MENU

Why the Syrah Resources Ltd (ASX:SYR) share price is zooming today

The Syrah Resources Ltd (ASX: SYR) share price is up 11.52% to $1.98 at the time of writing – a welcome incline for a stock that has been on the decline steadily since January 2018.

What happened?

Syrah Resources is an emerging industrial mining and technology company responsible for the Balama graphite project in Mozambique with targets to supply graphite to technology markets.

Syrah today announced it had signed a binding sales agreement with Taida – a Shandong-based company focused on the production of battery anode materials.

The agreement commences immediately and Syrah will supply 20kt of graphite from its Balama project until August 2019.

Now what?

The agreement will likely improve Syrah’s growth prospects quite noticeably and investors who are interested in the emergence of graphite will likely be impressed by Balama’s future prospects.

If graphite is the “new black gold” investors might also keep small cap Talga Resources Ltd (ASX: TLG) on watch although it’s a pretty speculative pick.

More “reliable” commodity picks would, of course, be BHP Billiton Limited (ASX: BHP) or Rio Tinto Limited (ASX: RIO).

If Syrah's recent share price success is anything to go by, graphite is going to be a big thing. For other out-of-the-box stocks check out The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!