TIDMTGR
RNS Number : 8611I
Tirupati Graphite PLC
10 August 2023
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". In some cases, these
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "targets",
"believes", "estimates", "anticipates", "expects", "intends",
"may", "will", "should", "could" or, in each case, their negative
or other variations or comparable terminology. They appear in a
number of places throughout this announcement and include
statements regarding the intentions, beliefs or current
expectations of the Company and the Board. By their nature,
forward-looking statements involve risks and uncertainties because
they relate to events and depend on circumstances that may or may
not occur in the future. Forward-looking statements are not
guarantees of future performance. The Company's actual performance
and results of operations may differ from the forward-looking
statements contained in this announcement.
10 August 2023
Tirupati Graphite plc
('Tirupati', 'TG' or the 'Company')
Tirupati Receives Prepayments to Support Production Ramp-up
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist
graphite producer and a supplier of critical minerals for the green
transition economy, is pleased to announce it has received c.US$ 1
million net of prepayments from existing clients, to support the
ramp-up of operations.
Shishir Poddar, Executive Chairman, said:
"Today marks a significant milestone in Tirupati's journey and
reflects a step up in the Company's financial and operating
profile.
"Since we completed the significant expansion at our Madagascan
operations, increasing our production capacity to 30,000tpa, we
have been advancing discussions with multiple new customers,
leveraging our decades of experience in the Graphite industry, to
ensure they recognise Tirupati's scale and position as a leading
provider of natural graphite outside of China.
"The prepayments announced today will significantly support our
working capital requirements and provide suppliers and customers
with confidence allowing us to maintain a strong pipeline of
business."
Highlights
-- Tirupati's preference has been to meet its working capital
needs for ramping up of operations through non-dilutive
arrangements.
-- The Company has now successfully closed deals with certain
existing clients in the United States and Europe with 100% upfront
prepayment for orders placed.
-- As a result, the Company has received c.US$ 1 million net of prepayment.
-- The orders are to be shipped over a six-month period.
-- These orders represent c.15% of the quantum of sales the
Company expects to make over the six-month period.
-- A discount of between 7 - 15% has been applied to the price
in return for the pre-payments and which also reflects recent
market price softening.
-- The Company continues to ship goods to its other customers
alongside and to realise proceeds thereof as per terms agreed with
the respective buyers.
-- The current average realisation period from shipment for the
Company's other clients varies between 30 to 45 days.
-- Accordingly, the Company expects to receive sufficient cash
proceeds from its sales going forward to maintain the growth
trajectory of its production and sales.
-- The Company will use the funds to bridge gaps in cash
requirements for ramping up its production and sales with targets
as announced in RNS dated 8 August 2023.
-- Going forward the Company will continue to focus on
strengthening its cash position through other non-dilutive
opportunities.
-- Notably, the Company already has sufficient finished product
inventory required to ensure it satisfies customer requirements in
a timely manner, and also to allow the Company to take the benefits
of the spot market and further business development purposes as we
ramp up production.
Outcomes for the Company
-- Significant cash-injection into the Company, allowing it to
proceed with its ramp-up of production in Madagascar while the
Company earns growing sales proceeds each month.
-- Smoothing of working capital cash-flows by providing cash
instantly for operations, will allow the Company to operate at
higher production and utilization rates to help drive stronger
sales growth.
-- Cash-receipts from larger monthly sales are set to be
received in a waterfall manner of growing receipts as a result of
their payment periods.
-- The Company's ability to grow its market share faster in
respect of the supply of natural Graphite should also be enhanced
as it becomes a more visible partner of choice for customers.
-- The Company's graphite products are entering more supply
chains associated with the decarbonisation of the global economy,
enhancing the visibility and recognition of the Company's
Sustainability strategy and the emphasis the Company has placed on
lowering the carbon footprints of its flake graphite.
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 / Lucy Wigney 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, 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. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDBCGDILGGDGXC
(END) Dow Jones Newswires
August 10, 2023 02:00 ET (06:00 GMT)
Tirupati Graphite (LSE:TGR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tirupati Graphite (LSE:TGR)
Historical Stock Chart
From Jul 2023 to Jul 2024