REG - Tirupati Graphite - Operations and Progress Update

Tirupati GraphiteAnnouncement

13/08/2024 07:00

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RNS Number : 2281A  Tirupati Graphite PLC  13 August 2024

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
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Act 2018. Upon the publication of this announcement, this information is
considered to be in the public domain.

 

13 August 2024

Tirupati Graphite plc

 

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

 

Operations and Progress Update

 

Tirupati Graphite (TGR.L), the specialist flake graphite company and supplier
of the critical mineral for the global energy transition, is pleased to
announce an update in continuation to its RNS of 31 July.

 

Operations

 

 ●    Full scale mining operations were commenced at Vatomina from 28 July 2024,
      following successful delivery of fuel and other supplies by 27 July 2024;
 ●    Processing operations at Vatomina were commenced from 2 August 2024, following
      building up of threshold feed stock at the ore pads of the two pre concentrate
      units;
 ●    Minor issues were addressed between 2 - 5 August 2024 during which 59 tons of
      >96% grade flake graphite was produced and head grade met the target of 3%;
 ●    Steady state 24/7 production has been ongoing since 6 August 2024, with
      production of 165 tons in seven (7) consecutive working days;
 ●    With the 330 days per annum operational design, this run rate equates to 7778
      tons per annum production being >97% of the rated capacity of Vatomina at
      3% head grade;
 ●    The Company decided to produce only higher grade products and is happy to
      report that all products manufactured have tested >96% product grade;
 ●    The Company remains confident that it is well positioned to achieve the 8,000
      tons per annum production run rate from Vatomina, subject to there being no
      disruptions or inefficiencies caused by financial limitations;
 ●    140 tons finished product has been shipped upto 10 August while 240 tons are
      in the process of being shipped; the Company's target of >600 tons shipped
      in August 2024 remains on track.
 ●    Goods are being shipped to customers across the globe and the Company will
      provide further updates on the realised basket price in due course.

 

 

Further information on Director's Loans and financing arrangements

 

 ●    The Company announced receipt of Director's loans of GBP 230,000 on 31 July
      2024. The loans were received from the following Directors:

○    Mr. Michael Lynch-Bell      : GBP 50,000
      ○    Mr. Alastair Bath           : GBP 130,000 (funds received in March & April 2024)
      ○    Ms. Puruvi Poddar           : GBP 50,000
 ●    The Company received a small VAT refund of c.US$14,000 in the previous week.
      This positive development is anticipated to be the first of the VAT refunds
      from the Madagascan Government after a gap of c.20 months since last receipt
      of VAT refunds.
 ●    The Company remains engaged in pursuing continuation and increased volume of
      Madagascan VAT refunds which exceed c.US$2 million and will keep the market
      updated on progress.
 ●    In the meantime, the Company has agreed with its Madagascan suppliers to
      provide new goods and services to an amount equivalent to that paid by the
      Company against previous dues.

●

The Company received a small VAT refund of c.US$14,000 in the previous week.
This positive development is anticipated to be the first of the VAT refunds
from the Madagascan Government after a gap of c.20 months since last receipt
of VAT refunds.

●

The Company remains engaged in pursuing continuation and increased volume of
Madagascan VAT refunds which exceed c.US$2 million and will keep the market
updated on progress.

●

In the meantime, the Company has agreed with its Madagascan suppliers to
provide new goods and services to an amount equivalent to that paid by the
Company against previous dues.

 

Shishir Poddar, CEO and Managing Director, commented:

"We are pleased to announce that full scale mining operations have commenced
at Vatomina, with production focused on only the higher grade flake graphite
to ensure the best price realisation. Our operational discipline and focus on
the higher grade graphite have led to us reducing the overall cost structure,
whilst still being able to achieve the 8,000 tons per annum production run
rate."

"Vatomina operating at full efficiency will contribute to higher operating
margins within the Group whilst we look to bring the Sahamamy project back
into operation."

"In the meantime, we remain focused on our immediate and long-term capital
needs. We are also working with our auditors to publish our Annual Report, so
our shares can begin trading again. We also thank our shareholders and
stakeholders for their continued support."

 

 

 

ENDS

 

For further information, please visit https://www.tirupatigraphite.co.uk/
(https://www.tirupatigraphite.co.uk/)  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 at 4.5% assumed head
grade, 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          Production  paused: 12,000tpa current capacity assuming 3% head grade
 Madagascar    Vatomina          In production: 8,000tpa current capacity assuming 3% head grade
 Mozambique    Montepuez         100,000tpa permitted, development-initiated
 Mozambique    Balama Central    58,000tpa permitted, development-ready

 

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