Resumen de Analyst doubt quells frenzy over rumoured Glencore-Syrah deal
Glencore rubbished the rumours when contacted by IM, while Syrah said in a statement to the ASX only that it was involved in "non-binding" takeover discussions with various parties "from time to time".
"The price is ridiculous - it puts Syrah a $12/share price," the source told IM. "Glencore already has a vanadium offtake with Largo Resources in Brazil, where they expect their first shipments [before the end of July]. Largo has a market cap of $250m, so Glencore could buy it for 15% of the price it has reputedly offered for Syrah," they added.
"There was a perfect storm of factors that led to a rerating of our shares," [Brad Boyle] told IM. "Pollution controls hitting Chinese production; the news about Tesla's battery factory; Syrah's offtakes [with Chalieco and Asmet] and the fact that there looks like there could be a dramatic shortfall in graphite production in the next few years has helped our valuation," he said.
