SYR - Syrah Resources

[debtfree]

I have chosen SYR as 1 of my 4 picks in the Tipping Competition for Full CY 2021, only looked at the charts for my picks. Thought I'd post a quick chart recording my thoughts at this time, hope you don't mind.

Last 4 to 5 months price has had good momentum, stronger than XAO and with volume increasing over the last 2 months. This has finally moved the Short term MA above the Long term MA, 1st time in nearly 3 years.

Can it get back to towards the $4.50 level by the end of the year? I don't know but if it does it will be a great return and it's heading in the right direction at the moment.

 

[Dona Ferentes]

Syrah Resources Limited (ASX: SYR) is pleased to announce the decision to restart production at the Balama Graphite Operation in Mozambique.

Production was temporarily suspended at Balama in March 2020 due to impacts of COVID-19, specifically: travel restrictions, limiting the mobility of the Balama workforce; and, weak end user demand due to lockdowns, mobility restrictions and economic uncertainty negatively impacting electric vehicle sales.

(don't mention the plunging price of graphite over the last few years; now turning around)

Three year chart; weekly:

 

[Tropico]

On the way up at the moment.
Broke through my resistance level of $1.21, and hopefully will continue upward.
There is potential that is yet to be realised

 

[Dona Ferentes]

Syrah Resources has executed an offtake agreement with Tesla to supply natural graphite active anode material (AAM) from its production facility in Vidalia, USA.

Tesla will offtake the majority of the proposed initial expansion of AAM production capacity at Vidalia at a fixed price for an initial term of four years commencing from the achievement of a commercial production rate, subject to final qualification.

Tesla also has an option to offtake additional volume from Vidalia subject to Syrah expanding its capacity beyond 10kt per annum AAM.

Syrah said it was advancing commercial and technical engagement with other target customers to develop Vidalia AAM for mass production and secure additional long-term purchase commitments for Vidalia.

 

[Sean K]

Good pick @debtfree

Had to wait till a week to go, but ...

Hopefully it holds up.

 

[qldfrog]

Good pick @debtfree

Had to wait till a week to go, but ...

Hopefully it holds up.

and now in trading halt

 

[JohnDe]

Syrah Resources has executed an offtake agreement with Tesla to supply natural graphite active anode material (AAM) from its production facility in Vidalia, USA.

Tesla will offtake the majority of the proposed initial expansion of AAM production capacity at Vidalia at a fixed price for an initial term of four years commencing from the achievement of a commercial production rate, subject to final qualification.

Tesla also has an option to offtake additional volume from Vidalia subject to Syrah expanding its capacity beyond 10kt per annum AAM.

Syrah said it was advancing commercial and technical engagement with other target customers to develop Vidalia AAM for mass production and secure additional long-term purchase commitments for Vidalia.

Tesla To Close Deal On Battery Graphite With Syrah - Australia

Tesla Inc. has agreed to take the majority of battery-ready graphite from a production facility planned in Louisiana, in a deal with Syrah Resources, an Australian Stock Exchange listed industrial minerals and technology company with its flagship "Balama Graphite" Operation in Mozambique, and a...

www.torquenews.com

 

[investtrader]

The deal with Tesla and strong price movement means this is one of my picks for 2022 comp.

 

[mullokintyre]

I have looked at SYR a number of times, and almost pulled the trigger once.
The problem is that when you look at their past performance, they have a consistent habit of promising a lot and delivering a little.

 

[bk1]

The deal with Tesla

I feel the qualification time is tight and unsure if they can achieve full production run in that time line. Tesla have ran a hard bargain here, bear in mind they asked for an export waiver for chinese spherical graphite recently.

 

[Dona Ferentes]

Capital raising on the way .... Expect $250million.

For the processing plant

 

[Dona Ferentes]

And not helping the share price; the isolation of the mine and its supply routes could be easy pickings.

Syrah has received reports of an insurgent attack at a mine project site near Ancuabe, approximately 200km from Balama in Cabo Delgado province, northern Mozambique. This, with another incident in the same area in recent days, are the first confirmed attacks in the district of Ancuabe. Prior to these incidents there had been a significant improvement in the overall security situation in Cabo Delgado.

The incidents occurred between 30km and 40km from the N1 road, the primary transport route between Balama and both Nacala and Pemba. Syrah and its logistics service provider have taken the precautionary measure of suspending all personnel and logistics movements through the route section until further information is available. Balama mining and processing operations are not currently impacted.

 

[bk1]

Having another shot at the resistance level , maybe this time..

 

[rcw1]

Good morning
SYR: Syrah Resources enters a trading halt pending an announcement about a labour-related operational interruption at Balama Graphite Operation.

Have a very nice day.

