Tirupati Graphite Completes Financial Catch-Up as Turnaround Advances Despite Losses

Tirupati Graphite Plc ( (GB:TGR) ) has provided an update.

Tirupati Graphite reported unaudited half-year results to 30 September 2025 that complete the catch-up of its delayed financial reporting, paving the way for the lifting of its LSE share trading suspension and the completion of a December 2025 fundraising and balance sheet restructuring. The period marked continued implementation of a turnaround strategy after prior governance and liquidity crises, with management aiming to resume mining operations and refocus on building shareholder value.

Operationally, the Group produced 2,204 metric tonnes of flake graphite solely from the Vatomina project, where output was intermittent due to adverse weather, operational issues, and historic under-investment, while the Sahamamy project remained on care and maintenance. Key plant and equipment were transferred from Sahamamy to Vatomina to support a planned capacity ramp-up toward 1,500 tonnes per month, but variable ore quality and inadequate past mine planning forced a suspension of production in mid-September pending further improvements.

Shipments of 1,998 tonnes were made, including fulfilment of prepaid customer orders, and the average realised sales price edged up 2% to $846 per tonne as the company targeted higher-value customers. There was no material progress at Sahamamy or the Mozambique projects, where security conditions still restrict activity, though Tirupati continues to view these assets as important for future growth once operations can resume.

Financially, the company recorded an operating loss of £2.7 million and a loss before tax of £3.4 million, reflecting inconsistent production against largely fixed operating costs, higher fuel and equipment rental, and elevated administrative expenses of £1.8 million driven by one-off legal, restructuring, and audit-related items. Cash was just £0.16 million at period end, with operations sustained by £3.0 million net proceeds from 2025 convertible loan notes, underscoring the reliance on fresh capital to fund the ongoing improvement programme.

Tirupati completed the issue of £4.5 million of 2025 Series 1 convertible loan notes and secured commitments for £0.3 million of Series 2 notes, later amending their terms to lower the conversion price and extend maturity as part of the broader refinancing package. The company has submitted a prospectus to regulators and established a new Guernsey subsidiary, positioning itself to convert the notes to equity once trading resumes and to stabilise its capital structure for the next stage of its turnaround.

More about Tirupati Graphite Plc

Tirupati Graphite plc is a specialist flake graphite producer focused on supplying this critical mineral for the global energy transition. The company operates primary mining and processing projects in Madagascar at Vatomina and Sahamamy, with additional exploration interests in Mozambique, targeting high-quality graphite for industrial and energy-related customers.

Technical Sentiment Signal: Sell

Current Market Cap: £8.09M

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