Mining company Syrah Resources (ASX:SYR) says its Balama graphite operation has produced its first saleable production as it is nearing completion, with budget blown out for the by US$5 million to US$215 million.
The company has inked a sales agreement with a Chinese graphite producer this year for 20,000 tonnes of graphite.
Graphite sales have commenced and initial shipments are heading to Europe, China, the US, India and Brazil, with first cash flows from sales expected to be received in February 2018.
The miner says the graphite prices are lower than the market price for the initial shipments, which the company says will increase.
Cash on hand is US$111.9 million as of December 2017, following an US$87 million capital raise.
Shares in Syrah Resources (ASX:SYR) are trading 1.71 per cent higher at $4.16.