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" mysterious Madagascan rivals"?? - there are 3 current producers in Madagascar (no mystery)- Tirupati Graphite Group, Ãâ€Â°tablissements Gallois (the oldest and biggest producer has been operation for some time - 10 years or more I think) and ASX listed Bass Metals. Next Source Materials hopes to bring their Molo Project in Madagascar on line with a modular approach - phase 1 will produce 17ktpy in the first 2 years of production. Phase 2 will lift production in the 3rd year to 45ktpy. Capex for phase 1 US$21mil - phase 2 US$39.1 mil = estimated total US$60 mil (further details below). So there will be more competition once/if NSM plans come to fruition.

 

"unexpected emergence of Madagascar as a supplier of graphite to China"??? - a Roskill report quoted last 3 years volumes shipped from the country - "shipments from the island have increased rapidly in recent years, from 9.4 kt in 2017 to 46.9 kt in 2018, and now 32.5 kt in H1 2019"

 

"that surplus has forced down graphite prices and rendered Syrah loss-making."??? - say what? So nothing to do with SYR flooding the market

 

Syrah says mysterious Madagascan rivals cutting graphite exports

A surprise surge in graphite exports from Madagascar has started to recede according to Syrah Resources chief executive Shaun Verner, suggesting the price pain that forced Syrah to cut exports is also hurting the mysterious Madagascan players.

 

The unexpected emergence of Madagascar as a supplier of graphite to China was one of the factors that tipped graphite markets into over-supply in 2019, and that surplus has forced down graphite prices and rendered Syrah loss-making.

https://www.afr.com/companies/mining/syrah-...20191021-p532p4

 

NextSource Materials has already secured an off-take agreement with a major Japanese trader and is in the process of formalising an additional sales agreement with a leading European trader. With the Japanese tie-up, the company is aiming to supply flake graphite to the largest processor and manufacturer of graphite anode material for lithium-ion batteries in Japan. The phased approach should make it easier for NextSourceâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s graphite to be absorbed into the market and, additionally, provide production-run material to the highly demanding lithium-ion battery anode market for testing and verification.

 

Meanwhile, there are other graphite developments going on in Madagascar. These include Bass Metals which commissioned its 6ktpy plant in 2018, and is planning an expansion to 20ktpy. Tirupati Graphite Group of India, in partnership with Optiva Securities, commissioned a new 3ktpy plant earlier this year. Tirupati is also planning to open a second 18ktpy processing facility in the second half of 2020. Etablissements Gallois (Madagraphite) is a well-established producer in Madagascar, although with varying production levels. The company is also now reported to be expanding operations at two of its mine sites to 50ktpy and 100ktpy âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ which will be a significant jump from its current estimated level of 10ktpy.

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I wonder how SYR's logistics company, Grindrod are taking the news of the reduced production. They invested a heap of money to service the SYR contract. Surely there must have been a volume figure included in the contract? The contract was awarded in April 2017 at a time when SYR's planned production was Year 1: 140kt to 160kt, Year 2: 250kt to 300kt . Revised planned 2020 production of 120kt âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ 150kt subject to market conditions.

 

Twigg Exploration and Mining Limitada, a fully owned subsidiary of Syrah Resources Limited (inclusive of Syrahâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s subsidiaries, Syrah Group), developed a major graphite project in northern Mozambique, near Balama and in 2017 the Syrah Group awarded the logistics contract to the Grindrod. The contract is to transport bagged graphite from Balama to Nacala for export, a distance of 500 km.

 

To service this contract, Grindrod invested in a fleet of long-haul trucks and developed a 60,000 mÃâہ¡ÃƒÆ’‚² facility, including a 10 000mÃâہ¡ÃƒÆ’‚² warehouse, a container yard with a capacity of 3 500 TEUs, and a transport yard near to the port; the facility was operational in June 2018. Besides the significant investment of US$24 000 000 in infrastructure and equipment, the operation currently employs 350 Mozambican people (including sub-contractors).

