(Provides particulars on manufacturing cuts, context, share motion)
Sept 10 (Reuters) – Australian graphite miner Syrah Sources Ltd on Tuesday stated it could slash fourth-quarter output, sending shares plunging greater than 40%, as cuts in Chinese language electrical automobiles subsidies harm demand for batteries utilizing the fabric.
Syrah stated it could scale back manufacturing in October-December to about 5,000 tonnes per 30 days. It beforehand stated fourth-quarter 2018 pure graphite output was 33,000 tonnes, sourced from its sole facility producing the fabric at Balama in Mozambique.
Shares within the Melbourne-headquartered firm fell as a lot as 41% to A$zero.415, a seven-and-a-half 12 months low.
“Cuts in Chinese language electrical automobile subsidies … have impacted close to time period graphite demand progress for lithium-ion batteries in China,” the corporate stated in an announcement.
Syrah additionally stated it could conduct a direct value discount assessment at its Balama operation in Mozambique.
Graphite is the one non-metal aspect that could be a good conductor of electrical energy, and pure graphite is used for batteries, steelmaking and manufacturing brake linings, amongst different issues
The sharp depreciation of the yuan and concern over additional potential worth decline can be placing stress on pricing negotiations with Chinese language clients, it stated.
Reporting by Aby Jose Koilparambil in Bengaluru; Modifying by
Tom Hogue and Kenneth Maxwell