Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF), the mining company, is closing in on a monthly shipping deal with a German buyer for its 97% purity jumbo flakes.
Bulk production of the 97% purity jumbo flake Graphite was achieved back in April 2023 from its Madagascar project, something rarely done outside of China.
On producing this jumbo flake material, executive chairman Shishir Poddar said, "primary processing without the use of chemical or other treatments is a technically challenging grade to produce and demonstrates the process design superiority in retaining jumbo flakes while achieving higher purity levels and the skill sets the Company's team possesses."
Since April, Tirupati said it struck a prequalification deal with the German buyer to which it provided a bulk commercial-scale full container load for product trials.
Following this, the group provided a qualification order to the customer, shipping a full container at normal commercial terms reflecting the product’s premium value.
Once this order is approved and Tirupati receives a receipt, it expects to provide monthly shipment orders to the German buyer.
Prices of 97% purity jumbo flake are typically more than a 25% premium compared to normal 94% grades.
Talks with other potential customers are also underway, though Tirupati noted that negotiation periods are often long due to the technological demand for the products.
Said Poddar: “The company continues to bolster its presence in growing markets such as Europe and North American to further support the sales growth of its products in these regions as it continues to enhance its outputs."