Syrah, an ASX-listed graphite company, faced challenges in 2023 due to unforeseen developments in the graphite market. Chairperson Jim Askew provided insights at the company’s AGM, highlighting the impact on the Balama graphite project’s sales and production momentum.
The lower production from the Balama project in Mozambique, coupled with changes in natural graphite sales and prices, were attributed to factors such as synthetic graphite capacity expansion and government policies in China affecting the customer market. Despite operational challenges, Syrah maintained stable product quality and grade, with efforts to mitigate environmental impacts through the implementation of solar and battery systems.
Askew also discussed the progress at the Vidalia active anode material (AAM) facility in the US, emphasizing the strategic position in the battery anode market. Syrah completed equity raising and reached agreements to strengthen its financial position and advance operations in both Balama and Vidalia.
The company’s commitment to ESG practices, local employment, and community development projects was highlighted, along with efforts to align with leading ESG frameworks. Askew acknowledged the support from stakeholders and the workforce despite market challenges, emphasizing the importance of sustainable operations and growth strategies.
Overall, Syrah’s strategic positioning in the global battery anode and natural graphite markets, along with developments at Balama and Vidalia, signal potential growth opportunities amidst the evolving market conditions. Askew concluded by emphasizing the importance of aligning executive incentives with shareholder value creation to support the company’s future success.
