Syrah Resources Limited

Thank you for standing by and welcome to the CIRA Resources Q1 quarterly report update. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will 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 Sean Verner, Managing Director and CEO. Please go ahead.

Good morning and thank you for joining us on the call today. With me is our CFO, Steve Wells. The start of the year has seen extensive corporate and operational activity, and today we'll provide you with an update on that and our markets, including recent important developments in the reset of our balance sheet to position the company for long-term growth and success. Slide three of the presentation we released alongside the report today steps through the key elements of the investment thesis for Syrac. We have a clear advantage in natural graphite and active anode material markets as the integrated first mover outside China. No other company today has both an operating graphite mine and integration with a fully operational commercial scale active anode material facility and is positioned to supply into the US domestic battery manufacturing market. We strongly believe that this will deliver advantage as the market continues to bifurcate into China and ex-China demand pools, particularly considering that other new projects have long lead times and significant capital requirements in front of them. Secondly, the llama is the largest and highest grade natural graphite resource and operation outside China. Its scale and ore quality give us meaningful optionality as demand grows and as ex-China customers prioritise diversification, both for natural graphite feedstock in industrial and battery markets and for integrated active anode material production. Importantly, the equity raising and strategic funding proposals we commenced execution of last month will effectively reset our balance sheet. On a pro forma basis, as at 31 March 2026, Tyra will have up to $178 million in liquidity and no cash interest or principal repayments for three years. This provides a transformational improvement in financial flexibility and stability, setting the company up for the market development and production ramp-up pathway ahead. Lastly, we've strengthened alignment with the US government, both through the Development Finance Corporation and the Department of Energy, with both an immediate and future pathway to direct US government equity holding in Syrah. Proposed loan-to-equity transfer is a significant endorsement of the importance of Syrah's assets in securing critical mineral supply security for US energy and battery supply chain interests. Moving on to slide four now, our critical underpinning values at Zyra are safety and sustainability. As we continue to develop as a leading ex-China critical minerals producer, we are 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 first quarter, performance against our key safety and sustainability metrics was very strong. The health, safety and security of employees and contractors will always remain CSIRO's highest priority. As we strive for zero harm in our operations, we saw our total reportable injury frequency rate remain very low at 0.4 incidents per million hours worked. Our safety focus is underpinned by our work on critical risk hazard management and infield leadership interactions, which are a daily priority for the leadership teams on site. For the full year of 2025, we saw continuing improvement trends in our injury frequency rates across both operations and further refinement of our asset risk profile. These trends and initiatives continued strongly through the first quarter of 2026. SARA's operations are clearly aligned to leading global sustainability in governance standards. Last year, Galama became the first graphite operation globally and the first mining operation in Mozambique to achieve the Initiative for Responsible Mining Assurance, or IRMA50, level of performance for sustainability. SARA has invested a decade towards strengthening our differentiated performance, including a strong safety record, investment in training and developing a highly skilled workforce, ongoing community interaction and development, human rights due diligence and reducing our global warming potential of integrated production to a level significantly below Chinese supply alternatives. 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 operating sustainably and driving continuous improvement. This sustainability focus along with our lower global warming potential 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. Moving to slide five and a more detailed look at our performance in the first quarter. The llama operated on a campaign basis during the quarter and delivered a total production of 24,000 tonnes. It's very pleasing to see that recoveries were above 86% in the quarter and there's been continual improvement over recent quarters. It's worth making a specific mention of the operational performance in the most recent production campaign through March where we produced 16,000 tonnes at 87% recovery whilst maintaining very high product quality. 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, the Bulama operational team has delivered increasingly strong performance. Given three-quarters of Bulama campaign periods now since the restart of operations and lifting of force majeure in mid-2025, Comparisons between quarterly periods demonstrate this continuous improvement and operating comparisons year-on-year will obviously be more relevant from half to onwards. Natural graphite sales in the quarter totaled 20,000 tonnes. The ex-China market for EVs, for batteries and for anode material were in a state of flux for most of the quarter with lower year-on-year EV demand growth, increasing energy storage growth and the head of the ITC decision specifically to the anode material market. This quarter included another great bulk shipment to Indonesia after the outcome of the International Trade Commission hearing, demonstrating continued demand for ex-China feedstock into the anode market. Confirmed demand drives our operating campaigns and our product inventory requirements. We're carefully monitoring the ex-China active unowned material demand position as customers adjust to a post-anti-dumping and countervailing duty case world. Our weighted average sales price for the quarter of US$630 per tonne was down 24% on the same quarter in 2025 when we sold a small volume of residual coarse flake inventory, but it was up 9% on the last quarter of 2025. largely reflecting customer and product mix. Our T1 cost during the operating periods was US$523 FOB per tonne, and freight averaged US$88 per tonne. Importantly, this provides a good basis for lower T1 costs as we target lifting capacity utilisation and increased volumes when demand is supportive. Along with indications of better than historical pricing as ex-China differentials are embedded, positive future cash flow opportunities are clearly subject to demands and threats. The llama has always had the potential to generate good margins at more than 50% capacity utilisation and a price premium is being achieved for ex-China sales compared to domestic and FOB China prices. At Vidalia, during the quarter, the operations team continued to build significant operating experience through small batch production periods and accelerating qualification interactions with multiple customers. We continue to work through customers' highly detailed and extensive qualification requirements, and we are making faster and more positive progress since the end of the anti-dumping countervailing duty case. Albeit, it's obviously slower for conversion to sales than we would have liked. We're also responding to continuing refinements that have been requested by customers with 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 the key technical performance outlined on slide 12 in the appendix of today's slides illustrates. We are absolutely confident that our product performs at the level required for customer consumption at mass production scale. 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 and the accelerating progress in qualification activity since the conclusion of the RTC case demonstrates both that there is domestic demand in the US for near-term sales and the policy environment is expected to remain positive for the next steps in commercial progress. Ongoing impacts arising from China's imposition of export licence controls and the potential for US tariffs and investment policies to favour domestically produced products mean that ex-China demand growth outlook remains positive. This will be important not just for Vidalia but also for continuing growth in development sales of natural graphite anode feedstock. We emphasise here the extensive work of our operating and commercial teams with our investment and development experience demonstrating the considerable time and capital required for others to follow, creating a sustainable lead time advantage for CSIRO. I'll hand over to Steve now to talk about the current financial position.

