Here's why the Syrah (ASX:SYR) share price is pushing 5% higher today

The Syrah Resources Ltd (ASX:SYR) share price is pushing higher on Tuesday after releasing an update on its Balama operation…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Syrah Resources Ltd (ASX: SYR) share price is on the move on Tuesday morning.

At the time of writing, the graphite producer's shares are up over 5% to $1.22.

This latest gain means that the Syrah share price is now up an impressive 24% since the start of the year.

Why is the Syrah share price pushing higher on Tuesday?

Investors have been buying Syrah shares this morning following the release of an update on its Balama operation in Mozambique.

According to the release, the company has achieved consistent production of on-specification natural graphite at Balama during March to date. This positions it ahead of schedule versus the expected lead time of two to three months for its first production.

Given that Syrah announced its plan to restart production at Balama on 22 February, it has taken less than a month to get it to this stage.

What now?

The company advised that it will progressively increase plant utilisation and production volumes as the full contingent of labour at Balama continues to be reinstated.

Syrah's Managing Director and CEO, Shaun Verner, commented: "During the period of temporary suspension at Balama, we reduced costs whilst also maintaining operating and marketing capability to ensure that we could promptly respond to an improvement in market conditions."

"Our re-start progress to date is a testament to the ongoing preparedness work by the Balama Operations team during the temporary suspension and positions us well to ramp-up into improving market demand," he added.

Looking further ahead, the company notes that it continues to progress towards becoming a vertically integrated producer of natural graphite Active Anode Material (AAM) to service ex-Asia markets. It intends to operate Balama in parallel with progressing its natural graphite AAM project at Vidalia, Louisiana, USA.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

Let's also take a look at what the various ASX sectors were doing this Wednesday.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Argosy Minerals, Immutep, Pointsbet, and Regis Resources shares are racing higher

These shares are having a strong session on Wednesday. But why?

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another strong showing from the share market today.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Healthco Healthcare, Medadvisor, Ramsay Health Care, and Tamboran shares are rising

These shares are having a strong session. But why?

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Share Gainers

If you invested $6,000 in Mesoblast shares a month ago you'd have $15,636 now!

Mesoblast shares have been on a tear this past month. But why?

Read more »

Smiling man working on his laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to the races for ASX shares today, in a confident start to the week.

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrible way to end the trading week today for ASX investors.

Read more »

Female miner smiling at a mine site.
Share Gainers

Up 834% in a year, guess which ASX mining stock is hitting new all-time highs today

The ASX mining stock has gone from strength to strength over the past year.

Read more »