Syrah Resources (ASX:SYR) reported an operational turnaround at its Balama Graphite Project, delivering a sharp increase in production alongside a strategic long-term sales agreement.
During the March quarter, the miner produced 24,000 tonnes of natural graphite, underpinned by record levels of product quality and processing recoveries.
Sales for the period reached 20,000 tonnes, fetching an average price of $US630 per tonne.
The performance signals a move towards sustained cash flow as the company optimises its flagship African operations to meet growing global industrial demand.
Syrah has formalised a binding offtake agreement with NextSource. The deal is set to underpin future demand by covering up to 68,000 tonnes of Balama graphite over a seven-year term.
The partnership provides a critical layer of commercial certainty as the company navigates a volatile commodities market.
The group concluded the quarter with US$52 million in total cash.
To bolster further growth, management confirmed they are currently advancing funding discussions with AustralianSuper and United States government-backed lenders, reflecting the strategic importance of graphite in the global energy transition.
Meanwhile, at its Vidalia active anode material facility in the United States, the company remains focused on the rigorous customer qualification process.
At the time of reporting, Syrah Resources' share price was $0.11.