London-listed Tirupati Graphite remains on track to scale up production at its Vatomina graphite project in Madagascar.
The company aims to reach a production rate of 600 tonnes per month by the end of April, 1,000 tonnes per month by July 31, and 1,500 tonnes per month by December.
In February, Vatomina produced 375 tonnes of flake graphite concentrate, achieving purity levels of up to 96%—the highest monthly output in 14 months.
Tirupati shipped 100 tonnes of finished product at the end of February and had 280 tonnes ready for shipment from the Port of Tamatave in early March.
To support this production ramp-up, the company is relocating two pre-concentration units from its Sahamamy project in Madagascar to Vatomina, with completion expected within two months.
Tirupati has secured new orders covering deliveries from April 2024 to March 2025, with its current order book standing at 5,780 tonnes at an average sales price of $940 per tonne.
The company continues to expand its sales pipeline while implementing a new quality control process to enhance production efficiency and plant reliability.
From April, all shipments will contribute directly to cash flow, as Tirupati expects to complete all pre-paid deliveries by then.
Chairperson Mark Rollins expressed confidence in the company’s progress since resuming operations at Vatomina on February 1, attributing improvements to enhanced operating practices under new management.
Tirupati is reconstructing its financial records following disruptions under its previous leadership, during which the company was denied access to its accounting systems.
A new accounting system is being implemented, allowing the company to publish its financial statements for the year ended March 31, 2024, and interim results for the six months ending September 30, 2024, by April.
The company terminated co-CEO Shishir Poddar on February 19, citing an ongoing investigation into misconduct allegations.
Anthony James Nieuwenhuys has since been appointed sole CEO, with additional senior management changes implemented.
Tirupati’s shares remain suspended on the London Stock Exchange pending the completion of its financial statements and audit, but the company aims to resume trading by the end of April.
To strengthen its financial position, Tirupati is placing and issuing zero-coupon convertible notes, having secured commitments worth £1.74 million.
These notes will convert into ordinary shares at a price of £0.05 per share, subject to listing approval. Following this offering, the company plans a further share placement to support corporate operations and working capital.
Despite financial challenges, Rollins remains optimistic, stating, “We are building a firmer footing to move forward towards the goal of becoming a globally significant graphite company and capitalizing on the rapidly evolving graphite market.”
