Syrah Resources' (ASX:SYR) subsidiary, Twigg Exploration and Mining, declared a force majeure event over its Balama graphite operation in Mozambique under the mining agreement terms with the Mozambique government, according to a Thursday filing with the Australian bourse.
Protests associated with the electoral process are disrupting mining operations in Mozambique, including the Balama site, despite efforts to resolve the situation through dialogue with government authorities, community leaders, and legal avenues, the filing said.
The company is unable to conduct a production campaign in Balama during the December quarter, which is necessary to replenish finished product inventory and for customer sales, according to the filing.
Shares fell past 26% in afternoon trade Thursday and earlier hit their lowest since January 2012.
Price (AUD): $0.20, Change: $-0.07, Percent Change: -26.41%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.