Syrah Resources Hits Two Major Sales Milestones

  • Nov 12, 2018 AEDT
  • Team Kalkine
Syrah Resources Hits Two Major Sales Milestones

Graphite supplier Syrah Resources flags the accomplishment of two further sales milestones.

In a media release to Australian Securities Exchange, Syrah Resources announced that the company has inked its first binding term sales agreement for coarse flake to China as well as the first sale of 98% fixed carbon grade product has also been achieved. 

Syrah has signed the binding term sale agreement with a manufacturer of expandable graphite, Qingdao Freyr Graphite Co. Ltd, based in Shandong China. Under the terms of agreement, Syrah Resources will sell 6kt of coarse flake natural graphite from Balama to Qingdao Freyr over the period of 12 months.

Managing Director and CEO Shaun Verner stated that Syrah’s product mix includes a substantial volume of coarse flake natural graphite. He added that this contract with Qingdao Freyr represents more than 10% of planned +50 and +80 mesh flake production over the coming year and continues to establish Syrah as a major supplier of natural graphite into China.

Meanwhile the company has achieved the second milestone with the production of 98% fixed carbon grade graphite across all sizes in the flake circuit using standard flotation processes. Subsequent to which, Syrah Resources has secured the first spot sale of 98%FC to Japanese customer.

The company informed that the 98% FC flake produced by other major suppliers needs to undergo chemical purification process which significantly increases the production costs. But due to Syrah’s ability to produce 98% FC through its installed layout without chemical purification, the company enjoys greater commercial opportunity to meet the ongoing customers demand.

Edge over higher selling prices would be another leading opportunity for the company as it expects to gain a price premium reflecting cost differential and value in use. As per the release the advantages of value in use includes reduced acid usage, efficiencies in energy usage and lower environmental footprint.

Mr. Verner stated that Syrah expects growth in pricing premiums to arise through value in use differentials for carbon grade and flake size. He added these developments further cement Syrah’s position as the key global supplier of high quality and purity flake graphite for both the battery and expandable graphite markets within the initial year of operation.

Further, Syrah Resources is leveraging the Balama asset to develop integrated battery and industrial material options – BAM and Vanadium. While announcing an update on market progress, Syrah Resources told that it has become a major exporter of graphite to China with key supply to battery and steel markets. Demand for natural graphite is in growth phase to support the manufacturing of lithium ion batteries and this increasing demand particularly in China is expected to drive greater contract volumes to Syrah.

With this update, there has been slight upside movement in the stock price of Syrah Resources Limited (ASX: SYR). Before concluding the trading session at $1.945, SYR has edged up by 0.258% or 0.005 on 12 November 2018. However, the stock has witnessed a negative performance change of 47.43% over the past one year.


Disclaimer

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.

 

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK