TIDMTGR
RNS Number : 6534Q
Tirupati Graphite PLC
19 October 2023
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this information is considered to
be in the public domain.
19 October 2023
Tirupati Graphite plc
('Tirupati', 'TG' or the 'Company')
Madagascar Operations progress and key trading results H1
FY24
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist flake
graphite company and supplier of the critical mineral for the
global energy transition, is pleased to provide an update on its
flake graphite operations and further outlook as it evolves as a
globally significant flake graphite producer:
Overview
-- H1 FY 2024 performance significantly ahead of the same period
in the prior year with production up 160% and revenues up 170%,
prior to significant further productivity improvements expected in
Q3.
-- During the period the Company continued the optimisation of its facilities including:
o Successfully addressing the bottlenecks in the mining and
processing activities;
o c.50kms road kms road network with c.20bridgwes and culverts
which enabled operations sustained through the recent rainy season
without any disruptions; and
o Extensive training of onsite personnel to improve skillsets
and enable better implementation of the standard operating
practices resulting in more efficient operations.
-- As a result, operations at the mine and plant are running
uninterrupted at a consistent rate since the start of Q3 FY24.
-- Run rates during Q3 FY24 are averaging:
o C,1,800 tons per day ore feed representing 75% of rated ore
feed capacity;
o Flake graphite throughput of 40 to 45 tons per day of
operations varying primarily with head grade;
o Average head grade across the two projects remains below 3% as
against 4.5% used for plant design, average recovery remaining
>80%
o Owing to saprolite ore type, which does not allow ideal
separation of inter and over burden in bulk mining operations, the
Company considers it prudent to assume head grade to remain c.3%
and reorient its future plans accordingly;
o Consistent production rate of c.50% of rated capacity is now
achieved in spite of the head grade remaining significantly lower
than the plant design assumption; and
o The Company is currently engaged in increasing ore feed rate
to rated capacity on a consistent basis.
-- The key outcomes from the Company's operational experience
over the past six months, when no significant development
activities were ongoing, include:
o The advantages envisaged by the Company in processing plant
split implemented across its two projects have been effective in
meeting operations stabilisation; and
o The limitation in production can be addressed by installing
additional preconcentrate units, as output from these are
susceptible to be impacted by various factors.
-- The Company is considering steps to increase ore feed beyond
2,400 tons per operating day and set up of additional new PCU's
across the two projects to address the limitation of head grade and
exploit more of its overall plant capacity:
o The Final Concentrate Unit ("FCU") at Sahamamy is designed to
produce up to 2.4 tons flake graphite concentrate per hour (18,000
tpa); and
o The FCU at Vatomina has a current design capacity of 1.6 tons
flake graphite concentrate per hour and can be upgraded to 2.4 tons
per hour (18,000 tpa).
To meet its needs for these developments and working capital
requirements, TG has initiated engagements to obtain institutional
debt finance.
Key operating results for H1 FY23 and Further Overview for
H2FY24
Particulars Unit H1 FY24 H1 FY23 % Change YoY
Quantity Sold & Shipped MT 4,785 1,691 +183%
------ ------------ ------------ ------------
Revenue from Sales GBP GBP3,146,589 GBP1,165,195 +170%
------ ------------ ------------ ------------
Revenue from Sales $ $3,955,690 $1,441,923 +174%
------ ------------ ------------ ------------
Price realised GBP/MT 658 689 -4%
------ ------------ ------------ ------------
Price realised $/MT 827 833 -1%
------ ------------ ------------ ------------
Quantity Produced MT 4,508 1,731 +160%
------ ------------ ------------ ------------
-- The price realised remained similar to H1 previous year in
spite of subdued market prices during the current year period.
-- Substantial growth was registered in production, sales and
revenues albeit adversely effected by working
capital constraints .
-- The company continues to engage in alternative sources of
finance to bridge the gap of working capital and for further
investments.
-- Upgrading of the overall ore feed capacities to mitigate the
limitations caused due to head grade are targeted to be completed
in FY24 subject to financial arrangements availability.
-- In H2 FY 24, the Company estimates base case production of
7,500 tons though working towards reaching 10,000 tons, given the
limitations of head grade.
Renewable Energy
-- The operations of 100 KW hydro power plant have completely
stabilised and meet the power requirement of concentrate finishing
section at the Sahamamy plant while also illuminating homes of the
communities around the project.
-- Studies for an additional 500 KW hydro power plant have been
completed and once installed, would be sufficient to substantially
meet the power requirements of the Sahamamy project.
-- In addition to saving emissions and reducing costs, renewable
energy initiatives provide an edge to the Company with ESG
conscious customers.
-- The Company intends to further the development arranging debt
funding for the same alongside the targets outlined above.
Shishir Poddar, Executive Chairman, said:
" We continue to improve the Company's performance despite the
graphite markets being subdued in recent months, reflecting
confidence in our business strategy. We are confident that this is
the time when developing further will provide opportunities for the
future. Sailing through the current suppressed markets with growth
and addressing the subdued share of the Company are on our priority
at this time."
" We have been constrained by working capital limitations but t
he debt markets are getting increasingly buoyant for critical
mineral development opportunities in Africa. Our advanced stage
into production and growing financial outcomes are handy in dealing
with interested institutions. As perhaps the only Graphite Company
to have had positive operating margins since inception, and with
the scale of operations now reaching the point where the Company is
expecting a strong financial, we are furthering potential debt
engagements with institutional providers. "
" We are confident that our efforts will be recognised by the
markets as we continue our progress, and the boost in graphite
demand expected to result in a significant supply deficit in the
near term will be an eye opener for increased investment interest
in this critical mineral."
" Our projects are globally significant and have industry
leading positive operating margins compared with our whole ex-China
peer group, even at the early stage of ramping up development and
production. As our strategy makes us apparent as a promising player
in the evolving graphite ecosystem, we will continue our endeavours
in the best interest of the Company and our shareholders."
"The success of the first hydro power plant is a significant
step in our green credentials. Further development of renewable
energy will be a priority for us in the forthcoming stages of
development."
S
For further information, please visit
https://www.tirupatigraphite.co.uk/ or contact:
Tirupati Graphite Plc
Puruvi Poddar - Chief of Corporate & Business admin@tirupatigraphite.co.uk
Development +44 (0) 20 39849894
Optiva Securities Limited (Broker)
Ben Maitland - Corporate Finance +44 (0) 20 3034 2707
Robert Emmet - Corporate Broking +44 (0) 20 3981 4173
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Ben Brewerton / Nick Hennis / Lucy Wigney tirupati@fticonsulting.com
About Tirupati Graphite
Tirupati Graphite Plc is a specialist graphite producer and a
supplier of critical minerals for a decarbonised economy and the
energy transition. The Company places a special emphasis on green
applications, including renewable energy, e-mobility, energy
storage, and thermal management, and is committed to ensuring its
operations are Sustainable.
The Company's operations include primary mining and processing
in Madagascar, where the Company operates two key projects,
Sahamamy and Vatomina with a combined 30,000 tpa currently
installed capacity, producing high-quality flake graphite
concentrate with up to 97% purity and selling to customers
globally.
The Company has also acquired two advanced stage, and world
class, natural Graphite projects in Mozambique, and has commenced
work to optimise the economics for development of the construction
initiated Montepuez project, which is permitted for 100,000tpa.
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