SYRAH RESOURCES LTD.
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Syrah Resources announces Q4 activities report
release time :2020-02-01 15:01:57 page view:129

Feb. 1, 2020 - Production of 15kt flake graphite during the quarter (September quarter: 45kt). Production was moderated for Q4 2019 in response to sudden and material reduction in prices observed in Q3 2019. 


A companywide restructure was initiated during the quarter in conjunction with moderation of production. Restructure on track to achieve target of 20% to 25% cost reduction (at 15kt per month production rate), cost reductions of approximately 15% implemented and realised from 1 January 2020. 


The cost restructure and production moderation to date has been executed with optionality retained to react promptly to improved market demand. Further cash preservation strategies available if the market imbalance observed in H2 2019 is prolonged. 


Graphite sold and shipped of 17kt (September quarter: 45kt). Finished product inventory reduced to 14kt, a significant reduction compared to 31kt a year prior, positioning Balama for prevailing demand to drive production volume. 


Weighted average selling price (CIF) of US$458/t (September quarter: US$391/t), increase versus prior quarter predominately due to product mix and geographic mix. 


Signs of inventory drawdown and price stabilisation evident from late in Q4 2019 due to reduced Balama production and seasonal Chinese production closures. 


Underlying thematic of decarbonisation of the transport sector via lithium ion battery powered EVs continues to gain momentum, with significant ongoing commitments by EV supply chain participants during the quarter. 


First purified spherical graphite produced from Vidalia, with purity greater than 99.95% achieved. 


Proceeds of A$55.8m million from Convertible Note received. Cash balance at 31 December 2019 US$80.6m versus forecast of US$78.0m, positive variance primarily due to higher than forecast VAT recoveries.

SYRAH RESOURCES LTD.

Address: Ground Floor, 10 Kings Park Road Melbourne VIC 3000-Australia Postal Code: 6005 Website: http://www.syrahresources.com.au

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