SYR:ASX

Syrah Resources Ltd.

Syrah Resources Ltd. is an Australian resource company that is rapidly progressing its flagship Balama graphite and vanadium project in northern Mozambique, which hosts one of the world's largest resources in both commodities. A mining license was granted in December 2013, and completion of a definitive feasibility study is expected in Q1 2015. The project is ~260km by road west of Pemba, and is accessible by a sealed main road running directly from Pemba Airport. The Port of Nacala is ~460km by road southeast of the project, and is the deepest port in southern Africa.

Expert Comments:

Simon Moores, Mining.com (6/25/15)
"Coated spherical graphite capacity outside the control of Japan, South Korea and China is non-existent in today's market. Therefore, the plan announced by Australia's Syrah Resources Ltd. to build the world's largest coated spherical graphite facility in the U.S. holds the potential to reshape this landscape. . .the internal economic assessment by the company outlines an $80M construction cost and $3,200/t production costs for the coated product. Syrah also aims to improve on the Chinese production methods by using less medium-flake graphite raw material to produce its spherical graphite, at a ratio of 2:1."

"We follow Syrah Resources Ltd., but not because the deposit is particularly interesting in terms of geology or grade. The bottom line is that its Balama graphite and vanadium deposit in Mozambique is so large it could essentially produce all the graphite needed in the world for the next 100 years, according to any reasonable outlook. . .Syrah is taking a measured approach because if it produces as much as it possibly could, it would flood the market. All of these graphite producers and their deposits are unique in metallurgy, and in what it takes to get to the grades that offtakers want. There can't be a cookie-cutter approach from one deposit to the next; each has to be carefully engineered." read more >

E.I.M Capital Managers (6/16/15)
"For the next several years, Syrah Resources Ltd. is likely to hold considerable pricing power because of the size of its deposit and resulting production capability. . .the company has completed a substantial body of work testing the metallurgical properties and characteristics of its graphite. It is in the process of product certification with a range of customers in different market segments. . .the management of the company has demonstrated a capacity to secure the prospects, recognize their potential and manage the tenements to the point of being granted a mining concession."

"Many people have been talking about Syrah Resources Ltd. and its Balama project in Mozambique. The company signed an 80,000 ton offtake deal with Chalieco, a subsidiary of Chinalco, to sell into the aluminum industry. This is a new market for flake graphite that shows that China is looking to lock up foreign raw material. The company also announced preliminary plans to establish two spherical graphite plants in Africa and the U.S., which shows its intention to position itself for supplying a surge in battery production." read more >

Michael Slifirski, Credit Suisse (2/12/15)
"Syrah Resources Ltd. has advised that test work conducted by Japanese graphite anode and lithium ion battery producers indicates that uncoated Balama spherical graphite is of a superior quality than existing alternatives. . .the company's preliminary economic study for two spherical graphite plants is underway, which considers 25 Kt/year plants located in both Mozambique and the United States for a combined production of 50 Kt/year."

Michael Slifirski, Credit Suisse (2/10/15)
"Syrah Resources Ltd. has announced a 3-year binding offtake agreement with Chalieco, (Chinalco subsidiary) for an initial 80 Kt/year graphite at pricing-linked market. . .this formalizes a memo of understanding announced on March 7, 2014 and is strategically very significant in our view as it prices graphite at market (no discount)."

More Expert Comments

Experts Commenting on This Company

Simon Moores, Manager – Benchmark Mineral Intelligence
Vincent Pisani, Senior Resource Analyst – Shaw Stockbroking
Paul Renken, Senior Geologist – VSA Capital
Michael Silver, Chairman & CEO – American Elements
Michael Slifirski – Credit Suisse
Luke Smith, Analyst – Canaccord Genuity

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
 
World class deposit consisting of two commodities - graphite and vanadium
 
High grade, expected low capex and opex
 
Leveraged to the carbon, energy storage and electric vehicle markets
catalyst Calendar
Q2
2015
Project Financing
Q2
2015
Construction Commencement
Syrah Resources Ltd. Content