Ann: March Quarterly Activities and Cashflow Report, page-7

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Sentrypetal

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21/04/21

11:49

Post #: 52617440
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Originally posted by MrCurly: ↑

The gap in the report is the sales from Balama. Talking about market growth is irrelevant if very little of that growth is being captured in sales. If Chinese companies are producing virtually 100% of anodes so control the buying side of the 'graphite for anodes' market and they have not been supportive partners for Syrah in the past.
Where are the estimates of Balama sales and production for this and coming years? Where are the comments about relationships with buyers? Where is the discussion about buyers locking in contracts to ensure supply? These are the things I expect to see when there is a booming macro market and we have the biggest potential supply in the world. 350Ktpa potential and the only mention of sales is 2kt shipped and 5kt produced is not enough information.
In the past I thought this was because management have been their commercial discussion confidential to inhibit competitor financing etc. In retrospect the lack of sales information was because the Chinese controlled buy side was not playing ball. Result was a 1 year shutdown in an apparently strong market, even with COVID-19. What is there to indicate that the situation has changed and that Balama will be capturing sales into this booming market going forward? The only concrete thing I can see is supplying the USA plant but that is small volume.
Not saying we can't and won't achieve volume sales, but the report doesn't give me anything to be confident about based on historical performance.

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CIF means they are selling primarily to Europe. $567 per tonne is a very good price. If SYR can capture the European market as flake graphite is also used in iron ore furnaces and the rest sent to BAM we can potentially cut China out.

SYR Price at posting: $1.09 Sentiment: Buy Disclosure: Held
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0 Great analysis

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