If Synthetic graphite produced in China is unsustainable at current prices of US$460 a tonne, they will burn through a lot of cash and soon go bust or stop it. Then you should see a reversion back to natural graphite. Prices should then increase to US$750 to US$800 a tonne. With a annual processing capacity of 350,000 tonnes a year and a 50 year mine life, they could a strong competitive bidding for Syrah if someone takes a long term view of 10 to 20 years. I don't think Australian Super would sell for less than A$1.30 to A$1.50 per share.
Technology change as always is a risk. China is always developing new types of batteries.
SYR Price at posting:
21.5¢ Sentiment: Hold Disclosure: Held
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