Replacement Value - Balama and Vidalia

How would a potential buyer evaluate a per share price for Syrah?

One of the metrics they would likely use - would be to evaluate the cost to replace both Balama and Vidalia from scratch in today's market.

So lets have a go:

Vidalia Operations (Louisiana, USA)

The estimated total installed capital cost for the expansion at Vidalia is US$539 Million, which includes US$38 million contingency. This figure reflects the cost to build out the full-scale facility from current capacity, not just replacement of existing assets.

So - lets model the replacement for just the current 11.25ktpa facility (very simplistically):

$539M / 45ktpa = $12M per ktpa
11.25ktpa X $12M = $135 million USD (rough estimate)

Balama Operations (Mozambique)

Whilst Syrah hasn't published a direct replacement cost for Balama, we can infer from the data:

1. Natural Graphite production cost is around US$425 per tonne FOB
2. During Shutdown periods, Syrah incurred US$4 Million per month in costs

Balama is one of the largest and highest-grade graphite mines in the world, with
Ore Reserve: 110 million tonnes % 16% TGC.
Processing Capacity - 2 million tonnes of ore annually, yielding 350,000 tonnes of graphite concentrate.
Mine Life. greater than 50 years
Processing Plant: Includes crushing, grinding, flotation, drying, screening and automated bagging.
Open pit mine development
Tailings and Waste Storage
Diesel and solar hybrid power systems (15.4MW Diesel + 11.25MW Solar + 8.5MW Battery)
Logistics Infrastructure (pit-to-port contracts, roads, export terminals)
Environmental compliance (IRMA 50 audit, community resettlement ESG programs).

Let's be super conservative - based on these components, a replacement cost of US$200-$300Million for replicating Balama's physical and operational footprint.

Combined Replacement Cost Summary (USD):

Vidalia (full 45ktpa) - $539 Million
Vidalia (current 11.25ktp) - $135 Million
Balama (350ktpa) - $200-300 Million

Total (full build): $739-$839 Million (USD)
Or
Total (full build): $1151.3-1307 Million (AUD)

Cheers

DYOR IMO