Tirupati Graphite PLC (LSE:TGR) (LSE:TGR) has completed the installation and commissioning of its first 9,000 tonnes per year flake graphite module at its Vatomina project in Madagascar.
This brings the company’s total production capacity in Madagascar to 12,000 tonnes per year, as production is already up and running at the Sahamamy project, and keeps it on the path to reaching total production capacity of 84,000 tonnes by 2024.
The company is also continuing with exploration and drilling programmes.
"We are delighted to have completed the commissioning of the first of four modules at Vatomina, which marks the latest in a series of investments to increase production of high-quality graphite from our projects in Madagascar to support world demand and continue the expansion of our production capacity up to 84,000 tonnes per year by 2024,” said Shishir Poddar, chief executive of Tirupati Graphite.
“This is an important milestone as it now brings both our Madagascan projects into operation and advances us on our journey of becoming a material global supplier of sought-after Madagascan flake graphite. We recently announced 12-month trading results from our 3,000 tonnes per year Sahamamy plant, which further demonstrated the low-cost advantage we possess in our operations.”
Unit costs are now likely, and margins could well go higher than the previously reported 57%.
In addition, the company is in the process of acquiring a portfolio of advanced-stage graphite assets in Mozambique that will, if completed, boost the mineral resource base by over 152 million tonnes.
Nevertheless, the focus remains on Madagascar, where both projects offer a favourable larger flake size distribution, which is priced at a considerable premium to smaller size flakes. Product is already being sold to customers globally.