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- Syrah Resources (SYR) ends the June quarter with no COVID-19 cases at its Balama Graphite Operation in Mozambique
- The company says it’s a pleasing result considering it re-started operation in the March quarter after a COVID-19 outbreak shut down production
- SYR produced 29,000 tonnes of natural graphite from Balama during the recent quarter and sold around 15,000 tonnes of the product
- It burnt through US$9.45 million (A$12.93 million) on operating costs and ended June with US$85.27 million (A$116.71 million) worth of cash in the bank
- Syrah shares are trading 3.18 per cent in the green at $1.14 per share at 1:03 pm AEST
Syrah Resources (SYR) ended the June quarter with no COVID-19 cases at its Balama Graphite Operation in Mozambique.
It was a pleasing result for the company considering it only re-started operation in the March quarter after a COVID-19 outbreak shut down production.
A total of 29,000 tonnes of natural graphite was produced from Balama during the June quarter, well above the 5000 tonnes produced during March.
SYR’s cash costs from the graphite operation were US$537 (A$735) per tonne at a 10,000 tonne per month average production rate over June.
The mining stock said it was on track to lower those cash costs to US$430 (A$589) per tonne to US$460 (A$630) per tonne at 15,000 tonnes per month average production rate.
Syrah sold 15,000 tonnes of natural graphite product over the June quarter, with a weighted average sales price of US$474 (A$649) per tonne. But SYR noted disruptions in container shipping was stopping the business from meeting customer’s demand.
In terms of financials, the company burnt through US$9.45 million (A$12.93 million) on operating costs, with the majority of that going towards productions costs.
SYR ended June with US$85.27 million (A$116.71 million) worth of cash in the bank, enough funds to keep it going for another nine quarters.
Looking ahead, the graphite business said it was progressing to a final investment decision for the expansion of its production capacity at the Vidalia Battery Anode Material Project in Louisiana.
Syrah Resources were trading 3.18 per cent in the green at $1.14 per share at 1:03 pm AEST.
