Syrah Resources Limited

Thank you for standing by and welcome to the SIRA Resources Q2 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 to everyone for joining us on the call today. With me is our CSO, Steve Wells. We'll use the presentation release along with the quarterly report through today's call. We'll start on slide three. The second quarter of 2026 for the global grad science in those material markets still digesting the US International Trade Commission's negative determination. in the anti-dumping and countervailing duties case, amid ongoing demand-side policy uncertainty. Consequently, Syrah's natural graphite production and sales performance was softer than we had initially expected. This policy inertia led to subdued market conditions and price sensitivity with natural graphite feedstock customers during the second quarter, which together with increased ex-China activity from Chinese-operated graphite suppliers negatively impacted sales demand for Palama. Our operations decisions at Palama are informed by confirmed demand signals from the market and with slower than planned inventory drawdown, Syrah's natural graphite production was moderated with the planned production campaign being deferred into the third quarter and now underway. The expansion of Chinese-controlled East Africa finance supply into the ex-China trade is a relatively new dynamic playing out in the seaborne markets. The Chinese privately-held natural graphite operation, which links to and is a strategic direction of Crohn's, Chinese state-owned entities commenced finance exports from Mozambique into the ex-China anode market during the quarter. Under current policy settings, is competing with such supply for ex-China fine supply into Indonesia. The long-term strategic importance of graphite and Syrah's position are positive given that policy support remains critical and expected factor in ex-China markets moving to reduce reliance on Chinese dominated supply. Graphite and anode demand is still expected to grow significantly in the medium term and these materials are essential to downstream industries that generate hundreds of billions of dollars in value per year globally. Although the immediate drive slowed somewhat in Q2, customers are still seeking secure and sustainable supply of Cyrus products over the medium and longer term to ensure these highly valuable industries are less vulnerable to disruption. Meaningful and stable government policy support, both on the supply and demand side, is crucial to developing ex-China supply chains, incentivising greater critical mineral sourcing diversification and growing SARA sales volumes. SARA is very active in highlighting existing supply concentrations and in advocating for policy development. Seeing that development in other critical minerals, rare earths being the most prominent example, the government support is having a clear positive impact on the expansion of capacity and demand outside China. The cost to governments and customers of not proceeding in this manner would be high, demonstrated by IEA analysis in its 2026 Critical Minerals Outlook. estimating that over $300 billion per year of downstream production outside China would be at risk if battery grade graphite trades with China were meaningfully disrupted. Syrah's capacity is key in partnering with customers and governments to build resilient graphite anode materials supply chains. On slide four, turning to an overview of Syrah's performance in the second quarter, At Fidalia, the operations team made very strong progress in Q2, moving through several key qualification milestones and demonstrating very strong product quality performance and production consistency. We continue to build valuable operating experience through more extended production runs and intensive interactions with multiple customers in the final stages of material testing and qualification approvals. Vidalia now has a great foundation for the transition from qualification campaigns to continuous production and ramp-up to commercial operations, subject to the final go-ahead from major customers. We have been working through multiple customers' highly detailed and extensive qualification requirements, and we are making faster and more positive progress. We are also responding to continuing refinements that have been requested by customers as their own processes and requirements mature in sometimes newly developed battery manufacturing operations and product mixes in the US. Our product quality and performance are excellent as the updated technical performance outlined on slide 11 in the appendix of today's presentation illustrates. We are absolutely confident that our anode product meets or surpasses the requirements the use in customers' batteries, and that's been further demonstrated by the resolution of alleged customers' assault as we advised during the quarter. On the natural graphite side, things were more challenging during Q2. As I mentioned earlier, the llama did not produce for most of the quarter, with 2,000 tonnes being produced in completing a Q1 campaign. Natural graphite sales were 7,000 tonnes during the quarter. and our weighted average sales price for the quarter of US$736 per tonne was up 17% on the first quarter of 2026, weighted to a higher proportion of course sales in the sale mix. At the macro level, electric vehicle sales were weaker through the start of 2026, however are recovering now in key markets. Global EV sales grew 4% in the second quarter year-on-year. and this bodes well for improved upstream materials demand in the months ahead. We used this period of ALAMA to deliver ongoing reliability upgrades across critical processing equipment to reduce unplanned downtime risks and to improve future plant availability. ALAMA's C16 costs during the non-operating