The Syrah Resources Ltd (ASX: SYR) share price wonât be tumbling lower with the market today.
Thatâs because prior to the market open, the graphite producer requested a trading halt.
Why is the Syrah share price halted?
This morning Syrah requested that its shares be placed into a trading halt until Monday 26 September.
According to the release, the trading halt is requested pending an announcement by the company to the market regarding a labour-related operational interruption at Balama Graphite operation.
The Balama Graphite operation is in the Cabo Delgado Province of Mozambique.
What is the operational interruption?
No further information has been provided in relation to this âlabour-related operational interruption.â
However, it is worth noting that several months ago the Syrah share price was sold off after the company revealed that there had been a security incident near to its operation.
Syrah advised at the time that there was an insurgent attack at a mine project site near Ancuabe, approximately 200km from the Balama Project.
As this and another incident occurred close to the N1 road, which is the primary transport route between Balama and both Nacala and Pemba, Syrah and its logistics service provider suspended all personnel and logistics movements through the route section.
There have been reports of further insurgent attacks in the province in recent weeks, so it isnât inconceivable that the âlabour-related operational interruptionâ relates to these. Though, until Syrah releases an announcement and confirms the reason for the halt, it is only speculation.
The Syrah share price is down 1% in 2022 after rebounding 25% since this time last month.
The post Why is the Syrah share price halted? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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