Syrah Resources (ASX:SYR) "continued to burn cash" in the September quarter, with a reduction in the cash balance to $61 million from $82 million at the end of the June quarter, amid challenging market conditions, Jarden Research said in an Oct. 30 note.

Production at the company's Vidalia facility in Louisiana was limited to 130 tonnes of active anode materials to meet customer sample orders for qualification and product development.

The company plans to operate the facility to the extent necessary for customer qualification processes, reducing operating costs and inventory working capital, the investment advisory firm said.

Meanwhile, no production campaigns were completed at the Balama graphite operation in Mozambique in the quarter as finished product inventory levels were reduced to 11,000 tonnes from 23,000 tonnes.

The company secured a $150 million loan agreement with the US International Development Finance Corporation to fund capital requirements at Balama, with the initial disbursement expected to be completed in November, according to the note.

The investment adviser kept its AU$0.66 price target and overweight rating on Syrah Resources.