Tirupati Graphite Share Discussion Threads

[pwal] 30/10/2023 14:36

Restrictions happen from 1st Dec I think.

[flc] 30/10/2023 11:11

A strong possibility I would say :-)

[topazfrenzy] 30/10/2023 10:48

30p is a possibility this week

[richie1218] 29/10/2023 22:16

hxxps://www.fastmarkets.com/insights/china-exposes-eu-and-us-vulnerabilities-in-graphite

We are unsurprised by China’s announcement last week of a pending imposition of temporary export controls on several synthetic and natural graphite products. It was inevitable that Chinese authorities would react to actions by both the United States and EU governments to target China’s EV and battery sector dominance over the past year through the US Inflation Reduction Act (IRA), the EU Critical Raw Minerals Act and, more recently, the EU’s antisubsidy investigations into imports of Chinese EVs. The US and EU have stated that these initiatives are critical to reducing the national security risks of excessive dependence on China, while China has equally now stated that the graphite export permits are necessary to protect its national security and interests.

China’s target of choice – graphite – is also unsurprising. While the US and EU have focused primarily on securing cathode active material supplies in recent years, focus on anode active material supply has been lacking, a vulnerability that Fastmarkets has highlighted repeatedly. The lack of focus by non-Chinese markets on graphite has been a strategic error. Ex-China investors have largely ignored graphite because it represents only 10% of lithium-ion battery costs, however, graphite comprises approximately 50% of the weight of the battery, rendering it critical in the lithium-ion battery raw materials supply chain. China is exposing this oversight and resulting weakness.

While fledgling ex-China graphite projects have largely struggled to secure adequate investment and are struggling with delays and extended material qualification times, China has moved to increase its dominance in graphite supply over the past year, particularly in synthetic graphite supply. China is moving both to expose EU and US vulnerability in graphite supply and to expose ex-China’s direct and indirect dependence on Chinese graphite. While US automakers engage in joint ventures with South Korean and Japanese battery makers, which are free trade agreement partners, both South Korea and Japan are also largely dependent on Chinese graphite production for their active anode material.

In our view, Chinese actions will also expose flaws in the US IRA’s ambitious targets for local content values in both battery components, including anodes, and critical minerals, including graphite, in the coming years. We have doubts about the feasibility of these initiatives to the extent proposed and in the indicated time frame. Without a dramatic change in current graphite market conditions, the acceptance of graphite anode material that has been at least partially processed in China, or a significant pullback in US EV production targets, we remain concerned that the targets will not be achieved.

China’s action on graphite export controls may be just what the market needs to spur global graphite prices and investment forward. Clearly, in the near term, we expect the announcement to trigger a much-needed reversal in graphite pricing, benefiting Chinese producers initially, and probably responsible for China’s reasoning in acting now. Chinese graphite prices have been in a downward spiral for the past year, with prices at or below production costs, and upward impetus is needed to protect the domestic supply chain.

Triggered by the renewed sense of urgency, demand for Chinese graphite exports will surge in the coming weeks, with consumers in South Korea, Japan, the US and Europe expected to seek to secure material before export regulations go into effect on December 1. Pricing gains are forecast to continue into December/January reflecting both stockpiling activity and production cutbacks during the Chinese winter months. Higher prices and a renewed sense of panic regarding future graphite supply availability should encourage increased investment and interest in graphite projects, which would in turn aid the US and EU with achieving their goals of localization of supply and diversification of supply away from the current heavy dependence on China.

For now, Fastmarkets’ assessments of graphite prices are unchanged, with the latest pricing session occurring the day before the Chinese government’s announcement on the new temporary export controls. Fastmarkets assessed graphite flake 94% C, -100 mesh, fob China at $530-604 per tonne and graphite spherical 99.95% C, 15 microns, fob China at $2,000-2,200 per tonne, both unchanged from the prior week. Fastmarkets assessed graphite flake 94% C, -100 mesh, cif Europe at $600-620 per tonne, also stable from the previous week. Given the latest market developments, we expect to see prices trend stable to higher in the coming weeks, in line with our previous forecasts.

[flc] 29/10/2023 17:08

With Moz coming online and Madagascar ramping up, couldn't have been better timed by TGr. Expect news of deals over the coming months.

[richie1218] 29/10/2023 16:43

New China rules on graphite hit electric car industry.
Mail on Sunday - 29 October 2023

The price of electric vehicles could shoot up after China threatened to curb exports of one of the key raw materials used to make batteries, experts have warned.

China is the largest producer and exporter of graphite, which is used in almost all electric cars. This pure form of carbon is used to make lithium ion batteries.

