REG - Tirupati Graphite - Business Development Update

Tirupati GraphiteAnnouncement

18/03/2024 07:00

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RNS Number : 1429H  Tirupati Graphite PLC  18 March 2024

18 March 2024

Tirupati Graphite plc

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

 

Business Development Update

  

Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist flake graphite
company and supplier of the critical mineral for the global energy transition,
is pleased to announce progress on qualification and business development of
97% purity >50# jumbo flakes from its Madagascar projects since its last
update (see 4 April 2023 Operational Update RNS).

 

Overview

 

·     The Company announced achieving bulk production of 97% purity jumbo
flake Graphite from its projects in Madagascar on 4 April 2023.

·     Bulk commercial production of 97% purity jumbo flake Graphite from
primary operations is a significant technical achievement, rarely replicated
outside China.

·     The Company achieved prequalification of this product with a German
buyer and supplied a bulk commercial scale full container load for product
trials by the customer, which has been successful.

·     As a result, the Company received a further final qualification
order from the buyer and has now shipped the next full container load of the
material to the buyer.

·     The qualification shipment was supplied on normal commercial terms
and reflecting the premium value of this product.

·     Upon receipt and approval of this final qualification container,
the Company expects to receive monthly shipment orders from the buyer.

·     The 97% purity jumbo flake material commands a premium of greater
than 25% over the normal up to 94% purity grades and upon regular orders being
received, has a potential to positively impact the Company's basket price
realisation.

·     Qualification of high grade, premium priced products continue
simultaneously with other prospective customers in Europe and North America.
Such qualifications are typically a long gestation period given that the
applications of such products are technologically demanding.

·     The Company continues to remain focused on achieving a value
product through technical enhancements to its production facilities in
Madagascar and to build its business in a step-by-step approach.

·     The achievement of initiating significant supply volumes to
European customers of this high quality, and high value product complements
the Company's efforts to develop market share for its whole flake graphite
product basket produced in Madagascar.

 

 

Flake Graphite Markets

 

·    The flake Graphite Market continues to evolve around the energy
transition and the changing geopolitics resulting from the implementation of
Chinese export restrictions of natural flake graphite and its products from
December 2023.

·    The Company continues to receive significant inbound inquiries from
markets globally, including from China.

·    Growing numbers of consumers are looking for current and near term,
alternatives of flake graphite to Chinese sources for their sourcing needs to
satisfy security of supply concerns over the long term.

·    Extensive marketing activities continue in preparation of volume
production from the Madagascar projects and in advance of expansion planned by
the Company to meet growing forecast global graphite demand.

·    The Company has seen significant signs of a turnaround from the
subdued price of flake graphite in recent weeks and notes the forecast by
various reputable market research entities of a potential flake graphite
shortage to kick in over the next few quarters.

·    The recently published Global Graphite Landscape map by Benchmark
Minerals Intelligence highlights the few producers outside of China such as
the Company and the few current suppliers available to support growing
ex-China demand.

 

 

Shishir Poddar, Executive Chairman, said:

 

"Today's announcement is validation of the Company's efforts to maximise the
use of its significant production assets to achieve sustained high-grade
production and business development for sales of vital grades of this critical
mineral to growing ex-China markets, a trend we are working to capitalise on
as we execute our ramp up of production in Madagascar.

 

"The high grade 97%, jumbo flake material from primary processing produced
without the use of chemical or other treatments is a technically challenging
grade to produce and demonstrates the process design superiority in retaining
jumbo flakes while achieving higher purity levels and the skill sets the
Company's team possesses. The Company continues to bolster its presence in
growing markets such as Europe and North American to further support the sales
growth of its products in these regions as it continues to enhance its
outputs."

 

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)                 +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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