Syrah Resources Limited (ASX: SYR) is an industrial minerals and technology company based in Melbourne, owning the Balama Graphite Project. The project is in Mozambique and is a high-grade asset with a long-life (50 years). Globally, it is the largest mine of graphite (in its natural state). In 2018, operations at Balama began and the company paced up the production. The nameplate capacity was improved to 350ktpa over time.
The Balama Project (Source: Company’s report)
Currently, the company is developing its BAM project in Louisiana. SYR’s strategy is to produce and begin qualification of its Battery Anode Material products. This would create a central ex-Asia battery supply chain spot for the company. As Graphite is a key material for battery anodes, SYR’s natural graphite and BAM project has exposure to high growth lithium-ion battery markets.
Graphite statistics (Source: Company’s report)
On 27th May 2019, UBS Group AG and its related bodies corporate became a substantial holder of the company. The Group owns 24,540,349 securities with a 7.13% voting power.
Besides, Lisa Bahash, director of the company, has acquired 400,000 Unlisted options, exercisable at $2.89 and expiring on 16th July 2021. The unlisted options issue was agreed by SYR’s stakeholders at its Annual General Meeting, which was held on 24th May 2019.
Shaun Verner, another director of the company, held an indirect interest through Montaraqi Advisory Pty Ltd and ATF Thomas Louella Family Trust. He has indirectly acquired 180,470 Fully paid ordinary shares and 217,558 Unlisted performance rights, effective 28th May 2019.
After the change, the indirect securities held are 229.417 Fully paid ordinary shares and 311,532 Unlisted performance rights. The direct securities remain same at 31,284 Fully paid ordinary shares, 121,773 Unlisted performance rights and 1,000,000 Unlisted options (exercisable at $4.30). This was approved by SYR’s shareholders at its AGM.
Some of the highlights of company’s AGM presentation:
- The company is at the early stage of an attractive 5-year strategic growth plan. This includes the expansion and diversification of the Balama Graphite Operation, BAM Project and the Vanadium Project.
- The focus for 2019 is on maintaining its balance strength.
- The company recorded a health and safety record with TRIFR of 0.3 (as on 31st December 2018).
- In May 2018, it was granted an accreditation in ISO 14001:2015 & OHSAS 18001:2007.
- The Female employment at Balama was approximately 19%, though the 2018 target was 15%.
Region expanse for SYR’s natural spherical graphite (Source: Company’s website)
Share Price Information:
The market capitalisation of the company is $383.89 million. The stock settled the day’s trade at A$1.265, up by 13.45% on ASX as on 30th May. In the past six months, it has provided a negative return of 31.60%. Its YTD return stands at negative 27.36%.
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