Shares in Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) jumped 12% in the wake of an encouraging trading update – one from which it emerged gross profit for the 12 months to 31 March 2023 had increased 170% year-on-year to £1.37mln.
Total production for the period was up 59% to 4,770 tons, while sales jumped 76% to £2.89mln. The basket price of graphite sold was up 17% at £726.
"We have now completed the first phase of our development into a global leader in this niche speciality material space,” said chairman Shishir Poddar.
“In the process, we have successfully managed episodes of extreme difficulty, but have remained firmly focused on our objectives and targets. From the new financial year, we have begun the journey on the next phase, consolidating on what we have achieved and moving forward towards our next targets.
"The stage is now set for us to build a sustainable flake graphite company.
“Our key differentiator is and remains that we are the only company that has been founded and managed by a team that specialises in this speciality material, thus helping us to be cost-effective as evidenced by our lower capital intensity and operating cost.”
Tirupati operates two projects in Madagascar - Sahamamy and Vatomina - with a total installed capacity of 30,000 tons per annum (tpa) of high-quality flake graphite concentrate, which is planned to increase to 84,000 tpa.
The flake graphite specialist uses green applications, including renewable energy in its efforts. Over the past year, the company has also been developing new capacity and overcoming bottlenecks.
As a result, the company reached a plant capacity of 30,000 tpa and made its first commercial shipment from its 18,000 tpa Sahamamy mining and processing facilities in March.
Throughout the year, Tirupati successfully implemented various measures to reduce operating costs, attain a better ability to overcome adverse weather conditions and initiate renewable energy generation.
The market took the update positively, pushing the shares 3.63p higher to 33.88p.