All that sounds good but nothing from TGR?An rn would be appreciated. |
Summary
Optiva views TG’s refinancing as an attractive opportunity for investors willing to take on risk. The next 2-3 months are critical as the company moves its Madagascar operations into cashflow positive and resolves legacy creditor issues. Once TG achieves this initial goal of trading cashflow positively, opportunities will open up for further growth in Madagascar and Mozambique.
TG’s 10-Year Vision is to capture 8% of global graphite demand, targeting 400,000 tpa in a market expected to grow from 1.6Mt to 5Mt per year. At US$800/ton, this could equate to US$320M revenue and US$128M EBITDA at a 40% margin. TG will also be building out its vertical integration strategy, which, while not yet valued, could be a significant long-term driver for the company. |
Valuation & Potential Returns
TG’s high-quality graphite achieves prices of US$1,000 per ton, with the margin for production increasing with higher levels of production.
Production cost efficiencies:
600 tpm – Break-even.
1,000 tpm (mid-2025) – US$300-400/ton margin, with production costs falling to approximately US$600 per ton.
1,500 tpm (end-2025) – US$450-500/ton margin, with production costs reducing further to US$500-550 per ton.
At 1,500 tpm, TG could generate US$8M annual cash flow. Applying an 8x EBITDA multiple, this suggests a GBP 49M market valuation (19p per share)—a 280% increase from the 5p placing price. Including warrant value, returns could double to 560%.
This valuation excludes additional upside from the Sahamamy restart, Mozambique development and downstream processing potential. |
Tirupati Graphite CLN Offer – Opportunity to Participate in a Compelling Turnaround Scenario
Dear Investor,
We are pleased to present an investment opportunity in Tirupati Graphite (TG), a company undergoing a significant strategic turnaround under new leadership. With a clear roadmap to financial recovery and growth, this presents a compelling opportunity for investors.
Investment Highlights
12-Month Target Price: 19p per share
Placing Price: 5p per share plus warrants
Market Cap at Suspension: GBP 8.7M (6.25p per share) |
Investor Call is tomorrow apparently. |
Interesting update. So they're targeting a runrate of $18m p.a. revenues from December. I suppose the question is what the FOB cost per ton will be, so you can work out the gross profit. Plus of course how many shares will be in issue after all these CLNs and the proposed placing. The technical and management progress seems encouraging but it's not clear what return previous shareholders will see. I'm keeping an eye on it anyway. |
 Tirupati Ramps Up Production of Flake Graphite as Executive Turbulence Stabilises
London-listed Tirupati Graphite remains on track to achieve a production rate from the Vatomina graphite project, in Madagascar, of 600 t a month by the end of April, 1,000 t a month by July 31 and 1,500 t a month by December.
The mine produced 375 t of flake graphite concentrate in February, in various grades up to 96% purity, which marks the best month of production in 14 months.
The company shipped 100 t of finished product to customers at the end of February and had 280 t of product awaiting shipment in early March from the Port of Tamatave.
Tirupati has started work on relocating two pre-concentration units from the Sahamamy project, which it also owns in Madagascar, to Vatomina. This will support the further ramp-up in production from the Vatomina project in two months’ time.
The company has secured new orders for deliveries between April this year and March next year, with its current order book standing at 5,780 t at an average sales price of $940/t.
Efforts continue to grow the sales pipeline and average sales prices, especially as Tirupati receives strong inbound interest from multiple long-term buyers for its products.
Tirupati is also implementing a new quality control process that will enhance the group’s production process and improve reliability of plants.
The company currently anticipates completing all shipments that were pre-paid for by customers in 2024 during April. From that point, all sales will benefit current cash flows.
Chairperson Mark Rollins is pleased with the company’s rapid progress since January, especially since the company restarted graphite production on February 1 at the Vatomina project.
He is also confident that the continued implementation of enhanced operating practices under new management is bearing fruit.
FINANCIAL CONDITION
Following turbulence with the company’s prior CEO and the company having been denied access to its accounting systems, Tirupati is busy reconstructing its accounting records, with a new accounting system being implemented.
This process will allow the company to complete and publish its financial statements for the year ended March 31, 2024, as well as interim financial statements for the six months ended September 30, 2024, by April.
Tirupati terminated Shishir Poddar as co-CEO on February 19, with an investigation being ongoing into allegations of misconduct. The company has since appointed Anthony James Nieuwenhuys as sole CEO, and made various senior executive management changes.
Tirupati’s shares on the LSE remain suspended pending completion of the accounts and the related audit, but the company will seek to resume trading of its shares by the end of April.
The company is also in the process of placing and issuing zero-coupon convertible notes, having received commitments of £1.74-million to date.
