Syrah Resources (SYR) Q4 2025 earnings summary

Executive summary

• Balama operations delivered a 34% quarter-on-quarter production increase to 34,000 tons, with sales up 21% to 29,000 tons, selling nearly all produced material and achieving high recovery and quality metrics.

• Ex-China demand for break bulk shipments and coarse products remained robust, supporting stable production and sales forecasts for the coming quarter.

• Vidalia AAM facility advanced customer qualification, with offtake agreements in place and commercial sales expected to accelerate as policy clarity emerges in Q1 2026.

• The company is a vertically integrated producer focused on sustainable operations, ESG achievements, and community investments in Mozambique and the USA.

• Ended the quarter with a cash balance of US$77 million, including US$59 million restricted and US$18 million unrestricted.

Financial highlights

• Cash flow from operations was -$18 million for the quarter, with $13 million in receipts from natural graphite sales.

• Net cash from financing activities was $8.5 million, primarily from a DFC loan disbursement.

• Balama C1 cost was $535 FOB per ton, with freight averaging $74 per ton.

• Weighted average sales price was $577 per tonne CIF, up 2% year-over-year but down sequentially due to product mix.

• Vidalia steady-state operating cost guidance revised to $4.30-4.80/kg AAM.

Outlook and guidance

• Production guidance for the March quarter is no less than 30,000 tons, with sales expected to match production, driven by stable demand.

• US policy changes, including tariffs and anti-dumping duties on Chinese graphite AAM, are expected to support ex-China supply and stabilize pricing.

• Vidalia qualification and commercial sales ramp-up are targeted for 2026, contingent on policy clarity and customer decisions.

• North American battery market growth and 45X tax credits are anticipated to drive significant demand for non-Chinese graphite supply.

• Expansion to 45ktpa AAM at Vidalia is contingent on further offtake and financing.