TIDMTGR
RNS Number : 3522A
Tirupati Graphite PLC
23 September 2022
23 September 2022
Tirupati Graphite plc
('Tirupati', 'TG' or the 'Company')
Operations and Development Update
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist
graphite and graphene company developing sustainable new age
materials, is pleased to provide a progress update on the ongoing
developments and operations of the Sahamamy and Vatomina projects
and further decisions taken by the Company to optimise the
development of its Madagascar projects and operations.
Vatomina operations and development
-- As announced on 15 August 2022 the Vatomina preconcentrate
plant relocation and recommissioning was completed by mid-August
2022.
-- The Company is pleased to advise that:
o The preconcentrate plant has achieved the name plate ore feed
capacity of 600 tons per day and is in regular operation at or
above nameplate ore feed capacity since the beginning of September
2022;
o The preconcentrate plant, pumping of preconcentrate, and final
concentrate plant operations are synchronised to enable smooth and
constant operation;
o The Company has initiated construction of a second
preconcentrate plant at Vatomina with the objective of completing
this by the end of October 2022;
o The final concentrate plant has a current capacity to go up to
12,000 tons per annum ("tpa") output and to 18,000 tpa with minor
additions;
o As the head grade is optimised over the next quarter from
below 3% to the estimated >4%, the Company may take further
steps to optimise the Vatomina project to reach 18,000tpa output
capacity;
o Strengthening of internal roads and other infrastructure
continues to seek to mitigate the risks from adverse weather
conditions in the future.
-- With reduction in ore movement activities, the current heavy
earthmoving mining machinery ('HEMM') fleet is also being utilised
for development activities related to the second preconcentrate
plant and opening of additional nascent deposit areas.
Sahamamy operations and development
-- The existing 3,000 tpa plant at Sahamamy is now operating at
near rated capacity and, to seek to optimise operating costs, the
dehydrated concentrate from the plant is being further processed
and finished at Vatomina.
-- Upon completion of the Vatomina second pre concentrate plant,
the company has decided to decommission the 3,000 tpa operation.
The equipment used at this plant will be redeployed into the
reconfigured operations with two pre concentrate and one final
concentrate plants at each of the two projects.
-- Construction of both pre-concentrate and main processing
plants at Sahamamy continues to progress and is in the final stages
of completion.
-- Installation, commissioning and trial runs will commence in
the next two weeks and production ramp up is expected to complete
by the end of the end of 2022.
-- The commissioning of the 100Kw hydro power plant ('HPP'), the
c. 800m power evacuation overhead line and all facilities are now
complete. Trial runs and first power generation are expected to
commence from mid October 2022.
-- The HPP is estimated to save c. 350-400 litres of diesel consumption per day.
-- The Company has initiated activities for furthering the
development of a second 400Kw HPP prospect in Sahamamy.
-- With the experience gained by the Company in the first HPP
plant established, it is well placed to fast track the progress of
any second plant, which is expected to save a further c. 1400 -
1600 litres of diesel consumption in power generation once
completed.
Guidance on output over the forthcoming two quarters
With the transformative changes in the operations and
development in the current quarter, reducing uncertainties and
mitigating operational risks [and with GBP1 million of gap funding
being secured through the capital raise through Convertible Loan
Notes announced on 8 August 2022,] the Company is now well placed
to provide guidance on expectations on flake graphite production.
The reorganisation will result in the Company having a net ore
throughput capacity of 2,400 tons per day and a name plate capacity
of 36,000 tpa flake graphite production per annum across the two
projects. The Company is therefore pleased to provide the following
estimated production guidance for the forthcoming two quarters:
Period Vatomina Sahamamy (tons) Total
(tons) (tons)
October to December 2022 1,700 - 1,900 800 - 1,000 2,500 - 2,900
-------------- ---------------- --------------
January to March 2023 2,600 - 2,800 3,500 - 3,700 6,100 - 6,500
-------------- ---------------- --------------
Progressively, the Company will aim to reach the name plate
8,000 tons per quarter flake graphite output from the operations.
Any further CAPEX requirements in order to achieve this growth in
capacity are expected to be met from the internal resources
generated out of the operations of the Company.
The Company will currently remain focussed on streamlining its
operations and in seeking to achieve >90% capacity utilisation
from its current and under development capacities, strengthen its
projects continuously and engage with the markets. Development of
the balance of 54,000 tons planned capacity across existing
Madagascan projects will follow targeting the end of 2024 for
completion.
Shishir Poddar, Executive Chairman, said:
"We are committed to continually innovating to ensure efficient
operations, and the successful integration of the preconcentrate
plant at Vatomina streamlines our production and strengthens our
resilience against any adverse weather conditions.
We are pleased to announce our increasing guidance on flake
graphite production as we continue to work towards adding the
balance of 54,000 tons of planned capacity across our existing
Madagascan projects, targeting completion by the end of 2024. This
progress will help us to achieve our long-term goal of producing
circa 8% of the global flake graphite market or 400,000 tpa by
2030."
ENDS
For further information, please visit
https://www.tirupatigraphite.co.uk/ or contact:
Tirupati Graphite Plc
Puruvi Poddar - Chief of Corporate & Business admin@tirupatigraphite.co.uk
Development +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 graphite and graphene
company. The Company places a special emphasis on "green"
applications, including renewable energy and 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; 12,000 tpa installed capacity of
high-quality flake graphite concentrate with up to 96% purity is
currently being produced and sold to customers globally, planned to
increase to 84,000 tpa by end 2024 as per the Company's modular
medium-term development plan.
The Company has an acquisition agreement, subject to regulatory
approvals, with Tirupati Speciality Graphite Private Limited
('TSG'). TSG operates and is developing a suite of speciality
graphite for use in hi-tech applications like lithium-ion
batteries, fire retardants, thermal management, and composites. It
also operates a technology centre developing advanced materials
including graphene and its applications, and mineral processing
technology on commercial basis. The Company is working on various
possibilities in this respect as announced by RNS on 11 July
2022.
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