Syrah Resources Limited

Thank you for standing by and welcome to the Cyber Resources Q4 quarterly report update. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you'll need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Sean Verner, Managing Director and CEO. Please go ahead.

Thank you. Good morning and thanks for joining us on the call today. With me is our CFO, Steve Wells, and our EGM of Strategy and Business Development here in Hero. I'm pleased to report our Bulama operations delivered a solid quarter of campaign production and closed the year out with real momentum. Our commercial team had a busy fourth quarter, meeting good ex-China demand for great bulk shipments of our Bulama vines and solid sales of course product into the global industrial markets. At the same time, the policy and market backdrop is moving into a pivotal period for support of the growth and potential development of our Vidalia anode material business, a period in which there is potential for acceleration of qualification and further commercial activity. Today we'll work through the presentation provided with the quarterly report and update you on the key developments in the quarter. will then be happy to answer any questions at the conclusion of the call. We're turning to slide three and I wanted to remind everyone of our clear and differentiated investment proposition. SARA is the leading integrated natural graphite and active anode material producer outside China. Having deployed significant investment into infrastructure and operating capability, with readiness to immediately increase upstream and downstream supply, providing significant lead time over following projects. Vertical integration from mine through anode delivery to end customer offers a secure source of high-quality, critical graphite material supply outside China. Our unique asset base can be OPEX competitive with China and leading ex-China, and we are well-placed generate strong margins over the long term as operating capacity utilisation increases. Our leading sustainability and governance position, including broad-ranging external assessment and low emissions intensity compared with Chinese products, provides full auditability and traceability from raw material to finished anode. And finally, in response to expected continued growth and regionally specific requirements in our end markets, we have clear expansion opportunities that we can execute in line with the needs of our customers and government stakeholders with support from capital providers. Moving on to slide four now, our critical underpinning values at Syrah are safety and sustainability. And as we continue to develop as a leading ex-China critical minerals producer, we're guided by three core objectives. Being positive for the communities in which we operate being sustainable for the environment and providing secure, high-quality supply for our customers. In the fourth quarter, performance against our key safety and sustainability metrics was very strong. We continue to demonstrate how our people and our local communities are critical to our success. The health and safety and security of employees and contractors will always remain SARA's highest priorities. As we strive for zero harm in our operations, we saw our total recordable injury frequency rate remain very low at 0.9 incidents per million hours worked, a result which any operation globally would be proud of. Our safety focus is underpinned by our work on critical risk hazard management and in-field leadership interactions, which are a daily priority for the leadership teams. For the full year we saw continuing improvement trends in our injury frequency rates across both operations and further refinement of our asset risk profile. I'm also happy to report that in December 2025 we finalised a new community development agreement with Balaama host community and district government representatives. The new agreement extends our community development framework that's been in place since 2017 and commits a further US$5 million from SARA to important social and economic initiatives focused on infrastructure, essential services and sustainable income generation programs. Importantly, the priorities for these projects are determined in conjunction with our local host communities in Cabo Delgado. SARA's operations are clearly aligned with leading global sustainability and governance standards. Last year, BALAMA became the first graphite operation globally and the first mining operation in Mozambique to achieve the Initiative for Responsible Mining Assurance, or UMA50, level of performance for sustainability. This achievement highlights nearly a decade of strengthening our differentiated performance, including a strong safety record investment in training and developing a highly skilled workforce, ongoing community interaction and development, and human rights due diligence. Along with our ISO certifications and external auditing required under our US government funding arrangements, we continue to prioritise health and safety and environmental management systems, confirming our commitment to operating sustainably and driving continuous improvement. Final point I wanted to reiterate here is the Independent Life Cycle Assessment, or LCA, of CSIRO's integrated operations conducted by Minviro on global warming potential. From Palama origin to Vidalia customer gate, global warming potential is estimated at 7.3 kilograms of CO2 equivalent per one kilogram of our nose material produced. which is around 50% lower than equivalent natural graphite from the benchmark supply route in Heilongjiang province in China and 70% below the synthetic graphite benchmark in China. This whole sustainability focus along with the lower global warming potential of our integrated natural graphite anode products relative to other suppliers should provide CSIRO a competitive advantage on these parameters as the most sustainable source of integrated natural graphite anode material available at scale today. On slide five, turning to a more detailed look at our performance in the fourth quarter, total production of Belama was up 34% on the prior quarter to 34,000 tonnes. This result was in part driven by a clear improvement in recovery rates to 76% and good plant availability. It's worth making a specific mention of the operational performance in the most recent production campaign through December, where we produced 16,000 tonnes at 83% recovery whilst maintaining high product quality. This is in line with our best prior operational performance and the team is confident that further improvement at higher throughput for greater cost efficiency is achievable. Since recommencing production after the non-operating period through most of the first half of 2025, it's been great to see the BALAMA operational team delivering high performance and closing out the year on a strong note. As you'll recall, we restarted operations in mid-June 25 and in July we recommenced shipments from BALAMA and subsequently lifted the force majeure declaration that has been in place since December 2024. As a result of campaigns from restart, comparisons with prior to quarterly periods are less meaningful here, given that we're still ramping up operations after an extended outage, but we are demonstrating clear and continuous improvement and operating comparisons will be more relevant over future quarters. Natural graphite sales of 29,000 tonnes were up 21% on the prior quarter. We continue to have demand drive our operating campaigns and product inventory requirements, and we essentially sold everything we produced in the quarter, noting the lead time required support and shipment. This included two further break-off shipments to Indonesia in the quarter, with solid demand evident for ex-China feedstock into the anode market. Our weighted average sales price for the quarter of US$577 per tonne SIF was up 2% on the same quarter last year, but down quarter on quarter on the customer and product mix. Our C1 cost was US$535 FOB per tonne during the operating period and freight averaged US$74 per tonne. Importantly, this all provides a good basis for lower C1 costs as we can lift capacity utilisation and increase volumes. Along with indications of better than historical pricing as ex-China differentials are embedded, positive future cash flow opportunity is clear, subject to demands continuing to increase. The llama has always had potential to generate good margins of greater than 50% capacity utilisation and a price premium is being achieved for ex-China sales compared to domestic and FOB China prices. At Vidalia, the operations team continues to build significant operating experience through small batch production periods and qualification interactions. We continue to work through the highly detailed and extensive qualification requirements and we are making positive progress, albeit obviously slower for conversion to sales than we would like. We're also responding to continuing refinements that have been requested by customers as their own processes and requirements mature in newly developing battery operations and product mixes in the US. Our product's quality and performance is excellent as per the key technical performance outlined on slide 13 in the appendix of today's slides. There is no issue with our product specification or performance and we continue to deal constructively with a highly complex mix of policy, commercial and technical factors. We remain singularly focused on achieving sales as early as possible. but it's clear that greater certainty in the policy and results in the pricing and supply environment, which is expected in the first quarter of 2026, will be critical for the next steps in commercial progress. The removal of the Section 30D consumer tax credits in September 2025 saw a marked reduction in U.S. EV demand in Q4, given sales had been brought forward prior to the change. The growth profile is expected to normalise from there as the broader policy and ADCVD or anti-dumping and countervailing duties case position crystallises throughout this year. This will be important not just for Vidalia but also for Palama's continuing sales growth. So we emphasise that the extensive work of our operating and commercial teams will pay off with our investment and development experience demonstrating considerable time and capital required for others to follow, creating a sustainable lead time advantage for Bulama and Vidalia. I'll hand over to Steve now to talk about the current financial position and interaction with our US government lending system.

