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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.