Syrah Resources (SYR) Q2 2025 earnings summary

Executive summary

• Production at Balama resumed after nearly a year, achieving high product quality and strong recovery rates, with 7kt produced in two weeks post-restart and stable operations continuing into July 2025.

• Vidalia AAM facility in the US is progressing through customer qualification, with sales expected to commence this year; offtake agreements with Tesla and Lucid underpin future sales.

• Global EV sales rose 28% year-over-year to 4.9 million units in the June 2025 quarter, with robust growth in China.

• Positive resolution of resettlement issues at Balama enabled operational restart and improved community relations.

• Section 45X Production Credit of US$12 million expected in December 2025; US$165 million Section 48C tax credit awarded to support Vidalia expansion.

Financial highlights

• Cash balance at quarter end was US$43 million, including US$31 million restricted cash; US$4 million available for Balama and US$2 million for Vidalia operations.

• Net cash outflow from operating activities was US$20.2 million for the quarter.

• Natural graphite sales to third-party customers totaled 1kt at a weighted average price of US$779/tonne (CIF).

• Finished product inventory increased to 7kt after being fully depleted prior to production recommencement.

• Institutional placement and entitlement offer raised A$70 million (US$46 million) to fund Vidalia costs and general expenses.

Outlook and guidance

• Vidalia ramp-up timing depends on commercial sales; further expansion to 45ktpa AAM awaits customer and financing commitments.

• Balama expected to continue in campaign mode, with potential to increase capacity utilization if demand rises.

• Medium-term Balama C1 cost guidance is US$430–480/tonne at 20kt/month, targeting US$350–390/tonne at full utilization.

• Section 45X Production Credits for Vidalia estimated at US$7–9 million per annum at full capacity.