Syrah Resources (SYR) H1 2026 earnings summary

Executive summary

• Revenue rose to $18.1 million for H1 2026, up from $2.0 million in H1 2025, as Balama resumed production after prior disruptions.

• Net loss after tax widened to $107.9 million (H1 2025: $59.8 million loss), driven by higher costs, asset impairment, and subdued graphite demand.

• Balama produced 25,800 tonnes and sold 26,600 tonnes of graphite, both significantly higher than the prior year.

• Vidalia AAM facility focused on qualification and process validation; no commercial sales yet, but 150 tonnes produced for testing.

• Market conditions remain challenging due to oversupply, Chinese competition, and US policy uncertainty.

Financial highlights

• Gross loss was $32.3 million (H1 2025: $33.4 million), reflecting ongoing operating costs.

• Distribution costs increased to $4.4 million (H1 2025: $1.4 million) due to higher shipping volumes.

• Administrative expenses rose to $7.9 million (H1 2025: $6.5 million), mainly from legal, consulting, and employee costs.

• Impairment of $35.2 million recognized for Vidalia AAM facility due to negative US ITC determination.

• Cash and cash equivalents at 30 June 2026 were $98.3 million, including $67.3 million restricted cash.

Outlook and guidance

• Vidalia AAM commercial sales expected to commence in H2 2026, critical for expansion project decisions.

• Strategic funding proposals and further DFC loan disbursement are being pursued to support operations.

• Ongoing cost management and production curtailment at Balama to match subdued demand.

• US policy developments and Section 45X tax credits expected to support ex-China supply in the medium term.