The Syrah Resources Ltd (ASX: SYR) share price has dropped lower this morning after the graphite miner released an update on its second quarter performance.
At the time of writing the Syrah share price is down 1% to $1.09.
What was in the announcement?
According to the release, management expects its second quarter production to be in the range of 45kt to 50kt. This compares to its previous guidance of 50kt to 55kt and the first quarter's production result of 48kt.
The company advised that this latest downgrade is due to later than planned results from the production improvement plan.
Looking ahead, management is confident that results from the production improvement plan will accelerate from June into the third quarter of FY 2019.
In addition to this, the release explains that its graphite recovery and product split are expected to be broadly similar to what was achieved in the first quarter. This means graphite recovery of ~69% and a product split of 86% fines to 14% coarse flake.
Syrah also provided an update on its shipments and pricing during the quarter.
Second quarter shipped sales volumes are forecast to be approximately 50kt, which up slightly on the 48kt in the first quarter. Though, this is dependent on final shipping completions in June.
The weighted average price for sales completed so far this quarter is US$466 per tonne, down from an average of US$469 per tonne in the prior quarter.
To combat the falling prices, management advised that it continues to focus on optimising production, sales volume, and costs.
In light of this, its cash balance guidance for the end of the quarter is unchanged at ~US$43 million, down from US$62.4 million at the end of the first quarter.
Elsewhere in the battery materials industry, Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE) shares have pushed higher despite there being no news out of either lithium miner.
