Syrah Resources (SYR) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw subdued graphite and anode material markets due to policy uncertainty, US ITC's negative antidumping ruling, and increased Chinese competition, resulting in low Balama production and deferred campaigns.

• Vidalia operations transitioned from qualification to commercial production, achieving key milestones with high-quality AAM meeting or surpassing specifications and readiness for ramp-up pending customer approvals.

• Safety performance was exceptional, with a TRIFR of 0.0 at both Balama and Vidalia.

• Cash balance at quarter-end was $98 million, supported by a $72 million equity raise and $8 million Section 45X Production Credit.

Financial highlights

• Net cash outflow from operations was $19 million in Q2, improved from $27 million in Q1, with a quarter-end cash balance of $98 million ($67 million restricted, $31 million unrestricted).

• Natural graphite sales were 7,000 tons at an average price of $736/ton, up 17% from Q1 2026.

• Net cash from financing activities was $70.6 million, mainly from equity raising.

• Balama C1 fixed costs during non-operating periods were ~$4 million/month.

Outlook and guidance

• Balama 2026 production guidance revised to 60-80kt due to subdued demand; ramp-up to 200-240ktpa targeted medium-term, contingent on policy and market developments.

• Vidalia expects commercial AAM sales in H2 2026 and positive operating cash flow from mid-2027, benefiting from US Section 45X Production Credits.

• No cash interest or principal repayments required for the next three years, supporting financial flexibility.