PriceSensitive

Syrah Resources (ASX:SYR) suspends production in Mozambique

Mining
ASX:SYR      MCAP $398.9M
27 March 2020 14:45 (AEST)

Syrah Resources (SYR) has had to temporarily suspend its production at Balma Graphite operations due to the coronavirus (COVID-19) pandemic.

The Government of Mozambique has put measures in place to try and manage the virus. These measures include the suspension of all inbound travel visa operations and mandating 14-day self-quarantine for all international arrivals.

In addition, restrictions on domestic travel are in place. Syrah says this is a significant portion of the Balama workforce, making the company suspend production at the mine.

The mine will be closed from March 28 until the restrictions have been lifted.

The Balama Graphite Operation is in the Cabo Delgado province of northern Mozambique, around 200 kilometres west of the port town of Pemba.

Syrah says sales orders from existing finished product inventory will continue to be dispatched. The company is currently able to dispatch the finished products from Balama to the Port of Nacala, however, this may change.

The company continues to expect its end of quarter cash balance to be broadly aligned to existing guidance of US$64.6 million ( approx. A$106 million).

Syrah is up 1.96 per cent on the market this afternoon, trading at 26¢ per share at 2:08 pm AEDT.

Related News