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Tirupati Graphite (LSE:TGR), a leading specialist in flake graphite, has provided an update on its operations, following the company's previous announcement on 31 July. The update highlights significant progress in mining and processing activities at the Vatomina project in Madagascar, a critical source of flake graphite for global energy transition technologies.
Operations Update
Full-Scale Mining Commenced
Full-scale mining operations at Vatomina officially began on 28 July 2024 after the successful delivery of essential fuel and supplies on 27 July 2024. The commencement marked a significant milestone in the project’s development, ensuring a steady flow of raw material to feed the processing units.
Processing Operations
Processing operations at Vatomina kicked off on 2 August 2024 after the accumulation of sufficient feedstock at the ore pads of the two pre-concentrate units. During the initial phase, minor issues were encountered and resolved between 2 and 5 August 2024. Despite these challenges, the processing units successfully produced 59 tons of flake graphite with a purity level exceeding 96%. Additionally, the head grade of the mined ore met the target of 3%, confirming the quality and efficiency of the operations.
Steady-State Production Achieved
Since 6 August 2024, Vatomina has been operating on a steady 24/7 production schedule, resulting in the production of 165 tons of high-grade flake graphite over seven consecutive working days. Based on the operational design of 330 days per year, this production rate equates to an annual output of 7,778 tons, which is over 97% of Vatomina’s rated capacity at a 3% head grade.
Focus on High-Grade Products
Tirupati has decided to focus exclusively on producing higher-grade graphite products, all of which have tested at over 96% purity. This strategic decision underscores the company's commitment to supplying premium-grade graphite, which is essential for various high-tech applications, including energy storage and electric vehicles.
Shipment and Sales
As of 10 August 2024, the company has shipped 140 tons of finished product, with an additional 240 tons in the process of being shipped. Tirupati remains on track to meet its target of shipping over 600 tons of graphite by the end of August 2024. The shipments are being delivered to customers across the globe, further establishing Tirupati as a key supplier in the global graphite market. The company plans to provide updates on the realized basket price in due course, reflecting the ongoing demand and market conditions.
Outlook and Confidence
Tirupati Graphite remains confident in achieving its targeted production run rate of 8,000 tons per annum from Vatomina, provided there are no disruptions or inefficiencies caused by financial constraints.