Last week the country announced that from December 1 it would require export permits for some graphite products to protect national security.

This is leading to a scramble to secure supplies – which risks pushing up prices – amid fears that more rules could be brought in, crippling the ability of car battery factories outside China to continue production.

[bigboyblue] 28/10/2023 16:50

In answer to my own question I found this. Don't know if it's correct and up to date:

[bigboyblue] 27/10/2023 16:56

....if they're not taken out beforehand. Does anyone know where to find details of the major shareholders and size of their holdings? I can't find it on the company's website.

[topazfrenzy] 27/10/2023 16:18

The story for TGR now with the China development is so compelling, market cap is peanuts and I can see it x10 from here in 5 years

[richie1218] 27/10/2023 11:57

Being relatively new to Graphite investing, I was just doing some research on Graphite prices etc and came across this article that mentions Tirupati, It was published a few months ago so apologies if it's been posted before.



Graphite demand is set to soar, and the right companies with the right expertise could reap huge rewards.
09 Apr 2023
What is the graphite price?

A recently released update to a feasibility study conducted by Focus Graphite on its Lac Knife project in Quebec gives some indication of how difficult it is actually to answer this question.

As a starting point, the updated Lac Knife feasibility study says that it used an average graphite concentrate sales price of US$1,679 per tonne of concentrate.

Well and good, although note that we are talking about concentrate here, and not the commodity pure.

Then, however, the study moves on to a more detailed analysis of how this price was arrived at. Focus Graphite used as a basis the Benchmark Mineral Intelligence Flake Graphite Price Index, an independent compiler of global graphite prices which takes into account variations in graphite flake size and concentrate purities.

The assumptions are based on the mesh size required to catch a flake of graphite, and run as follows, from US$2,040 per tonne for a +48 mesh product down to US$1,579 per tonne for the smallest economic product.

Since flake size is variable within any given deposit, the graphite price obtained is likely to be an aggregate, and that’s even before the market brings in its own supply-demand pricing pressures.

Larger flakes, as is well known, are generally more desirable and command the highest price, although intriguingly not all graphite company chief executives agree about why this is.

The standard version is that the conductivity of the larger flake is greater, and this in turn goes to the heart of why graphite has been much in the news in recent years.

Graphite, so the thinking goes, is likely to play a central role in the greening of the global economy.

That’s because graphite is a key constituent of all next generation batteries. A frequently cited statistic issued by the World Bank last year estimates that more than 50% of the demand created for new batteries is or will be for graphite. Lithium, the headline-grabber, accounts for a much more modest 4%.

By weight, graphite accounts for more than 28% of an electric vehicle battery, ahead of aluminium, next, with just under 19%, and then nickel.

It’s this dynamic that underpins a statistic highlighted by Blencowe Resources, a UK-listed graphite company. Demand for flake graphite, Blencowe boldly claims on its’ home page, is likely to grow by nearly three times over the next few years, from the 1.5mln tonnes per year it registered in 2020 up to 4.3mln tonnes per year in 2030.

Not surprisingly, then, there has been a renewed interest in graphite mining, and even a recent graphite boom in Australia.

But in mining, slow and steady usually wins the race, and it won’t be the bandwagoners who stay the course and eventually end up reaping the sizeable benefits that look to be on offer.

Rather, the ones to watch will be those with longer-term game plans and with a specific expertise and knowledge of graphite like Tirupati Graphite and Blencowe, and those companies who really know how to work up and develop new resources like Power Metal Resources.

Tirupati has been something of a trailblazer as far as the London market is concerned, with significant and growing production from its Madagascar projects, and plenty of value-add upstream in India on offer too. Tirupati knows not only how to mine graphite effectively – and with social licence – but also how to move it up the value chain and turn it into a finished product.

That makes it fairly unique in the graphite mining industry, and as such marks it out as one of a handful of go-to graphite companies in the world.

Blencowe is a different animal, a single project company focussed on the development of the Orom-Cross graphite project in Uganda. Uganda isn’t a major destination for the world’s mining industry, but Orom-Cross has high quality graphite in terms both of grade and flake size, a pre-feasibility study demonstrating the viability of a 21-year operation, and a full-scale feasibility study in the works.

Power Metals is different again – a multi-asset, multi-jurisdictional company with exposure to gold, nickel, lithium and a host of other commodities.

Its Doerksen Bay graphite project in Canada was acquired in January of this year, and forms the centrepiece of a newly established subsidiary company called ION Battery Resources. ION will also hold certain of Power Metal’s lithium projects.