Thanks, Sean. Good morning, everybody. I'll turn your attention to slide six to cover the cash flow. We started the quarter and the financial year with $77 million In total cash across restricted and unrestricted cash balances, our net cash outflow from operations during the quarter of negative 27 million US dollars included receipts from sales of natural graphite shipments of 11 million US dollars. This was a higher cash outflow than the December 2025 quarter of negative 18 million dollars for several reasons, including receipts of a customer payment for a large volume brake bulk shipment being delayed into April for a March shipment, and certain once-off annual expenses falling due in the quarter, including corporate and Vidalia taxes and insurance and staff incentive payments. In addition, the group incurred legal costs associated with the debt restructuring and equity raise that was announced in March. We also built inventory from our Valama production campaign, leading to a working capital increase at Valama and ongoing expenses from Vidalia through this low production qualification period prior to the remedy phase also impacted by the one soft costs referenced earlier. Cash flow improvement should come as a result of the recent acceleration in the qualification process at Vidalia, which is expected to expedite ramp up in sales in the second half of 2026. At the same time, a critical focus remains on increasing sales from Bulama to facilitate improvement in cash flow in the quarters ahead and bring Bulama to operational cash flow break even as soon as possible. At the end of March, the company had a closing cash balance of US$52 million, of which there was US$9 million of unrestricted cash and US$43 million of restricted cash in both facilities under the various loans. Of the restricted cash, US$3 million is available to fund the Lima operating and capital costs, and restricted cash of US$13 million is available to fund the daily costs. Of note, the $72 million equity raising announced in late March is not captured in these figures given settlement of the transaction occurred in April. The funds from the equity raising and the expected forthcoming disbursement from the DFC loan will be applied to operating and group accounts as per the use of proceeds in the equity raising and strategic proposal presentation. We are also carefully monitoring the impacts of the Middle East conflict on near-term diesel price and availability and freight costs. And with that, I'll hand it back to Sean.