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SYR - SYRAH RESOURCES LIMITED


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Posted Nov 15 2019, 01:03 PM

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

 

Credit Suisse ceased to be a substantial holder a couple of days later - 14/11/19.

 

This afternoon's ann shows CS became a substantial holder again on 22/11/19 - largely by virtue of a couple of large borrows. Parties to the Lending Agreement - Credit Suisse Securities (Europe) Limited and

Regal Australian Equity Fund. Transfer date 22-Nov-2019

https://www.asx.com.au/asxpdf/20191127/pdf/...0m3mzwgdfl0.pdf

 

Back in May 2017, after the Viceroy report, Shaun Verner ,CEO SYR, contact the regulators about short selling in SYR - his main concern was what Viceroy had published but he also made these comments to AFR

 

"Short selling is not possible in many other jurisdictions, it is not as if it is something that is supported right across all other open markets, so if we are going to allow it, we as a country or as a market do need to understand what structures we are prepared to accept around it," said Mr Verner.

 

The Syrah boss stressed he was not campaigning against short selling, and said the best way his company could respond would be to achieve its goals, including its aim to begin producing from its Balama graphite project in Mozambique this year.

https://www.afr.com/companies/mining/syrah-...20170523-gwbaf5

 

SYR may not have been in a position to do much about Viceroy and their short & distort activities, but Credit Suisse is SYR's house broker, who has raised circa $800 capital, has received double digit million of dollars in commission from those cap raises, and has published numerous glowing research reports on behalf of SYR. I doubt Viceroy had the financial clout to borrow anywhere near the amount of shares that Credit Suisse has - and let's not forget that back in August 2018 Credit Suisse Equities (australia) Limited and Kitara Investments Pty Ltd entered into a Lending Agreement - Kitara is the private company of former SYR CEO Tolga Kumova. Surely Verner is concerned about this also?

 

 

 

 

 

 

 

 

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AustralianSuper stares down shorts on Syrah

Australia's biggest superannuation fund says the investment thesis that attracted it to Australia's most shorted stock remains intact, in a major vote of confidence for struggling graphite producer Syrah Resources.

 

Syrah shares have fallen by 94 per cent since June 2016 and its ability to outlast rival graphite producers through this year's downturn is largely due to support from AustralianSuper, which owns 16.5 per cent of the company and has acted as its underwriter and lender.

https://www.afr.com/companies/mining/austra...20191126-p53ed4

 

A bit risky for a Super company, IMHO, but other large super funds are moving into this area as the big banks appear to be retreating. Hopefully it works out.for the Super Funds and their members

 

It was the first time AustralianSuper had issued a convertible note to a listed company

 

Portfolio Manager for Australian Super is Luke Smith - formerly of Canaccord Genuity. Smith was very pro SYR back in the days he was with of Canaccord Genuity. Along with Credit Suisse tCannacord gave some lofty SP targets. Canaccord Genuity, if I recall rightly, took part in an early CR's back in 2013 - Credit Suisse was the lead broker in that raise. Some of his early musings - https://www.livewiremarkets.com/contributors/luke-smith. The Asmet MOU of course never materialised .

 

As suspected, Australian Super has been doing some pretty serious averaging down

 

While it paid as much as $6.54 for Syrah shares in 2016, Bloomberg data suggests AustralianSuper's stake in Syrah was bought at an average price of 73Ãâہ¡ÃƒÆ’‚¢. Syrah was fetching 35Ãâہ¡ÃƒÆ’‚¢ on Monday.

 

Luke Smiths comments in AFR seem to have stirred up some interest in SYR - on a pretty bad day all round on the stock market SYR is up 4.93%

Total short positions are down - as at 26/11/19 15.60%

post-330173-1575337484_thumb.png

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Had to chuckle- SYR is used as an example in this article to "promote" another graphite stock - "a little dynamo" - Comet Resources (ASX:CRL) trading at 2.2c

Institutional investors see buying opportunities in graphite sector

By Trevor Hoey. Published at Dec 6, 2019

Credit Suisse has recently made a move, having taken a 5.2% stake in Syrah Resources as advised on November 22, 2019.

post-330173-1575605749_thumb.png

 

If the author looked a little deeper into the CS "move" on SYR he would realise the reason CS holding went to 5.23% was as explained below. CS has been doing this for yonks - nothing new. Just goes to show how seriously one should take these kind of articles :rolleyes:

 

This afternoon's ann shows CS became a substantial holder again on 22/11/19 - largely by virtue of a couple of large borrows. Parties to the Lending Agreement - Credit Suisse Securities (Europe) Limited and

Regal Australian Equity Fund. Transfer date 22-Nov-2019

 

Credit Suisse Securities

(Europe) Limited 22-Nov-19 Refer to Annexure F of Notice

Stock borrowed under Master prime brokerage agreement

1,025,000 Common Stock

 

Credit Suisse Securities

(Europe) Limited 22-Nov-19 Refer to Annexure F of Notice

Stock borrowed under OSLA

1,879,000 Common Stock

 

UBS comments in AFR (include SYR). UBS is another insto who has been shorting SYR

"The lithium and graphite producers Orocobre, Galaxy and Syrah are âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“too hardâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ on account of falling commodity prices according to lead resources analyst Glyn Lawcock."

