SYR Charts, page-2913

lol you're not the only one. The battery surplus at the start of the year threw me.

It was always going to be a bumpy ride when you invest in the 2nd Industrial Revolution where Govts and companies are investing over $1T per year and don't really know what they're doing or where this is heading. Everybody is making it up as they going along, acting or reacting to what somebody else is doing as we've seen in the last 4 years.

1/ Subsidies have been introduced, stopped then turned back on

2/ global supply chain theory has been thrown out the window due to covid and geopolitical considerations

3/ financial incentives are being introduced to on-shore in various forms and guises so companies and other govts are reacting to what someone else is doing so plans are constantly being revised ie where they're investing to build their next battery/vehicle assembly plant

4/ environmental legislation is being updated with new targets which the industry needs to factor in

5/ OEM's are introducing ESG impact studies on their suppliers which causes disruption as they adapt to the new environment (luckily SYR management had the foresight to build a solar/battery plant at Balama and build their AAM plant where it has access to hydro power)

To keep me sane, after factoring in all of the above and more, I then concentrate on the supply and demand side for natural graphite fines. Demand is about to explode in the next 2-3 years and SYR has most of the supply in the short to medium term. It's as simple as that.

In the mean time, SYR needs to keep pressing ahead with their plans while staying afloat. As you know, I've always said the market will come to them because SYR has the supply. For the last 3 years it has always been when, not if. Unfortunately we've had a couple of false dawns.

Third time lucky?