The Syrah Resources Ltd (ASX:SYR) share price has plunged 15 cents or 6.4 per cent to $2.18 after the graphite miner said a plant fire will result in a five week delay to production at its Balama Graphite Project in Mozambique.
Syrah estimates a production loss of 30kt in Q4, including allowance for ramp up as the plant comes back online.
For Q4, Syrah revised its production forecast to approximately 30-35kt, resulting in full year production guidance of 101kt-106kt.
Syrah says cash on hand as at 30 September 2018 was $US100.3 million providing sufficient liquidity to manage the incident, and to continue the Company’s Balama and Battery Anode Material strategy.
Last month, in what now looks like a case of fortuitous timing, Syrah Resources successfully raised $94 million via an institutional placement at a share price of $2.23.
Rob Tucker of Chester High Conviction Fund has been attracted to Syrah as the world’s largest graphite deposit, which it expects will extract high quality graphite flake at (eventually) one of the lowest costs globally.