Tirupati Graphite Share Discussion Threads

[pwal] 03/1/2024 08:27

3p spread?

[lawson27] 02/1/2024 15:51

Hopefully done the same here "buy at the bottom" but more than happy to admit if i got it wrong and it proves not to be!

[lawson27] 02/1/2024 12:45

Had i listened to your rhetoric over on the PFC thread at under 20p, i would have missed out on doubling my money, thankfully i didn't, so forgive me when i say, imo, you can hit the road Jak
happy new year

· H1 FY 2024 performance significantly ahead of the same period in the prior year with production up 160% and revenues up 170%, prior to significant further productivity improvements expected in Q3.

[jaknife] 02/1/2024 10:47

Why?

At 16p it's a £17m market cap, which looks to be £17m too high.

Reversing out the skanky bargain purchase numbers you can see that the business is still loss-making at an operating level. Revenue needs to grow dramatically just to get to the break-even level.

Add to that that the balance sheet is a work of fiction and it's hopelessly burning cash, my target would be zero.

JakNife

[lawson27] 02/1/2024 10:32

Looking for another run to the mid 20s here for starters, would be nice to see it assault the 30s, GLA

[pwal] 29/12/2023 12:19

I think this is like a pressure cooker!

[kdickson] 28/12/2023 13:01

SP Angel . Morning View .

Tirupati Graphite (TGR LN) 16.6p Mkt Cap £17m – Half-yearly results

Tirupati Graphite report their Interim Results for the period ending 30th September 2023.

The Company is developing two graphite projects in Madagascar, targeting capacity of 30ktpa.

Over the six-month period, production increased 160% to 4,508t from 1,731t same period 2022.

Cost of production increased to £525/t whilst achieved basket price stood at £658/t.

The Company reports a gross operating profit of £780k.

Corporate and Administrative costs increased to £1.83m vs £1m in the same period 2022.

As regards the Montepuez project, US$13m has been spent to date of the total $52m CAPEX for the first 50ktpa module.

Montepuez OPEX for the first 50ktpa is expected at US$360/t of concentrate, excluding government royalties.

Tirupati notes ‘increased inquiries from around the world for supplies of its products’ following the China graphite export ban was announced.

Management has engaged Development Finance Institutions for various project financing requirements.

In Madagascar, two pre-concentrate units will be added to support a targeted steady-state production of 2kt per month.

[flc] 28/12/2023 11:12

Thought it was generally positive but can't see much movement until the financing is finalised and announced.

[richie1218] 28/12/2023 08:20

Nice steady progress overall, looks to me like they are looking for c$40m of debt finance for the required capex for initiated construction of 50,000 tpa first module at the Montepuez project,
The amount of $ worth of product we are shipping to the US court my eye from nothing in 2022 to overtaking the amount shipped to Europe this year.

I missed this bit at the end of the report regarding funding for the Madagascar projects

Events after the Reporting Period

-- In October the Company held an online presentation for current and prospective investors on the Investor Meets Company platform, and held its AGM in London, UK at which, all resolutions were passed.

-- In October, China announced the introduction of export restrictions on Graphite products from 1 December 2023.

-- The Company appointed Mr Murat Erden as a new Non-executive Director to the Board in October.
-- The Company appointed Shard Capital as its joint broker in November.
-- The Company issued the Tranche 2 Consideration shares to Battery Minerals Limited under the terms of its acquisition agreement.

-- The Company continued discussions with various potential lenders and it has structured an instrument for raising convertible debt of up to GBP6,000,000 for meeting its working capital and investment needs for ramping up production and sales at its Madagascar projects .

-- The Company continued its work to optimise the studies for the development of the first 50,000tpa stage of its recently acquired fully permitted and construction-ready Montepuez project in Mozambique, and is targeting a further update early in the next quarter.

[bigboyblue] 28/12/2023 08:00

I thought this bit was important: "Negotiations on possible offtake agreements are ongoing though the current subdued markets remain a challenge to address future price basis and the Company remains conscious in its approach towards possible future price trends as the markets turn from oversupply to shortfall. The Company believes that the geopolitical uncertainties driven policy evolution, progress of construction of various battery projects and resultant imminent shortage of ex-China flake graphite products used in the battery space shall help it secure prudent offtake arrangements on the back of its successful developments at Madagascar and prospects of the Mozambique assets and remains well prepared for expeditious development of additional capacities at appropriate time under appropriate market arrangements."

Despite the need for cash, they are clearly wary of tying themselves into long term agreements at today's relatively low prices.

[apotheki] 28/12/2023 07:44

Shishir Poddar, Executive Chairman of Tirupati Graphite, said:

"We feel proud of our achievements in the period under reporting. In spite of very tight working capital conditions, it is a testament to the inherent strengths of the Company and the team's expertise in graphite operations, that we continued our ramp up to achieve significant year on year increases in production and sales. During this initial phase we have designed and implemented various improvements to increase the resilience of the operations, control costs and reduce emissions.

"The completion of the acquisition of Suni adds two advanced development projects in the north of Mozambique's renowned graphite producing region. We are encouraged by the quality of these projects which underpin our long term growth ambitions. Given the amount of work and investment in these assets we believe they were acquired at a very attractive consideration. Given the inbound interest already received for potential supply, we see the acquired assets as driving the next key milestones in our corporate journey, especially given the expected increases in demand for ex-China graphite and recent policy interventions to fuel supply chain diversity. Despite which, graphite remains the only key battery mineral where the supply chain is dependent on a single nation across the value chain from mining to final product.

