Sydney, April 30th (Argus) - Australian graphite miner Syrah Resources stated that its production for the 1st to 3rd quarter was lower than the guidance, and sales also declined, possibly due to the decrease in global demand for electric vehicles.
According to the quarterly results released by Syrah Company today, the company's Balama natural graphite mine in Mozambique produced 23,500 tons in the 1st to 3rd quarter, which was lower than the 34,400 tons in the previous quarter. The actual production was also lower than the planned 30,000 tons for the quarter.
Due to the decline in the demand for electric vehicles, Syrah's graphite sales in the first quarter dropped from 28,800 tons in the fourth quarter of last year to 20,100 tons.
In the first 1-2 months of this year, global electric vehicle deliveries decreased by 7%. Meanwhile, the average weighted price of graphite rose by 7%, from the Mozambique offshore price of $506 per ton to $542 per ton.
The company stated that in the 1st to 3rd quarter of this year, its main customer was an active negative electrode material producer headquartered in Indonesia.
However, the sales in the first quarter increased compared to the same period last year, as the production at Balama mine was halted due to local unrest last year.
Syrah signed a purchase agreement with Canadian graphite miner and negative electrode producer NextSource last month to provide up to 68,000 tons of graphite for its planned Abu Dhabi active negative electrode material factory over a period of seven years.
The 11,250-ton-per-year Vidalia factory in Louisiana is still undergoing qualification reviews for an 8,000-ton-per-year shipment deal with electric vehicle manufacturer Tesla, which has faced multiple delays.
The company stated that gasoline prices did not affect the production at Balama in the 1st to 3rd quarter, but Syrah will strengthen the solar and battery systems of this project to mitigate future supply risks.
