Australian mining company Syrah Resources announced plans to raise A$98 million (US$64.73 million) to bolster its graphite operations in Mozambique and the United States.
The funding will be secured through a placement and entitlement offer, according to a company statement. Notably, Syrah’s largest shareholder, AustralianSuper, the country’s biggest pension fund, has agreed to convert a A$5-year unsecured convertible note – issued in June 2019 and December 2023 – into fresh shares in the company.
“This capital raising strengthens our balance sheet and positions Syrah well to deliver on our growth strategies at Balama and Vidalia,” said Shaun Murray, Managing Director at Syrah Resources. “The ongoing support from AustralianSuper is a strong endorsement of our business and future prospects.”
The funds will be directed towards Syrah’s Balama graphite operations in Mozambique, a key producer of natural graphite for electric vehicle batteries and other clean energy applications. The investment will also support the development of the Vidalia project in Louisiana, the United States, which is expected to become a significant source of battery-grade graphite for the North American market.
“The graphite market is forecast for continued robust growth, driven by the demand for lithium-ion batteries,” said an analyst at Perth-based resources consultancy firm, Currie Capital. “Syrah is well-positioned to capitalize on this trend with its geographically diverse operations.”
Syrah’s share price reacted positively to the news, rising slightly in early morning trade on the Australian Securities Exchange.
