Syrah Resources (SYR) Q3 2025 earnings summary

Executive summary

• Balama operations ramped up after restart, achieving 26,000 tons of natural graphite production and resuming shipments, with improved operational metrics and large shipments to Indonesia and the US.

• Vidalia facility advanced technical qualification with Tier 1 customers, operated at low volumes, and secured a $12 million Section 45X tax credit, with commercial sales expected from 2026.

• Cash balance at quarter end was $87 million, including $60 million restricted, supported by a $44 million equity raise and $12 million tax credit.

• Strategic partnership and investment options are under review, with Macquarie Capital appointed as adviser.

• Balama became the first graphite operation globally to achieve IRMA 50 level for sustainability.

Financial highlights

• Produced 26,000 tons of natural graphite at Balama with 68% recovery and 95% grade; sold 24,000 tons at a weighted average sales price of $625/ton CIF.

• C1 operating cost was $585/ton FOB, with freight averaging $92/ton; medium-term cost guidance is $430–480/ton at higher production rates.

• Cash flow from operations was -$3 million, improved from -$21 million in the prior quarter, with $12 million received in Section 45X tax credits.

• Net cash from financing activities was $47.5 million, reflecting capital raise and loan disbursements.

• Cash and cash equivalents at period end totaled $87.4 million.

Outlook and guidance

• Focused on achieving operational cash flow breakeven at Balama and progressing technical qualification at Vidalia, with commercial sales volumes expected from 2026.

• Board expects to consider FID for Vidalia Further Expansion before 30 June 2026, contingent on additional offtake agreements.

• Awaiting final determinations for U.S. anti-dumping and countervailing duties, which are expected to provide stability and competitive positioning for at least five years.

• Targeting further breakbulk shipments and additional customer and financing commitments ahead of potential Vidalia expansion.

• Balama operating costs expected to decrease with higher production rates.