 

Key services offered by Grindrod include long-haul transport from the mine to the warehouse in Nacala, storage and containerisation of the product, short-haul transport of the laden containers into the port as well as customs clearing services. The graphite is then shipped all over the world.

http://www.grindrod.co.za/News/30156/Grind...ite-for-export-

 

Apart from SYR laying off staff at Balama Mozambique, Vale is also expected to lay off employees in Mozambique - they both get a mention here

 

Australian mining company Syrah Resources expected the vote to take place on 15 October to announce that it intends to reduce almost a third of the 650 workers it employs at its graphite mine in the Balama District of Cabo Delgado Province.

 

With just over 1 year of operation, was inaugurated by the President of the Republic, Filipe Nyusi, in April last year, Syrah Resources made public that it will carry out an operational review, reducing significantly the production already in the last quarter of 2019 and 2020, to save $ 22 million over a year in Balama.

 

"In light of the profound structural changes currently taking place in the graphite market, Syrah has taken clear and disciplined measures to temporarily reduce production volumes and allow market rebalancing," Syrah Managing Director Shaun Verner said in a press release. .

 

In addition to job cuts, the company will undergo corporate restructuring to save $ 1.5 million, mainly through "reducing the number of executive directors."

 

Another mining company that is also expected to lay off employees in Mozambique is Vale, which explores coal in Moatize, manages the Nacala Integrated Logistics Corridor and also operates a port in Nacala-à-Velha.

 

http://www.verdade.co.mz/nacional/69351-ce...dustria-mineira

 

 

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Is SYR now fully funded, including BAM? If not it's getting a whole lot harder accessing debt financing. Also note comments re fund managers investing

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Weâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢re turning down lots of stuff. Being green is a precondition for lending,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ said Laurent Charbonnier, global head of metals and mining at HSBC, speaking ahead of LME Week when the worldâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s metal industry gathers in London.

 

Mine operators now face extensive checklists from lenders before they release funds and listed companies are being screened by fund managers before they buy their shares.

 

Assets in global âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“sustainableâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ funds have doubled over the past five years to $844 billion by end June, according to research firm Morningstar.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“For us, the scrutiny is all around us,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ said Shishir Poddar, executive chairman of Tirupati Graphite plc, which plans to list in London.

 

 

read more - Metals sector in costly battle to turn green - https://www.mining.com/web/metals-sector-in...-to-turn-green/

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  • 2 weeks later...

A good start, but a long way to go before commercial sales - the product needs to be qualified. The qualification period for batteries is much more stringent than other applications - for obvious reasons.

 

No mention of what purity was achieved, or the yield. Historical industry data suggested 3 tonnes of flake graphite concentrate were required to produce 1 tonne of uncoated spherical graphite In recent times industry yields have improved in step with technology - 40 - 50%. The "waste" material can be sold, albeit at a much, much lower price than SPG SYR had in place a OTA with Hillier Carbon for some of this waste material - if I recall it was around 25ktpa

 

Assume the purification method SYR are using is still the HF chemical process. Most other western companies are avoiding this process

 

The micronized and rounded material is then purified from approximately 94%C to 99.95%C using hydrofluoric and sulphuric acid as impurities affect battery performance. On its own, wet chemical purification is a low cost process but large quantities of fresh water are required to rinse the graphite. Costs increase if neutralizing agents are added and proper environmental and health and safety practices are followed. This is one of the reasons almost all uSPG is produced in China. It will be very difficult and challenging to use HF in the west and companies planning on manufacturing SPG must have an alternative.

 

The waste water used in this process in Vidalia is to be delivered to the towns sewerage system - which according to the citizens of Vidalia .......

 

New letters from LDEQ to the Town of Vidalia are up on LDEQ's public records database. How can the city safely take Syrah's industrial waste when LDEQ audits show our WWTP in such poor shape? This group wants the city to require that Syrah obtain its own wastewater permit from LDEQ. They should be processing their own waste, not the city of Vidalia. In no way is it appropriate for a city to allow a first of its kind, unregulated industrial discharge to be allowed to use the city's wastewater permit.

https://www.facebook.com/saveconcordiaparish/

 

SYRAH FIRST PRODUCTION OF PURIFIED SPHERICAL GRAPHITE FROM BAM FACILITY

________________________________________________________________________________

____________

Syrah Resources Limited (ASX: SYR) (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Syrahâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ or âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) is pleased to announce the first production

of purified spherical graphite from its Battery Anode Material (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“BAMâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) plant in Vidalia, Louisiana, USA using

Syrahâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s natural graphite from Balama. This represents the achievement of a significant milestone at

Syrahâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s BAM project, and in the execution of the Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s strategy of developing a vertically

integrated natural graphite anode material production capability.

