recognition by credit suisse

Mazel tov everyone!

I'm sure this is the first of many to follow. Instos and the research houses are finally waking up to the fact that SYR is like no other! This is real - time to get on board!

This was released last night to all of CS's global clients:

Initiate coverage with a $4.90 target price and OUTPERFORM rating.

¦ Syrah Resources is rapidly progressing from a junior explorer to a mine developer and graphite and vanadium producer. Syrah's primary focus is the 1.15bn t Balama graphite and vanadium deposit, located in Mozambique.
¦ Balama appears truly blessed in every respect, in our view, and the likely successful project will be underpinned by: the world leading orebody scale, grade and quality; simple metallurgy; benign topography and near zero strip ratio; existing and planned infrastructure; low capex; Government and local support; end-market strength; and the by-product vanadium opportunity.
¦ Balama is already the world’s largest graphite and vanadium endowment, but could potentially still increase in size by a factor of 20. Two initially defined very high grade resources already support the establishment of a low cost, simple mining and processing operation producing globally high grade, large flake size graphite concentrates and vanadium concentrate at very low production costs.
¦ The orebody is already exceptional in grade, continuity, flake size, scale, strip ratio, accessibility, topography, metallurgy, but it remains barely drilled beyond securing ample tonnage for foreseeable market requirements. Future drilling is likely to see the scale of the resource increase very materially, although this attribute is almost meaningless in the context of the existing resource, already being sufficient to meet 100% of current world demand for 100 years.
¦ Near-term catalysts/re-rating potential events include: infill drilling results, mining lease approval, resource updates or upgrades, scoping study release, offtake agreements/letters of intent and any financing developments.
¦ Our $4.90/share target price and DCF-based NPV (10%) assumes a conservative US$1,000/tonne received price for a 220kt output over 23.5 years. It is likely that the price Syrah ultimately receives will be materially higher, that production output will grow over time and that a second 25-year mining lease will be approved. We do not incorporate any of this additional upside into our NPV calculations used to set our target price.