of -‐100 US mesh graphite is required to produce 1 tonne
of spherical graphite
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Appendix A – Balama Graphite Project
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Operational period years 42Total initial capex(including 10% contingency)
US$m 138
Plant feed rate tpa 2,000,000Assumed weighted average basket price (LOM)
US$/t (FOB) 1,000
Average strip ratio (life of mine) ratio 0.04Average operating cash costsover life of mine
US$/t product (FOB) 286
Average head grade (life of mine) % 16.2 Post-‐tax NPV (10% discount rate) US$m 1,125
Average recovery (life of mine) % 92.5 Internal rate of return (IRR) % 70.7
Average production (life of mine)-‐ 95% TGC
tpa 313,000Payback period from commencement of production
years < 2
Snowden Feasibility Study esAmates
Note: Refer to “Balama Feasibility Study and Corporate Presenta,on“ as announced to ASX on 29 May 2015 for relevant assump,ons and qualifica,ons to the conclusions of the Snowden Feasibility Study. (1) Inclusive of economic low grade ore ranging from >2% to <9% which will be stockpiled for processing in the future. (2) CPC Engineering FEED study has subsequently provided an updated ini,al capital expenditure es,mate of US$144 million – refer to following page. (3) FOB from Port of Nacala. (4) The assumed weighted average basket price (LOM) of US$1,000/t used in the Feasibility Study is based on the three year historical weighted average basket market price of natural graphite from 2012-‐2014 as sourced
from Industrial Minerals and Benchmark Minerals. It is es,mated that a US$100/t change in realised price over the LOM would impact the Feasibility Study post-‐tax NPV by approximately US$190m. (5) Excluding royal,es and taxes.
Feasibility Study outcomes confirm Balama expected to be a long life, high quality project with aLracAve financial returns
OperaAonal metrics Financial metrics
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(4)
(2)
(1)
(3)
(3) (5)
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CPC Engineering Front End Engineering Design (FEED)
Process plant 63
Site infrastructure 37
Owner's costs 20
Other(2) 11
Subtotal 131
Contingency – 10% 13
Total 144
(1) As compared to Snowden Feasibility Study es,mate of US$138m (including a 10% con,ngency). (2) Includes Mining, Site Support Temporary Services and Indirect Costs.
q CPC Engineering has completed a FEED basis of es,mate for the processing plant at Balama
q The objec,ve of the FEED was to further op,mise and de-‐risk parts of the development plan, as well as bringing greater certainty in rela,on to procurement of key items of capital equipment
q FEED es,mates ini,al capital costs for the Balama Graphite Project to be within 5% of the Feasibility Study es,mates, and processing plant opera,ng costs to be consistent with the Feasibility Study es,mates
− Updated capital cost es,mate is US$144 million including a 10% con,ngency(1)
IniAal capital expenditure esAmate (US$m)
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Discussion
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IndicaAve Ameline to producAon Q1 CY15 Q2 CY15 Q3 CY15 Q4 CY15 Q1 CY16 Q2 CY16 Q3 CY16 Q4 CY16 Q1 CY17
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Snowden DefiniAve
Feasibility Study CPC FEED
Pre-‐construcAon works
Balama Project Development Financing
Detailed engineering, project development, construcAon and commissioning
Ramp up
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Regulatory Approvals, Infrastructure and LogisAcs
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q Main bitumen road connects Balama to Nacala port
q Nacala is a major port in Mozambique and the deepest port in southern Africa
q Ample capacity with a 600m bulk berth and a 395m container berth
q Handled 55,000 twenty-‐foot equivalent unit containers in 2014
q Serviced by major shipping lines with regular passages
Port of Nacala
Roads
q Snowden Feasibility Study(1) assumes diesel power for the first five years of produc,on followed by connec,on to main grid power for remaining life of mine
Power
q Water will be supplied from the Chipembe Dam under a granted, renewable 5 year water licence
Water
(1) Refer to “Syrah finalises Balama Graphite study and declares maiden ore Reserve” as announced to ASX on 29 May 2015 for relevant assump,ons and qualifica,ons rela,ng to the conclusions of this study.
