The leader in the global graphite sector, Syrah Resources, has announced a three-year binding off-take with Chinese SOE Chalieco (Chinalco Group)

Stockbroker
The leader in the global graphite sector, Syrah Resources, has announced a three-year binding off-take with Chinese SOE Chalieco (Chinalco Group). This is a milestone event for the company. Chalieco will have exclusive distribution rights over the People's Republic of China and Hong Kong for the purchase of between 72 - 88ktpa. Pricing will be negotiated quarterly between the two parties. The detail pertaining to the off-take agreement is high-level, and provides the confidence that banks and lenders require for partial debt-funding of Balama. The forecast pricing (referencing Benchmark Minerals) has a Balama weighted basket-price reaching US$1579/t in 2018, with the +50 mesh product selling for up to US$2590/t. This compares to anticipated operating costs less than US$300/t FOB. With further news-flow expected in coming months, including news on more binding offtake deals, the Definitive Feasibility Study, and debt financing, 2015 is shaping up as Syrah's year. Research here: (VIEW LINK)

Canaccord Genuity Group is a leading independent, full-service financial services firm. Canaccord Genuity has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual,...
Expertise
No areas of expertise

Canaccord Genuity Group is a leading independent, full-service financial services firm. Canaccord Genuity has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual,...
Expertise
No areas of expertise