 

Highlights

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Safe operations during construction and commissioning activities

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Construction activities for BAM plant milling, shaping and purification circuit complete

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ First purified spherical graphite produced from Vidalia

 

Internal process optimisation, product testing and quality control assessment will continue in the coming

weeks in preparation for qualification products to be dispatched to target customers

 

SP currently up 9.47% @ 45c. Total short positions as at 29/10/19 = 17.49% - https://www.shortman.com.au/stock?q=SYR

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As expected, the citizens group - Save Concordia Parish - are not that pleased with the news yesterday

 

Save Concordia Parish

18 hrs Ãâہ¡ÃƒÆ’‚·

Syrah has begun producing spherical graphite in Vidalia. With no permits. This group did everything in our power to prevent the city from accepting unregulated, industrial waste into our already suffering WWTP. The mayor denied the people a public hearing. The mayor denied the governing board of WWTP a vote on if the city should accept this waste. The mayor denied repeated requests for Syrah to process their own waste. You, the people, will suffer the consequences of this decision. It will be your responsibility to pay for damage done to WWTP or our aquifer. Rest assured, this group will not give up the fight to stop Syrah from contaminating our WWTP.

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Graphite: Syrah produces first purified spherical graphite

Roskill View

Syrah Resources has so far supplied most of its flake graphite production from Balama to spherical graphite processors in China, however, it announced a scale back in production from 15kt to 5kt per month from Q4 2019 because of poor market performance and issues with project recoveries and flake size distribution in its concentrate. As with many other flake graphite projects (who, unlike Syrah Resources, have not yet made it to production), the company is now looking at downstream processing to increase its revenues.

 

Although a number of companies outside of China have managed to produce purified spherical graphite, including both established and potential flake producers, China remains the only country to produce spherical graphite on a large commercial scale. Manufacturing has focussed on China because of its lower production costs and fewer environmental restrictions than those in the rest of the world (ROW). China also dominates the entire lithium-ion battery manufacturing chain, from graphite and anode material production, through to component and final battery manufacture, and China provides the fastest growing market for lithium-ion batteries, mainly from its burgeoning EV sector.

 

Fewer environmental restrictions have allowed Chinese producers to develop inexpensive processing methods based on the use of strong acids that make it difficult for potential producers in the ROW to compete, even as Chinese production costs rise. Chinese environmental restrictions are tightening and environmental-associated production costs are increasing âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ for example, from the introduction of Chinaâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s environmental protection tax from April 2018 and from the installation of new equipment to meet rising pollution standards. Environmental inspections and plant closures have swept through the graphite industry (and many other industrial mineral industries) since the mid-2010s to make sure producers meet these targets. Spherical graphite processing has been a particular area of focus because of its historically high levels of wastewater and air pollution. Temporary plant closures and price rises have become a recent hallmark of the Chinese natural graphite industry, with more inspections expected to hit in late 2019/early 2020.

 

Even as Chinese production costs rise, barriers for entry are even higher for spherical graphite in the ROW, with many companies looking to develop alternative production methods that reduce or eliminate the use of acids. Such methods are proprietary but include thermal purification which is very energy intensive and expensive.

 

The jury is still out on the ability for Syrah and/or other ROW producers to supply spherical graphite on a commercial scale at a competitive cost to Chinese production, or if battery/anode manufacturers will be prepared to pay a premium to have a more sustainable, non-Chinese source of raw material.

https://roskill.com/news/graphite-syrah-pro...rical-graphite/

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SYR House broker, Credit Suisse, continue NOT doing retail shareholders any favours. Get a load of those borrow/returns :rolleyes:https://www.asx.com.au/asxpdf/20191115/pdf/...m7zfttrn0gn.pdf

 

Wonder when Credit Suisse's Michael Slifirski will come out with another BUY target for SYR :rolleyes:

 

Although I guess now that SYR is finally "fully funded" (we hope) CS probably don't need to play nice?

