Syrah Resources Limited (ASX: SYR) secures mining right from the Government of Mozambique to mine graphite and vanadium at Balama Graphite Project in Mozambique until 2038. This news pulled the Syrah shares up by 1.345% which were touching the ground a day back.
Today morning, 27 September 2018, graphite producer Syrah Resources revealed that the executed Balama Operations’ mining agreement has finally been approved by the Administrative Court in Mozambique. The agreement has been affected through Syrah’s wholly owned subsidiary Twigg Exploration and Mining Limitada, operator of Balama graphite project. However, as of now the certificate is still on hold which is reported to be issued on the subsequent payment of the legal fees by the company.
With this approval Syrah Resources seizes long term mining rights, due to expire on 6 December 2018, in respect of graphite and vanadium mining at Balama Operations under the provisions of the applicable laws as enforceable in 2013. Besides corporate tax, the miner is liable to pay 3% of production tax on sales value every quarter.
In exchange of the approval, Mozambique’s government acquired 5% of free equity interest, non-diluting, in subsidiary Twigg. Further, the government approval has come at a heavy cost as the terms provided that the company’s extraordinary benefits derived from Balama operations have to be shared with the government.
As per the terms of Mining Concession, the company has to spend US$15 million on the initiatives taken for the community development. Further, Syrah Resources has given a US$22.5 million parent guarantee against any loss or damage incurred in the event of breach of mining concession. [optin-monster-shortcode id=”wxhmli4jjedneglg1trq”]
Balama is a graphite project located in Mozambique which has recorded first production of high quality natural flake graphite in November 2017. Balama operations include sale and shipment of graphite across the globe including the supply to battery anode producers.
Syrah’s Managing Director & CEO, Shaun Verner stated Balama operations have been in accord to the agreed terms since its start; and by securing the mining agreement with Government of Mozambique, the company’s stakeholders could be more confident as it underpins Syrah Resources to be the world’s premier producer of high quality graphite.
On completing the final regulatory step at Balama Operations, Syrah’s share price edged up by 1.345% to $2.260 on September 2018 (4:22 PM AEST). The stock has seen a performance change of -35.73% over the past one year.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.