Tirupati Graphite plc (LON:TGR, TGRHF.OTCQX), the specialist graphite and graphene company developing sustainable new age materials, has provided an update on operations at its Vatomina & Sahamamy flake graphite projects in Madagascar and announces that it has successfully achieved commercial production of 97% pure flake graphite from its Vatomina project in Madagascar.
High Purity Commercial Production
· Producing high grade, jumbo flakes is technically challenging but provides new opportunities;
· Certain specialist markets require high-grade flakes which commands premium prices;
· TG’s first container of 97% jumbo flakes >50 mesh size has now been produced for a German manufacturer of speciality graphite products;
· The Company is working towards increasing its high-grade output and associated sales;
· Targeting c.10% uplift in basket price realisation from Madagascan production to between US$910 – US$935 per metric tonne in the fiscal year to March 2024.
Operational Update
· Operations at both Vatomina and Sahamamy have experienced no significant impact from the recent cyclone;
· The ramp up of production at Sahamamy has continued in line with expectations since the commencement of operations in February 2023; with production in the month to 31 March 2023 remaining in the guidance range of 800 to 1000 tons;
· Total production for the quarter ending 31 March 2023 was however slightly lower than the guidance at c.2400 tons owing to precautionary shut downs due to adverse weather;
· We maintain combined production guidance for Q1-FY24: at between 6,100 – 6,500 tonnes;
· Recent extensive marketing activities have resulted in:
o Regular shipments continuing to the Company’s existing buyers
o Securing new buyers in the United States, Europe and Asia
o Qualification processes underway with other potential customers in various sectors including: energy storage, electric vehicles, thermal management, fire safety and other advanced energy transition products
Shishir Poddar, Tirupati Graphite Executive Chairman, said:
“Achieving commercial production at a grade of 97% is another significant milestone in Tirupati’s continued progress as we establish ourselves as a leading supplier of flake graphite outside of China. Our increasing output is timely with a demand supply gap forecast over the next year and we are well positioned to play our role in the evolving flake graphite opportunities.
“We have moved on from the difficult times of building a new mine in a challenging ecosystem. Getting into ‘four figures’ worth of monthly production output for the first time in March 2023 depicts our progress as much as getting an 18,000 tpa plant rolling in the very first month since start off. We will continue to achieve new milestones in our efforts for building a leadership position in areas of our expertise and in the best interest of the Company and its shareholders.”
