Australian equity market ended the day’s trading session in green with S&P/ASX 200 closing 0.7% higher at A$5814.6. Even All Ordinaries finished higher today at A$5871.8. Below are the two major players in the Metals and Mining industry which posted huge gains today:
Syrah Resources Limited (ASX: SYR)
The shares of small-cap mining player, Syrah Resources zoomed by 10.34%, closing the day’s session at A$1.975 with a market capitalization of A$615.05 million and 343.6 million outstanding shares. SYR, one of the top gainers at ASX 200 today, has witnessed a strong performance growth of 16.61% since the start of the new year.
Syrah Resources is Australia’s leading mineral exploration and development company engaged in its flagship Balama Graphite Project in Mozambique. The graphite project is the world’s largest natural graphite mine, also consisting of significant vanadium deposit. The company is currently engaged in its Battery Anode Material (BAM) project in Louisiana, USA.
On 14 January 2019, Syrah Resources announced its commercial production at Balama with 33kt natural graphite production achieved in Q4 2018 and 104kt production for the entire 2018. The company reported average graphite recovery of 70% in QY18 as compared to the previous quarter. On 31 December 2018, the company announced the first production of unpurified spherical graphite at its BAM facility in the USA, completing the installation of 5kt pa milling equipment and achieving planned production levels. On 20 December 2018, the company entered into a sales agreement with Qingdao Langruite Graphite Co. Ltd for a minimum of 80kt of graphite sales from Balama in the current year.
Syrah reported US$100.3 million cash in hand, including US$67.4 million institutional placement receipts, as on 30 September 2018. The net cash outflow stood at US$21.6 million as compared to forecasts of US$17 million. With US$23.6 million forecasted for Q4 2018, the company aims to ensure positive cash flows from Balama operations during Q1 2019.
Orocobre Ltd (ASX: ORE)
Opening the day’s session at A$3.210 on 15 January 2019, the shares of Orocobre Ltd settled at A$3.350, up by 4.037% as compared to the previous close of A$3.220. The company’s stock is trending downward since last six months generating a negative return of 39.93% with YTD return of only 1.58% till date.
Orocobre is the world’s leading lithium carbonate supplier engaged in key operations across Argentina including Olaroz Lithium Facility in Northern Argentina, and Borax Argentina acquired from Rio Tinto in 2012. The company also owns significant interest with JV agreement with Advantage Lithium Corp on Caucheri Project. On 10 January 2019, Orocobre announced successful Phase III drilling completion at the Caucheri JV site with 26 holes explored in Phase II and III.
Orocobre produced an operating Net Profit after Tax of US$1.9 million, down from US$4.6 million in FY17 largely attributed to impairment cost of US$ 8 million of Borax assets, US$1 million M&A expenses and US$1.5 million net losses owing to JV with Advantage Lithium. The Net Assets of the group stood at US$ 502.1 million for FY18 as compared to US$218 million in FY17 due to a private placement to TTC and US$284.1 million retail share entitlement. The exploration and evaluation expenditure of the group stood at US$ 6.5 million in FY18 as compared to US$ 0.5 million in FY17.
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