The notes are expected to convert to ordinary shares of £0.025 par value each in the capital of the company at a conversion price of £0.05 apiece by notice from a holder of the notes or from the company – provided that Tirupati is able to admit the conversion shares to listing.
After the note offering closes, Tirupati will undertake a placing of ordinary shares and use all the proceeds from its fundraising for general corporate purposes and working capital.
Rollins comments that while the financial position of the group is not yet secure, “we are building a firmer footing to move forward towards the goal of becoming a globally significant graphite company, and to capitalise on quickly evolving graphite market dynamics and demand growth from industrial and energy transition market segments”.
Click Here to View the Full Article by Mining Weekly |
There was an impression for some time that he was selling off material to his friends and family and making good money for himself. This could be a good reason for hiding the company's books. The number of changes that have become necessary for the new BoD structure imply that he did nothing to strengthen the company for the benefit of the many suffering ordinary sharholders. Personally, TGR is not a big holding for me, but recent corporate progress has left me hopeful that I may at least see some of my modest investment returned in due course.
pete |
Not quite out of the woods yet and no doubt the recovery road will be a lengthy one but looks like April will be the launch pad for what is essentially a new business. Poddar should not be allowed to get away with his actions and be brought to account. |
After a depressing year or two for underwater holders, this report is extremely encouraging. It may be that we at last have an honest board detmined to do their best for the company and it's shareholders. Brilliant.
pete |
Very positive update. |
Investor Presentation, Convertible Note Issuance, and Update
Tirupati Graphite plc (TGR.L), the specialist flake graphite company and producer of this critical mineral for the global energy transition, is pleased to make available an updated Investor Presentation on its website accessible at www.tirupatigraphite.co.uk. The Investor Presentation is prepared in connection with the Company's ongoing fund-raising activities, currently focused on the placing and issuance of zero-coupon Convertible Notes ("2025 Notes") as previously announced. In addition, the Company is pleased to provide certain updates following its first month of restarted operations in Madagascar.
Convertible Loan Note ("CLN") Offering
To date, the Company has received commitments of £1.74m for the issue of Convertible Loan Notes (the "2025 Notes") and proceeds from those of £1.2m to date. The terms of the 2025 Notes are detailed in the Company's announcement dated 5th February 2025. The 2025 Notes are expected to convert to ordinary shares of £0.025 par value each in the capital of the Company at a conversion price of £0.05 per share ("2025 Conversion Shares") by notice from a holder of the 2025 Notes or from the Company, provided that the Company is able to admit the 2025 Conversion Shares to listing. This is expected to require, inter alia, the approval of a prospectus, to be prepared in due course. Issue of the 2025 Conversion Shares will also be conditional on approval by shareholders in general meeting of the required authorities to allot new shares for this purpose. The proceeds of the 2025 Notes may be used for general corporate purposes and working capital.
A planned placing of ordinary shares is now likely to take place after the close of the CLN Offering.
Operational Progress
During the month of February 2025, production achieved from the Vatomina project was 375 MTs of flake graphite concentrate of various grades, up to 96% purity, in line with the expected production rate subject to the Madagascar rainy season and expected debottlenecking upon restart. This represents the Company's highest month of production achieved in at least 14 months. The Company shipped 100 MTs of finished product to customers and as at 28 February had 280 MTs awaiting shipment in early March to end-customers, from the port of Tamatave.
Following a second site visit during February by CEO, James Nieuwenhuys, the ground team has commenced work for the relocation of 2 Pre-Concentration Units ("PCU") from the Sahamamy project to Vatomina. This will support the further ramp up of production from the Vatomina project and the installation of the PCU's; expected to complete over the next 2 months. The Company has also secured the use of two additional articulated dump trucks ("ADTs") to optimise the efficient transportation of ore and waste material.
Operational Outlook
The Company maintains its overall guidance from its 5 February 2025 RNS for achieving a production rate of 600 MT per month by the end of April 2025, 1,000 MT per month by 31 July 2025, and 1,500 MT per month by December 2025 from the Vatomina project.
The Company advises that it has secured new orders for deliveries in the period from April 2025 to March 2026 with a current order book standing at 5,780 MT at an average sales price of $940/ MT and continues work to grow its sales pipeline and optimise average sales prices. The Company is receiving strong inbound interest from multiple potential long term, strategic buyers for its products.
A new quality control process is being implemented that will enhance the Company's production process and improve its reliability as a preferred source of graphite for existing and future customers.
The Company currently anticipates completing all shipments which were pre-paid for by customers in 2024 in April. From that point, all sales will benefit current cashflows.
Financial condition and Accounts
The Company has made good progress in previously reported negotiations with certain key creditors, including in respect of amounts arising from historical prepayments for sales.
