The Conversation (0)
Syrah Resources Ltd. (ASX:SYR) provided an update on the graphite market and the Company’s current progress in securing offtake commitments. A graphite deficiency of approximately 235,000 tones or around 528,000 tonnes by 2016 is being forecast, and Syrah’s Balama Graphite Project is positioned perfectly to capitalize on this situation, with projected sales of 220,000 tonnes of graphite to be sold in the first year at a price of US$1,500 a tonne.
As quoted in the press release:
Highlights:
- China graphite mines’ supply constrained due to declining mineral resources, relatively low grades and high cost operations
- Demand for graphite forecast to grow with rising steel use and emerging and expanding technologies (particularly lithium ion batteries)
- Industrial Minerals (industry consulting and publishing group) forecast a graphite deficiency of approximately 235,000 tonnes (base case scenario) or around 528,000 tonnes (bullish scenario) by 2016
- Balama Graphite Project (Syrah 100%) perfectly positioned to capitalise on this situation with projected sales of 220,000 tonnes of graphite to be sold in year 1 at US$1,500 a tonne
- Significant marketing efforts over the past 9 months have generated a very positive response to Balama graphite with more substantial samples of representative product despatched recently
- Offtake agreements for Balama graphite expected to be significantly advanced over coming months
- Given Balama’s expected low mining and production costs, additional substantial carbon markets will continue to be investigated and targeted going forward
Click here to read the Syrah Resources Ltd. (ASX:SYR) press release
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