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  • 4 months later...

another 52 villagers massacred

https://www.bbc.com/news/world-africa-52381507

Islamist militants have killed around 52 people in northern Mozambique, police say. The police say that the villagers in Cabo Delgado province were "massacred", with some beheaded, after some people refused to be recruited into the militant group.

 

Hundreds have been killed and thousands displaced during the three-year insurgency in Cabo Delgado.

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  • 7 months later...

remember this one. .... was wallowing, sub 50c for most of 2020, but has recently had a rediscovery.

 

and now....

Sources said the $419 million company was looking for between $50 million and $100 million in fresh equity, and a deal was expected to launch in coming days.And there are plenty of reasons why Syrah could need new capital.

 

High on the list is restarting its flagship Balama graphite project in Mozambique, which has been sitting idly for the past half year. Operations at Balama were halted by Syrah in July, as the global market for batteries sustained a pandemic induced hammering, which was the final straw for the project.

 

Syrah had already announced production cuts at Balama late last year due to weakening market conditions, and that was followed by a company restructure in the Sept 2019 quarter that saw the staff head count at Balama cut by 30 per cent.

 

However, a tightening graphite market could mean its time for Balama to restart.

 

In a note to clients a fortnight ago, UBS analysts said the graphite market was supportive of Balama restarting in 2021, and in their base case scenario the project would be restarted before March.

 

While it has been offline, UBS reckoned the Balama project had been burning around $US10 million cash each quarter. Syrah had $US44 million cash on its balance sheet as of September 30 this year and no debt, according to a quarterly activities report published in October.

 

Balama has the capability to supply 350 kilo tonnes per annum of graphite, which is one of the main components for anodes in electric vehicle batteries.

 

The other big reason Syrah could need capital would be to finance the development of its graphite production facility at Vidalia, in the United States. Syrah said it had completed a bankable feasibility study on the project at the start of December, and it would cost $US138 million to build a 10 kilo tonne per annum processing facility.

 

The completion of the BFS meant Syrah could start having commercial discussion for project development to progress with potential offtake partners and financiers, the company said.

 

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  • 1 year later...
On 12/9/2020 at 7:47 AM, nipper said:

remember this one. .... was wallowing, sub 50c for most of 2020, but has recently had a rediscovery.

and now....

and back up to $1.80;  the reinvention continues:. A ShareCafe article

Washington Funds US Expansion Plans for Syrah

Like Lynas and its rare earths operation in Texas, rival Syrah Resources has won financial support from the American government to help expand its operations in that country.
 

Syrah told the ASX on Tuesday that it had secured a conditional loan of up to $A146 million ($US107 million) from the US Department of Energy (DOE) to further expand its existing facility in the US.

Syrah operates the Vidalia active anode material (AAM) plant in Louisiana, which processes natural graphite concentrate shipped in from its Balama mine in Mozambique.

.............. In 2020 Lynas won a $US30.4 million grant from the US government under the Defense Production Act to build a light rare earth elements separation plant in Hondo, Texas.

The investment followed an earlier announcement that its Lynas USA unit agreed to collaborate with the Pentagon for the construction of the plant. Upon the completion of the project, Lynas will produce about 25% of the world’s supply of rare earth element oxides.

 

 

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  • 1 month later...

Syrah has received reports of an insurgent attack at a mine project site near Ancuabe, approximately 200km from Balama in Cabo Delgado province, northern Mozambique. This, with another incident in the same area in recent days, are the first confirmed attacks in the district of Ancuabe. Prior to these incidents there had been a significant improvement in the overall security situation in Cabo Delgado.

The incidents occurred between 30km and 40km from the N1 road, the primary transport route between Balama and both Nacala and Pemba. Syrah and its logistics service provider have taken the precautionary measure of suspending all personnel and logistics movements through the route section until further information is available. Balama mining and processing operations are not currently impacted.

.... not helping the share price; the isolation of the mine and its supply routes could be easy pickings for an insurgency. Has been in the $1.80 to $2 range, but trading below $1.40 now.

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