SYR 3.66% 39.5¢ syrah resources limited

With 8 mega factories currently under construction and another...

  1. 901 Posts.
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    With 8 mega factories currently under construction and another 12 planned within the next 5 years, where do you think they'll gettheir graphite from? Remembering they all require small flake.

    The cut in orders from China (scaling back on production) was becauseChinacut their subsidies on EV's and demand plummeted. Since then Tesla has completed their Shanghai mega factory and demand would have surged again if SYR wasn't forced toshutdown Balama. The main problem the company has had is they haven't been able to secure an offtake agreement to guarantee mining production and havebeen forced to operate at the whim of the Chinese. This is now changing in dramatic fashion. The Chinese won't be SYR's future customers.

    Once off take agreements have been securedwhich I'm positive will happen, it is common business practicefor forward payment of the off take to be part of the agreement especiallywhen company's are scrambling for supply. SYR can then operate in a more secureenvironment allowing them to plan a rail spur etc to cut C1 costs. Supply and demand will dictate the price.

    I've said it before and I'll keepsaying it. Some posters are completely ignoring or simply don't understandthe future EV market both economically and politically. $100b plus is currentlybeing invested in the EV market with plenty more to come with multiple country's betting their economic stimulus on it. Will this happen overnight? Not a chance. Are there risks involved for SYR? You betcha. All the stocks I hold could go bust if we can't produce a vaccine in the next couple of years. But unless you want tobecome a prepper, life must go on with the assumption we will.

    Last edited by Proga: Sunday, 03:58
 
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