BAM Question

When free cash flow increases from:

1) Balama reaching nameplate production; and
2) Spherical graphite qualification plant sales,

Syrah should raise the maximum amount of debt possible to expand into spherical graphite as aggressively as it has with flake graphite, using economies of scale to become the dominant low-cost producer there too.

Debt should be available in large amounts, at a reasonable price, once the company is generating significant quantities of free cash flow, enabling rapid expansion of BAM capacity.

The equity raise neutralises the bearish argument that Syrah will have working capital issues during ramp up. Not using debt now provides balance sheet flexibility to raise more later, in the U.S. where it should hopefully be cheaper.

The pertinent question, is, how many tons of spherical graphite will be produced in 2019/20 using US$205,000,000 of future debt?