Investors in Syrah Resources Ltd (ASX: SYR) will be feeling some relief today after its share price climbed 9 cents or 9% to $1.09, although it is still down around 66% over just the past year.
Syrah boasts that it owns one of the world's best graphite deposits in the Balama Graphite Operation in Mozambique, Africa, however short sellers don't seem to be buying it with the stock regularly being one of the most heavily shorted on the ASX.
As at 27 March 2019 it had 17.5% of its outstanding scrip shorted which is an unusually high amount and this in itself places pressure on the shares as buyers can be scared off by the large short positions.
For the quarter ending December 31 2018 the miner posted an operating cash loss of US$27.8 million and had cash on hand of $77.1 million.
It also forecast a narrowing in the cash draw down over the current quarter and remains optimistic that its proven reserves will see it turn a profit one day.
For now the share price is likely to remain volatile given the heavy short interest.
