Syrah Resources Raises Funds to Expand Vidalia (ASX:SYR)

By ,

Syrah Resources Ltd [ASX:LPI] has completed a $192 million capital raise to expand their Vidalia project.

Syrah aims to become the first major integrated producer of natural graphite anode material that is battery ready outside of China.

Their plan is to mine for graphite at their Balama graphite mine in Mozambique and then transport that graphite to their Vidalia facility in Louisiana, where it will be processed into active anode material (AAM).

Syrah Resources targeting production by 2023

The company completed a placement that raised around $125 million, and an institutional entitlement offer that raised another $67 million approximately.

The placement got support from both existing shareholders and new investors and about 76% of their entitlements available to eligible institutional shareholders were snatched up.

Shares were offered at a fixed price of $1.48 per new share, which is a discount on the share price of 10.3% of the company’s closing price of $1.65 a share on 4 February.

How to Limit Your Risks While Trading Volatile Stocks. Learn more.

Now the company is getting ready to launch an offer for retail investors, which they expect will raise around $58 million. This offer will open from next Monday, 14 February, and will close on 28 February.

Earlier this week, Syrah Resources approved a final investment decision for Vidalia to expand its production capacity to 11,250 tonnes a year of AAM. This would increase the production capacity of the plant, once its built, by around 12%.

This is after Syrah Resources recently signed a deal with Tesla to supply them 8,000 tpa of AAM from Vidalia for an initial four years.

Syrah expects to finish up building the plant in the June 2023 quarter, and to start production in the September quarter of 2023.

Building an anode supply option outside of China

Syrah is looking to become a vertically integrated natural graphite supplier for both the US and the EU,  and Vidalia is a pretty crucial step in achieving that.

Shares for Syrah were down 11% once it resumed trading today after a trading halt. Shares were exchanging hands at $1.47 cents at time of writing.

With EVs rolling out at a fast pace, we’ll need plenty of EV materials like graphite and lithium.

Check out our complete guide on how to invest in ASX lithium stocks. For more information, click here.




Selva Freigedo,
For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

About Selva Freigedo

Selva Freigedo is an analyst at Money Morning. She has a background in financial economics, but what makes Selva´s experiences different to many are the places she has lived and worked. Born in Argentina, she has also lived in Brazil, the US, Spain, and now Australia. She has seen up…

Syrah Resources Shares Rise on March Quarter Results [ASX:SYR]

Graphite mining company Syrah Resources [ASX:SYR] rose on Tuesday after a positive graphite production March quarter.

Altech Shares Soar 34% Higher on ‘Outstanding PFS Results’ [ASX:ATC]

Altech Chemicals [ASX:ATC] shares are up 34% following ‘outstanding PFS results’ for its Silumina Anodes Project.

Syrah Resources Shares Spike on US$107 Million Government Loan

Graphite miner Syrah Resources [ASX:SYR] announced that the US government has conditionally committed to lend it up to US$107 million to develop an active anode material (AAM) facility in Louisiana.

Core Lithium Share Price Soars on Tesla Lithium Deal

Core Lithium [ASX:CXO] shares are up by almost 16% today after signing a lithium supply deal with electric carmaker Tesla Inc [NASDAQ:TSLA].

ASX Lithium Stocks: Lake Resources and Syrah Resources’ Quarterly Updates

We examine the latest quarterly results from Syrah Resources [ASX:SYR] and Lake Resources [ASX:LKE]. LKE and SYR shares are in focus today as the two lithium stocks released their December quarter results.

Syrah Resources Soars 25% on Tesla Offtake Agreement (ASX:SYR)

Syrah Resources [ASX:SYR] share price spiked on Thursday after striking a graphite supply deal with EV giant Tesla Inc [NASDAQ:TSLA].