The Syrah Resources Ltd (ASX: SYR) share price is surging higher today, up by 8.3% to $1.23. This comes after Syrah's share price closed up 3.6% yesterday.
Below we take a look at the industrial minerals and technology company's quarterly update (released yesterday) for the 3 months ending 30 June.
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What did Syrah report?
The Syrah share price is soaring after the company released a positive quarterly update. The company says it is ahead of expectations with strong operational performance during the first full quarter following restart of production.
Syrah's flagship Balama graphite operation is located in Mozambique. Additionally, the company has a downstream active anode material facility in the United States.
According to the release, natural graphite production at its Balama operation ramped up during the past quarter, reaching 29,000 tonnes.
The company reported C1 cash costs of US$537 per tonne during the quarter with an average production of roughly 10,000 tonnes per month. This puts it on track to reach its target C1 cash costs of US$430-460 per tonne with a 15,000 tonne per month production rate.
Syrah reported a weighted average sales price of US$474 per tonne (cost, insurance, and freight).
The Syrah share price may also be getting a boost from the company's report on the strong, continuing growth in electric vehicles (EVs), which use graphite in their batteries. It cited a 165% increase in EV sales in H121 compared to H120.
The company sold and shipped 15,000 tonnes of natural graphite. It reported that "practically all" of its 20,000 tonnes of finished product inventory had been contracted to customers, "demonstrating strong demand ". It ended the quarter with a cash balance of US$85 million.
In a nod to these pandemic times, Syrah noted its excellent safety levels for the quarter. These included the "robust COVID-19 protocols in place at Balama". It said it had been able to increase operations with no positive cases reported.
Syrah share price snapshot
Syrah's shares have gained 260% over the past 12 months. This trumps the 24% gains posted by the All Ordinaries Index (ASX: XAO).
Year-to-date the Syrah share price has continued to outperform, up 26%.
