Syrah Resources releases June quarterly and cashflow report

2019-07-17

Balama Graphite Operation (Balama)

1. Total Recordable Injury Frequency Rate (TRIFR) of 0.3 as at the end of the quarter.

2. Produced 44kt natural flake graphite, 8% lower than Q1 due primarily to minor equipment issues.

3. H1 2019 C1 operating cash cost1of production US$567/t. Higher than planned due to lower production volume.

4. ISO:45001 certification and ISO:14001 re-certification achieved.

Sales and Marketing

1. Sold 53kt versus 48kt in Q1 2019 through continued improvement in contract volume and logistics.

2. Weighted average graphite price achieved of US$457/t (CIF), down from US$469/t in Q1 2019 due primarily to Chinese fines pricing and lower than planned coarse flake production.

Battery Anode Material (BAM) Project

1. Unpurified spherical graphite customer qualification continues.

2. Commissioning of purification circuit underway - first dispatch of purified spherical graphite planned in Q3 2019.

3. Preliminary Feasibility Study of commercial scale plant provides attractive economics. 

Finance and Corporate

1. Announced the execution of a Convertible Note Deed and an underwritten entitlement offer to raise approximately A$111.6 million (US$76.3 million) (refer to ASX announcement 19 June 2019).

2. Successfully completed Institutional Entitlement Offer, raising A$25 million (US$17.6 million) (refer to ASX announcement 21 June 2019), with an additional A$30.8 million (US$21.2 million) from the Retail Entitlement Offer which was completed on 8 July 2019.