Tirupati Graphite has announced a significant increase in both revenues and production for the first half of its ongoing financial year.
For the period ending September 2023, there was a 160% surge in production, reaching 4,509 metric tonnes. Additionally, shipments escalated by 183%, totalling 4,785Mt. Consequently, revenues surged to £3.1 million from the previous £1.1 million, even though the price per metric tonne saw a slight decrease, settling at £658 from the previous £689.
Located in Madagascar, Tirupati noted that its mining operations have been continuous and steady since the beginning of the third quarter. The company also highlighted the full stabilization of its new 100 KW hydropower plant.
Currently, the operational run rates average 1,800 tons of ore feed daily, which is 75% of the ore feed’s rated capacity. However, the flake graphite throughput, which ranges between 40 and 45 tons per operation day, mainly depends on the head grade.
Both projects have reported head grades that are under the expected rate, persistently below 3% in contrast to the 4.5% utilized in plant design. The average recovery has also stayed below 80%.
Despite this, Tirupati is optimistic. It anticipates the head grade to consistently remain below 3% and is adjusting its strategies to this prediction. However, the company also highlighted that they’re still managing to maintain a stable production rate of 50% of the rated capacity.
Shishir Poddar, the Executive Chairman, commented, “Even with recent subdued trends in the graphite market, we’re committed to enhancing our company’s performance. While we’ve faced some limitations in working capital, the rising enthusiasm in the debt markets for mineral development in Africa is promising.
Being possibly the sole graphite company boasting positive operating margins since its inception, and given the scale of our current operations, we are advancing potential debt discussions with institutional stakeholders.”
He added, “The success of our inaugural hydropower plant significantly bolsters our commitment to sustainability. Prioritizing further renewable energy initiatives will be pivotal in our upcoming developmental phases.”
