Syrah Resources (SYR) Q4 2025 earnings summary

Executive summary

• Balama operations delivered 34kt natural graphite in Q4, up 34% quarter-on-quarter, with strong recovery and quality improvements, meeting robust ex-China demand.

• Vidalia AAM facility progressed through customer qualification, with offtake agreements in place and commercial sales pending qualification completion; commercial activity expected to accelerate as policy clarity emerges in Q1 2026.

• Sustainability and governance remain core, with Balama achieving IRMA 50 certification and maintaining a low injury frequency rate of 0.9 per million hours worked.

• Strategic focus on strengthening ex-China supply resilience, advancing partnership and investment options, and supporting community development with a new $5 million agreement at Balama.

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

Financial highlights

• Q4 natural graphite sales reached 29kt, up 21% from the prior quarter, with nearly all production sold at an average price of $577/tonne (CIF), up 2% year-over-year.

• Balama C1 cost was $535/tonne (FOB), with freight averaging $74/tonne.

• Group cash flow from operations was -$18 million, impacted by delayed payments and higher advisory costs.

• Cash flow from financing was $8.5 million, primarily from a DFC loan disbursement.

• Total available funding at quarter end was $159.1 million.

Outlook and guidance

• Targeting at least 30kt graphite production and sales in the March quarter, supported by stable demand and inventory build-up.

• US policy changes, including tariffs and anti-dumping duties, are expected to support ex-China supply and potentially underpin capacity expansion.

• Vidalia commercial sales expected to commence upon customer qualification completion, with expansion to 45ktpa AAM contingent on further offtake and financing.

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