Syrah Resources Limited

Balama total production was 34,000 tonnes, up 34% on the prior quarter; natural graphite sales were 29,000 tonnes, up 21% quarter on quarter; the weighted average sales price was USD 577 per tonne CIF, up 2% year over year; C1 cost was USD 535 FOB per tonne and freight averaged USD 74 per tonne. The company started the quarter with USD 87 million in total cash and ended with USD 77 million, including USD 18 million unrestricted cash and USD 59 million restricted cash. Cash flow from operations was negative USD 18 million, including USD 13 million of receipts from sales. For the March quarter, management guided to no less than 30,000 tonnes of graphite production, with sales also expected to be driven by demand and inventory needs; they did not give revenue or EPS guidance.

Shaun Verner framed Syrah as the leading integrated ex-China natural graphite and anode material supplier, emphasizing its vertical integration, sustainability credentials, and long lead-time advantage. He said Balama closed the year with momentum and that the company is positioned to benefit if policy and market conditions continue to support ex-China supply. His tone was constructive but cautious, especially on Vidalia, where he said product quality is excellent but conversion to sales is slower than hoped and will depend on greater policy certainty in early 2026.

Stephen Wells highlighted liquidity and cash use, noting starting cash of USD 87 million, ending cash of USD 77 million, and operating cash outflow of USD 18 million in the quarter. He pointed to USD 13 million of sales receipts, a USD 4 million delayed partial payment tied to a breakbulk shipment, higher adviser costs linked to DOE and DFC loans, and ongoing working capital build at Balama and Vidalia. He also outlined funding flexibility from USD 10 million restricted cash for Balama, USD 17 million restricted cash for Vidalia, and an additional USD 7 million available under the DFC facility for TSF funding, while noting DFC interest is deferred to May 2026 and DOE debt service to 2027 under the forbearance agreement.

Analysts focused on pricing, liquidity, and the March-quarter outlook. On pricing, management said the graphite market remains pressured by synthetic graphite overcapacity, but ex-China pricing is starting to bifurcate from China domestic pricing and could improve if policy stays supportive. On liquidity, management confirmed the USD 10 million restricted Balama cash can fund working capital and that sales remain the main swing factor. They also said March-quarter production of at least 30,000 tonnes is intended to be aligned with sales demand, and that BESS is still early-stage and would depend on battery makers’ specifications, especially warranty and cycle life requirements.