Kind regards
rcw1

 

[Dona Ferentes]

Announced are $US2.8 billion ($4.5 billion) in grants from the Biden administration aimed at ramping up onshore production and processing of critical minerals for EV batteries and defence technologies. The US government was working to reduce US reliance on China for critical minerals for his country’s decarbonisation and defence needs.

Syrah won $350 million in grants to expand its natural graphite facility in Vidalia, Louisiana. Syrah’s facility will be the only large-scale natural graphite producer outside China and the first large-scale natural graphite producer in the US.

 

[Dona Ferentes]

Having another shot at the resistance level , maybe this time..

How well did this go down?

Well, it went down! Tough luck, loyal holders

 

[Sdajii]

How well did this go down?
View attachment 156314

Well, it went down! Tough luck, loyal holders
View attachment 156315

I sold out at open. That quarterly was horrendous. They have a brilliant resource but they don't seem able to exploit it effectively. Long term, hey, they may one day get there, but if there was any doubt about the next move in the short term, those convertible notes should have removed them.

 

[rcw1]

Good evening,
SYR recorded a 52-week low on Friday. Be interesting where the SP goes tomorrow (29/05/23) and onwards short term for the rest of the calendar year, anyways.

For mine, research has revealed the following some of which has been subjected to previous posts in this thread:

• changes to Chinese subsidy arrangements and COVID-19 reduced car sales, resulting in large stockpiles of battery minerals building up at factories and ports, particularly in China where Syrah sells most of its natural graphite;
• the company Balama mine which could flood the global market with supply is running at less than 50 % capacity in line with the company's value over volume strategy;
• Ongoing cash burn has prompted the temporary mothballing of its Balama mine in Mozambique;
• According to the Financial Review (28/05/23), the US government has thrown cash at Syrah to help it build a graphite processing plant in Louisiana that will turn Balama’s relatively raw graphite into the “coated spherical graphite” needed for the anodes of lithium-ion batteries. When the Louisiana plant starts commercial production around October, it will be the only place American carmakers can source non-Chinese supplies of coated spherical graphite at commercial scale. Nice one;
• President Joe Biden’s Inflation Reduction Act – with its focus on domestic supply chains – will in effect incentivise US carmakers to buy from Syrah;
• Tesla is signed up to take 8000 of the 11,000 tonnes the Louisiana plant will make each year, while South Korean giant LG has also struck an early-stage deal to buy the Louisiana product, which is expected to fetch between $US5000 ($7700) and $US7000 a tonne. For context, prices for the less refined graphite that Syrah sells to China peaked at just over $US700 a tonne in the final three months of 2022;
• A final investment decision is needed later this year on whether to quadruple the size of the Louisiana plant to 45,000 tonnes a year, an expansion likely to take three years to deliver at a cost of $US539 million;
• Australiansuper has repeatedly backed the company through numerous equity raisings and the issuance of convertible notes. Those convertible notes may well have contributed to SP falling in recent times; and
• Syrah shareholders will vote in July on a resolution that would allow AustralianSuper to convert notes issued in 2019 into shares, thereby increasing AustralianSuper’s stake in the miner from about 17 per cent to almost 30 per cent. If shareholders vote against the resolution, they may avoid the dilution that comes with issuing more stock to AustralianSuper, but Syrah would be forced to repay the debt in cash.

rcw1 is watching this one. Not sure, kindly conduct your own due diligence.
Not holding.

Have a very nice week.
EDIT: change date and swap around paragraphs so that it reads better

Kind regards
rcw1

 

[Dona Ferentes]

and Syrah gets a write-up in the AFR.

Is this beaten down battery stock the next Lynas?

Syrah Resources will this year become the biggest producer of a battery grade critical mineral outside China, but its shares don’t reflect that optimism.

www.afr.com

... Syrah has ... been part of graphite’s problem. Previous management of the company built a massive mine at Balama that threatened to flood the global market with supply. Verner has tried to run a value-over-volume strategy; the record sales volumes produced by his team last year were still less than 50 per cent of Balama’s capacity.

While graphite demand has not been as strong as expected by those who built the mine, Verner says other external factors have proved to be far more favourable than he anticipated when he joined the company.

Most notably, the political embrace of graphite and other “critical minerals” in major economies, which could yet be the making of Syrah.

The US government has helped it build a graphite processing plant in Louisiana that will turn Balama’s relatively raw graphite into the “coated spherical graphite” needed for the anodes of lithium-ion batteries.

When the Louisiana plant starts commercial production around October, it will be the only place American carmakers can source non-Chinese supplies of coated spherical graphite at commercial scale.

President Joe Biden’s Inflation Reduction Act – with its focus on domestic supply chains – will in effect incentivise US carmakers to buy from Syrah....

 

[Garpal Gumnut]

SYR chases the battery story via its graphite mines.

Despite great fundamentals and press its share price heads south on large volume.

Why?

My contra pick ( contra is such an apposite word here ).

Usually there is a monthly uptick before an inevitable.

gg