Syrah Resources (SYR) Q3 2026 earnings summary

Executive summary

• Balama produced 19.3kt of natural graphite at 88% recovery; 18.1kt was sold and shipped at a weighted average CIF price of US$583/t.

• Vidalia began commercial ramp-up in September to build saleable AAM inventory; first commercial sales are targeted for the December 2026 quarter, subject to final customer qualification.

• Quarter-end cash was US$75.9m, including US$55.3m restricted cash; a further US$15m DFC loan disbursement was expected shortly.

Financial highlights

• Quarter-end cash and cash equivalents were US$75.9m; operating cash outflow was US$18.7m for the quarter and US$64.5m year to date.

• Balama C1 cost was US$581/t FOB during operating periods; including fixed costs in non-operating periods, quarterly C1 cost was US$840/t.

• Average natural graphite sales price was US$583/t CIF, down 21% on sales-mix change; the implied FOB Nacala/Pemba price was US$507/t.

• Operating cash outflow reflected higher production costs and working capital, including an unpaid breakbulk shipment balance, partly offset by the US$8m Section 45X credit.

• Vidalia received US$8m in Section 45X credits related to the 2025 tax year; future credits are estimated at US$6–7m annually before phase-down.

Outlook and guidance

• Balama 2026 production guidance remains 60–80kt; campaign C1 cost guidance is US$500–550/t at 20kt per 30-day campaign, plus ~US$5m monthly fixed costs during non-operating periods.

• Balama medium-term targets are 200–240ktpa at C1 costs of US$480–520/t FOB, raised from US$430–480/t; ramp-up depends on market growth and policy support for ex-China suppliers.

• Vidalia steady-state operating cost guidance rose to US$4.85–5.25/kg AAM from US$4.30–4.80/kg; positive operating cash flow is targeted from H2 2027.

• AAM commercial sales are targeted for the December 2026 quarter, subject to qualification; Vidalia expansion financing and FID depend on sales and significant customer commitments.

• Positive operating cash flow at Balama and corporate level is targeted in the medium term, linked to successful ramp-up and market developments.