By end of May 2025, we should have a clear picture on the tariffs to be imposed on cheap synthetic graphite. Prior to current sanctions, China was selling it for only US$460 a tonne - obviously at a loss to control the world's supply chain. Graphite companies have put forward a proposal for 900% tariffs on Chinese graphite.
Even a 150% tariff would see anyone buying this cheap Chinese synthetic graphite be paying US$1,000 a tonne.
if so, there would be a scramble to find freshly mined graphite. And Syrah is the one company that can supply it - quickly. If they can get even US$800 a tonne, Balama mine will be cash flow positive.
Also, hoping for good news too from Tesla by end of May this year - then the AAM plant can swing into full production.
Can see Syrah getting to 50 cents a share by end of the year if these things fall into place.
It is a big "IF" but if graphite prices increase to US$1,000 or even $1,200 a tonne, it's back to $2.00 a share. 4 years ago when Lithium prices exploded upward Pilbara Resources went from 30 cents a share to over $4.00 - in only 2 to 2 1/2 years. Let's hope for the same with graphite.
SYR Price at posting:
20.0¢ Sentiment: None Disclosure: Held
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