REG - Tirupati Graphite - Corporate Update

Tirupati GraphiteAnnouncement

07/03/2024 07:00

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RNS Number : 9043F  Tirupati Graphite PLC  07 March 2024

 

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/
(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.

 

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