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Syrah Resources (AU:SYR)
ASX:SYR
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Syrah Resources (SYR) AI Stock Analysis

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AU:SYR

Syrah Resources

(Sydney:SYR)

Rating:47Neutral
Price Target:
AU$0.50
▲(19.05%Upside)
Syrah Resources is facing substantial financial and operational challenges. The company's financial performance is under pressure with negative profitability and cash flow issues. Technical analysis shows some short-term momentum, but caution is advised due to potential overbought conditions. Valuation remains weak with a negative P/E ratio. The earnings call presented mixed sentiment, with governmental support offset by operational disruptions. Overall, the stock's prospects are hindered by significant risks that need to be addressed for a more favorable outlook.

Syrah Resources (SYR) vs. iShares MSCI Australia ETF (EWA)

Syrah Resources Business Overview & Revenue Model

Company DescriptionSyrah Resources (SYR) is an Australian-based industrial minerals and technology company, primarily focused on the production of natural graphite. The company operates the Balama Graphite Operation in Mozambique, which is one of the largest sources of high-quality graphite globally. Syrah Resources is engaged in the mining, production, and sale of graphite products, serving various industries including battery manufacturing, steel, and automotive sectors.
How the Company Makes MoneySyrah Resources generates revenue primarily through the extraction, processing, and sale of natural graphite. The company's key revenue stream is the Balama Graphite Operation, where it mines graphite and processes it into different product grades tailored for various industrial applications. A significant portion of Syrah's revenue comes from the battery anode market, driven by the growing demand for lithium-ion batteries in electric vehicles and energy storage systems. The company also engages in strategic partnerships and off-take agreements with major manufacturers and industrial players to ensure consistent demand and supply stability. Additionally, Syrah is actively developing downstream processing capabilities in the United States, aiming to produce battery anode material and further capture value across the supply chain.

Syrah Resources Earnings Call Summary

Earnings Call Date:Mar 23, 2025
(Q4-2024)
|
% Change Since: -19.23%|
Next Earnings Date:Sep 08, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant progress in Vidalia and governmental support through tax credits and loans, but was overshadowed by substantial challenges at Balama, negative working capital, and market uncertainties. Despite some positive achievements, the overall sentiment is negatively impacted by operational and market difficulties.
Q4-2024 Updates
Positive Updates
Vidalia Anode Material Progress
Continued strong progress in Vidalia on anode material technical qualification processes with customers, with sales expected later this year.
Government Support and Tax Credit Achievement
Syrah received a US$165 million Inflation Reduction Act Section 48C tax credit for Vidalia's expansion, demonstrating governmental support for the Louisiana facility.
Achievement of IRMA 50 Level of Performance
Syrah achieved the Initiative for Responsible Mining Assurance (IRMA) 50 level of performance for Balama, being the first graphite producer globally to achieve this milestone.
Funding Support Through DFC Loan
Major progress on funding support was achieved with the disbursement under the DFC loan, securing a buffer to navigate challenges.
Negative Updates
Disruption at Balama
No production at Balama due to protracted protest actions and nationwide unrest related to Mozambique national elections, leading to a declaration of force majeure.
Negative Working Capital
Continued negative working capital was evident, affected by the challenges at Balama and the ongoing costs at Vidalia pending sales.
Decline in Natural Graphite Sales
Lower natural graphite sales of 9,000 tonnes from inventory due to the disruption at Balama, with most inventory depleted by quarter-end.
Challenges in U.S. and European Markets
Policy and commercial uncertainty in major ex-China markets, impacting the evolution of the industry and creating challenges for Syrah.
Price Decline in Natural Graphite Market
Natural graphite feedstock prices declined more than 50% over the past two years, due to brutal competition and low utilization of new capacity.
Company Guidance
In the Q4 2024 call, Syrah Resources highlighted several key metrics and strategic directions for addressing challenges and opportunities in the EV and battery materials markets. The company reported a decrease in natural graphite sales to 9,000 tonnes, with a high proportion of fines, and a depleted inventory of just 2,000 tonnes remaining in Mozambique. Despite these challenges, Syrah achieved a significant milestone by securing a US$165 million tax credit under the Inflation Reduction Act for Vidalia's expansion to 45,000 tonnes of production capacity. The company ended the quarter with a cash balance of US$87 million, including US$58 million in restricted cash, and experienced a net cash outflow of US$19 million. Additionally, Syrah faced default events under its DOE and DFC loans due to protests at Balama but received a conditional waiver from the DFC. The call emphasized Syrah's focus on resuming production and sales while minimizing cash burn, leveraging its unique position in the market as the only fully vertically integrated natural graphite anode material producer outside China.

