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Syrah suspends Balama operations

Graphite producer Syrah Resources says it has temporarily shut down its Balama operation following the introduction of various measures by the government of Mozambique to deal with the coronavirus.
Syrah suspends Balama operations Syrah suspends Balama operations Syrah suspends Balama operations Syrah suspends Balama operations Syrah suspends Balama operations

Syrah Resources is turning the lights off at Balama for the time being

The timeframe of the shutdown is unknown, with the government measures including suspension of all inbound travel visa operations and mandating 14-day self-quarantine for all international arrivals, as well as domestic travel restrictions.

However, Syrah has also sought to reassure the market that it's well-positioned to ride out the issue.

"Syrah continues to expect its end of quarter cash balance to be broadly aligned to existing guidance of US$64.6 million," the company said.

"(Syrah) believes this level of liquidity and the recently implemented companywide cost restructure positions the company well to manage an extended period of uncertainty."

Cash outflows in the current quarter were estimated at about $16 million back in January, with the company also saying at the time "further cash preservations strategies" were available.

Shares in Syrah were down 2% to A25c in early trade, capitalising the company at $94 million.