Syrah Resources has announced two further sales milestones: the company’s first binding term sales agreement for coarse flake to China and he first sale of 98% fixed carbon grade product.
Binding term sales agreement with Qingdao Freyr graphite
- The agreement is for 6 kt of coarse flake natural graphite from Balama over 12 months.
- All other terms of the agreement are confidential.
- Qingdao Freyr, based in Shandong China, is a manufacturer of expandable graphite.
Production and first sale of 98% fixed carbon grade natural graphite
- Syrah Resources has successfully produced 98% fixed carbon (FC) grade graphite across all sizes in the flake circuit using standard flotation processes.
- First spot sale of 98% FC to Japanese customer.
- Majority of other suppliers’ production of 98% FC flake products requires chemical purification which significantly increases production costs.
- Value in use advantages include reduced acid usage, efficiencies in energy usage and lower environmental footprint.
- Continued higher selling prices expected from a price premium reflecting cost differential and value in use.
“The company's product mix includes a substantial volume of coarse flake natural graphite," comments Syrah Resources MD and CEO, Shaun Verner.
"This contract with Qingdao Freyr represents more than 10% of planned +50 and +80 mesh flake production over the coming year, and continues to establish Syrah Resources as a major supplier of natural graphite into China.
“Syrah Resources' ability to produce 98% FC to meet customer demand through our installed layout without chemical purification provides an outstanding commercial opportunity.
"Syrah Resources expects growth in pricing premiums to arise through value in use differentials for carbon grade and flake size.
“These developments further cement the company's position as the key global supplier of high quality and purity flake graphite for both the battery and expandable graphite markets within the initial year of operation," he explains.