The company has decided to announce a binding term sales agreement with Qingdao Langruite Graphite Co. Ltd., with an additional 12kt at Syrah’s option the Agreement is for a minimum of 48kt of natural graphite from Balama in 2019. The CEO Managing Director Shaun Verner said ‘as a significant supplier of natural graphite into China the company continues to establish itself. across a range of end uses and provides flexibility in product delivery the relationship with Langruite will enable further diversification of Balama graphite sales.
Syrah has developed spot business over 2018 with Langruite, based in Shandong China is a related entity of Qingdao Guangxing Electronic Materials Co. Ltd. Including spherical graphite and refractory materials from their facilities and trading activities, Guangxing is active across all major segments of the graphite market. After the renewal of production, consistently high product quality and significant improvement in graphite recoveries have been achieved. For ongoing production performance, these outcomes provide confidence.
As the world’s largest natural graphite supplier to grow shareholder value the company is well positioned. The global megatrend, the decarbonization of economic growth continues, despite short-term politics and demand for natural graphite is in the growth phase to support the manufacturing of lithium-ion batteries. Syrah has built, commissioned and is now operating the largest natural graphite mine in the world, supply of natural graphite market is in a phase of disruption as Syrah Resources ramps up. Production of spherical products outside of China is strategically important for the EV supply chain.
Syrah Resources Limited (ASX: SYR) has traded down by -5.732% or -$0.090 to trade at $1.480 which is near its 52-week low. The stock has seen the performance change of -29.60% in the last three months and -13.26% in the last week. At the current market price, the market capitalization is of $539.46 million.
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