Having been denied access to its accounting systems by the previous CEO, as previously reported, the Company is in the process of re-constructing its accounting records, with a new accounting system now implemented. This process will allow the Company to complete and publish its 31 March 2024 financial statements ("Accounts") and interim financial statements for the period to 30 September 2024. The current target date for completion of the audited March 2024 Accounts is by late April 2025. This means the Company will be seeking a short further extension to the official filing deadline for the Accounts from Companies House. The listing of the Company's shares on the LSE (transitional standard sector) remains suspended pending completion of the Accounts and the related audit, but the Company will seek to return the listing of its shares to permit daily trading as soon as possible now that progress with the Accounts preparation is under its own control, again targeting late April for the resumption of the Listing of its shares on the LSE for trading.
Mark Rollins, Executive Chairman of Tirupati Graphite commented:
"The Board is very pleased with the Company's rapid progress since January, and especially since the production restart on 1 February 2025 which has demonstrated the potential of the Vatomina project with the continued implementation of enhanced operating practices under the new management.
While the financial position is not yet secure, we are building a firmer footing to move forward towards the goal of becoming a globally significant graphite company, and to capitalise on quickly evolving graphite market dynamics and demand growth from industrial and energy transition market segments. We look forward to keeping investors updated with our continued progress in Madagascar and the Company's other business activities elsewhere". |
I reached out to Optiva last week and they advised they were still awaiting direction on the investor call in regards to a new date. |
More news please TGR. |
Corporate website finally updated and looking much better. Management team comes across as very credible. I'm hoping the new BOD have reached some sort of compromise agreement with Poddar i.e. give us the financials and the key to skeleton closet and we won't pursue you with legals. Looks like we're getting closer to trading again. |
Poddar clearly done something he shouldn't of and good that's he's finally been given the boot. I'm sure he won't be the last given some of the other connections...watch this space. |
Seems positive. Let's hope it's positive from here out. Production up and backlog delivered. Graphite shortages must be driving the price up. What about the VAT returns? |
SP Angel . Morning View .
Tirupati Graphite (TGR LN) SUSPENDED – Removal of director
Following news, in January, of the suspension of Shishir Poddar, a founder of the company, as a director, the company reports today that “it has terminated … [his role] … as co-CEO, with immediate effect”.
Today’s announcement confirms that “The Company reserves its right to continue its investigations into all allegations it has received to date, which may result in further remedial or legal actions”.
“Anthony James Nieuwenhuys will assume the role of sole CEO and lead the Company during the next phase of its development”.
Conclusion: Tirupati is undergoing substantial management change. We look forward to a more comprehensive update on the operation of the company and the state of its financial arrangements. |
The RNS this morning is most likely to be the reason for the delay in the Investor call! |
Termination of co-CEO
Tirupati Graphite plc (TGR.L), the specialist flake graphite company and producer of this critical mineral for the global energy transition, announces that it has terminated the role of Shishir Poddar as co-CEO, with immediate effect.
The Company reserves its right to continue its investigations into all allegations it has received to date, which may result in further remedial or legal actions (see 15 January 2025 RNS).
Anthony James Nieuwenhuys will assume the role of sole CEO and lead the Company during the next phase of its development. He is currently in Madagascar on his second site visit overseeing the continued ramp up of the restarted production operations at Vatomina and liaising with the ground team, suppliers and officials.
Mark Rollins, Executive Chairman of Tirupati Graphite commented:
"I very much look forward to continuing the journey of renewal of our Company, with the new team and clear leadership of James as CEO. We are well positioned to take advantage of the favourable market conditions for graphite and further develop our Company to become one of the leading companies in the sector." |
How come this call isn't publicised? |
Tirupati Graphite Investor Call Deferred to Next Week
Dear Investor,
The investor call for Tirupati Graphite, scheduled for 11:00 AM today, has been deferred to next week. We will provide an update on the date and time as soon as possible.
On behalf of the company, we sincerely apologise for any inconvenience this may cause and look forward to your participation next week.
Kind regards,
Bartu Ciftci |
Anyone join that call? |
Invitation to Tirupati Graphite Investor Call - Friday, 14th February at 11:00 AM
Optiva Securities invites you to an Investor Call for Tirupati Graphite on Friday, 14th February 2025, at 11:00 AM (London time) via Microsoft Teams. The call will include a live presentation, provide an update on the company's current progress, outline the available funding options and allow investors to raise their queries directly with the management team.
Please find the call details below:
Call Details:
- Date: Friday, 14th February 2025
- Time: 11:00 AM (London time)
- Location: Microsoft Teams
- Call Link: [Click here to join the call]
- Call ID: 350 303 180 945
- Call Passcode: TQ3wH3xC
We look forward to your participation and kindly request that you confirm your attendance by replying to Bartu at bartu.ciftci@optivasecurities.com |
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