 

https://www.shortman.com.au/stock?q=syr

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AFR are reporting "The corporate regulator is examining one of Australia's top hedge funds, Regal Funds Management, enquiring about its trading "in certain securities""

https://www.afr.com/markets/equity-markets/...20191126-p53e7e

 

Seems there is an ongoing legal case in the Federal Court of Australia - RNB Equities Pty Ltd v Credit Suisse Investment Services (Australia) Limited (No 2) [2019] FCA 1385.- in which CS is the 1st Respondent and Regal Funds management 2nd respondent in what appears to be trading in SYR back in 2013

https://www.judgments.fedcourt.gov.au/judgm...019/2019fca1385

 

Back in 2015 there was a report that Regal Funds were being investigated about trading activities in certain securities . At the time I had a look into trading activities/share plunge in SYR and posted this on HC

Had a look back at SYR's sp activity back in 2013 to see if this Regal issue had anything to do with SYR, and I'm certainly not saying it does, but there was a bit of a "plunge" early in April 2013. In fact, SYR received a "please explain" from ASX on the 3/4/13 when the sp went from $2.56 - 2.18 on "increased volumes".

 

If you look at the short positions on the 4/4/2013 they jumped from 297k on 3/4 to 6.1m and then 7.1m on 5/4, back down to 3.3m on 8/4 and 758k on 9/4.

 

BoA became a subholder on 22/3/2013 and RFM's Tasman + Atlantic Funds included as parties, but not the Long Short Fund which is the Fund, apparently, that is at the centre of this investigation (see appendix) http://www.asx.com.au/asxpdf/20130322/pdf/42dvdnz49jj0fp.pdf

 

This was happening around the same time as the Credit Suisse mini warrants were issued. At the time, there was quite a bit of discussion on this thread re both the mini's and the plunge in the sp. I remember Lute's post --->>> 11673895 wherein he mentioned......

 

"It was suggested that the shorting of the respective stock was to trigger the mini warrant stop loss to force selling into the market.

 

This then enabled the shares to be purchased by a larger player at a steeper discount than the current market price at the time.

 

The resultant action, together at time with uncertainty in the resource sector has contributed to Syrah's share price to fall from $2.75 to $1.75."

 

A similar "issue" with mini's occurred with ATU, and at the time ATU lodged a formal complaint to ASIC and ASX.

 

The other large spike/plunge shown on the chart below in July/Aug/Sept 2014 was mainly as a result of the Glencore rumour, followed by the Paul Kehoe sale at the end of November

 

It will be interesting to see if this has anything to with what is being investigated, or whether it is something entirely different that occurred with another stock. I guess all will be revealed at some time in the not too distant future. Certainly good to see ASIC getting on top of issues such as this.

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A later report suggested Regal Funds and Bell Potter were investigated, and issued enforceable undertakings, in relation to their trading activities in TEN - also in 2013. This latest Federal Court document seems to suggest there maybe more than the TEN trading under investigation.

 

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Appears changes in index house MSCI's country indexes has sparked some heavy trades at end of the market to reflect changes to the MSCI Australia Small Cap Index. SYR have been deleted

 

Geneva, November 07, 2019

MSCI GLOBAL SMALL CAP INDEXES

The following are changes in constituents for the MSCI Global Small Cap Indexes

which will take place as of the close of November 26, 2019.

 

MSCI AUSTRALIA INDEX

Additions

AUSTAL

AVITA MEDICAL

BANK OF QUEENSLAND

CENTURIA METROPOLITAN

ECOFIBRE

EML PAYMENTS

IMF BENTHAM

INGENIA COMMUNITIES GRP

ISIGNTHIS

PERSEUS MINING

POLYNOVO

RAMELIUS RESOURCES

 

Deletions

OFX GROUP

SPEEDCAST INTERNATIONAL

SYRAH RESOURCES

WAGNERS HOLDING CO

WISETECH GLOBAL

 

https://app2.msci.com/eqb/gimi/smallcap/MSC...CPublicList.pdf

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