The Syrah (ASX: SYR) share price is edging lower today despite a positive update to the market. Here are the details.
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The Syrah Resources Ltd (ASX: SYR) share price is edging lower this morning. This comes despite the company providing a positive update regarding its production of graphite.
At the time of writing, the graphite producer’s shares are swapping hands for $1.145, down 1.29%.
What did Syrah announce?
Investors are selling off their positions in the Syrah share price regardless of the company’s release to the ASX market.
In its announcement, Syrah advised that it has installed a furnace at its Active Anode Material Project in Vidalia, the United States. This will allow the company to produce active anode material (AAM) using natural graphite extracted from its Balama Graphite Operation.
Syrah stated that the milestone achievement puts it closer to becoming a vertically integrated producer of natural graphite AAM. The newly-installed furnace is seen as the final process in which natural graphite is converted for use in lithium-ion batteries.
In Q4 2020, Syrah toll treated purified spherical graphite (anode precursor) to AAM for fast-tracking product qualification. The furnace, whist producing AAM, will be used for product testing with potential customers.
Syrah managing director and CEO Shaun Verner commented:
In our view, this milestone further positions Syrah as the most progressed ex-China option for vertically integrated supply of natural graphite AAM for USA and European battery makers and OEMs.
We have been very encouraged by initial feedback from in-progress product testing and qualification processes. Syrah remains on track to become an important supplier of natural graphite AAM to ex-Asia markets.
In addition, the company noted that it’s on track to expand its current production capacity at Vidalia. A final investment decision for the construction of a 10ktpa AAM facility is planned for the second half of 2021.
About the Syrah share price
The Syrah share price has performed well over the past 12 months, gaining more than 400%. Year-to-date, the company’s shares have risen above 20%.
Syrah has a market capitalisation of around $577 million, with close to 500 million shares outstanding.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.