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Syrah Resources (ASX:SYR) - Managing Director and CEO, Shaun Verner - The Market Herald
Managing Director and CEO, Shaun Verner
Source: Syrah Resources
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  • Syrah Resources (SYR) has elected to issue a proposed $28 million convertible note tranche to AustralianSuper
  • The optional issue forms part of a $56 million two-tranche deal struck by the companies back in December
  • The proceeds are slated to ramp-up production at the company's Balama Graphite operation in Mozambique, ahead of expanded active anode material production in the US
  • Syrah Resources shares are up 2.83 per cent to $1.09 each at 3:20 pm AEST

Syrah Resources (SYR) has elected to issue a proposed $28 million convertible note to AustralianSuper.

It forms part of an agreement between the companies made back in December. This gave Syrah the option to issue convertible notes totalling $56 million in two tranches.

The first of the $28 million tranches could be issued before March 31 this year and the second before June 31.

The transactions aim to provide the company incremental liquidity which, in turn, would optimise the timing of a restart decision for Syrah's Balama Graphite Project in Mozambique.

However, after choosing not to issue the series two note before the end of March, the company has elected to issue its series three note to support the orderly ramp-up of production at Balama.

The transaction will reportedly maintain momentum for SYR's proposed expansion of production at the company's active anode material (AAM) facility in Vidalia in the US.

In light of the move, SYR said electric vehicle, anode material and natural graphite market conditions remained "constructive", supporting the ramp-up of production at Balama towards an initial end target of 15,000 tonnes per month.

Looking ahead, the company also confirmed that estimated capital costs for the construction of its 10,000-tonne-per-annum AAM facility in Vidalia remained consistent with its bankable feasibility study.

Following the receipt of proceeds from the series three note, SYR projected its cash position at June 30 to be $US 81 million (roughly A$104.4 million).

Following the announcement, shares in Syrah Resources were up by 2.8 per cent and trading at $1.09 each at 3:20 pm AEST.

SYR by the numbers
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