Australia's largest stock trading and investment forum Australia's #1 stock forum

SYR

0.00%

32.0¢ syrah resources limited

DoctorFouad I agree with many of your comments especially the...

First 33 Last

Share
Profile

Follow
Graphite

114 Posts.

1

10/02/17

04:14

Post #: 22504730
Share

Originally posted by DoctorFouad ↑

Hi, I think that is our point of divergence, I am in the minority here so my opinion is not popular with either camp. I am neither short nor long Syrah. I dont believe they will go bankrupt (because they have enough cash at least to completely build the mine) and at the same time I dont believe they will achieve more than 100.000tpa output anytime soon (probably by 2020), let alone the unrealistic (and ludicruous) figure of 360.000 (which is a joke from syrah management IMO).

I think they will survive by diluting shareholders (most probably a capital raise mid-end 2017) : 30M$ ? 50M$ ? 70M$ ? who knows...) + selling 10.000tpa - 30.000tpa during the first one (2018)-two (2019) years of production/commissioning. IMO that is enough for them to survive and maybe even breakeven. at 30.000tpa assuming 600$ per tonne (mostly small flakes at an average of 94% purity) that is 18Million$ of revenue. Their all in sustaining costs could be at 500$ - 600$ per tonne which is a breakeven level.

But I do agree with you that it is extremely unlikely Syrah would be making any serious money for investors anytime soon. This is the industrial Minerals world, completely different to Precious Metals / commodities (oil, copper, iron...etc). Industrial minerals are notorious for recquiring huge amounts of time of commissioning and tailoring production to both ore resources specificities (and surprises) and customers needs and preferences.

Metallurgical tests are helpful but are done at laboratory scale and at best case scenario at an extremely small pilot plant scale. They do not represent conditions of production at large commercial scale which is a completely different matter. That is again why i am not worried about Syrah flooding the market, even if they want to, they technically cannnot, for me now syrah is a company for dreamers....reality will reveal its face very soon. At 200M$-300M$ market cap and after they pass the toothing commissioning issues, I would start seriously thinking about investing in Syrah. lets see if the market will give me this opportunity ! Until then, I wish them success at least achieving 10.000tpa by 2018.

The last thing we want is another failure in the graphite market (after flinders, triton and valence industries).

Expand

DoctorFouad

I agree with many of your comments especially the fact the graphite market does not need another failure.

Yes my comment about bankruptcy is assuming that investors give up or stop funding Syrah. This could happen once investors realize that it will take Syrah a very long time to become profitable.

I assume one the market cap drops to a realistic value then graphite companies such as Asbury or IMERYS could become major investors.

Like you i too hope Syrah can become successful.

SYR Price at posting: $3.09 Sentiment: Sell Disclosure: Not Held
3 Upvote

0 Great analysis

Reply

Top Stories

MSB

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

SRL

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

OCC

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

SPR

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

PL3

Patagonia looks to raise $2.15M for South American exploration and development

There are more pages in this discussion • 16 more messages in this thread...

First 33 Last

Add SYR (ASX) to my watchlist

(20min delay)
Last 32.0¢		Change 0.000(0.00%)		Mkt cap ! $331.1M

Open	High	Low	Value	Volume
32.0¢	32.5¢	31.0¢	$1.390M	4.380M

Buyers (Bids)

No.	Vol.	Price($)
12	904701	31.5¢

Sellers (Offers)

Price($)	Vol.	No.
32.5¢	360883	6

View Market Depth

No.	Vol.	Price($)
12	904701	0.315
25	1293410	0.310
20	1377081	0.305
34	2628896	0.300
9	1004628	0.295

Price($)	Vol.	No.
0.325	360883	6
0.330	202952	2
0.335	169291	5
0.340	337275	7
0.345	258100	3

Last trade - 16.10pm 09/07/2024 (20 minute delay)

SYR (ASX) Chart

DoctorFouad I agree with many of your comments especially the...

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Patagonia looks to raise $2.15M for South American exploration and development

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

DoctorFouad I agree with many of your comments especially the...

Top Stories

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Patagonia looks to raise $2.15M for South American exploration and development

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News