Is Syrah Resources (SYR) a key graphite supplier?

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Question asked 25/06/2022

Is Syrah Resources (SYR) a key graphite supplier?

Thanks for taking my question! Best regards, SYR (SYRAH Resources Ltd) owns the largest integrated natural graphite mine and processing operation globally. It is also building a large scale ex-Asia AAM supply facility at Vidalia, USA. I understand that there is security concern with its Balama Mine in Mozambique. Is SYR considered as one of the key suppliers of Graphite, and a good medium to long term investment. Thanks!

Answer

Hi Peter,

Only 2-months ago SYR received initial approval for a $US107m loan from the US Dept. of Energy (DOE) to help build the expansion phase of its Vidalia active anode material facility in Louisiana. At the end of 2021 SYR signed an offtake agreement with Tesla to supply the car maker with the majority of the natural graphite processed from the abovementioned yet-to-be-built facility in the US

Also, the company began production at its Balama Mine in Mozambique in late 2017 but as you say security concerns have led to production constraints – nothing new, Australian miners have experienced volatility around mines in Africa for decades and it looks unlikely to end anytime soon.

We believe the US story in particular makes the $830mn miner a definite prospect to become a key supplier of Graphite moving forward but competition is building globally as EV technology evolves, there are no certainties but it looks exciting.

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Syrah Resources (SYR)

LAST UPDATED 24/06/2022 15:47

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