The Tirupati Graphite PLC (LON: TGR) share price surged 16.5% after releasing an update about its continuing operations at its Vatomina and Sahamamy projects in Madagascar. The firm revealed that the preconcentrate plant at Vatomina was operating smoothly after a reorganisation.
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The final concentrate plant and the preconcentrate one operate at rates exceeding the recommended 600 tons per day throughput. The two plants are operating smoothly and at a constant pace.
Tirupati noted that it had completed the installation of the second preconcentrate plant at Vatomina, with ongoing trial runs that would eventually lead to the plant's integration into the existing facilities.
Having reduced the movement of heavy ore across the mine, the company has deployed its heavy earthmoving mining machinery (HEMM) fleet to develop other infrastructure and upcoming mining areas. The company has also finished strengthening internal roads and other critical infrastructure at Vatomina.
Tirupati Graphite also noted that it was moving full-steam ahead in developing its Sahamamy project, having completed the new road connecting the Sahamamy project to National Highway 2. The current 3,000 tpa plant at Sahamamy is still operational and will be decommissioned in December.
The company intends to have stabilised the operations of the second preconcentrate plant at Vatomina before decommissioning the Sahamamy plant. In addition, the firm has done extensive work on the Sahasoa deposits, almost ready to deliver an expected 1,200 tons of ore daily to the plants.
Tirupati is almost done installing the main processing plant at Sahamamy and is currently running tests on the plants and is on track to stabilise operations of the 18,000 tpa plant by the end of this quarter.
The company also managed to draw the first power from its 100kW hydropower plant (HPP) in November and was completing its integration and commercial use by the end of December. Furthermore, the firm has already applied for approvals for its upcoming 400 kW hydropower plant, and the related studies are ongoing.
*This is not investment advice.
Tirupati Graphite share price.
The Tirupati Graphite share price surged 16.56% to trade at 44.00p, rising from Wednesday’s closing price of 37.75p.
