Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) has reported gross profit of almost £10 million at the half-year stage following its acquisition of Suni Resources in April.
Tirupati netted income of £9.7 million from the takeover of Suni, the company reported on Thursday, alongside revenue of £3.1 million for the six months to September 2023.
This aided pre-tax profit of £7.8 million, compared to a loss of £1.4 million over the first six months of the 2022/23 financial year.
“The completion of the acquisition of Suni adds two advanced development projects in the north of Mozambique's renowned graphite producing region,” executive chairman Shishir Poddar commented.
“We are encouraged by the quality of these projects which underpin our long term growth ambitions.
“Given the amount of work and investment in these assets we believe they were acquired at a very attractive consideration.”
Poddar added that Tirupati was also exploring funding options “to accelerate the production ramp-up and growth through 2024”.
Production jumped by 160% over the first six months of the 2023/24 financial year meanwhile, with Tirupati forecasting improved operating margins from economies of scale and asset efficiency in the new year.
Shares climbed 9.33% to 16.4p.