The company has updated its reserves and resources statement, to account for mining depletion, drilling and the improved understanding of the orebody. There is a 14% increase in contained graphite at a reduced 10% TGC grade.
The reserve is largely unchanged at 18.5mtpa at 16.36%. The company has also made a structural downgrade to Balama’s recovery expectations, now guiding to 87% from the original 92.5%.
Credit Suisse revises down its Balama recovery profile and reduces the target to $3.30 from $3.50. Outperform rating maintained.
Sector: Materials.
Target price is $3.30.Current Price is $1.07. Difference: $2.23 – (brackets indicate current price is over target). If SYR meets the Credit Suisse target it will return approximately 68% (excluding dividends, fees and charges – negative figures indicate an expected loss).
