Its important to actually read the report and listen to the...

Its important to actually read the report and listen to the meeting in detail. There really are large numbers of positives.

BLUF: sales prices are surprisingly good but volume was real bad. I am guessing SYR is operating at about 15% of capacity. However volume is going up and SV specifically states “sales will certainly be higher next quarter” which strongly suggests there are already enough orders in to make that happen. He said “cash burn would be significantly lower next quarter.” That is we can only assume based on those orders being processed now and not even new ones. Any of the announcements below will pick the SP up. Some dramatically.

Takeaways that are positive:

• Prices: The sales price has improved far greater than expected. It was up 21% from last quarter. Importantly the sales in last month were well over $1000 a ton for course flake when quarterly average is $735, which was better than last quarter at $607. Is the $1000 a ton still the price for course flake?
• Operating cost: SYR really managed to get their shit in one sock on this one. Decreased costs over quarter from $635 to US$460 a ton. Furthermore the announcement states that those costs are expected to decrease to US$350 -$390 a ton if volume increases.
• Loan: US$150 million binding loan agreement with United States International Development expected imminiently. Despite delay it is still very in play. That announcement will by itself force an increase in SP.
• Sales: After initial large volume sale to Indonesia earlier this year the Company is targeting further natural graphite fines breakbulk sales to PT Indonesia BTR New Energy Materials as its facility increases utilisation later this year.
• Syrah’s contract with Posco Future, the largest ex-China AAM producer, is a six-year large-volume floating-price offtake agreement for supply to an AAM facility in South Korea that is expected to require deliveries of natural graphite from late 2025.
• Offtake agreements: The Company has executed offtake agreements or is engaged commercially with nine other ex-China natural graphite anode project companies, as well as auto OEMs and battery manufacturers, for long-term natural graphite supply from Balama.
• Tesla: Syrah executed an offtake agreement with Tesla but honestly who knows what is happening in the Tesla world. I personally am not holding my breath.
• “Syrah has completed commercial negotiations for a significant offtake agreement with another tier 1 US-based customer for AAM supply. The Company expects to announce a binding offtake agreement shortly, pending finalisation of legal documentation and approvals processes. “
• Furthermore, the Company is in various stages of commercial discussions with seven customers for multi-year AAM supply from Vidalia and has entered non-binding MOUs with Ford Motor Company and SK On Ltd, LG Energy Solution and Samsung SDI towards this objective.
• Syrah has during the quarter executed a non-binding MOU with Tees Valley Graphite for the establishment of a joint venture for a large-scale natural graphite AAM facility in the United Kingdom. Syrah and TVG are jointly evaluating the development of a 20ktpa AAM facility at Wilton International Chemicals Park (“Wilton”) in Teesside Freeport in north-east England (“Wilton AAM Facility”) to supply AAM to the European market.

To be clear I consider SYR to not hit its straps for another six months or more.