Total Graphite (LSE:TGR) has temporarily paused production at its Vatomina mine in Madagascar as part of a Strategic Portfolio Optimisation Programme launched in June.
The AIM-listed company, which is building an integrated mine-to-materials graphite supply chain across Madagascar and Mozambique, held $1.5m in unrestricted cash as of 16 July, out of a total cash position of $3.8m that includes a $2.3m bank guarantee tied to its Mozambique mining projects.
An independent technical review at Vatomina flagged the need for further drilling, mine planning and infrastructure upgrades before output resumes, with five diamond drill holes completed so far and the wider drilling programme expected to finish in the fourth quarter.
The company is targeting a production restart above 1,000 metric tonnes per month from December, subject to drilling progress.
SRK's Competent Person's Report from March estimated an exploration target of 18 to 20m tonnes at 4% graphitic content at Vatomina, alongside the existing resource of 6m tonnes at 3.8%.
In Mozambique, work has begun updating the Definitive Feasibility Study for the first phase of the Montepuez project, targeting roughly 50,000 tonnes per annum of capacity.
The optimisation review has also drawn non-binding proposals from financial institutions and strategic partners, including offtake-linked trade financing discussions.
"Our strategic review has resulted in constructive engagement with industry participants, financial institutions and prospective strategic partners", said chairman Christian Dennis.
