The Syrah Resources Ltd (ASX: SYR) share price is on the move today after the graphite miner's latest quarterly report.
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Why is the Syrah share price on the move?
Shares in the Aussie graphite fell 0.5% in early trade after providing an update for the period ended 31 March 2021 (Q1 2021).
Syrah's key value proposition remains in the electric vehicle (EV) market. Syrah is a primary producer of high quality graphite and graphene, which are key components for EV batteries.
The Aussie miner reported strong EV sales during the quarter, up 140% on Q1 2020 to over 1.1 million units. Ramp-up is continuing at the group's flagship Balama Graphite Operation with positive grade and recoveries.
The Syrah share price has been on a recovery path in the past 12 months, climbing over 350% to the current $1.06 per share valuation. Shares in the graphite producer are falling this morning following the update despite reporting growing plant utilisation and production volumes.
Syrah reported increased natural graphite demand from EV sales growth. Active Anode Material (AAM) production volumes continue to grow after being disrupted by the coronavirus pandemic on both the supply and demand side.
Syrah said that was supportive of the production resumption at Balama in March 2021 ahead of schedule. Easing COVID-19 restrictions, stronger market conditions and new enquiries from customers all played a part in the decision.
Syrah produced 4,700 tonnes and shipped 2,300 tonnes of prior sales from product inventory to established customers. That comes after restructuring to enhance yield unit cost reduction upon commencement.
Increasing plant utilisation and natural graphite production have the company working towards 15,000 tonnes per month subject to demand.
Foolish takeaway
The Syrah share price has been under pressure following the update as the broader market slumps lower. At the time of writing, shares in the Aussie miner are down 0.5% to $1.06 per share as investors react to the latest news.
