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Syrah Resources LimitedBalama Graphite and Vanadium project
A rare multi-generational opportunity for sustainable development. Image: Core from Ativa Zone being logged at Balama
Image: Core from Ativa Zone being logged at Balama
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Australian Stock Exchange listed, foreign investment participation permittedHead office based in MelbourneMarket capitalisation (undiluted) of A$584 million 25/3/14
162,385,614 shares on issue$37m cash on hand at 31 December 2013Directors’ direct and indirect interests total 29% of
current shares on issue
Overview – Syrah resources
Tom EadieNon-Executive Chairman
Twenty years experience within the junior resources sector and at technical to executive levels with major mining cos Past board member of Royalco Resources Ltd, the AusIMM and the Australian Mineral Industry Research Association Currently also the Executive Chairman of Copper Strike
Paul KehoeManaging Director
Accountant & geologist - extensive corporate finance and restructuring with PricewaterhouseCoopers and Grant Thornton Worked with a group of ASX listed resource companies, performing business development / geology roles Appointed Managing Director of Syrah in December 2011
Tolga KumovaExecutive Director
15 years experience in stockbroking, corporate finance and corporate restructuring Specialised in initial Public Offerings and capital requirements of resources focussed companies
Rhett BransNon- Executive Director
Operated a consultancy providing project management services to the mining Industry for the past 20 years More than 35 years experience in the design and construction of mineral processing facilities Extensive African experience (Perseus Mining and Tiger Resources)
Owen CavanoughChief Operating Officer
Extensive experience in African mineral project development and infrastructure planning/construction, as well as government liaison
Previous roles include Project Manager for Mineral Deposits, infrastructure services for Melbourne Docklands and various projects for Roche Brothers
Dinis NapidoCountry Manager
Geologist and MBA – 25 years as an exploration geologist and owner of a consulting company In depth knowledge of the mining industry in Mozambique, including policies and regulations
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Board of Directors and Management Team
Tanzania
DemocraticRepublicof the Congo
Angola
Namibia
Botswana
South Africa
Lesotho
Swaziland
Zambia
Madagascar
Malawi
Kenya
Uganda
Mozambique
Rwanda
Burundi
Tanzania HM
Nachingwea
Wembere
Shikula
Sasare
Lunga
Sena
Mavuzi
Ngamiland
Balama
Zimbabwe
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Syrah Project Locations
The Project
Inferred Resource 1.15 billion tonnes @ 10.2% TGC and 0.23% V2O5 High grade zones 382 million tonnes @ 17.0% graphite & 0.43% V2O5
(includes Mepiche, Ativa and Mualia Zones)
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Continuous Graphite Exposure
Mt Nassilala
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The Balama Resource: Incredibly Large & Versatile
Balama Project contains over 1.15Bt of graphite resource at 10.2% TGC(1) and 0.23% V2O5
Contained graphite of the Balama Project of 117Mt
– Exceeds the rest of the world’s reserves of graphite(2)
Considered one of the larger vanadium deposits globally with contained vanadium in resources of 2.7Mt
Approximately 6 times the size of South Africa’s Rhovan deposit, the world’s largest operating vanadium deposit
(1) TGS = Total Graphitic Carbon.(2) Calculated by USGS (Source: Mineral Commodities Summaries 2012—USGS).
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Resources Update
(1) HM = Heavy Minerals.
