Total Graphite (LSE:TGR) shares were lifted, rising 6.0% to 1.67p, after the company said it had resumed on-site operations at Vatomina and begun a ramp-up of production following the completion of a fundraising.
The specialist flake graphite company said shipments from Vatomina to port restarted in April, mining and processing have recommenced from the BK6 area and PCU3, PCU4 and the Vatomina FCU are operational, with PCU1 and PCU2 expected to restart in the first half of June.
A new 3 ton per hour dryer was installed and commissioned at the FCU, increasing total drying capacity to 4.5 tons per hour, and stockpiles equivalent to about a month's run-of-mine ore are being built to mitigate bad weather.
Fuel supplies remain available despite conflict in the Middle East but average fuel costs have risen by over 15% and the company is reviewing a proposal to introduce on-site solar generation to reduce exposure.
A re‑development plan for Sahamamy, about 8km west of Vatomina, is under preparation and envisages a significant hydropower capacity increase to support a potential additional 18,000 tpa growth asset.
Management completed a cumulative two‑week site visit this month and held meetings with the Madagascar Ministry of Mining to brief on operations and progress three licence applications around Sahamamy.
"We are pleased to confirm that we are progressing operations at Vatomina with preparations for ramped-up production well underway and at an advanced stage," said Arun Somani, CEO.
The company said it is finalising a full‑year mine plan and a 12‑month drilling programme and has built spare parts inventory and an ongoing equipment resupply schedule to support sustained operations.