50 kVA transformer Bitumen road
Road map from Balama to Port of Nacala
Balama
Regulatory approvals q Key regulatory approvals in place, including Mining Concession,
Environmental Licence, Water Licence and Land Access (DUAT) Licence
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q The final graphite concentrate product will be classified into par,cle size classes as requested by poten,al customers and under the Osake Agreement with Chalieco
q The processing plant has been designed with sufficient flexibility to ensure market demand for different par,cle sizes can be met
q Product mix weighted towards -‐100 US mesh product consistent with Syrah’s strategy of targe,ng the high growth Li-‐ion baQery segment
q Posi,ons Syrah for direct exposure to this market segment via a poten,al Spherical Graphite Project
Balama Project flake graphite products
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Products and markeAng: Syrah’s product mix
(1) Average es,mated size distribu,on over the LOM based on Snowden Feasibility Study. Refer to “Balama Feasibility Study and Corporate Presenta,on“ as announced to ASX on 29 May 2015 for relevant assump,ons and qualifica,ons to the conclusions of this study.
(2) Average es,mated produc,on over the first 10 years of the project based on Snowden Feasibility Study. Refer to “Balama Feasibility Study and Corporate Presenta,on“ as announced to ASX on 29 May 2015 for relevant assump,ons and qualifica,ons to the conclusions of this study.
Market Outline
US Mesh µm Average Size Distribution (%)
Expected Production (Kta) Applications
+50 >300 8.5% 30
+80 <300 to >180 12.0% 43
+100 <180 to >150 11.5% 41
-100 <150 to >106 68.0% 241 Spherical graphite (i.e. Li-ion batteries)Recarburiser products
Balama Profile
Traditional uses (e.g. Steelmaking, iron castings, foundries, automotive parts, lubricants etc.)
(2) (1)
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Okake Agreement
q Chalieco is an affiliate company of Chinalco, which is one of the largest aluminum producers in the world
q Syrah has secured a three year Osake Agreement with Chalieco
q Key indica,ve terms of the Osake Agreement include(1):
− Syrah to supply 80,000 tonnes (±10%) of graphite per annum at various size frac,ons (+50, +80, +100 and +150 US mesh)
− Prices will be nego,ated quarterly based on market prices(2)
− Exclusive distribu,on rights in China and Hong Kong only
− Chalieco will source product exclusively from Syrah for distribu,on within China and Hong Kong only
q Status: MOU q One of Japan’s major integrated trading and investment conglomerates q Pre-‐marke,ng of graphite samples for industrial and baQery applica,ons to
customers in Korea and Japan q Close rela,onships with major Li-‐ion baQery producers
q Status: MOU q Global supplier of metallurgical consumables to the steel and iron foundry
industries q MOU for 100,000 to 150,000 tpa of graphite fines for recarburisers q Price of US$1,000/t over an ini,al 5 year period q 2–3 tonne bulk sample currently being prepared for tes,ng
q Status: Advanced Discussions q Exclusive 3 year, marke,ng and osake agreement for ~30,000 tpa in UK and
Con,nental Europe q +50, +80, +100 and -‐100 US mesh material requested at 75% to 99.7% TGC q Commission calculated as a % of selling price and pricing nego,ated quarterly
Major European graphite trader
Advanced discussions & Memoranda of Understanding
(1) Commencement of the key provisions is subject to a condi,on that Syrah gives no,ce of the intended commercial produc,on and the par,es execute a wriQen agreement in respect of maQers arising a|er the date of the agreement which the par,es consider necessary to give effect to the terms and principles set out in the agreement. 13
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Appendix B -‐ PotenAal Future Projects: Spherical Graphite Facility, Recarburiser Products and Vanadium Project
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Market History
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1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Netweight (kg) 62,725.8
0 83,360.1
2 114,791.
3 102,097.
8 262,860.
2 250,535.
6 307,424.
7 408,615.
1 297,517.
8 310,658.
