SYR

2.74%

35.5¢ syrah resources limited

Solid volume the last 3 months, looks to be a stealth takeover...

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FlashFish

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13/12/18

11:58

Post #: 36845813
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Originally posted by Wilfork ↑

Originally posted by Upxdn
Thanks. If the low cost can be compared and proven then this is a no brainer - the price will stabilise at a level just above the reasonable profit level for the cohort of lowest cost producers that can meet demand.
They are not the lowest cost producer. If they produce the 250 KT this year their costs will be over $400/tonne. After they pay royalty and shipping their landed cost in China will be close to $500/tonne. That places them in the middle of the local production curve. As China implements environmental controls smaller China mines should stop producing. The large China mines are comfortably below this level of cost.

I think the recent delay has demonstrated that the fixed costs for this mine are higher than projected. The negative is that it will be hard to get costs down as fast as they'd like. The positive is that when they go to 300 and then 350 KT the marginal volumes will be very cheap and very profitable.

Most international production is above this cost ($500).So there will be a group of producers that stop. We have already seen Imerys make this decision on a relatively new mine.

Syrah will also benefit from the need of buyers to diversify away from Chinese supply. So I expect Syrah will be able to sell their tonnes. I also expect that production will stop at small mines. But this will be more a result of environmental issues and diversifying suppliers than Chinese mines getting hurt by the cost curve.

At $550 Aussie valuation it is a very cheap asset where most of the hard work has already been done. Hopefully it has found a floor.

Expand

Solid volume the last 3 months, looks to be a stealth takeover on the horizon.

Being pushed down and then accumulated. I see $2.50 before an offer is
made for around the $3.20 - $3.60 mark.

Still chump change for the big players.

Will Battery Minerals get off the ground? $97m to set up the plant, must be shipping DSO.

This is how Battery Minerals plans to get into the lithium-ion battery market: with graphite

https://unauthorised investment adv...the-lithium-ion-battery-market-with-graphite/

Last edited by FlashFish: 13/12/18

SYR Price at posting: $1.77 Sentiment: Buy Disclosure: Held
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(20min delay)
Last 35.5¢		Change -0.010(2.74%)		Mkt cap ! $367.3M

Open	High	Low	Value	Volume
35.5¢	37.0¢	35.0¢	$2.274M	6.355M

Buyers (Bids)

No.	Vol.	Price($)
13	189831	35.0¢

Sellers (Offers)

Price($)	Vol.	No.
36.0¢	53310	3

View Market Depth

No.	Vol.	Price($)
11	187131	0.350
9	989772	0.345
10	583444	0.340
3	965374	0.335
13	506775	0.330

Price($)	Vol.	No.
0.360	53310	3
0.365	264000	2
0.370	21683	4
0.375	174001	2
0.380	117894	4

Last trade - 16.10pm 28/06/2024 (20 minute delay)

SYR (ASX) Chart

Solid volume the last 3 months, looks to be a stealth takeover...

Microcap Wrap: 5 explorers with news out today

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

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Buyers (Bids)

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Solid volume the last 3 months, looks to be a stealth takeover...

Top Stories

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Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

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Featured News

Buyers (Bids)

Sellers (Offers)

Featured News