The Syrah Resources Ltd (ASX:SYR) share price has jumped 48% higher in just two weeks

The Syrah Resources Ltd (ASX:SYR) share price is up 48% in just two weeks. Here's what pushed its shares higher today…

| More on:

Should you invest $1,000 in Australian Strategic Materials Ltd right now?

Before you buy Australian Strategic Materials Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Australian Strategic Materials Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

a woman

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 has continued its strong run on Thursday and is up almost 4.5% to $2.02 at the time of writing.

At one stage the graphite miner's shares were 7.5% higher at $2.08. This brought its two-week return to an impressive 48%.

Why are Syrah's shares surging higher today?

This morning Syrah announced that the replacement Primary Classifier Unit at its Balama project in Mozambique has been successfully installed and commissioned ahead of schedule.

Just over a month ago a fire occurred in the Primary Classifier section of the Balama process plant. This is the part of the plant that distributes and classifies all milled material from the scrubber prior to flotation.

The fire, which originated during hot work activities below the unit during planned maintenance on piping, rendered the Primary Classifier inoperable.

This meant the company had to suspend production and source a replacement unit from South Africa. Downtime of approximately five weeks was expected while the unit was sourced and installed.

Pleasingly, with the unit now installed, production has resumed and a stable ramp up was achieved.

In addition to this, Syrah took advantage of the downtime to bring forward planned maintenance and production optimisation works. This is expected to reduce subsequent planned downtime and continue the production improvement plan.

With those works completed as planned, management believes it provides confidence for its future production performance. Which is certainly a big positive given its poor track record and numerous production guidance downgrades this year.

Should you invest?

While I think that Syrah's Balama project is a world class asset and has significant potential, a lot will ultimately depend on the prices that it is able to command for its graphite.

I intend to wait and see how its free cash flow is looking once its production ramps up and is maintained at a consistent level.

Until then, investors looking for exposure to battery materials shares might want to consider Galaxy Resources Limited (ASX: GXY) or Orocobre Limited (ASX: ORE). However, both are high risk investments and prone to wild share price swings.

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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.

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »

Two people jump and high five above a city skyline.
Share Gainers

Why these 5 ASX 200 stocks are racing higher this week

It’s been a stellar week for these five ASX 200 stocks. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Appen, Aspen, Catalyst Metals, and Core Lithium shares are racing higher today

Let's see why these shares are roaring higher today and ending the week on a high.

Read more »