4 Unit Value $366.86 $502.66 $577.92 $596.44 $425.91 $423.40 $404.09 $398.08 $458.22 $461.72
$0.00
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$600.00
$700.00
0.00
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150,000.00
200,000.00
250,000.00
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Qua
nAty in M
etric
Ton
es
Chart : Historical Price&QuanAty movement
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Table : Graphite types, applicaAons and subsAtuAon
ApplicaAon Micro Crystalline
Flake Vein Secondary SyntheAc
Primary SyntheAc
B a Q e r i e s ( a l k a l i n e & Z i n c Carbon)
X X X X
BaQeries (Li-‐ion) X X X
Carbon Brush X X X X
Conduc,ve Coa,ng X X X X
Expandable Graphite X
Foundry Coa,ng X X X
Fric,on Material X X X X X
Fuel Cells X X X
Gaskets&Seals X
Pencils X X X
Plas,cs X X X
Powder Metals X X X
Rerfactory X X X Steel & Iron (Carbon Addi,ve) X X X
Source: Asbury Carbon
Natural Graphite 8%
Synthe,c Graphite electrode
42%
Synthe,c Carbon Fibers 31%
Synthe,c Graphite Blocks
8%
Synthe,c Graphite Others
11%
Chart : Graphite Market
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Products and markeAng: Syrah targeAng high growth markets
q Syrah will target the rising demand for graphite within Li-‐ion baQery applica,ons
− Electric vehicles and energy storage applica,ons are expected to be the key drivers of graphite demand growth
− Approximately 68% of Syrah’s es,mated produc,on is targeted to be -‐100 US mesh or smaller (the graphite used to produce Li-‐ion baQeries)
− Ini,al test work by a leading anode producer has shown that Balama natural graphite anodes demonstrate superior characteris,cs to Chinese natural graphite anodes and a leading synthe,c anode
− Syrah has commenced technical studies in rela,on to the use of its high quality graphite as an input into the produc,on of coated spherical graphite(1)
q Synthe,c graphite has tradi,onally been the major anode material (55%) for Li-‐ion baQeries (natural graphite (45%)) – opportunity exists for Balama coated spherical graphite to displace synthe,c graphite in the Li-‐ion market for projects without an established supply chain
− The use of natural graphite is increasing due to: − Quality improvements (orienta,on proper,es and tap density)
− Lower costs rela,ve to synthe,c subs,tutes
Li-‐ion baLeries
q Recarburiser products are tradi,onally sold to steelmaking and iron cas,ng industries
q Opportunity to displace lower quality recarburisers (e.g. petroleum coke based) with a natural graphite recarburiser produced from the Balama Project
− High carbon content and low impuri,es
− High carbon recovery and solubility in molten metal
− Poten,al to be a long term, consistent source of supply
q Poten,al Spherical Graphite Facility(1) would produce natural graphite recarburisers as a by-‐product of spherical graphite produc,on
Recarburisers
(1) Refer to page 32.
Tesla Powerwall Unit
Tesla Model S
Trial Balama graphite recarburiser briqueLes
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Spherical Graphite Overview
q Spherical graphite is a physically and chemically altered form of natural graphite and is the op,mum product for use in anodes for Li-‐ion baQery applica,ons
− The spherical shape creates a lower specific surface area, which helps reduce the irreversible charge loss that occurs during the first charge cycle
− Well-‐rounded spherules allow for more efficient packaging and increases the tap density and overall volumetric energy capacity of the anode
− Well-‐rounded spherules can also be coated more evenly which adds to the efficiency of the baQery anode
q Coated spherical graphite demand is predicted to increase significantly as the energy storage and electric vehicle markets grow
q Successful produc,on of Li-‐ion baQery grade spherical graphite at Syrah’s pilot plant using -‐100 mesh Balama graphite in November 2014(1)
q Anode producer successfully coated Balama spherical graphite in January 2015(2)
Spherical graphite properAes
(1) Refer to “Syrah produces lithium ion baQery grade spherical graphite“ as announced to ASX on 20 November 2014. (2) Refer to “BaQery anode produced from coated Balama spherical graphite“ as announced to ASX on 14 January 2015.
