Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) said it expects commercial production from its Vatomina project in Madagascar to be achieved this month.
The first sales and shipment from Vatomina started in October 2021 with commercial production expected to be declared in the current quarter, the company said as it announced its results for the six months to end September.
During the period, Tirupati also started the development of a second 18,000-tonne per annum plant at Sahamamy, also in Madagascar, with completion scheduled for the second quarter of 2022.
First-half flake graphite production rose to 1,060 tonnes, from 716 tonnes in the year-earlier period, and Tirupati said it expects production and sales to exceed 4,000 tonnes in the six months to end-March 2022. This is expected to increase to about 20,000 tonnes for the year to March 2023 and continuing to rise from then, it added.
"We have continued the strong progress made since our IPO in December last year investing in and establishing new capacities for increased production from our low cost, high margin flake graphite operations in Madagascar,” said executive chairman Shishir Poddar.
“We have also continued to develop our sustainable new age materials making a mark in the world of advanced materials.
“With two projects having been commissioned in the period under review and a further three under investment and development, we will be adding significant production capacities across our upstream and downstream businesses from the next financial year onwards, which will be a game changing transformation for us becoming a globally significant supplier of primary flake graphite and speciality graphite.
Pretax losses for the six months widened to £1.09mln, from £0.49mln, while revenue rose 33% to £560,100.
It ended the period with cash in hand of £6.41mln. The company's only debt is pre-IPO issued convertible loan notes outstanding of £1.17mln.