Tirupati Graphite plc (LON:TGR, TGRHF.OTCQX), the specialist flake graphite company and supplier of the critical mineral for the global energy transition, has provided the following corporate update.
Since its IPO in December 2020, the Company has developed and commissioned two graphite projects in Madagascar with minimal Capex to establish Tirupati as one of the five largest, non-China graphite companies by production capacity and one of only three publicly listed commercial scale producers. This was achieved despite the challenge of unexpectedly extreme weather in early 2022 which caused material delays and increased costs.
In addition to commissioning the Madagascar projects, the Company has acquired two development stage projects in Mozambique which host higher percentages of finer flake graphite used in lithium ion batteries with the potential to provide the Company with sufficient resources to achieve its long term goal of establishing capacity equivalent to 8% of global demand across its projects in Madagascar and Mozambique in the longer-term, equivalent to circa 400,000tpa per research by various sources which suggest overall global flake graphite demand is to exceed 5,000,000tpa by 2030.
As announced in January 2024, operations in Madagascar continue across the two projects having been optimised further using the proceeds of the recent fundraise (see 17 January 2024 RNS). The Company remains engaged in pursuing options to secure additional funding for the balance of c. £1 Million working capital required to bring its production up to the immediate target of 1,500 – 1,600 tons per month on a consistent basis and for immediate term growth in capacity at Madagascar in two stages from the current 30,000tpa capacity to 36,000 tpa initially, and 54,000 tpa subsequently. Discussions that are well-progressed to this end are:
· Recent meetings with the Madagascar Government for the release of VAT refunds of c. $2m have further added confidence that these will be returned to the Company imminently;
· Establishment of working capital facilities from the Company’s bankers in Madagascar being progressed supported by a personal guarantee being agreed to be provided from the Executive Chairman; and
· Due diligence work continues with DFI’s for funding the expansion of the Company’s effective production at Madagascar first to 36,000tpa in the near term and then to 54,000tpa thereafter through the addition of a new 18,000 tpa module.
Further announcement will be made in due course as the company continues to secure these financial arrangements.
Responding to recent speculation, the Company confirms that there are no plans to take the Company private, and emphasises that the board continue to believe that being listed on the London Stock Exchange will continue to helpthe Company to build its business in the best interest of its shareholders in general.
Shishir Poddar, Tirupati Graphite Executive Chairman, said:
“Since the admission to the London Stock Exchange in December 2020, the Company has achieved significant milestones towards its goals.
“I remain absolutely dedicated and committed to the short and long-term prospects for Tirupati; our developments will support the global needs for this critical mineral. The team is determined to make the Company the leading graphite producer outside of China and to play an essential role in the energy transition.
“We have overcome significant operational challenges. We are now working to secure the modest amount of working capital required to ramp-up production with the target of becoming the first profitable junior graphite company outside China. We remain committed to being a public company and to the London market.
“I wish to thank our shareholders for their support of Tirupati since the listing on the London Market. I remain excited and ambitious about the Company’s long-term prospects and to rewarding your faith in our Company.”
