Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) reported sharply higher revenues and production in the first half of its current financial year.
Production in the six months to end September 2023 was up 160% at 4,509 metric tonnes while quantities shipped rose by 183% to 4,785Mt.
As a result, revenues increased to £3.1 million against £1.1 million with prices per metric tonne down slightly at £658 (£689).
Based in Madagascar, Tirupati added that operations at its mines have been running uninterrupted at a consistent rate since the start of the third quarter, with a new 100KW hydropower plant also now completely stabilised.
Run rates currently average 1,800 tons per day ore feed representing 75% of rated ore feed capacity, though flake graphite throughput of 40 to 45 tons per day of operations varies primarily with head grade.
Head grades are below expectations at both projects and remain under 3% as against 4.5% used for plant design. Average recovery remains below 80%.
Tirupati said it now assumes the head grade will remain under 3% and is adapting plans accordingly though a consistent production rate of 50% of rated capacity is now being achieved even so.
Shishir Poddar, executive chairman, added: "We continue to improve the company's performance despite the graphite markets being subdued in recent months.
"We have been constrained by working capital limitations but the debt markets are getting increasingly buoyant for critical mineral development opportunities in Africa.
“As perhaps the only graphite company to have had positive operating margins since inception, and with the scale of operations now reaching the point where the company is expecting a strong financial, we are furthering potential debt engagements with institutional providers.
"The success of the first hydropower plant is a significant step in our green credentials. Further development of renewable energy will be a priority for us in the forthcoming stages of development," Poddar said.