REG - Tirupati Graphite - CLN Interest and Trading Update

Tirupati GraphiteAnnouncement

31/07/2024 13:15

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RNS Number : 6292Y  Tirupati Graphite PLC  31 July 2024

CThe 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.

 

31 July 2024

Tirupati Graphite plc

 

('Tirupati', 'TG', the 'Group' or the 'Company')

 

CLN Interest and Trading Update

 

 

Tirupati Graphite (TGR.L), the specialist flake graphite company and supplier
of the critical mineral for the global energy transition, announces a Company
update detailing its current trading, operations and financial position, and
the evolving flake graphite market dynamics.

 

H1 2024 interest on Convertible Loan Notes ("CLN")

 

 ·             The Company has initiated payments of interest for the period ended 30 June
               2024 on the Convertible Loan Notes as per the register of noteholders as at 30
               June 2024.
 ·             While the Company has transfer details for payment of interest for most of the
               noteholders from previous payments, and notes that there have been no changes
               in the register during the period, it is reaching out to the noteholders whose
               details are not available with the Company.
 ·             The Company requests its noteholders to provide holding details by email to
               admin@tirupatigraphite.co.uk (mailto:admin@tirupatigraphite.co.uk) if their
               interest payment is not received within 1 business day.

 

Financing and Financial position

 

 ·             The Company continues to work on financing activities, making steady progress
               in its efforts as detailed in its  4 July 2024 RNS.
 ·             Discussions have centred around strategic financing arrangements with groups
               particularly interested in the long-term objectvies of the Company as
               announced on 10 July 2024.
 ·             The Board will continue to accrue their remuneration and fees with cash
               resources directed into operations until a funding solution is reached.
 ·             The Directors have provided the Company with cash loans of a sum of GBP
               230,000 to meet the interim financing gap with a 12 month term and at an
               interest rate of 12% per annum.
 ·             In the meantime, the Company remains engaged with its creditors until the
               financing arrangements are completed.
 ·             The Company continues to hold over $2m in VAT receivables in Madagascar, and
               over $1m VAT receivables in Mozambique which it is continuing to pursue the
               payment of.

 

Operations

 

 ·             The Company has consolidated its resources over the past quarter and this
               month so as to align and streamline its operations.
 ·             Operations remained intermittent since April 2024, with production suspended
               for most of the time, though the Company continued to make shipments and
               received payments for goods shipped and continued various other activities
               including those related to environment and community engagement as it
               consolidated its position.
 ·             The Company is directing all resources for the efficient operation of one of
               its two projects in Madagascar, namely the Vatomina project, and is targeting
               production and sales equivalent to its current capacity of 8,000 tons per
               annum in light of the 3% head grade achieved, moving forward with immediate
               effect.
 ·             The Sahamamy project will be kept in care and maintenance pending completion
               of financing arrangements at an estimated monthly cost of c.US$30,000 thus
               reducing the overall cost base of the Company and allowing for the efficient
               utilisation of resources at Vatomina.
 ·             This is expected to facilitate the Company to meet its operational costs while
               funding arrangements are being negotiated.
 ·             The Company has realigned its orderbook from the month of August, shipping to
               customers that either prepay or pay against shipment of goods to better manage
               working capital.
 ·             This is achieved with continued tail winds supportive of the few current
               commercial non-Chinese flake graphite sources globally such as the Company.
 ·             Tirupati Graphite plc confirms that 50% or more of our revenues are derived
               from the Tier 1 and/or Tier 2 micro sectors of the FTSE Russell's Green
               Revenues Classification System.

 

 

Shishir Poddar, CEO and Managing Director, commented:

"We continue to take appropriate decisions to navigate through the current
difficult environment for the Company and prepare ourselves to capitalise
further on the significant emerging opportunities presented by the critical
and growing role flake graphite is set to play in the energy transition
economy."

 

ENDS

 

For further information, please visit https://www.tirupatigraphite.co.uk/
(about:blank)  or contact:

 

 Tirupati Graphite Plc                           admin@tirupatigraphite.co.uk

 Puruvi Poddar - Joint Managing Director       +44 (0) 20 39849894

 CMC Markets UK Plc (Broker)

 Douglas Crippen                               +44 (0)20 3003 8632
 Musst / ViTa-Connect (Financial Adviser)       tabrez@vita-connect.co

 Tabrez Khan                                   +44 746 903 3573

 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 the
critical mineral 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 of currently installed capacity, producing high-quality
flake graphite concentrate with up to 97% purity and selling to customers
globally.

 

The Company also holds two advanced stage, world class, natural graphite
projects in Mozambique. Work has already commenced to optimise the economics
for development of the Montepuez graphite project, which is permitted for
100,000tpa production and where substantial construction work has already been
undertaken by the predecessor. A table of the Company's projects is provided
below:

 

 Country       Project           Stage
 Madagascar    Sahamamy          In production: 18,000tpa capacity
 Madagascar    Vatomina          In production: 12,000tpa capacity
 Mozambique    Montepuez         100,000tpa permitted, development-initiated
 Mozambique    Balama Central    58,000tpa permitted, development-ready

 

 

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