periods of the quarter were around $4 million per month, largely consistent with the prior quarter. with some incremental variable costs for mining activities in preparation for future campaigns and product logistics for ongoing sales. Ultimately, it is confirmed demand and product inventory position that informs BALAMA's operating requirements. We continue to carefully monitor the ex-China anode material demand position as customers adjust to a post-antidumping case world. and believe that we will see recovery in ex-China feedstock demand this year, even if it's slower than initially expected. We continue to deal constructively with a highly complex mix of policy, commercial and technical factors across natural graphite feedstock and anode material markets. We remain singularly focused on accelerating and increasing sales. The strong progress in anode material qualification activity this quarter demonstrates both that there is domestic demand in the US for new-term sales and that customers still expect the policy environment to develop towards domestic sourcing requirements, facilitating China's commercial progress. Ongoing impacts arising from China's export license controls and the potential for US tariffs and investment policies to favor products produced in the US and allied countries mean that ex-China demand growth remains positive, with timing the unknown factor. We emphasise the extensive work of our operating and commercial teams in this space, 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. Before I hand over to Steve to talk about the financials, I wanted to move to slide five on safety and sustainability performance across the company. 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 second quarter, performance against our key safety and sustainability metrics was very pleasing. The health, safety and security of employees and contractors will always remain SARA's highest priority and in Q2 we saw our total reportable injury frequency rate reach a record low of zero incidents per million hours worked. This is a real credit to our site leaders and every employee and contractor remains focused on safety through the intermittent nature of BALANA's campaign operations and for daily use ramp-ups. Our safety focus is underpinned by our work on critical risk hazard management and infield data shift interactions, which are a daily priority. Congratulations to our teams for this very strong outcome and we are highly motivated to maintain this performance and continue to refine our operational risk profile. SARA's operations are also clearly aligned to leading global sustainability and governance standards. Our Initiative for Responsible Mining Assurance or ERMA 50 level of performance for sustainability and our commitment to external audit and accreditation processes including ISO standards are critical differentiators. We continue to highlight our commitments to operational, environmental and tailings governance compared with other sources of supply, which we are convinced over time will lead to stronger preference for Bulama and Vidalia products. SARA has invested decades towards strengthening this differentiated sustainability performance and in reducing the global warming potential of integrated production to a level significantly below Chinese alternatives. We continue to prioritise health and safety and environmental management systems confirming our commitment to operating sustainably and driving continuous improvement. This makes CSIRA the most sustainable source of integrated natural graphite anode material available at scale today. You can read more about CSIRA's sustainability objectives and performance and progress in the quarterly sustainability report which is released on our website today. And with that, I'll hand over to Steve to talk about our current financial position.

Thanks, Sean, and good morning, everybody. I'll turn your attention to slide six, the kind of cash flow approach for the quarter. We started the quarter with $52 million in total cash across restricted and unrestricted cash balances, which excludes the proceeds from the opening raise announced in March, but which had not yet settled. Net cash outflow from operations during the quarter was negative $19 million, inclusive of $12 million of customer receipts. This was a lower cash outflow than the March 26 quarter of negative $27 million due to lower operating costs in the low-alarm reproduction quarter, increasing working capital and payments for a large break-volt shipment sale in Q1 that was received in Q2. At the end of the second quarter, the company had a closing tax balance of $98 million following the settlement of equity raising earlier in the quarter. Of this closing balance, there was $31 million of unrestricted cash and $67 million of restricted cash under both U.S. government loans. Of the restricted cash, $23 million is available to fund Bulama operating and capital costs, and restricted cash of $18 million is available to fund Bedalia costs. Further, new liquidity is planned to be committed to Syra in the non-binding strategic proposals. After the end of the quarter, our U.S. subsidiary, Syra Technologies, received an $8 million Advanced Manufacturing Production Tax Credit which is a direct cash refund under section 45X of the US Inflation Reduction Act related to a 2025 tax year. The market and policy conditions I experienced in the second quarter were challenging but demonstrated exactly why the multi-element strategic funding proposals were pursued. The development of ex-China demand and capacity in a China-dominated market requires funding, customer and policy support and SARA's deep focus on these elements has been critical in navigating conditions to date and will be into the future. With that I'll hand it back to Sean.