The Doerksen Bay deal was fairly modest in terms of monetary value, but Power Metals is beginning to establish a track record of building up subsidiaries into meaningful companies in their own right. First Class Metals, a former subsidiary, was spun out onto Aim last year.

[pwal] 26/10/2023 18:46

A productive year ahead.

[petersinthemarket] 26/10/2023 15:45

This share price looks as if it is becoming a useful trader

[pwal] 26/10/2023 13:18

Seems like they were doing 163,000 tonnes in 2022. That's a fair amount.

[pwal] 26/10/2023 13:01

Any idea how much graphite Syrah produces each month?

[flc] 26/10/2023 12:12

AGM Statement should be posted later.

[apotheki] 26/10/2023 11:45

"Syrah expects higher prices and an acceleration in commercial offtake agreements."



FINGERS CROSSED!

[topazfrenzy] 26/10/2023 10:13

Market Cap is so low ... big multibagger this one in next couple of years imho

[richie1218] 26/10/2023 08:52

I was waiting for the BUT on the dilution question but it never came,
He did clarify that dilution is not an option when the share price is not anywhere near what he see's as the real value of the company.
anyway I've taken a few more this morning for a medium long term bet ... gla

[sleveen] 26/10/2023 08:46

He was condescending when a question was asked whether debt funding meant a placing.

His answer was no which is technically correct.

However, there might be a condition on the debt funding that obliges a placing.

[richie1218] 26/10/2023 08:40

The Webinar was Quite informative yesterday I recommend people watch it when they get a chance too.
"Investor Meet Company" ran it so I guess that you can access it on their website.

in fact it's on YouTube

[apotheki] 25/10/2023 16:10

No Equity placement only alternative finance such as debt [set against production revenue]

Additionally OFF TAKE agreements must potentially be a real possibility now

See below from the RNS dated 19th October 2023

Shishir Poddar, Executive Chairman, said:

"We continue to improve the Company's performance despite the graphite markets being subdued in recent months, reflecting confidence in our business strategy. We are confident that this is the time when developing further will provide opportunities for the future. Sailing through the current suppressed markets with growth and addressing the subdued share of the Company are on our priority at this time."

"We have been constrained by working capital limitations but the debt markets are getting increasingly buoyant for critical mineral development opportunities in Africa. Our advanced stage into production and growing financial outcomes are handy in dealing with interested institutions. As perhaps the only Graphite Company to have had positive operating margins since inception, and with the scale of operations now reaching the point where the Company is expecting a strong financial, we are furthering potential debt engagements with institutional providers."

"We are confident that our efforts will be recognised by the markets as we continue our progress, and the boost in graphite demand expected to result in a significant supply deficit in the near term will be an eye opener for increased investment interest in this critical mineral."

"Our projects are globally significant and have industry leading positive operating margins compared with our whole ex-China peer group, even at the early stage of ramping up development and production. As our strategy makes us apparent as a promising player in the evolving graphite ecosystem, we will continue our endeavours in the best interest of the Company and our shareholders."

"The success of the first hydro power plant is a significant step in our green credentials. Further development of renewable energy will be a priority for us in the forthcoming stages of development."

[richie1218] 25/10/2023 15:48

some info on the Tirupati's cash raising preference, but I suppose the proof is in the actions. - RNS Number : 8611I, Tirupati Graphite PLC, 10 August 2023

-- Tirupati's preference has been to meet its working capital needs for ramping up of operations through non-dilutive arrangements.

-- The Company has now successfully closed deals with certain existing clients in the United States and Europe with 100% upfront prepayment for orders placed.

-- As a result, the Company has received c.US$ 1 million net of prepayment.
-- The orders are to be shipped over a six-month period.
-- These orders represent c.15% of the quantum of sales the Company expects to make over the six-month period.

-- A discount of between 7 - 15% has been applied to the price in return for the pre-payments and which also reflects recent market price softening.

-- The Company continues to ship goods to its other customers alongside and to realise proceeds thereof as per terms agreed with the respective buyers.

-- The current average realisation period from shipment for the Company's other clients varies between 30 to 45 days.

-- Accordingly, the Company expects to receive sufficient cash proceeds from its sales going forward to maintain the growth trajectory of its production and sales.

-- The Company will use the funds to bridge gaps in cash requirements for ramping up its production and sales with targets as announced in RNS dated 8 August 2023.

-- Going forward the Company will continue to focus on strengthening its cash position through other non-dilutive opportunities.

[richie1218] 25/10/2023 15:37

Maybe we will get some clarity on the pre AGM investor update at 4.30pm ..