Feb. 1, 2020 - Graphite miner Syrah Resources reported that 15,000 t of flake graphite was produced at its Balama project, in Mozambique, as production cuts took effect.
The December quarter production was down significantly from the 45,000 t produced in the September quarter, as Syrah responded to the sudden and material reduction in prices observed during the third quarter of last year.
The company also cut staff numbers at its Balama project, while also making executive management cuts.
Syrah told shareholders that the cost reduction and production moderation to date had been executed with the option retained, to react promptly to improved market demand.
Meanwhile, flake graphite sales volumes for the quarter under review reached 17,000 t, slightly higher than the production volumes, as a result of a draw-down of inventory.
Syrah noted that finished product inventory at the quarter end stood at 14,000 t, a significant reduction compared with the 31,000 t in the previous corresponding period, positioning the Balama project for prevailing demand to drive production volumes through 2020.
Syrah has previously said that production volumes for 2020 would be dependent on market conditions, with the miner currently aiming at a target of between 120,000 t and 150,000 t for the full year.