"As previously announced, we are exploring a variety of funding options that will enable us to accelerate the production ramp-up and growth through 2024 and onwards, having laid a strong foundation to build a leadership position in this critical material.

"Discussions are at an advanced stage and we are confident that the funds will serve to unlock the Company's potential at a time when graphite consumers are looking to urgently diversify and build resilience into their supply chains."

[pwal] 28/12/2023 07:29

Results. Good?

[pwal] 22/12/2023 12:48

Note sure if I posted this:The outlook for graphite in 2024UBS tips graphite prices to surge 50% from the 2023 lows and has set its long-term flake graphite price at $850/t. UBS forecasts natural graphite demand rising by six times this decade to reach a demand of 6.3 million tonnes pa, with a deficit forming from 2025.2 days ago

[richie1218] 21/12/2023 18:29

China blocks exports of rare earth technology after MPs warn Beijing is ‘weaponising’ supplies. Howard Mustoe. Thu, 21 December 2023.

China has announced plans to halt exports of rare earth material technology critical to the world’s switch to greener energy.

Beijing has listed refining technology to a list of items that cannot be transferred from China, Bloomberg reported.

The move comes days after MPs warned the country would “weaponise” its advantage in the materials.

Beijing has a stranglehold on mining and refining them. Rare earths describe 17 soft heavy metals which have properties which are useful in industry.

Despite their name most of them are plentiful in the earth’s crust, but not in concentrated deposits, so obtaining them means sifting huge amounts of raw material, hence them being considered rare.

Examples include neodymium and praseodymium, which are used to create high-power magnets in wind turbines. The materials are particularly strong and durable.

Another is Yttrium, which is used in everything from cathode ray tubes to drugs and some lithium batteries that power electric cars.

Last week, Parliament’s Foreign Affairs Committee warned that Britain’s net zero drive has been left dangerously exposed to a reliance on Beijing for supplies of crucial materials.

The committee said in its report: “In the early 2000s, China began to ‘weaponise’ critical minerals exports, restricting access for political leverage.”

In 2020, China’s Ministry of Commerce stopped approving export licences for graphite products to Sweden. The material is central to lithium battery making. No formal reason has been given.

Over summer China said buyers of gallium and germanium, which are used in computer chips and solar panels, would need to apply for export permits in a tightening of supply. The move was seen as a response to restrictions imposed by the US on China’s access to top computer chip technology.

Two years ago China merged three companies that produce rare earth minerals into one company reporting directly to the Communist government in Beijing and controlling about 70pc of the nation’s production.

MPs have urged the Government to put together a credible plan to secure reliable supplies for industries that use these materials.

The report said: “The UK is almost completely dependent on imports for critical minerals and mineral products. It currently lacks the necessary mines to be self-sufficient and faces many obstacles to developing them.”

Nearly all of the “critical” minerals are unavailable in the UK in the quantities needed, with Britain theoretically only able to mine about 10pc of its demand for lithium domestically.

[hamidahamida] 21/12/2023 13:52

The only thing that holding the share price funding concerns, sort the funding and the Sp of to the races.

[pwal] 21/12/2023 07:49

And yesterday:While 2023 has been a very tough year for the graphite sector the future looks much brighter, especially beyond 2025 when possible deficits are forecast to increase each year. For now, the flake graphite miners that are low-cost producers and who can develop integrated 'flake to spherical graphite' production stand to perform best. Several western graphite companies are rapidly advancing in this direction and are worth following closely.Those graphite miners that can qualify their product to meet the IRA and/or the CRMA should also be at an advantage, especially with the U.S. Foreign Entity of Concern ("FEOC") rules for critical materials commencing in 2025.

[pwal] 20/12/2023 11:20

Appearing yesterday on the net:The Business Research Company's Graphite Global Market Report 2024 identifies Growing Demand For Electric Vehicles Fueling as the major driver for the Graphite market's growth in the forecast period. Electric vehicles (EVs) are automobiles powered by electricity stored in batteries, eliminating the need for traditional internal combustion engines. Graphite is used in electric vehicles to make lightweight and high-energy-density lithium-ion batteries, serving as the anode material for efficient energy storage and release. The graphite market size has grown strongly in recent years. It will grow from $1.2 billion in 2024 to $1.3 billion in 2024 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to demand from steel industry, battery and energy storage, refractories and foundry industry, automotive industry, emerging markets.The graphite market size is expected to see strong growth in the next few years. It will grow to $1.73 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%.

[pwal] 20/12/2023 08:08

All it will take is some good news. Come on TGR!!!!

[pwal] 18/12/2023 14:54

Latest tweet:'Britain must reduce dependence on China and follow US and EU with interventionist policies, foreign affairs committee says'#TGR is developing a globally significant #Graphite business outside China, helping reduce customer security of supply concerns.Just keep selling all that is produced and keep producing more. More News please!

[pwal] 14/12/2023 15:57

TGR putting some tweets out. Latest includes:'South Korea announces $29 billion to help its battery companies reduce foreign dependence'#Graphite is a critical mineral dominated throughout its value chain by China that consumers and nations are seeking to actively diversify their supply away from. The above marks the latest move by nations seeking to build their supply chain resilience for a #sustainable energy transition.#TGR is a current Graphite producer with projects across #Madagascar and #Mozambique offering alternative supply sources for global customers.

[xow98] 14/12/2023 14:21

Not confrimed, but they did last year