The 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.
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
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Full scale mining operations were
commenced at Vatomina from 28 July 2024, following successful
delivery of fuel and other supplies by 27 July 2024;
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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;
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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%;
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Steady state 24/7 production has
been ongoing since 6 August 2024, with production of 165 tons in
seven (7) consecutive working days;
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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;
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The Company decided to produce only
higher grade products and is happy to report that all products
manufactured have tested >96% product grade;
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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;
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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.
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Goods are being shipped to customers
across the globe and the Company will provide further updates on
the realised basket price in due course.
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Further information on Director's Loans and financing
arrangements
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The Company announced receipt of
Director's loans of GBP 230,000 on 31 July 2024. The loans were
received from the following Directors:
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○
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Mr. Michael
Lynch-Bell
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: GBP 50,000
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Mr. Alastair Bath
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: GBP 130,000 (funds received in
March & April 2024)
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Ms. Puruvi Poddar
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: GBP 50,000
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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.
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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.
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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.
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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/ or
contact:
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Tirupati Graphite Plc
Puruvi Poddar - Joint Managing
Director
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admin@tirupatigraphite.co.uk
+44 (0) 20 39849894
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CMC
Markets UK Plc (Broker)
Douglas Crippen
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+44 (0)20 3003 8632
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Musst / ViTa-Connect (Financial Adviser)
Tabrez Khan
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tabrez@vita-connect.co
+44 746 903 3573
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FTI
Consulting (Financial PR)
Ben Brewerton / Nick Hennis / Lucy
Wigney
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+44 (0) 20 3727 1000
tirupati@fticonsulting.com
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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:
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Country
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Project
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Stage
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Madagascar
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Sahamamy
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Production paused: 12,000tpa
current capacity assuming 3% head grade
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Madagascar
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Vatomina
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In production: 8,000tpa current
capacity assuming 3% head grade
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Mozambique
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Montepuez
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100,000tpa permitted,
development-initiated
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Mozambique
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Balama Central
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58,000tpa permitted,
development-ready
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