Syrah Resources (SYR) Q4 2024 earnings summary

Executive summary

• No production at Balama in Q4 2024 due to protest actions and national unrest, leading to force majeure declaration and depleted inventory; all employees and contractors remain safe.

• Vidalia facility focused on anode material qualification, with commercial ramp-up and sales expected in 2025, pending customer qualification, U.S. policy, and Chinese tariffs.

• Global EV sales rose 35% year-over-year in Q4 2024, mainly driven by China, but the market faces overcapacity, low prices, and intense competition from China.

• Awarded US$165 million Section 48C tax credit for Vidalia expansion and US$53 million DFC loan disbursed for Balama support.

• U.S. and international trade actions, including investigations and permanent Chinese export controls, are reshaping supply chains and market dynamics.

Financial highlights

• Quarter-end cash balance was US$87 million, including US$58 million in restricted cash, with US$68 million available for operations and capex.

• Net cash outflow in the quarter was US$19 million, with US$8 million for Balama, US$6 million for Vidalia, and US$5 million for corporate expenses.

• Receipts from customers were US$6.4 million; net cash used in operating activities was US$18.1 million.

• Loan facilities totaled US$243.4 million drawn, with US$97 million undrawn at quarter end.

• 9kt natural graphite sold/shipped in Q4 at an average price of US$564/tonne (CIF); inventory depleted to 2kt.

Outlook and guidance

• Vidalia anode material sales expected in 2025, with timing dependent on qualification, U.S. policy, and customer strategies.

• Balama production resumption targeted as soon as possible, contingent on resolution of protest actions and government engagement.

• FID on Vidalia’s 45ktpa expansion awaits phase two sales, customer, and financing commitments.

• Market conditions remain challenging due to low prices and Chinese competition.

• Estimated 10.2 quarters of funding available based on current cash and undrawn facilities.