Syrah Resources (SYR) has announced an extraordinary MOU with one of the largest aluminium producers in the world and a well-known Chinese SOE, Chinalco

Syrah Resources (SYR) has announced an extraordinary MOU with one of the largest aluminium producers in the world and a well-known Chinese SOE, Chinalco. The MOU, should it be converted into a binding Offtake Agreement over the next three months effectively cornerstones SYR's stated production target of 220ktpa of graphite. It would be the catalyst to securing debt funding for the project and potentially a pre-payment facility. We anticipate additional offtake announcements in the near future and maintain our BUY rating. SYR has signed a MOU with Chalieco, a member of the Chinalco Group for graphite offtake of 80,000 - 100,000tpa. The MOU also includes vanadium for an amount to be determined. The final quantities and pricing will be negotiated into a binding offtake agreement within three months. Chinalco is the world's second largest alumina producer, third largest primary aluminium supplier and is a State Owned Enterprise (SOE).