Aim-listed Tirupati Graphite’s production for the financial year ended March 31 increased by 30% year-on-year, while sales volumes increased by 54%.
During the financial year under review, the 3 000 t/y Sahamamy facility, in Madagascar, which had declared commercial operations from January 2020, was in production, while the first 9 000 t/y facility at Vatomina, also in Madagascar, was under construction.
Despite the impacts of the Covid-19 pandemic which affected the company's operations during a substantial part of the year, the Sahamamy facility remained operational throughout, although with related challenges which impacted on capacity use during certain periods, Tirupati notes.
Within inventories, there was a significant increase in inputs, stores and spares, as the company increased its inventories to mitigate against the longer procurement and logistics timeframes owing to the impacts of the pandemic.
Revenues increased by 42% from £790 000 to £1.12-million.
The realised average selling price per tonne of graphite sold decreased slightly, which Tirupati says was attributable to reduced market prices in the first three quarters of the financial year, owing to impacts of the pandemic and the strengthening of the pound against the dollar.
Tirupati highlights that gross margin on sales increased by 9% from 48% the previous year to 57%, in line with its expectations as production continues to increase.
Tirupati notes that it remains on track and, with its recent capital raise of £10-million, is in a sound financial position to deliver on the current phase under its medium-term development plan, which will result in its production capacity in Madagascar increasing to 12 000 t/y in the immediate term and up to 30 000 t/y in the next financial year.
The company expects to release its full results for the financial year on or before September 17.