logo-loader

Tirupati Graphite says it has overcome recent operational difficulties, pushing shares up 10%

Published: 09:24 15 Aug 2022 BST

Tirupati Graphite PLC -

Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) has commissioned the Vatomina preconcentrate plant in Madagascar and announced it has overcome recent operational difficulties, helping its shares rise 10%.

The construction and relocation of the first part of Vatomina's 9,000 tons per year plant, which will remove 80%-90% of impurities from the ore, has now been completed and the preconcentrate and final concentrate plant recommissioned and synchronised in operation.

As a result, the previous requirement for transporting about 250,000 tons of ore per annum to the plant has been replaced by the pumping of about 30,000 tons per annum of 'preconcentrate' in slurry form to the main processing plant, eliminating reliance on roads and ore transport vehicles.

Adverse weather conditions had previously caused difficulties in transporting mined ore to the processing plant.

It also said the construction of both preconcentrate and main processing plants at Sahamamy continues to make progress and remains on track for completion next month. 

"We are pleased to have substantially overcome the difficulties we faced in operations over the past few quarters,” said executive chairman Shishir Poddar. “We have used the time as a learning period to better prepare ourselves for the future.”

“With the Vatomina operations coming back online and mobility restored across the two projects, we are well placed to push forward our progress and transform further as we plug in the additional capacity upcoming in Sahamamy."

The company expects the preconcentrate plant at Vatomina to result in a reduction of about 75,000 litres of diesel annually, reduce other costs related to operating an ore transport fleet, and eliminate the necessity for building a high-cost metalled road from the mine areas to the main processing plant.

It has also given the group the opportunity to double capacity at Vatomina to 18,000 tons per annum by installing a second preconcentrate plant, an option the company is currently assessing.

The shares were up 10% at 49.50p in early trading.

Tirupati Graphite advances graphite exploration in Madagascar amid global...

Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) joint managing director Puruvi Poddar joins Proactive's Stephen Gunnion with details of an exploration programme at the company's flake graphite projects in Madagascar. The programme, differing from prior approaches, involved over 5,000 diamond...

2 weeks, 1 day ago