Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) has announced the commencement of commercial production of 97% pure flake graphite from its Vatomina project in Madagascar.
Certain markets require high-grade flakes, which are in high demand and can command premium prices. Tirupati has produced its first container of 97% jumbo flakes of greater than 50 mesh size for a German speciality graphite products manufacturer and is planning to increase its high-grade output and sales.
@ZaksTradersCafe talks to @ShishirPoddar, Executive Chairman @Tirupatiuk as the graphite producer #TGR has achieved commercial production of 97% pure flake #graphite from its Vatomina project in #Madagascar 🇲🇬https://t.co/jCXyNYIuLQ
— Share_Talk ™ (@Share_Talk) April 4, 2023
The company aims to achieve a 10% increase in basket price realisation from its Madagascan production, targeting a price range of US$910 to US$935 per metric tonne for the fiscal year ending in March 2024.
Tirupati operates two production facilities in Madagascar, at Vatomina and Sahamamy, with the ramp-up of production at the latter ongoing in line with expectations since February 2023. Production from Sahamamy for the month of March 2023 was within the guidance range of 800 to 1,000 tons.
While total production for the quarter ending on March 31, 2023, was slightly lower than guidance at approximately 2,400 tons due to weather-related shutdowns, the company maintains its overall production guidance for the fiscal first quarter of 2024 at between 6,100 and 6,500 tonnes.
Tirupati’s executive chairman, Shishir Poddar, called the achievement of commercial production at a 97% grade another significant milestone in the company’s progress and positioned the company well to address evolving flake graphite opportunities.
