Shares of Tirupati Graphite PLC (LON: TGR) rallied 8.97% after installing and commissioning the first 9,000 tpa flake graphite module at its Vatomina Project located in Madagascar.
The company noted that its latest achievement was a step in the right direction as it intends to raise the total annual production capacity at Vatomina to 84,000 tpa.
Tirupati has also completed the testing of the production equipment, including the dry and wet commissioning trials, making the mine ready to start production.
The graphite company expects to start shipping orders to its customers in Europe, the USA and Asia in the next two weeks, given that the production line is currently working at its full capacity.
Today’s announcement marks a significant milestone for the company as it seeks to expand the production capacity at its Vatomina mine in Madagascar.
Tirupati’s last significant announcement was regarding the acquisition of graphite projects in Mozambique worth $12.5 million.
Investors cheered today’s move given that Tirupati is the only pure-play graphite company listed on the London Stock Exchange (LSE).
Shishir Poddar, Tirupati Graphite’s CEO, said:
“We are delighted to have completed the commissioning of the first of four modules at Vatomina, which marks the latest in a series of investments to increase production of high-quality graphite from our projects in Madagascar to support world demand and continue the expansion of our production capacity up to 84,000 tpa by 2024.
“This is a commendable achievement for the Company given the procurement and logistics challenges that were faced by the team whose tireless efforts enabled us to successfully execute our plans to upscale the plant capacity to 9,000 tpa and get into production.”
Poddar further added that “This is an important milestone as it now brings both our Madagascan projects into operation and advances us on our journey of becoming a material global supplier of sought-after Madagascan flake graphite.”
Tirupati shares have a long way to go before reaching their June highs of 160p, which could reward bullish investors who buy at current prices.
*This is not investment advice.
Tirupati Graphite share price.
Tirupati Graphite shares rallied 8.97% to trade at 115.51p, rising from Friday’s closing price of 106p.
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