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)
Ben Brewerton / Nick Hennis / Lucy
Wigney
|
+44 (0) 20 3727
1000
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
|