Syrah Resources Financial Statement Overview

Summary
Syrah Resources is facing significant financial difficulties. The income statement shows negative profitability metrics with declining revenue. The balance sheet highlights a high debt-to-equity ratio, and cash flow analysis reveals negative free cash flow and operational inefficiencies. Overall, the financial instability is a major concern.
Income Statement
30
Negative
Syrah Resources shows significant challenges in its income statement with negative profitability metrics. The gross profit margin is negative due to costs exceeding revenues, and the net profit margin reflects substantial losses. Revenue has been volatile with a declining trend over the past years. Overall, the company's profitability is under pressure and it needs to significantly improve its revenue generation and cost management.
Balance Sheet
45
Neutral
The balance sheet indicates moderate financial stability with a high debt-to-equity ratio, suggesting leverage concerns. However, the equity ratio is reasonable, indicating a decent proportion of assets funded by equity. The return on equity is negative, reflecting ongoing losses. Strengthening equity and reducing debt would be beneficial for long-term stability.
Cash Flow
40
Negative
Syrah Resources faces significant cash flow challenges, with negative free cash flow over the periods analyzed. The operating cash flow is insufficient to cover net income, and free cash flow trends indicate heavy capital expenditures. The company needs to improve its cash flow generation and control capital spending to support operations sustainably.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue31.52M47.71M153.17M38.70M15.67M
Gross Profit-55.66M-78.05M18.78M-44.10M-56.25M
EBITDA-81.60M-56.31M-19.43M-53.28M-60.35M
Net Income-125.29M-126.40M-35.99M-71.83M-88.42M
Balance Sheet
Total Assets692.11M700.05M840.48M589.90M559.76M
Cash, Cash Equivalents and Short-Term Investments87.47M124.55M133.27M72.78M97.18M
Total Debt269.91M295.84M126.19M118.37M83.25M
Total Liabilities309.88M346.44M194.34M187.57M128.49M
Stockholders Equity382.87M516.79M642.67M396.49M431.27M
Cash Flow
Free Cash Flow-102.71M-314.57M-189.40M-77.26M-64.88M
Operating Cash Flow-78.64M-93.08M-46.42M-48.34M-49.58M
Investing Cash Flow-24.07M-208.79M-149.27M-25.77M-17.12M
Financing Cash Flow105.89M297.51M249.92M45.27M57.73M

Syrah Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.42
Price Trends
50DMA
0.30
Positive
100DMA
0.28
Positive
200DMA
0.26
Positive
Market Momentum
MACD
0.03
Negative
RSI
71.62
Negative
STOCH
80.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SYR, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.30, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 71.62 is Negative, neither overbought nor oversold. The STOCH value of 80.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SYR.

Syrah Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
47
Neutral
$406.48M-33.63%-33.27%-10.07%
46
Neutral
AU$175.48M98.571.05%
44
Neutral
AU$1.51B-6.04-41.37%3.90%-3.45%-43.04%
39
Underperform
AU$17.74M-3.74%67.62%
38
Underperform
AU$17.18M-8.45%-100.00%
37
Underperform
AU$165.59M-44.88%-92.59%
32
Underperform
AU$44.19M-18.38%10.42%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SYR
Syrah Resources
0.42
0.15
56.60%
AU:QGL
Quantum Graphite Ltd
0.48
-0.11
-18.64%
AU:CBE
Cobre Limited
0.04
-0.02
-33.33%
AU:RNU
Renascor Resources Limited
0.07
-0.02
-22.22%
AU:BKT
Black Rock Mining Limited
0.04
-0.02
-33.33%
AU:LPD
Lepidico Limited
0.01
0.00
0.00%

Syrah Resources Corporate Events

Syrah Resources Resumes Graphite Shipments from Balama Operation
Jul 23, 2025

Syrah Resources has successfully commenced loading a significant breakbulk shipment of natural graphite at Pemba port, Mozambique, following the resumption of production at its Balama Graphite Operation. This marks a crucial step in restoring operations after site access was regained in May 2025, with the company planning further shipments to the USA by the end of September 2025. The removal of the force majeure declaration under the Mining Agreement signifies a return to normal operations, potentially strengthening Syrah’s market position and reassuring stakeholders of its operational stability.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.30 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Appoints New Director with No Initial Securities Interest
Jul 21, 2025

Syrah Resources Limited has announced the appointment of Mr. Robert Edel as a new director, effective from July 17, 2025. The Initial Director’s Interest Notice indicates that Mr. Edel currently holds no relevant interests in securities, either as a registered holder or otherwise, and has no interests in contracts related to the company. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.30 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Appoints New Non-executive Director to Strengthen Board
Jun 24, 2025

Syrah Resources has announced the appointment of Mr. Robert Edel as a Non-executive Director, effective 17 July 2025. Mr. Edel brings over 35 years of experience in the mining, energy, and infrastructure sectors, enhancing the company’s strategic capabilities. His expertise in project acquisition and development across African jurisdictions is expected to bolster Syrah’s operational and industry positioning.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Resumes Graphite Production at Balama
Jun 18, 2025

Syrah Resources has resumed natural graphite production at its Balama Graphite Operation in Mozambique after restoring site access. The company plans to increase production to meet the growing demand for its products, particularly outside China, due to global supply disruptions. Syrah is working with local authorities to ensure smooth operations and plans to expedite shipments to ex-China destinations to accelerate cash flow.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Announces Change of Registered Office Address
Jun 6, 2025

