REG - Tirupati Graphite - Unaudited Trading Results

Tirupati GraphiteAnnouncement

09/05/2023 07:15

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RNS Number : 6700Y  Tirupati Graphite PLC  09 May 2023

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.

 

9 May 2023

Tirupati Graphite plc

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

 

Unaudited Trading Results for The Financial Year 1 April 2022 to 31 March 2023

 

Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist graphite and
graphene company developing sustainable new age materials, is pleased to
announce its Unaudited Trading Results for the financial year ended 31 March
2023 ("FY23").

 

Highlights

·    Gross profit for FY23 increased 170% Year on Year ("YoY") to
£1,372,048 (FY22: £508,112)

·    Total production increased by 59% YoY to 4,770 tons (FY22: 2,996
tons)

·    Total Sales increased by 76% YoY to £2,890,010 (FY22:  £1,645,308)

·    Basket price realised per ton of graphite sold increased by 17% to
£726 (FY22: £618)

·    A summary of the operating results for the year are as detailed in
table below

 

 Particulars                                  Unit   FY 2023      FY 2022    % Change YoY
 Revenue and Sales
 Quantity Sold & Shipped                      MT     3,982        2,662      +50%
 Revenue from Sales                           £      2,890,010    1,645,308  +76%
 Price realised                               £/MT   726          618        +17%
 Production and Cost of Production
 Quantity Produced                            MT     4,770        2,996      +59%
 Mining & Processing Costs                    £       1,512,563   935,604     +62%
 Human Resources                              £       326,783     378,671     -14%
 Logistics Utilities & Plant Admin Costs      £       368,061     308,278     +19%
 (Increase) / Decrease in Inventory           £       -689,445    -485,357    +42%
 Total Cost of Production                     £      1,517,962    1,137,196  +33%
 Cost of Production per ton                   £/MT   318          380        -16%
 Operating Profits & Margins
 Gross Profits                                £      1,372,048    508,112    +170%
 Gross Margin % of sales                      %      47           31         +52%
 Cost of Production % of Price realised       %      44           61         -28%

 

Further Overview for FY23

●     Development of new capacities and overcoming bottlenecks faced
remained the larger part of the Company's activities during the year

●     As a result, the Company continued development across its two
projects and reached a plant capacity of 30,000 tons per annum ("tpa").

●     Various measures taken by the Company during the year have been
implemented successfully in development and operations with initial impacts
becoming visible in the financial results for FY23, these include:

o  reducing operating costs;

o  attaining better ability to overcome adverse weather conditions; and

o  initiating renewable energy generation and the usage thereof.

●     First commercial shipment from the Company's 18,000 tpa capacity
Sahamamy mining and processing facilities was made in March 2023, tailor made
to its customer's requirements.

●     The cumulative investments made in CAPEX by the Company at its
projects in Madagascar since inception up to 31 March 2023 now stands at
£13.5million, including exploration and evaluation

Demand matrix

·    The global push for climate action and energy transition are
resulting in increased consumption of flake graphite in energy storage
lithium-ion batteries used in electric vehicles

·    Increasing consumption of flake graphite is also reported in other
sustainable development applications like fire safety, thermal management and
advanced materials

·    Consumption in conventional applications collectively remains the
larger part of global flake graphite usage, though energy transition
applications are forecast to overtake these in the near future and are
expected to create an inflection point

·    Substantial global dependence for flake graphite on China has created
greater interest in the consumer industry for alternative sources

·    The Company is not aware of any other new material production having
been established during the year outside China and only a handful of
developments other than by the Company are underway in the current year

·    The Company's products have been exported from origin in Madagascar
across three continents during FY23 and the Company remains engaged with the
markets accumulating annual orders for its current capacities, and future
prospects for its growth plans

 

Shishir Poddar, Executive Chairman, said:

 

"We have now completed the first phase of our development into a global leader
in this niche speciality material space. In the process, we have successfully
managed episodes of extreme difficulty, but have remained firmly focused on
our objectives and targets. From the new financial year, we have begun the
journey on the next phase, consolidating on what we have achieved and moving
forward towards our next targets.

 

"The stage is now set for us to build a sustainable flake graphite company.
Our key differentiator is and remains that we are the only Company that has
been founded and managed by a team that specialises in this speciality
material, thus helping us to be cost effective as evidenced by our lower
capital intensity and operating cost.

 

"I take this opportunity to express our gratitude to all our investors and on
behalf of the TG team, we reiterate our commitment to remain firm on our
vision and continue to develop our path to success."

 

 

ENDS

For further information, please visit https://www.tirupatigraphite.co.uk/
(https://www.tirupatigraphite.co.uk/) or contact:

 

 Tirupati Graphite Plc

 Puruvi Poddar - Chief of Corporate & Business Development        admin@tirupatigraphite.co.uk (mailto:admin@tirupatigraphite.co.uk)

                                                                  +44 (0) 20 39849894
 Optiva Securities Limited (Broker)

 Ben Maitland - Corporate Finance                                 +44 (0) 20 3034 2707

 Robert Emmet - Corporate Broking                                 +44 (0) 20 3981 4173

 FTI Consulting (Financial PR)                                    +44 (0) 20 3727 1000

 Ben Brewerton / Nick Hennis / Kelly Smith                        tirupati@fticonsulting.com

About Tirupati Graphite

 

Tirupati Graphite Plc is a specialist flake graphite company and places a
special emphasis on "green" applications of flake graphite, including
renewable energy, energy efficiency, energy storage and thermal management and
is committed to ensuring its operations are sustainable as well.

 

The Company's operations include primary mining and processing in Madagascar,
where the Company operates two key projects, Sahamamy and Vatomina. With the
start of commercial production of its latest 18,000 tpa plant at Sahamamy in
March 2023, it now has an installed capacity of 30,000 tpa high-quality flake
graphite concentrate with up to 97% purity in Madagascar, planned to increase
to 84,000 tpa as per the Company's modular medium-term development plan.

 

On 1 April 2023 the Company completed the acquisition of Suni Resources SA,
Mozambique, whose two main assets are (i) the Montepuez Project which holds
the mining licence over an area of 3,667 hectares with JORC 2012 defined
reserves & resources of almost 120 million tonnes; plus (ii) the Balama
Central Project, which has a mining license over 1,543 hectares with JORC 2012
defined mineral reserves and resources of 33 million tonnes. Both projects
have licenses permitting build out to an annual production of 100,000 and
58,000 tons of flake graphite respectively.

 

TG believes that the addition of these projects provides the Company with
sufficient resources to achieve its ambition of satisfying 8% of the estimated
global flake graphite demand - of around 5 million tons per annum - by 2030.

 

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