Commercial Production Started at Syrah’s Balama Graphite Project

0
182
Commercial production started at Syrah’s Balama Graphite Project

Syrah Resources Limited (ASX:SYR) is a metal and mining company based in Melbourne, Australia with its assets located in Mozambique, Africa and Louisiana, USA. The company focusses on extracting graphite through its world’s largest natural graphite mine, the Balama Graphite Project (Balama) in Mozambique as well as the Battery Anode Material (BAM) project in Louisiana, USA. Both the projects are exposed to the high growth lithium-ion battery.

The Balama Graphite Project started its operations at the beginning of 2018 with sales and shipments to customers located globally including the battery anode producers. It has a nameplate capacity of 350ktpa, and it contains a significant by-product, the Vanadium Resource. It caters the traditional industrial graphite markets and emerging technology markets

SYR’s Battery Anode Material project, with an installed capacity of 5ktpa, has achieved its first production of spherical graphite in December 2018 as reported by the company on 31 December 2018.

Today, the company has announced its commercial production at the Balama Graphite Project. The company has met the criteria laid down by the Board to achieve commercial production stated in the 2017 Annual Report.

The company has performí in line with its updated guidance of production of 33kt natural graphite in 4Q 2018 with the full year 2018 natural graphite production of 104kt. The company has achieved an average graphite recovery of 70% in 4Q 2018 which was 17% higher than the average graphite recovered in the third quarter of 2018.

The company will be reporting all the related revenues and operating costs to its Income Statement with effect from 1 January 2019. SYR will provide further details of the performance of 4Q 2018 in its Quarterly Activities Report. The Report is expected to be published on 30 January 2019 which was earlier scheduled for 24 January 2018.

As per the management, the company has achieved a new milestone with the commercial production being started at the Balama Graphite Project. It reflects a significant improvement in production consistency along with a growth of 17% in recovery rate. Further, the company plans to implement further operational improvements in the ongoing ramp up, to bring recoveries in line with its medium-term and longer-term targets.

On 20 December 2018, SYR entered into a binding sale agreement with Qingdao Langruite Graphite for the sale of 48kt of natural graphite from Balama with SYR’s option of additional 12kt of natural graphite. Qingdao Langruite Graphite is a China-based metal and mining company with active segments of the graphite market including spherical graphite and refractory materials.

Looking at the Syrah Resources Limited’s stock performance and the return it has posted over the last few months, the stock has generated a negative return of 61.00% during the past 1 year. The shares settled at $1.790 (as on 14 January 2019) with a surge of 4.07% during the day’s performance. The company has ~343.6 million shares outstanding with the market cap of circa $591 million. Its 52-week high and low are marked at $4.880 and $1.360 respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.