SP Angel . Morning View .
Tirupati Graphite (TGR LN) SUSPENDED – Funding update
Tirupati provide an update from on their graphite operations in Madagascar.
The Company reports operations at Vatomina ‘continued intermittently’; through August.
Production hit 620t, with product exceeding 96% TG.
Company generated $660k in revenues, selling at an average price of $892/t.
Tirupati reports that it continues to progress financing discussions to address both working capital needs and longer term financing.
They are advancing a term sheet for investment to enable steady state production of 2000-2400tpm.
Company is also in discussions with a ‘Middle East Sovereign Fund’ to develop the Montepuez project.
Annual accounts will be delayed to 31st December 2024, with the audit reportedly ‘substantially completed.’ |
Yes. Some decent VAT refunds helping. |
 Corporate & Operations Update
Tirupati Graphite (TGR.L), the specialist flake graphite company and supplier of the critical mineral for the global energy transition, is pleased to announce an update in continuation to its previous RNS dated 13 August 2024, progress in relation to financing arrangements and on matters related to publishing its audited financial results for the period ending on 31 March 2024.
Operations
· Operations of the Vatomina project continued intermittently during August and September ("the period"), since 2 August 2024, in sync with available financial and material resources.
· Production during the period was 620 tons, with all product exceeding a 96% grade.
· The quantity sold and shipped during the period was 740 tons, earning revenue of US$660,415 and recording an average basket price realisation on sales of US$892.45 per MT; the highest basket price realised to date by the Company.
· An additional 60 tons of larger flake grades, contracted to generate US$63,400 in revenue are at port awaiting shipment.
· The Company has received from customers a sum of US$889,729 during the period towards the sale of goods. Sales continue to be made without credit periods extended to customers.
Consolidating and streamlining operations with the resources available has enabled the Company to substantially address the stressed position for operations in-country and it is targeting consistent operations of the Vatomina project and a return to the previously demonstrated significant operating margins. The Company remains engaged with its corporate creditors to maintain their support as it secures funds to further improve operations and grow production and sales.
VAT Refunds
· In September, the Company received c.US$ 80,000 of VAT refunds, and a further sum of c.US$ 245,000 in October 2024.
· Further VAT refund tranches are expected towards the c.US$ 2 million that the Company was originally owed.
Financing Progress
The Company and its advisors have continued to make progress towards securing finance for both current working capital needs, and longer-term growth finance:
· Negotiations of a Term Sheet have been advanced with a strategic investor for a potential investment package that provides the capital requirements for enabling a steady state 2000 - 2400 tons per month of production, including the gap CAPEX required for it.
· Discussions and due diligence have progressed with a Middle East Sovereign Fund for potentially financing the development of the Company's Montepuez graphite project in Mozambique. In-person meetings were held in September in the UAE and detailed project appraisal by the fund is ongoing.
· Outreach has been initiated with US-based investors who have expressed interest in investing in the Company, with growing interest among US-based strategic and institutional investors following continued US government policy interventions.
· A trade finance deal is being evaluated as an alternative arrangement for meeting the current working capital deficit.
Audit and Annual Report
· Companies House has granted the Company an extension to 31 December 2024 for submission and publication of the audited annual report and financial statements.
· The Company has appraised the FCA of its status and this extension.
· The audit for the Company's annual accounts is substantially completed; pending items relate to certain treatments under provisions of IFRS influenced by the liquidity position, which the Company is engaged in resolving.
Shishir Poddar, Managing Director and CEO, commented:
"We are thankful to the Government of Madagascar and the British Embassy in Madagascar for their support in releasing the VAT refunds due to us, which has helped improve our liquidity constraints. We are also thankful to our creditors who have stood by us in these stressed times as we navigate to streamline our business and return to growth.
"We also convey our thanks to our shareholders for their patience, and to our prospective investors, who see the success we have achieved during strong headwinds. As the only London-listed flake graphite producer, we are committed to overcoming the constraints and to delivering the clear growth potential we have, synchronising with growing demand for this critical mineral." |
I assume that the sudden appearance of the update today, only a couple of days after receiving our emails requesting info on progress, was a coincidence, but at least it showed them that investors remain interested.
Looks like it's still jam tomorrow, but at least we have a better feel of current business and it's encoraging to see that there has been some cash coming in.
Nothing more we can do, exept to stick with it.
pete |
Positive update this morning but looks like its going to be a while before shares are reinstated |
Email address is admin@tirupatigraphite.co.uk
Perhaps if enough investors make contact, they will feel obliged to say something.
I have emailed - lets see if they respond.
There is also a direct telephone contact number: +44 (0) 20 3984 9894 .
I don't imagine they would say anything pertinant on the phone, but you never know.
pete |
I've done that. No reply as yet. |
You could try emailing a director - does anyone have an address? |
So it's now over 2 months of processing. Isn't it time for an update? |
It is slightly frustrating I admit but we'll just have to sit tight and wait for developments. Hamidahmida is totally wrong, why would the buy it from administrators when they need the listing to secure vital funding for the project. |
Management buying it of administrators This management has played a blinder |
It's taken a bit longer than expected but one can only assume the auditors are doing a thorough job. The suspension relates to subsidiary audit which may or may not be Suni Resources which they acquired in the last financial year. The Poddars also have other related businesses including PanaGraf but I'm not entirely sure if that comes in to play from an audit perspective. Once posted I don't think the accounts will make for very pleasant reading but anyone invested here should know exactly what there current financial position is. They simply need adequate funding to progress the project to get it to where it needs to be. |
Is there a bit of "protecting " the share price with this suspension? That's a question not a statement. |
As long as it takes for the auditors to be satisfied with everything. Hopefully not too long now and hopefully an update on funding and VAT. |
How long does it take to get a report out? |
They've already received some of it back albeit a very small amount. Investors invest because the company is sat on a very valuable resource with global demand. Let them sort out the auditors before passing judgement. They simply need adequate cash to exploit the potential. |
RED FLAG The Company is owed $2m in VAT receivables in Madagascar, and over $1m VAT receivables in Mozambique and it's been continuing pursuing these long overdue payments without any success -:-Now Ask yourself a question that when countries company is operating in do not like paying back Large sums of growing VAT money WHY would you invest in such companies. |
I would ay a couple of weeks yet but who knows. lets just hope the auditors haven't found anything untoward. best result would be lifting of suspension with a positive update on financing. |
Anyone have an idea when the report will be ready and consequently the removal of the suspension? |
I like the sound of that! |
Yes, good update. Production started again, shipping, trickle of VAT reclaim and financial commitment from the Chair. Get the accounts sorted, financing progressed and we should be on our way. |
Seems good news. So TGR please get the report out and remove the suspension. |
Give them a chance to sort things out. This is all about getting the necessary governance back on track. |
Suspension again It all started from suspension last year when share price was well over 30p Your management are brilliant aren't they |
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