Total Graphite (LSE:TGR) told investors it has completed a proof of concept for a newly launched trading business dealing in high‑value, downstream processed graphite materials, which the company says is its first step towards a fully vertically integrated commercial model.
The company, a specialist flake graphite supplier for the global energy transition, said transactions initiated in April totalled 180 tonnes of a single value‑added product averaging 98% fixed carbon, of which 60 tonnes have settled, generating $91,000 in revenue, and 120 tonnes are at port ready for imminent shipment.
As of the week commencing 27 April, Total Graphite's trading pipeline for April to November contains transactions for 900 tonnes across various grades. The business expects to support up to four different downstream products in the first half of the financial year, and initial trades are focused on customers in Europe, Asia and the Far East with no additional working capital required.
Subject to ongoing relationship development and product qualification, the company will target a wider portfolio of traded products and pursue supply agreements with processors that could use the group's natural flake graphite from Madagascar or Mozambique as feedstock, with successful qualification potentially strengthening near‑term revenues and supporting further mining and downstream capacity development.
"The successful proof of concept of the new trading business marks a significant evolution in our sales and marketing strategy and positions the company to benefit from trading value‑added flake graphite-derived products," Arun Somani, Chief Executive Officer, said.