Thanks, Sean, and I'll turn your attention to slide six to cover the cash flow for the group. We started the quarter with $87 million in total cash for cost-restricted and unrestricted cash balances. Our cash flow from operations during the quarter of negative $18 million included receipts from sales of natural graphite product shipments of $13 million. Cash outflow was higher than the September 2025 quarter, mainly due to a $4 million partial payment for a break-bulk shipment being delayed into January 2021. for a December shipment and higher advisor costs associated with DOE and DSE loans. In addition, the prior quarter's operating cash flow was also positively affected by the receipt of a $12 million Section 45X US tax credit for Vidalia. We experienced some working capital build-up at Bulama, ongoing working capital draw from Vidalia through this low production qualification period, and increased advisor costs associated with the loans. also noting that we continue to draw on the DSC loan in the quarter. Our clear focus remains on increasing sales from Balaama to facilitate further improvement in the quarters ahead and to bring Balaama to operational cash flow breakeven as soon as possible, as well as completing the qualification process of Adalia to expedite ramp-up and sales. Through this period, we are highly focused on managing the cost addition of both assets. Other movements to call out in this quarter were the $8.5 million disbursement from the DFC loan to fund working and sustaining capital at Bulama, which netted $1.1 million of financing repayments and transaction costs, led to the $7 million net proceeds from financing amount. At the end of December, the group had a closing cash balance of $77 million. Of this closing balance, there is $18 million of unrestricted cash, and $59 million of restricted cash under both loans. Of that restricted cash, $10 million is available to fund Bulama operating and capital costs, and restricted cash of $17 million is available to fund Bedalia costs. In addition to sales, of course, further liquidity of $7 million is available under the current DSC facility for TSF funding purposes and subject to meeting loan terms and conditions. Interest payments on the DSC loan are currently deferred to May 2026, while debt service obligations on the DOE loan are deferred to 2027 under the forbearance agreement SARA has with the Department of Energy. We continue to work with both lenders given the market dynamics as a result of the geopolitical and policy landscape which Sean has referred to, and to the clear strategic nature of the assets and SARA's market conditions as well as the specific loan requirements. which include various events of default and a requirement for further funding by March 1st. This also forms part of the overall strategic advisory process we have previously announced with Macquarie. And with that, I'll hand you back to Sean.