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November 2011Acquisition of Southeast Africa exploration portfolio—including the Balama Project
June 2012Drilling confirms high grade coarse flake graphite at Balama and indicates northern extension
July 2012Drilling at West Balama confirms continuous mineralisation
June 2013Balama Scoping Study completed
January 2013Maiden Balama West Resource
May 2013Maiden Balama
East Resource
June 2013Substantial
infrastructureprogress
regarding fast tracking project development
March 2012Initial Balamametallurgical testwork indicates potential for95%+ graphite concentrate
August 2012Assays confirm high grade graphite and vanadium at Balama West
September 2012Assays confirm shallow high grade deposit at BalamaWest—concentrate grade upgraded to 97%
October 2012Institutional equity placement raises ~A$16m to fund ongoing Balama drilling, Balama Scoping Study and Feasibility Studies and exploration at other African projectsFi
nanc
ing
Infr
astr
uctu
reGe
nera
lDr
illin
g
April 2012Institutional and sophisticated investors equity placement raises ~A$6m to fund ongoing Balama drilling
December 2011Institutional and sophisticated investors equity placement raises ~A$2.1m to complete acquisition of the African tenement package of Jacana Resources Limited
December 2012Sterilisation drilling undertaken to support site layout planning for infrastructure
1Q CY12 2Q CY12 3Q CY12 4Q CY12 1Q CY13 2Q CY13 3Q CY13 4Q CY13 1Q CY14
3Q 4Q 2013 Financing options reviewed and progressed Marketing studies progressed Offtake discussions initiated Briefings and marketing trips to funds and new investors A$35 million equity raising
3Q 4Q 2013 Mining License granted Pre-construction activities underway Water license secured Metallurgical testwork expanded Positive Vanadium metallurgy
3Q - 4Q 2013 Resource infill drilling continued Maiden inferred and indicated resource
announced for Ativa
3Q 4Q 2013 Discussions with equipment manufacturers. Bulk samples
taken to prepare marketing samples Site surveyed for plant and infrastructure locations Exploration camp expanded for construction
Exploration/Development History
The Economic Assessment study, undertaken by Snowden Mining Industry Consultants, has delivered and confirmed an exceptionally robust financial outlook for the Balama project, based upon 1,200,000tpa process plant throughput
− Low capital cost of US$87 million (graphite only), Mine gate cost of US$95/t, FOB costs ofUS$168/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
Favorable infrastructure help strong project economics - water, roads, power, port
Only 1.2 Mtpa of mining required to produce 220,000 tpa of graphite concentrates
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Economic Assessment Results
Metallurgical test work has been conducted on graphite by Mintek (South Africa) and GZRINM (China)
Simple graphite metallurgy via flotation achieved high grade concentrate (96-98% TGC) and high recovery (>92%)
Low levels of ash, volatile, moisture and sulphur
Flowsheet optimisation completed by GZRINM
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ORE
Crushing
HPGR
Flotation
ROD Mill
Flotation
Graphite CONC
Graphite CONC
WHIMS
Ball Mill Vanadium CONC
Flotation
Vanadium CONC
Metallurgy – Graphite
Metallurgical test work ( concentration and V2O5 chemical processing) has been conducted by GZRINM
Initial test work indicates that high grade concentrate can be produced by simple magnetic separation and flotation with high recovery achieved
Preliminary V2O5 hydrometallurgical test work indicates mature technology is amenable to processing of Balama V concentrate
Leaching efficiency in excess of 85% and precipitation of >97% is achievable
Potential to sell a concentrate or further refinedvalue add smelting to vanadium pentoxide flake
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Vanadium CONC(V205>2.5%)
Agglomeration
Soda Bake
Alkaline Leach
V-Riched Liq Leached Residue
Impurity Removal Waste Pond
V Precipitation
Calcination
Vanadium Pentoxide>98%
Metallurgy – Vanadium work progressing wellScoping study commissioned, due Q2 2014
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Q1 CY14 Q2 CY14 Q3 CY14 Q4 CY14 Q1 CY14 Q2 CY15 2Q CY15
Q4 2013Feasibility study released with exceptionally robust numbers, a simple plant with correspondingly low capex and quick build time
Q1 2014Pre-construction crew onsite at Balama, preparing for construction phase
Fina
ncin
gIn
fras
truc
ture
Feas
ibili
tyPh
ase
Q1 2014Discussions with financiers, offtakers, existing investors and new investors with the expectation of finalising in Q2 2014
Q3 2014Construction commences
Q1 2015Commissioning and commencement of Production