Syrah Resources has announced a change in its registered office address to Suite 2, Level 11, 385 Bourke Street, Melbourne, effective immediately. The company’s telephone number and other details remain unchanged, indicating a minor administrative update with no significant impact on its operations or stakeholders.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Clarifies Tesla Offtake Agreement Conditions
May 26, 2025

Syrah Resources has clarified its previous disclosure regarding the offtake agreement with Tesla for supplying natural graphite active anode material from its Vidalia, Louisiana facility. The agreement’s offtake obligation is contingent on the final qualification of the material to Tesla’s satisfaction by February 2026, with potential termination options for both parties if qualifications are not met by specified dates. The ongoing qualification processes are crucial for commencing commercial sales, impacting Syrah’s operations and its positioning within the battery materials supply chain.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources AGM Results: All Resolutions Passed
May 23, 2025

Syrah Resources Limited announced the results of its Annual General Meeting held on May 23, 2025, where all resolutions were carried. Key resolutions included the adoption of the remuneration report, re-election of a director, approval of performance rights and share issues to executives and directors, and the renewal of proportional takeover provisions. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued strategic growth and governance stability.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Highlights Risks and Disclaimers at Annual General Meeting
May 22, 2025

Syrah Resources, a company listed on the ASX under the ticker SYR, held its Annual General Meeting on May 23, 2025. The presentation highlighted that the company does not provide financial product advice and emphasized the risks associated with securities transactions. The company also issued a disclaimer regarding forward-looking statements, noting that these are based on estimates and assumptions subject to various uncertainties.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Navigates Market Challenges and Expands Global Reach
May 22, 2025

Syrah Resources faced significant challenges in 2024 due to Chinese market conditions and political events in Mozambique and the US. Despite these hurdles, the company achieved milestones such as commencing production at its Vidalia facility and diversifying sales geographically. The company also dealt with operational interruptions due to protests in Mozambique, which were resolved by early 2025. Syrah’s strategic focus on diversifying its market and strengthening its financial position through equity raising and loans has positioned it to capitalize on the growing demand for natural graphite outside China.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Announces Leadership Transition with Chair Retirement
May 22, 2025

Syrah Resources Limited announced the retirement of its Chair, Mr. Jim Askew, by the end of 2025. Mr. Askew has been instrumental in guiding the company through significant transformations, including the development of its Balama Graphite Operation and Vidalia Active Anode Material facility, establishing Syrah as a key player in the global graphite and anode material market. The company is actively seeking a new Chair to ensure a smooth transition and is also in the process of appointing a new Non-Executive Director, indicating a strategic shift in its leadership structure.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Targets Balama Graphite Production Resumption by June 2025
May 15, 2025

Syrah Resources has remobilized teams to its Balama Graphite Operation in Mozambique after site access was restored, aiming to resume production by the end of June 2025. The company is addressing minor maintenance needs and plans to prioritize power restoration and site security. With a significant run-of-mine inventory, Syrah expects to meet the increasing demand for its natural graphite products, driven by supply disruptions in the ex-China market. The company is working with local authorities to ensure operational support and is in discussions to address historical loan defaults with U.S. financial entities.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

Syrah Resources Issues Performance Rights to Boost Employee Incentives
May 5, 2025

Syrah Resources Limited announced the issuance of 6,318,595 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s ongoing efforts to align employee incentives with its operational goals and could potentially enhance employee engagement and retention, thereby impacting its overall productivity and market competitiveness.

Syrah Resources Restores Access to Balama Graphite Operation
May 4, 2025

Syrah Resources has announced that access to its Balama Graphite Operation in Mozambique has been restored following the clearance of protestors by Mozambique Government authorities. The company is now mobilizing teams for inspection and maintenance, with updates on the resumption of operations and product shipments to follow. This development is significant for Syrah’s operations as it ensures the continuity of its graphite production, which is crucial for its market positioning and stakeholder interests.

Syrah Resources Releases Q1 2025 Quarterly Activities Report
Apr 29, 2025

Syrah Resources has released its Q1 2025 Quarterly Activities Report, providing an update on its operations and financial performance. The report includes forward-looking statements about the company’s future performance, highlighting the inherent risks and uncertainties in the market. Syrah Resources emphasizes the importance of seeking professional advice before making investment decisions, as securities transactions involve various risks.

Syrah Resources Navigates Operational Challenges and Market Dynamics in Q1 2025
Apr 29, 2025

Syrah Resources faced operational challenges in the first quarter of 2025, with no production at its Balama site due to ongoing protest actions. Despite these setbacks, the company made progress in its Vidalia operations, securing a multi-year agreement with Lucid for anode material supply and receiving a significant tax credit for expansion. The company is navigating geopolitical and market dynamics, including new US tariffs on Chinese imports and evolving customer procurement strategies, which could impact its market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025