Syrah Resources : December Quarterly Activities Report Presentation

use only
Q4 2021 Quarterly Activities Report
ersonal
31 January 2022
Shaun Verner - Managing Director & CEO
	-

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

onlyin 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) 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, are inherently subject to usesignificant 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 re ults 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 f t re technical, economic, market, political, social and other conditions. Syrah 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"

ersonaland other similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qu lified 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 i herent uncertainty therein.

Syrah 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, 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 re ponsibility 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.

Investor Relations

Viren Hira

T: [phone]

E: [e-mail]

Media Enquiries

NWR Communications

Nathan Ryan

T: 0420 582 887

E: [e-mail]

Syrah Contact Information

c/- Vistra Australia (Melbourne) Pty Ltd Level 4, 96-100 Albert Road

South Melbourne, VIC 3205 T: [phone]

1. [e-mail]

1. www.syrahresources.com.au

2

Syrah's Value Proposition

only	Electric Vehicles require graphite
● Electric Vehicle ("EV") adoption is gaining momentum
	● Anodes in lithium-ion batteries used in EVs are made of graphite

Graphite is a strategic critical mineral

use	● Global anode supply chain is currently 100% reliant on China
● Graphite is designated as a strategic critical mineral in USA, EU, Japan & Australia
	Balama Graphite Operation: A Tier 1 asset
	● Long life (>50 years1) and high grade (16% TGC2)
ersonal	● Largest integrated natural graphite mine and processing operation globally
● Significant vanadium resource at Balama is a valuable option3
	Vertical Integration in USA
	● Balama to be vertically integrated with AAM4 facility at Vidalia, USA
	● Large scale ex-Asia AAM supply option that is ESG verifiable

1. Life of mine based on current 108Mt Graphite Ore Reserves being depleted at 2Mt throughput per annum. Refer to 2020 Annual Report released to ASX 29 March 2021 for Reserves as at 31 December 2020. All material assumptions underpinning the Reserves and Resource statement in this presentation continue to apply, other than as updated in subsequent ASX releases.

2. TGC = Total graphitic carbon.

3. Scoping study on potential to refine vanadium as per ASX release 30 July 2014.

4. AAM = Active anode material.

Syrah's vision is to be the world's leading supplier of

superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets

3

Syrah's Positive ESG Profile

ersonal use only

	✓ ISO:45001 and ISO:14001 certification at Balama
	✓ ISO:9001 certification at Vidalia
Leading ESG standards	✓ Vidalia expansion project being developed in line with best practice
	health, safety and environmental standards
	✓ Critical Risk Management Framework embedded across the Group
	✓ Sustainability frameworks guided by:
	• Global Reporting Initiative (GRI)
Best practice sustainability frameworks	• United Nations Sustainable Development Goals
	• International Council on Mining and Metals
	✓ Robust Community Development and Stakeholder Engagement Strategy
	✓ Lower carbon emissions footprint (life cycle) of natural versus synthetic
Low carbon footprint	graphite
✓ Independent life cycle assessment (LCA) completed
	✓ Implementing initiatives to lower carbon footprint further
Auditable back to source	✓ Fully integrated by Syrah from mine to customer
✓ Vidalia products will have a single chain of custody back to the source

4

4

Q4 2021: Highlights

ersonal use only

Health and Safety

• Total Recordable Injury Frequency Rate ("TRIFR") of 0.5 for Balama and 0.0 for Vidalia at quarter end

• Positive momentum in EV sales and penetration, a key leading indicator for natural graphite and active anode material ("AAM") demand growth
• Continued strong global EV sales, with 115% growth in 2021, versus 2020, to ~6.2 million units1

	Market	• Global EV sales were more than 800,000 units in December 20211
		• Pace of battery capacity commitments and vertical integration of the EV supply chain is accelerating in the USA
		• China domestic graphite fines price increased through the December 2021 quarter
		• December 2021 quarter production and sales constrained by container shipping market disruption - additional breakbulk shipment option expected to
		materially improve production and sales from the March 2022 quarter
		• 13kt natural graphite produced at 82% recovery and 19kt sold and shipped during the December 2021 quarter
		• Product quality consistent with previous quarters with stable recovery and grade - 89% recovery achieved in the December 2021 month
	Balama Update	• Balama C1 cash costs (FOB Nacala) of US$1,159/t for the December 2021 quarter - Balama C1 cash costs (FOB Nacala) guidance is US$430-470/t
	at a 15kt per month production rate
		• Weighted average sales price increased to US$530/t (CIF) with very strong incremental demand and higher contracting prices
		• Strong sales order book with more than 80kt of natural graphite sales orders for the March 2022 quarter, demonstrating robust underlying demand
		conditions
		• First 10kt spot shipment from Pemba port to China in February 2022, creating additional export option and significantly increasing Balama sales
		• US$79m capital invested in Vidalia2
	Vidalia Update	• Offtake agreement executed with Tesla to supply 8ktpa AAM from Vidalia at a fixed price for an initial term of four years3
	• Detailed engineering on Vidalia's initial expansion ("Vidalia Initial Expansion") ~50% completed
		• Well progressed in the processes to facilitate a final investment decision on the Vidalia Initial Expansion in the near-term
	Corporate	• LCA4 completed, confirming the superior environmental position of Syrah's integrated operations versus Chinese natural and synthetic graphite AAM
	• Quarter end cash balance of US$53m
1.	Source: MarkLines. December 2021 includes Syrah's estimate for EV sales (~29,000 total) in selected European companies.
2.	Includes all capitalised costs associated with Vidalia to 31 December 2021.
3.	Refer to ASX releases from 23 December 2021 and 29 December 2021.
4.	Independent "origin to gate" lifecycle assessment.	5

5