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Flake graphite mining
Mechanical separaAon (crushing, grinding)
FlotaAon
Drying and bagging
Milling
SpherodisaAon (physical)
PurificaAon (chemical)
CoaAng
Balama Graphite Project
PotenAal Spherical Graphite Facility
Coated spherical graphite process flowchart
Recarburiser by-‐product produced
Purified, coated Balama spherical graphite
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Raw material (-‐100 US mesh graphite)23 micron spherical graphite tpa 25,00016 & 10 micron spherical graphite tpa 25,000
Recovery23 micron spherical graphite (99.95% C) % 50.0%16 micron spherical graphite (99.95% C) % 37.5%10 micron spherical graphite (99.95% C) % 12.5%
Coated spherical graphite product23 micron spherical graphite (99.95% C) tpa 12,50016 micron spherical graphite (99.95% C) tpa 9,37510 micron spherical graphite (99.95% C) tpa 3,125
95% TGC recarburiser by-‐product tpa 25,000
Total initial capital expenditure(2)
23, 16 & 10 micron coated spherical graphite US$m 7395% TGC recarburiser by-‐product US$m 7
80
Operating cash costs (3)
23, 16 & 10 micron coated spherical graphite US$/t product (FOB) 3,200
By-‐product credits -‐ 95% TGC recarburiser (4) US$/t product (FOB) (465)2,735
PotenAal Spherical Graphite Facility(1)
Coated Spherical Graphite producAon provides a potenAal future downstream opAon for direct exposure to the growing Li-‐ion industry
q Following the successful produc,on of coated Balama spherical graphite, an Internal Economic Assessment (IEA) for a Coated Spherical Graphite facility in the United States was conducted and released in June 2015
− The IEA is an internally generated, preliminary assessment which is subject to further feasibility studies
− Spherical Graphite Facility would use Balama -‐100 US mesh graphite output as raw material feed
− Targeted annual produc,on of 25,000 tonnes of coated spherical graphite and 25,000 tonnes of recarburiser by-‐product
− Ini,al es,mated capital expenditure of approximately US$80m
q Syrah has appointed a Chief Technology Advisor in a consultancy role to assist with the implementa,on of a strategy to produce coated spherical graphite for Li-‐ion baQery applica,ons
q Technical work and regulatory approvals due diligence are underway to posi,on Syrah to pursue this opportunity
PotenAal Spherical Graphite Facility Overview
(1) Refer to “Syrah announces Internal Economic Assessment for Coated Spherical Graphite“ as announced to ASX on 18 June 2015 for relevant assump,ons and qualifica,ons to the conclusions of this assessment. Refer to “Cau,onary Statement – Spherical Graphite Internal Economic Assessment” on page 3 of this presenta,on.
(2) Includes a 10% con,ngency. (3) Includes raw material (-‐100 US mesh graphite) input costs at an assumed market price of US$800/t (FOB Port of Nacala) from the Balama Project. (4) A selling price of US$1,000/t FOB has been assumed for 95% TGC recarburiser based on comparable selling prices of high quality recarburisers from a leading Brazilian producer.
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Preliminary operaAonal metrics
Preliminary financial metrics
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Mine life 20 years
Concentrate throughput (2.5% V2O5) 255Ktpa
Recovery
Min. 98% V2O5 58.5%
99.9% V2O5 19.5%
Product
Min. 98% V2O5 3,804tpa
99.9% V2O5 1,245tpa
Development capital US$80m
Total operating costs(3) US$8,250/t
Balama Vanadium Scoping Study(1) q Balama also contains a JORC Code (2004) Compliant
Vanadium Resource comprising 1.15Bt Resources at 0.24% V2O5 for 2.7Mt of contained vanadium(2)
Scoping Study completed by Chalieco supports viability of vanadium at Balama, subject to future successful feasibility study work
q Metallurgical testwork successfully produced a 99.9% V2O5 powder
q Posi,ons Syrah as a poten,al supplier to vanadium redox baQery storage market and steel industry
q Pilot plant work ongoing in prepara,on for future feasibility studies
q Feasibility studies on vanadium will commence a|er successful commissioning of the Balama Graphite Project
(1) Refer to “2014 Vanadium Scoping Study“ as announced to ASX on 30 July 2014 for relevant assump,ons and qualifica,ons rela,ng to the conclusions of this study. Also refer to “Cau,onary Statement – Balama Vanadium Scoping Study” on page 3 of this presenta,on.
(2) Refer to Appendix A for details of the Company’s JORC Compliant Reserves and Resources and Competent Person Statements. (3) Per tonne of product (including both Min. 98% and 99.9% V2O5).
