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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

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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.

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