Tirupati Graphite PLC (LON:TGR) is pleased with the progress made on increasing capacity at its two projects in Madagascar.
At the Sahamamy project, the first fleet of new earthmoving equipment has arrived, facilitating commencement of area grading and work for the second 18,000 tonnes per annum (tpa) module.
Various infrastructure development activities, such as enhancing base camp capacity, strengthening internal roads and water supply and similar pre-development activities, are also ongoing.
Construction of the 100-kilowatt hydropower plant at Sahamamy remains on track for completion in the final quarter of this year.
At the Vatomina project, the installation of plant equipment for the upscaled 9,000 tpa operations is in its final stages with commissioning and production initiation expected to commence over the next three weeks.
The current second stage exploration programmes at both Sahamamy and Vatomina continue. Current augur drilling has delineated new mineralised zones and diamond core drilling continues with a target to upgrade the existing mineral resources.
A new diamond core drilling machine has been ordered for Sahamamy to facilitate the commencement of its drilling activities simultaneous with drilling at Vatomina.
"We are extremely pleased with our progress as we look to build capacity at our primary operations to 12,000 tpa in the immediate term and enhance it to 30,000 tpa Q1 of 2022,” said Shishir Poddar, the chief executive officer of Tirupati.
“Having historically established a >50% operating margin with a c.US$835/- basket price realisation from the current 3,000 tpa capacity operation in Sahamamy, we believe that the enhanced capacity will go a long way towards reaching our goal of being profitable at the corporate level. On a wider level, this is part of our strategy to become a key supplier of this critical material and develop advanced materials that contribute to the mitigation of climate change," Poddar added.
Shares in Tirupati were up 0.4% at 133.5p.