REG - Tirupati Graphite - Corporate & Operations Update

Tirupati GraphiteAnnouncement

10/10/2024 08:30

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RNS Number : 7009H  Tirupati Graphite PLC  10 October 2024

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.

 

10 October 2024

Tirupati Graphite plc

 

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

 

Corporate & Operations 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 previous RNS dated 13 August 2024,
progress in relation to financing arrangements and on matters related to
publishing its audited financial results for the period ending on 31 March
2024.

 

Operations

·    Operations of the Vatomina project continued intermittently during
August and September ("the period"), since 2 August 2024, in sync with
available financial and material resources.

·    Production during the period was 620 tons, with all product exceeding
a 96% grade.

·    The quantity sold and shipped during the period was 740 tons, earning
revenue of US$660,415 and recording an average basket price realisation on
sales of US$892.45 per MT; the highest basket price realised to date by the
Company.

·    An additional 60 tons of larger flake grades, contracted to generate
US$63,400 in revenue are at port awaiting shipment.

·    The Company has received from customers a sum of US$889,729 during
the period towards the sale of goods. Sales continue to be made without credit
periods extended to customers.

 

Consolidating and streamlining operations with the resources available has
enabled the Company to substantially address the stressed position for
operations in-country and it is targeting consistent operations of the
Vatomina project and a return to the previously demonstrated significant
operating margins. The Company remains engaged with its corporate creditors to
maintain their support as it secures funds to further improve operations and
grow production and sales.

 

VAT Refunds

·    In September, the Company received c.US$ 80,000 of VAT refunds, and a
further sum of c.US$ 245,000 in October 2024.

·    Further VAT refund tranches are expected towards the c.US$ 2 million
that the Company was originally owed.

 

Financing Progress

The Company and its advisors have continued to make progress towards securing
finance for both current working capital needs, and longer-term growth
finance:

 

·    Negotiations of a Term Sheet have been advanced with a strategic
investor for a potential investment package that provides the capital
requirements for enabling a steady state 2000 - 2400 tons per month of
production, including the gap CAPEX required for it.

·    Discussions and due diligence have progressed with a Middle East
Sovereign Fund for potentially financing the development of the Company's
Montepuez graphite project in Mozambique. In-person meetings were held in
September in the UAE and detailed project appraisal by the fund is ongoing.

·    Outreach has been initiated with US-based investors who have
expressed interest in investing in the Company, with growing interest among
US-based strategic and institutional investors following continued US
government policy interventions.

·    A trade finance deal is being evaluated as an alternative arrangement
for meeting the current working capital deficit.

 

Audit and Annual Report

·    Companies House has granted the Company an extension to 31 December
2024 for submission and publication of the audited annual report and financial
statements.

·    The Company has appraised the FCA of its status and this extension.

·    The audit for the Company's annual accounts is substantially
completed; pending items relate to certain treatments under provisions of IFRS
influenced by the liquidity position, which the Company is engaged in
resolving.

 

Shishir Poddar, Managing Director and CEO, commented:

"We are thankful to the Government of Madagascar and the British Embassy in
Madagascar for their support in releasing the VAT refunds due to us, which has
helped improve our liquidity constraints. We are also thankful to our
creditors who have stood by us in these stressed times as we navigate to
streamline our business and return to growth.

 

"We also convey our thanks to our shareholders for their patience, and to our
prospective investors, who see the success we have achieved during strong
headwinds. As the only London-listed flake graphite producer, we are committed
to overcoming the constraints and to delivering the clear growth potential we
have, synchronising with growing demand for this critical mineral."

 

 

 

ENDS

 

For further information, please
visit 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 / +971 50871 7864

 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, with
leading low development capital and operating costs. 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 installed final production nameplate capacity of 30,000tpa, subject
to minor capex additions. The Madagascar operations produce 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: 18,000tpa nameplate capacity
 Madagascar    Vatomina          In Production: 12,000tpa nameplate capacity
 Mozambique    Montepuez         100,000tpa permitted, construction-initiated
 Mozambique    Balama Central    58,000tpa permitted, development-ready

 

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