Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) said production and sales of flake graphite from its operations in Madagascar will exceed the whole of its last financial year to March by the end of this month.
In fiscal 2023, Tirupati generated £2.89 million in revenues but said production in the first quarter of this financial year was 2,371 tons, an increase of 188% over a year ago, while sales amounted to 2,772 tons or an increase of 245%.
Production is being increased more slowly than originally envisaged due to cash constraints currently but the target remains to reach production and minimum sales of 2,000 tons a month.
This should be achieved in the third quarter of this financial year, Tirupati believes, adding regular orders are currently now are 1,200 tons a month in addition to various short-term and spot orders.
Discussions are ongoing about securing non-dilutive working capital arrangements to improve its cash resources on the back of its strongly improving performance and order book, added the statement.
Shishir Poddar, executive chairman, said: "We chose the tough but prudent path of refraining from a dilutive equity raise in the current subdued capital markets, managing our operations and growth within our available resources.
“With the establishment of consistent and growing production, we are progressing to our next target of hitting a positive bottom line at corporate level in the foreseeable future.”
Shares resume trading on the standard market today, having been briefly suspended.