Pre-construction Construction Commissioning Production
Q2 2014 Construction Begins Equipment ordered Earthworks and infrastructure completed by December 2014 Plant facilities completed by December 2014 Mine prepared for production
Q1 2015Commissioning from December 2014 with a three month period to ramp up processing plant
Our Vision of the Next 15 Months to Production
Located within close proximity of deep water port facilities at Pemba (~240km)− Existing capacity confirmed by CFM with planned new port providing opportunity to grow Main road connects Project to Pemba Port− Sealed, well maintained road to Montepuez (~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 an appropriate allocation for Syrah licensed already Region currently being connected to the National Power Grid − Power lines complete between Balama town and Montepuez. Syrah has commissioned a
spur line to the mine site, to be complete in Q2 2014
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Pemba Port Road: Pemba to Balama Chipembe Dam Power Lines near Balama
Key Infrastructure
Infrastructure
− Water bores drilled for use in neighbouring villages− 4 new bores planned for 2014 in the local villages located at
the Primary Schools
Strong supporter of local economies
− Large employer of local labour and developing training programmes to develop a local indigenous skilled workforce
− Actively pre-training the local workforce to enable participation in the upcoming construction phase
Business plans under development to integrate local people in the Balama supply chain
- Food production, Integrated agricultural development model- Bulk bag production, Balama will need a starting capacity of
600 One Tonne bulk bags daily
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Community Development
Market Analysis
Natural Graphite Consumption by Sectors 2011
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Source: Industrial Minerals Graphite Report 2012.
Refractories, Foundries, Crucible
37%
Metallurgy29%
Parts and Components11%
Lubricants8%
Batteries8%
Others7%
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Li-ion Batteries (EV, HEV, PHEV)
Fuel Cells
Expandable graphite
Pebble Bed nuclear reactors
Graphene
New Markets for Graphite Estimations for Graphite Market Average 3.3% per year growth by 2016
Average 8.8% per year growth for Batteries
Additional 1.4 million tonnes demand by 2020
Source : Roskill Graphite Report 2012.
Graphite Market
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Global Graphite Demand (k tonnes)
Source : USGS and Industrial Metals Magazine.
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
E
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Growth with Batteries (9%) Growth w/o Batteries (3%)
2.5Mtpa+
Up to 1.5Mtpa
Demand Forecasts
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Graphite Market Natural Graphite Synthetic Graphite
US$13 billion Market
Carbon Market Petroleum Coke Green Petroleum Coke Calcined Petroleum Coke Needle coke/Anode Grade Petroleum Coke
US$24 billion Market
Product Annual Consumption
Calcined Petroleum Coke 7 million tonnes
Anodes For Aluminum 13 million tonnes
Others **includes recarburisers for steel, electrodes for electric arc furnaces
50 million tonnes
Natural Graphite
8%
Synthetic Graphite Electrode
42%
Synthetic Carbon
31%
Synthetic Graphite
Blocks8%
Synthetic Graphite Others
11%
Alternative Markets
Opportunities for Syrah Upgrade to battery grade graphite
Smelt / upgrade vanadium concentrate to high grade V2O5
Opportunities for Others Brake linings
Lubricants
Refractory bricks
Battery manufacturing
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Opportunities for Mozambique Value Add
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2012 (85,000 tonnes)
HSLA Steel60%
Special Steel30%
Super Alloys/Titanium Alloys3%
Chemicals3%
Cast Iron2%
Energy Storage1% Stainless Steel
1% V Metal0%
Vanadium Consumption
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Source: Merchant Research and Consulting.
Global Vanadium Production in 2012
China36.5%
South Africa34.9%
Russia25.4%
Other Countries3.2%
Vanadium Production
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Source: Merchant Research and Consulting.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tonn
es V
anad
ium
(Met
ric)
Consumption Production
Tight vanadium supply/demand balance forecast over the next five years expected to be driven by strengthening steel demand and China moving to grade 3 rebar
Demand for energy storage is further adding to the vanadium supply pressure significantly in the coming years
Global Vanadium Supply and Demand Forecast
Mozambique - Mining for a sustainable future
Thank you.
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