Syrah Resources (SYR) Q1 2025 earnings summary

Executive summary

• No production at Balama in Q1 2025 due to ongoing protests, resulting in depleted inventory and limited sales activity; operations are expected to resume before the end of Q2 2025.

• Vidalia facility in the US advanced technical qualification with customers, signed multi-year offtake agreements with Lucid and Tesla, and expects commercial sales in 2025, pending customer qualification and US policy clarity.

• Awarded US$165 million Section 48C tax credit for Vidalia expansion; applied for an additional US$350 million DOE loan.

• Ended Q1 with US$66 million cash, including US$44 million restricted; US$97 million in unused financing facilities available.

• Global EV sales grew 36% year-over-year, with growth concentrated in China and Chinese anode production up 45%.

Financial highlights

• Quarter-end cash balance was US$66 million, including US$44 million restricted and US$22 million unrestricted; US$43 million available for operating and capital expenditures.

• Net cash outflow for the quarter was US$8 million, with US$3 million corporate, US$3 million Vidalia, and US$2 million Balama.

• Receipts from customers were US$3.7 million; net cash used in operating activities was US$15.9 million.

• Balama fixed C1 costs at US$3 million per month; weighted average sales price for natural graphite at US$827/tonne (CIF).

• Estimated 10.3 quarters of funding available based on current cash burn and available facilities.

Outlook and guidance

• Vidalia AAM sales expected to commence in 2025, with timing dependent on customer qualification, US policy, and market conditions.

• Balama production to resume in campaign mode with shipments before Q2 2025 end, pending resolution of protests.

• Further expansion of Vidalia to 45ktpa contingent on additional offtake agreements and financing commitments.

• Vidalia's steady-state operating cost guidance is US$4.31/kg AAM at full capacity, excluding Section 45X credits.

• U.S. policy shifts and tariffs expected to drive increased demand for ex-China anode material.