Syrah Resources saw an increase in graphite production and sales during the December quarter, driven by a recovery at its Balama operation. The company produced 34,000 tonnes of natural graphite at Balama in Mozambique, a 34 per cent increase compared to the September quarter. This boost was attributed to improved recovery rates and enhanced product quality. Syrah Resources is an industrial minerals and technology company with its flagship Balama Graphite Operation in Mozambique. The company also produces active anode material (AAM) at its Vidalia facility in Louisiana, USA.
Sales volumes also increased, rising 21 per cent to 29,000 tonnes. These sales were achieved at a weighted average price of $US577 per tonne. Syrah reported that its operations included large-volume break-bulk shipments to Indonesia, as well as container shipments to customers located outside of China. Meanwhile, production at the Vidalia active anode material facility in the US remained limited to testing activities as customer qualification processes are ongoing.
At the end of the quarter, Syrah Resources held $US77 million in cash, which includes $US18 million of unrestricted cash. The company is currently evaluating various partnering, investment, and loan restructuring options. These measures are being considered to bolster the company’s liquidity and to support its overall strategic position in the market.
Syrah also highlighted the evolving policy landscape for battery materials, noting that final decisions from the US regarding anti-dumping and countervailing duties on Chinese anode material imports are expected during the March quarter. Preliminary findings suggest potential duties exceeding 100 per cent. The company further noted that Chinese export controls on graphite and battery materials are contributing to increased supply chain instability outside of China.
