Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) management has unveiled its upstream flake graphite development strategy, which aims to satisfy 8% of global flake demand ‘by the turn of the decade’.
The company, in a statement, said it is actively engaging in funding discussions with potential strategic partners and financial institutions to streamline current operations in Madagascar and expand production capacity.
It intends to raise up to £80 million in the near term, with proceeds expected to bolster its Madagascan projects – currently the production capacity stands at around 54,000 tons a year.
Tirupati noted that significant further investment, of around £363 million, would be needed to invest in the project and bring it to the targeted production capacity of 400,000 tpa by 2030.
The company said it intends to re-invest internal cash flows, as well as seeking further financial backing.
It has developed two flake graphite projects in Madagascar since 2021, and is working on further large-scale projects in Mozambique.
Tirupati believes these projects are critical to the company’s growth strategy, leveraging its expertise in flake graphite mining and processing.
"The company has developed a detailed strategy to execute its ambition of producing c.8% of forecast demand by the turn of the decade,” chief executive Shishir Poddar said in a statement.
“Subject to current and future financing efforts, this strategy update is key for defining the path for the evolution of Tirupati Graphite on the upstream side of the business and has been shared with interested prospective strategic partners to demonstrate how the Company plans to achieve its upstream ambition.
“We continue to review options for the path forward for the downstream side of the business and will keep shareholders updated.”
Poddar added: “The appointment of Michael Lynch-Bell as non-executive chairman has strengthened the company and further management appointments are planned as the company continues to enhance its corporate governance.”