Tirupati Graphite PLC said it has scaled back plans for a ramp-up of its Madagascar-based graphite operation.

The target now is to achieve 75-80% of its 30,000tpa target “at the earliest opportunity”.

Revenues in the year to end March 2023 rose 75% to £2.89 million, with volumes up by 50% but ramp-up and acquisition costs plus weather disruption meant losses also climbed to £2.4 million from £1.97 million.

Measures have been taken to mitigate the severe weather conditions, said the company, and also stabilise operations and reduce both costs and carbon emissions per unit of production.

That additional work, plus a build-up of inventory, has absorbed cash resources, it said, with discussions underway for post-credit financing and prepayments while a £1 million VAT refund is now overdue.

Sales in the current quarter, the first of the 2024 year, amounted to 2,772 million tonnes compared to 3,982 million tonnes in the whole of fiscal 2023, Tirupati added.

Shares are currently suspended pending publishing of the accounts.