Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) said it has achieved commercial production of 97% pure flake graphite from its Vatomina project in Madagascar.
Certain specialist markets require high-grade flakes which command premium prices.
Tirupati’s first container of 97% jumbo flakes of greater than 50 mesh size has now been produced for a German manufacturer of speciality graphite products and the company is working towards increasing its high-grade output and associated sales.
Tirupati is also targeting a 10% uplift in basket price realisation from its Madagascan production, taking the price to between US$910 and US$935 per metric tonne in the fiscal year to March 2024.
The company has two producing operations in Madagascar, at Vatomina and Sahamamy.
The ongoing ramp-up of production at Sahamamy is continuing in line with expectations since the commencement of operations in February 2023.
Production from Sahamamy in the month to 31 March 2023 was within the guidance range of 800 to 1000 tons.
However, total production for the quarter ending 31 March 2023 was slightly lower than guidance at around 2,400 tons, owing to precautionary shutdowns due to adverse weather.
The company maintains overall production guidance for the fiscal first quarter of 2024 at between 6,100 and 6,500 tonnes.
"Achieving commercial production at a grade of 97% is another significant milestone in Tirupati's continued progress as we establish ourselves as a leading supplier of flake graphite outside of China,” said Tirupati’s executive chairman Shishir Poddar in a statement.
He added: “Our increasing output is timely with a demand-supply gap forecast over the next year and we are well positioned to play our role in the evolving flake graphite opportunities. We have moved on from the difficult times of building a new mine in a challenging ecosystem.
"Getting into 'four figures' worth of monthly production output for the first time in March 2023 depicts our progress as much as getting an 18,000 tonnes per year plant rolling in the very first month since start-off. We will continue to achieve new milestones in our efforts for building a leadership position in areas of our expertise and in the best interest of the Company and its shareholders."