Aim-listed Total Graphite has initiated a graphite portfolio optimisation programme for its Madagascar operations and will evaluate the options available to accelerate development and maximise value for all shareholders.

This follows an advanced stage of the operational turnaround of its Madagascar operations being reached and the continued advancement of its larger-scale growth portfolio.

“The board believes the company has reached an important inflection point, having repositioned and strengthened its asset base through the operational turnaround of its Madagascar operations, the expansion of production capacity at the Vatomina project, the advancement of its world-class Mozambique graphite projects and the ongoing evaluation of downstream value-added opportunities,” Total Graphite says in a statement to shareholders.

The portfolio optimisation programme is intended to identify the optimal structure to unlock the value of the company's diversified portfolio and accelerate development of its larger-scale growth opportunities. 

As part of the programme, the board, together with its advisers, will evaluate a range of strategic alternatives, including funding options to accelerate the development of each asset, the introduction of strategic partners, joint ventures, partial divestments or a potential sale of individual assets.

Total Graphite says the board notes that an expression of interest relating to certain assets has been received, reflecting the progress achieved through the operational turnaround programme. The company says discussions remain at an early stage and there can be no certainty that any transaction will result.

Total Graphite is building an integrated graphite mine-to-materials platform, spanning high-quality flake graphite resources, processing capabilities and downstream value-added products serving global energy transition markets.

Over the past 18 months, the company has focused on repositioning and strengthening its asset base, resulting in a substantial enhancement of the underlying value and operational capability of the assets.

Total Graphite says significant progress has been achieved in Madagascar since early 2025 through operational improvements, infrastructure investment and production optimisation at the in-production Vatomina project, in Madagascar, while streamlining the company's balance sheet.

Total Graphite notes that extensive upgrade work completed over the period has expanded the nameplate production capacity of the Vatomina project from 12 000 t/y to 18 000 t/y, updated Joint Ore Reserves Committee- (Jorc-) compliant mineral resource and exploration targets across the Madagascar operations, and reinforced site power and waste management infrastructure.

At the same time, the company has continued to advance its larger-scale development portfolio, with workstreams underway to update the definitive feasibility study for the Montepuez graphite project in Mozambique, and to update a prefeasibility study for a downstream anode materials facility.

“The board believes the progress achieved across the portfolio has created an opportunity to evaluate alternative ownership, development and funding structures capable of fully recognising the value of these assets whilst enabling increased focus on the company's larger-scale growth opportunities.”

BOARD CHANGES

Meanwhile, Total Graphite has implemented a number of board changes with immediate effect, to support the next phase of growth and strategic execution.

Thomas Hill, currently CFO, has been appointed to the board as FD. Total Graphite says Hill continues to play a key role in the company's financial and operational development while supporting the execution of the company's strategic objectives.

Andrew Wright has been appointed to the board as nonexecutive director. The company says Wright brings to the board a combination of legal, mining and energy experience, underpinned by a strong record in corporate governance, mergers and acquisitions and capital markets.

Additionally, Total Graphite notes that Mark Rollins has stepped down as nonexecutive chairperson owing to other full-time commitments.

To maintain continuity for the duration of the programme, Christian Dennis, current nonexecutive director, has been appointed interim nonexecutive chairperson while a process to appoint a permanent chairperson is conducted. A further announcement will be made in due course.

“The board would like to thank Mr Rollins for his valuable contribution during a significant period of development for the company,” says Total Graphite.

Further, Michael Lynch-Bell has stepped down from the board in order to concentrate on other activities.

NEXT STEPS

Total Graphite notes that the board will now engage with interested parties and progress the portfolio optimisation programme, assessing the opportunities and proposals received with a view to maximising value for shareholders.

The company will provide further updates on the progress of the programme as and when appropriate.

The company explains that there can be no certainty that the process will result in any transaction, nor as to the timing or terms of any such transaction, and any transaction will remain subject to the satisfaction of applicable regulatory, corporate and contractual requirements.

“The board remains focused on delivering value for shareholders through disciplined portfolio management, strategic execution and the advancement of the company's integrated graphite growth strategy.”