Syrah Resources Limited

Official opening of Balama Graphite Operation: Australia-based industrial minerals and technology company, Syrah Resources Limited (ASX: SYR) witnessed its share price moving up by 1.9 per cent on April 13, 2018 after the group announced about inauguration of Balama Graphite Operation in Mozambique, with a capacity to produce quarter of a million tonnes of graphite a year. The project covers around 106 square kilometres of Balama district and 260 kilometres from the Cabo Delgado province, Pemba. The company has set the target of 160,000 tonnes of graphite to produce by end of April and revenue of about US$17 Mn a year when production reaches the peak. Recently, the group proposed several resolutions to their shareholders such as re-election of Mr Jose Caldeira as a director of the company, approval to issue 42,220 fully paid shares to Mr Shaun Verner or his nominee comprising half of Mr Verner’s 2017 short term incentive, and approval of issue of securities under the company’s new Equity Incentive Plan, etc.

On the other hand, JCP Investment Partners Ltd, a substantial holder of the Company changed its substantial holding from 13,717,258 shares with 5.20 per cent of the voting power to 19,080,857 shares with 6.42 per cent of the voting power. On the other hand, UBS Group AG and its related bodies corporate, a substantial holder of SYR changed its holding from 7.39 per cent to 6.38 per cent. Syrah is now focused on the remaining commissioning activities of the fines circuit and further optimisation works. Marketing activities have stepped up to include binding sales agreements with battery anode manufacturers. Syrah has been targeting production of 160,000 - 180,000 tonnes in 2018 and 250,000 - 300,000 tonnes in 2019 of graphite concentrate based on demand scenario.  Meanwhile, SYR stock has fallen 29.28 per cent in past three months as on April 12, 2018 and we give a “Hold” recommendation on the stock at the current price of $ 3.200.


Balama Graphite Plant Site (Source: Company Reports)

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