Reeling Syrah sets sights on glory days

IT has been an inglorious start for Syrah as the big new disruptor in the global graphite market from its Balama operation in northern Mozambique, writes Barry FitzGerald.

Reeling Syrah sets sights on glory days Reeling Syrah sets sights on glory days Reeling Syrah sets sights on glory days Reeling Syrah sets sights on glory days Reeling Syrah sets sights on glory days

Mozambique President Filipe Nyusi (left) shaking Syrah MD Shaun Verner's hand at the Balama opening in April

That has been reflected in Syrah's reeling share price, with the A$4.95 the stock commanded in early January giving way to this week's miserable $2.06, a thumping 58% fall.

A number of factors are behind the fall and include standard teething problems in ramping up the operation following first production last year, and the not so standard fire on October 1 that knocked out the processing plant for five weeks.

Production guidance for 2018 has had to be pulled back to 101,000-106,000t from 135,000-145,000t, itself down from the original guidance of 160,000t-180,000t.

Then there has been the need to go back to the market in September for yet more funding through a dilutive $94 million placement at a then discounted $2.23 a share to maintain the momentum needed t...

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