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Post Market Wrap | Syrah Resources secures US$107 million loan facility from US Department of Energy

Published

4 years ago

April 19, 2022

Michael Kodari - KOSEC Author

Syrah Resources secures US$107 million loan facility from US Department of Energy

Loan proceeds applied to expansion of Vidalia Active Anode Material processing facility
Vidalia facility now fully funded, following completion of a $250 million capital raising in March 2022
Active Anode material is an essential component of the supply chain for zero emission transportation solutions
Syrah has first mover advantage in developing a large scale vertically integrated natural graphite AAM supply option in the USA market
Offtake agreement to supply Active Anode Material to Tesla at a fixed price for 4 years points to strong global demand for graphite.

Syrah Resources Limited (Syrah or the Company) is an industrial minerals and technology business that seeks to become the world’s leading supplier of superior quality graphite anode material products. These products are essential components of the supply chain that adds value in battery and related industrial markets.

The Company’s flagship asset is the Balama Graphite Operation in Mozambique. This project covers an area of 106 square kilometres and has a mineral resource estimate of 1,422 million tonnes at 3 percent Total Graphitic Carbon cut-off grade. This estimate provides for a 50-year mine life. The Company also operates a large scale downstream Active Anode material facility at Vidalia, Louisiana in the US.

US$107 million US Department of Energy (DOE) loan

Syrah has finalised the terms of a Term Sheet for a US$107 million loan from the US DOE to accelerate the expansion of its Vidalia Active Anode Material (AAM) facility in Louisiana, USA. The loan terms are expected to settle by June 2022 and the first drawdown is scheduled for the September 2022 quarter. The loan term is for approximately 10 years and is based on long-dated US Treasury rates, implying an interest cost of slightly above 3 percent pa. The US government attaches significant strategic importance to the project under President Biden’s critical minerals strategy. The US DOE is committed to building a reliable domestic supply chain for zero emission transportation solutions. The strategy is specifically aimed at supporting the manufacture of advanced technology vehicles, including electric vehicles (EVs). The US government sees long-term economic value in growing the US workforce to support domestic battery manufacturing for EVs. Other recipients of funding under this loan program include Ford, Nissan and Tesla.

The Vidalia project us fully funded, following the completion of a $250 million capital raising by Syrah in March 2022. The construction contract for the Vidalia project has been awarded to the global engineering and construction services company Worley Group.

The downstream AAM facility positions Syrah as a first mover in developing a large scale vertically integrated natural graphite AAM supply option in the USA that is essential to accelerating the deployment of batteries to power EVs.

Looking Ahead

The significance of the US$107 million funding facility from the US Department of Energy is that it positions Syrah as a key supplier to the rapidly expanding EV and battery supply chain in the USA. The economic value of this manufacturing capability is leveraged by the offtake agreement with Tesla to supply natural graphite Active Anode Material from the vertically integrated production facility in Vidalia. Tesla will offtake most of the expanded AAM production capacity at a fixed price for an initial term of 4 years from the date of a commercial production rate. Tesla also has an option to offtake additional volume from the Vidalia plant, subject to Syrah expanding its capacity beyond 10,000 tonnes per annum of AAM.

Strong global demand for critical battery supply chain materials is likely to support the growth outlook for Syrah well into the future.

This Post Market Wrap is presented by Kodari Securities, written by Michael Kodari, CEO at KOSEC.

Money

Are we in an AI bubble or just a market reality check?

Tech stocks falter as AI boom faces reality; market shifts towards gold amidst growing investor caution.

Published

2 days ago

November 6, 2025

Ahron Young

Tech stocks falter as AI boom faces reality; market shifts towards gold amidst growing investor caution.

Global tech stocks are losing altitude as investors question whether the AI boom has gone too far — or if the market is simply returning to earth after years of euphoric growth. With valuations for chipmakers and AI giants stretched to perfection, analysts warn that expectations may finally be colliding with economic reality.

In this segment, Brad Gastwirth from Circular Technologies joins us to unpack the trillion-dollar question: is this a healthy correction or the first crack in the AI gold rush? From hyperscaler capex surges to regulatory risks and fragile market leadership, he breaks down what’s driving investor nerves.

We also explore how the market rotation into gold and real assets reflects growing caution, and what this could mean for the future of AI-driven investing.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#AIBubble #TechStocks #MarketCorrection #Semiconductors #Investing #FinanceNews #AIStocks #TickerNews

Money

Inflation rise reduces chances of Reserve Bank rate cut

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

Published

1 week ago

October 29, 2025

ticker NEWS

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

In Short:
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.

The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.

The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.

Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.

The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.

Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.

The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.

Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.

Economic Pressures

Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.

Money

Wall Street hits record highs on low inflation

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

Published

2 weeks ago

October 26, 2025

Ahron Young

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

In Short:
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.

U.S. stocks rose to record highs on Friday due to lower-than-expected inflation data and positive corporate earnings.The S&P 500 and Nasdaq achieved their largest weekly gains since August. The Dow saw its biggest jump from Friday to Friday since June.

The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.

Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.

Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.

This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.

The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.

Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.