Is Syrah On A Recovery Track?

The Australian-based industrial minerals and technology company Syrah Resources Limited’s (ASX: SYR) shares have increased by 3.63 percent in the last one month from $1.515 on 29 October to $1.570 on 28 November 2018.

Syrah resources was affected by a major setback in the month of October when a fire accident happened in the Primary Classifier section of the Balama process plant. Due to that incident, the production activities were stopped for several weeks. And, to restart the production, the company brought in a new replacement Primary Classifier which was commissioned ahead of schedule. Due to this incident, the company revised its Q4 2018 total production estimate to 30kt to 35kt.

However, the things are looking better for Syrah now as in the month of November, the company announced two sales milestones, one was the Company’s first binding term sales agreement for the coarse flake to China, and another one was the company’s first sale of 98% fixed carbon grade product.

On 8 November 2018, Syrah Resources Ltd announced the successful replacement of Primary Classifier Unit at the Balama Process Plant which was successfully installed and commissioned before the scheduled time. In Q3 2018, the graphite production of the company uplifted by 83% to 38.7kt as compared to the graphite production of Q2 2018. Due to the fire accident at the process plant, a production loss of 30kt is expected in Q4 2018. Further, the Q3 FY18’s product weighted realized price was slightly ahead of Q2 2018. At the end of September quarter, the cash used in operating activities was $21.37 Mn, and the net cash flow from financing activities was $65.25 Mn.

As at 30 September 2018, the company was having Cash on hand of US$100.3 Mn which includes Institutional Placement gross proceeds of US$67.4 million. Fourth quarter net cash outflow is expected to be around US$23.6 million, inclusive of proceeds from the Share Purchase Plan.

In the general market update which was provided by the company in its September quarter report, the company informed that in Jan-Aug 2018 (YTD), global steel production increased by more than 4.8 percent. Further, the global capacity utilization continues to be strong at around 77 percent. The company also informed that in Jan-Aug 2018 (YTD), global passenger electric vehicle sales were just below 1.1 million and China accounted for 51 percent of YTD sales.

Sponsored ad by Kalkine

In the past six months, the share price of the company decreased by 50.63 as on 28 November 2018. SYR’s shares traded at $1.630 (up 3.822% intraday) with a market capitalization of circa $539.46 million as on 29 November 2018.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

Facebook Comments

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here