Key Vanadium Scoping Study outcomes
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Appendix C – JORC Mineral Resources & Ore Reserves
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Classification Mt TGC (%) Contained Graphite (Mt)Balama WestProven 20.0 19.2 3.8Probable 2.6 17.5 0.4Subtotal 22.5 19.0 4.3
Balama EastProven – – –Probable 58.8 15.1 8.9Subtotal 58.8 15.1 8.9
TotalProven 20.0 19.2 3.8Probable 61.4 15.2 9.3
A. JORC Mineral Resources & Ore Reserves
Classification Mt TGC (%) Contained Graphite (Mt)Balama WestMeasured 75.0 11.0 8.4Indicated 110.0 8.1 9.1Inferred 460.0 11.0 51.0
Balama EastIndicated 76.0 14.0 11.0Inferred 470.0 10.0 49.0
TotalMeasured 75.0 11.0 8.4Indicated 186.0 11.0 20.1Inferred 930.0 11.0 100.0
Mineral Resources(1)
Ore Reserves(1)
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Balama Graphite (JORC Code 2012) Mineral Resources(2) Balama Vanadium (JORC Code 2004)
Classification Mt V2O5 (%) Contained V2O5 (Mt)Balama WestInferred 568 0.21 1.17
Balama EastInferred 579 0.26 1.49
TotalInferred 1,150 0.24 2.70
(1) Ore Reserves es,mate is as at November 2014 at a 9% TGC cut-‐off; Mineral Resource es,mate at a 3% TGC cut-‐off grade (constrained within a US$1,200 pit shell). Refer to “Syrah finalises Balama Graphite study and declares maiden ore Reserve” as announced to the ASX on 29 May 2015. Refer to page 39 of this announcement for Competent Persons statement.
(2) Balama East mineral resources es,mate is as at May 2013 at a 5% TGC cut-‐off and Balama West mineral resources es,mate is as at January 2013 at a 5% TGC cut-‐off. Refer to “Maiden Balama West Mineral Resource” as announced to the ASX on 23 January 2013 and “Maiden Balama East Resource” as announced to the ASX on 27 May 2013 and the “Cau,onary Statement – Balama Vanadium Scoping Study” on page 3 of this presenta,on. Refer to page 39 of this presenta,on for Competent Persons statement.
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The informa,on in this report that relates to Mineral Resources and Ore Reserves is extracted from the report ,tled “Syrah finalises Balama Graphite study and declares maiden ore reserve” released to the ASX on 29 May 2015 and available to view at www.syrahresources.com.au and for which Competent Person’s consents were obtained. The Competent Person’s consents remain in place for subsequent releases by the Company of the same informa,on in the same form and context, un,l the consent is withdrawn or replaced by a subsequent report and accompanying consent. The Company confirms that it is not aware of any new informa,on or data that materially affects the informa,on included in the original ASX announcement released on 29 May 2015, and in the case of es,mates of Mineral Resources and Ore Reserves, that all material assump,ons and technical parameters underpinning the es,mates in the original ASX announcement con,nue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original ASX announcement. Full details are contained in the ASX release dated 29 May 2015 “Syrah finalises Balama Graphite study and declares maiden ore reserve” available at www.syrahresources.com.au.
Competent person statement – Balama Graphite
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The informa,on in this presenta,on as it relates to geological, geochemical and geophysical explora,on results was compiled by Mr Grant McLatchie MAIG, who is a Competent Person pursuant to the requirements of ASX Lis,ng Rules and the JORC Code (2012) and a Member of the Australian Ins,tute of Geoscien,sts. Mr McLatchie has more than 20 years of experience in the ac,vi,es being reported on and has sufficient exper,se which is relevant to the style of mineralisa,on and type of deposit under considera,on. He consents to the inclusion of this informa,on and context in which it appears in this presenta,on. The informa,on in this report as it relates to mineral processing and metallurgical tes,ng was compiled by Mr Michael T.N. Chan, MAusIMM, who is a Competent Person and General Manager of Project Development at Syrah Resources Ltd and a Member of the Australian Ins,tute of Mining and Metallurgy. Mr Chan has more than 20 years of experience in the ac,vi,es being reported on and has sufficient exper,se which is relevant to the style of mineralisa,on and type of deposit under considera,on and to the ac,vity being undertaken to qualify as a Competent Person as defined in the 2012 Edi,on of the ‘Australasian Code for Repor,ng of Explora,on Results, Mineral Resources and Ore Reserves’. Mr Chan consents to the inclusion of this informa,on in the form and context in which it appears in this presenta,on.
Competent person statement – Balama Vanadium
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Key contacts Tolga Kumova Managing Director Syrah Resources Limited Office contact -‐ +61 3 9670 7264 Mobile contact -‐ +61 421 707 155 Email – [email protected] Office Syrah Resources Limited ASX: SYR ABN 77 125 242 284 Level 9, 356 Collins St Melbourne VIC Phone: +61 3 9670 7264 www.syrahresources.com.au