Syrah Resources’ Stock Climbed up on ASX Post Announcement of its First Production at Battery Anode Material Facility

  • Dec 31, 2018 AEDT
  • Team Kalkine
Syrah Resources’ Stock Climbed up on ASX Post Announcement of its First Production at Battery Anode Material Facility

On December 31, 2018, Syrah Resources Limited (ASX: SYR) has announced that the group has achieved its first production of unpurified spherical graphite at its Battery Anode Material (BAM) facility which is in Louisiana, USA using Balama natural graphite. Syrah Resources Limited (ASX: SYR) is an industrial minerals and technology company which owns and constructed the Balama Graphite Project.

The other key details are:

  • Installation of 5ktpa milling equipment is now completed, and initial production has achieved as planned.
  • The production volumes of Spherical graphite production are to be initially focused on customer qualification and ongoing product development.
  • Installation of purification equipment for batch processing of purified spherical graphite continuing as per plan for purified spherical graphite in Q1 2019.

Syrah Resources Managing Director and CEO Shaun Verner believes that the first production of spherical graphite from Battery Anode Material is a very important milestone for the company, thanks to the dedication of the Syrah team and their contacting partners on site. The company will soon transmit its first unpurified product so that they can start the customer qualification process. This accomplishment is an important step for the company to seize the advantage in establishing a core ex-Asia supply chain position, as the battery manufacturing supply chain co-locates and expands outside Asia.

On December 20, 2018, the company has entered into a binding term sales agreement with Qingdao Langruite Graphite Co. Ltd. The agreement includes a minimum of 48kt of natural graphite from Balama in 2019, with an additional 12kt at Syrah’s option.

Quarterly Activities: The company has achieved production of 38.7kt in Q3 FY18 which implies a growth of 83% versus Q2. Moreover, the group sold 20kt in Q3FY18, total 36kt in 9M FY18. In Q3, the product weighted realized price slightly ahead of Q2 FY18, with the range of prices received driven by grade, flake size, qualification shipments, product mix, market mix and China domestic versus ex China pricing.

The company has perpetuated Cash on hand of US$100.3 million. The company is anticipating that fourth-quarter net cash outflow will be around US$23.6 Million. The company is also anticipating that positive cash flows from operations at Battery Anode Material (BAM) facility during Q1 2019.

We will now look at today’s performance of SYR. On December 31, 2018, Syrah Resources Limited ended the session on the positive note as the stock price has settled at A$1.505 per share which implies the rise of A$0.060 per share or 4.152%. The market capitalization of the company stood at circa $496.51 Million. The stock price of the company is trading towards the lower range. Let us now see how the stock has been performing from the past few months. In the time span of the previous six and three months, the stock delivered the returns of -48.21% and -37.17%, respectively. However, during the last one month, SYR delivered the return of -7.96%.


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