Syrah (ASX:SYR) share price edges higher on positive update

The Syrah (ASX: SYR) share price is up 1.5% in afternoon trade after the company announced a positive update on its graphite production.

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The Syrah Resources Ltd (ASX: SYR) share price is edging higher in afternoon trade. This comes after the company announced a positive update on the production of its natural graphite active anode material (AAM).

At the time of writing, the graphite producer’s shares are swapping hands for 99 cents, up 1.54%.

What did Syrah announce?

In its release, Syrah advised it has achieved the first fully-integrated production of AAM at its Vidalia operation in the United States. This follows the company’s installation and commissioning of its commercial scale furnace in late March.

Syrah highlighted that it is now the only vertically integrated company outside China to produce the graphite material.

The milestone signifies Syrah’s progress on advancing its qualification process along with supporting commercial discussions. The thermal treatment of coated anode precursor in a furnace is the final stage of processing graphite to produce an anode material for use in lithium-ion batteries.

Syrah managing director and CEO Shaun Verner commented:

Syrah is committed to becoming a pre-eminent, large scale supplier of natural graphite AAM. The fully integrated production of on-specification AAM at Vidalia confirms our position as the most progressed vertically integrated natural graphite AAM supply option outside of China for USA and European battery makers and OEMs.

In addition, the company advised it was on track to expand its current production capacity at Vidalia. A final investment decision for the construction of a 10ktpa AAM facility is planned for the second half of 2021. This is subject to end-customer commitments and other partnerships.

Syrah share price snapshot

Over the past 12 months, the Syrah share price has accelerated more than 260% but is relatively flat on year-to-date performance. The company’s shares reached a 52-week high of $1.37 earlier this year.

Based on today’s price, Syrah commands a market capitalisation of around $490 million, with approximately 497 million shares outstanding.

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Motley Fool contributor Aaron Teboneras 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.

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