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Balama graphite up and running

Six years after acquisition and following hundreds of millions of dollars being raised and spent, graphite heavyweight Syrah Resources (ASX: SYR) has produced its first saleable product from the Balama project in Mozambique.

Michael Quinn

Energy Minerals > Events-coverage

Balama graphite up and running

Six years after acquisition and following hundreds of millions of dollars being raised and spent, graphite heavyweight Syrah Resources (ASX: SYR) has produced its first saleable product from the Balama project in Mozambique.

Michael Quinn

Balama graphite up and running

Syrah Resources' Balama now producing saleable graphite

The company said first cash receipts were expected in early 2018 with production of 160,000-to-180,000 tonnes targeted in 2018.

Syrah expects Balama to be cashflow positive in the first half of next year, with production to reach 250,000-300,000t in 2019.

Credit Suisse, which has been a strong backer of Syrah - including underwriting a A$194 million raising in mid-2016 that issued new shares at $6.05 each - recently modelled earnings (EBITDA) of US$74 million in 2018 and $167 million in 2019.

Syrah acquired the project in late 2011 and has since raised more than A$570 million in equity.

Shares in Syrah were trading at less than 10c back in 2011 prior to Balama's acquisition and emergence.

Syrah's shares today were up 1% to A$4.45 in midday trade, capitalising the company at $1.3 billion. 

 

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