7 March 2024
Tirupati Graphite plc
('Tirupati', 'TG' or
the 'Company')
Corporate Update
Tirupati Graphite plc (TGR.L,
TGRHF.OTCQX), the specialist flake graphite company and
supplier of the critical mineral for the global energy transition,
provides 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, 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."
ENDS
For further information, please
visit https://www.tirupatigraphite.co.uk/ or
contact:
Tirupati
Graphite Plc
Puruvi Poddar - Joint Managing
Director
|
admin@tirupatigraphite.co.uk
+44 (0) 20 39849894
|
Optiva
Securities Limited (Broker)
Ben Maitland - Corporate Finance
|
+44 (0) 20 3034 2707
|
FTI Consulting
(Financial PR)
Ben Brewerton / Nick Hennis / Lucy
Wigney
|
+44 (0) 20 3727 1000
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.