Syrah Resources navigates market challenges

Syrah Resources (ASX:SYR) operates the Balama Graphite Operation in Mozambique and the Vidalia Facility in the US. The company faced challenges in the graphite market during the September 2024 quarter due to oversupply and low prices, impacting their production strategies. Syrah secured a US$150 million loan to support Balama operations.

Overview and future outlook for Syrah Resources

Syrah Resources faced significant challenges during the quarter ending 30 September 2024, with oversupply and low prices in the graphite market affecting their production and sales strategies. To support operations, the company secured a US$150 million loan from the United States International Development Finance Corporation. Despite these challenges, global EV sales grew by 17%, driven mainly by China. Production at Balama was paused due to sufficient inventory and low demand, while Vidalia's progress depends on securing commercial sales. The company is focused on optimizing costs and maintaining operations efficiently. Looking forward, Syrah aims to navigate government policies and market dynamics, especially the US Inflation Reduction Act and China's export controls on graphite, to strengthen their position in the global battery supply chain.

Executive commentary on market and operations

The market for synthetic graphite anode active material faced oversupply and price declines, impacting natural graphite demand in China.