Sep. 17, 2021 - Syrah Resources (“Syrah” or “Company”) advises due to scheduling changes by a shipping services provider, approximately 12kt of natural graphite sales from its Balama Graphite Operation (“Balama”) in Mozambique planned to ship from Nacala in late September 2021 has been delayed to October 2021, highlighting the impact of container shipping market disruption on Balama product shipments. 

Natural graphite sales in the September 2021 quarter, which were already constrained by shipping availability, were expected to be approximately 29kt prior to the scheduling delay and are now expected to be approximately 17kt. Weighted average sales price for the September 2021 quarter is expected to be higher than the June 2021 quarter. 

Syrah expects container shipping constraints impacting its sales and operations to ease through the December 2021 quarter, with additional vessel capacity and container equipment for East Africa being added. The Company continues to work closely with its shipping service providers to urgently secure increased container shipping capacity and meet strong customer orders for the December 2021 quarter. 

Syrah is experiencing strong demand and forward contracting for Balama products, with the Company’s sales order book currently underpinning 45kt of natural graphite sales in the December 2021 quarter, with additional spot sales demand evident. 

Balama is producing high quality products from campaign operations with excellent recovery and costs. Natural graphite production at Balama is expected to be lower in the September 2021 quarter compared to the June 2021 quarter due to container shipping disruption. Operational performance at Balama following the restart decision in February 2021 demonstrates that the Company is well positioned to increase production, while maintaining product quality, recovery and cost focus, to meet customer demand. 

The outlook for electric vehicle (“EV”) and anode demand remains strong with monthly global EV sales at 0.5 million units in August 2021 (over 100% growth pcp), Chinese anode production at ~60kt in August 2021 (over 50% growth pcp) and supportive policy being announced by Governments and industry. 

Syrah’s cash position as at 30 September 2021 is expected to be US$74 million.