REG - Total Graphite PLC - Mozambique Mining Projects Development Update

Total GraphiteAnnouncement

01/05/2026 07:01

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RNS Number : 6781C  Total Graphite PLC  01 May 2026

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

 

1 May 2026

Total Graphite plc

('Total Graphite' or the 'Company' or the 'Group')

 

Mozambique Mining Projects Development Update

 

Total Graphite plc (TGR.L), the specialist flake graphite company and supplier
of the critical mineral for the global energy transition, is pleased to
provide a development strategy update and next steps  for its natural
graphite assets in Mozambique.

 

Mozambique Next Steps

 

·    The Company is in the process of identifying and engaging with
consultants to update the earlier completed Definitive Feasibility Study
("DFS") and Value Engineering Study ("VES") of the Montepuez project,
completed by the previous owners (ASX-listed "Battery Minerals Ltd", now known
as "Waratah Minerals Ltd") of the project in 2017.

·    The planned updated studies are expected to:

o  Revalidate project economics using current cost and pricing assumptions

o  Assess a potentially lower capital intensity, phased development strategy

o  Support engagement with potential offtake and strategic partners

o  Enhance the basis for future project financing discussions

o  Inform the Group's longer-term ambition to develop a downstream graphite
processing capability

·    The Company plans to commence similar feasibility study workstreams
for the Balama Central project later in the year.

·    A site visit is planned in early May to review the status of the site
and evaluate safety for future visits and onsite work to recommence.

 

Montepuez VES and DFS Recap

Following the Montepuez DFS published in February 2017, a VES was published in
October 2017 to re-orient development of the project with an alternative
approach that would implement a pragmatic modular development plan, via
construction across two 50,000 tons per annum production modules.

Highlights of the VES to potentially increase the financial returns from the
Montepuez Graphite Project in Mozambique contained findings that included:

·    Capex reduced to US$42.3m from US$126m

·    Opex reduced to US$337/t from US$422/t

·    Payback cut to less than two years from 4.75 years

·    Grade increased to 12% total graphitic carbon (TGC) from 8.8% TGC

·    Initial flake production rate would be reduced to 45-50ktpa from
100ktpa

·    Mine life greater than 10 years.

·    Concentrate grade increased to 96.7% TGC from 96%

·    Concentrate recoveries increased to 80% from 73%

 

A summary of the key Montepuez Value VES findings (compared to the February
2017 DFS findings) are shown below*:

                                                        October 2017  VES    February 2017 DFS
 LoM years                                              10((1)) (Initial)    30
 Annual concentrate production tonnes                   45,000 - 50,000t pa  100,000t pa
 Project payback period years                           <2 years             4.75 years
 Grade of graphite mined (TGC %)                        12%                  8.8%
 OPEX ((2))                                             US$337/t             US$422/t
 CAPEX estimate (pre-production)                        US$42.3 million      US$126 million
 Average annual EBITDA((3))                             >US$20 million       US$27 million
 Average Grade of graphite concentrate shipped (TGC %)  96.7%                96%

*Indicative figures only subject to review and update by newly commissioned
studies planned

Notes to table

1.          Based on the Ore Reserve released by the Battery Minerals
Ltd (now Waratah Minerals Ltd) to ASX on 15 February 2017 - First 10+ years at
12% TGC and then next 10+ years at 7-8% TGC

2.          Total cash costs FOB Pemba - all site costs plus
transport, excluding royalties

3.          The previous owner used US $798/t as a long-term basket
price for it's concentrate in the Feb 2017 DFS.  Current Independent market
commentators supported by our detailed market analysis indicates long term
basket price in a range US $500-650/t. Total Graphite will continue to use
conservative long-term pricing assumptions while pursuing operating costs in
the lower quartile of global operations.

 

A summary of the key economic outcomes of the 2017 Montepuez DFS, are set out
below:

 

 Key study findings*                                     2017 DFS on Montepuez Graphite

                                                         Project
 Annual production                                       -100,000 tonnes of 96% purity graphite concentrate
 Life of Mine (LoM) / Life of Project (LoP) net revenue  US$2,156 million
 LoM cash generation                                     US$809 million
 NPV (10% discount rate)*                                US$146 million
 IRR*                                                    21.4%
 Project payback period                                  4.75 years
 Capex (pre-production)                                  US$126 million
 LoM operating cash cost                                 US$444/t of product (FOB)
 Mine life                                               30  years

*Indicative figures only subject to review and update by newly commissioned
studies planned

·    Construction and early works commenced at the Montepuez project under
the previous owners in 2018.

·    Currently on-site exists a 100-person base camp, a mobile crusher,
power generation units and ancillary infrastructure, which will be leveraged
and incorporated as part of the planned updated development studies to support
future potential project financing initiatives.

·    Items in place and work to date on site will be inventoried for
incorporation as part of the newly commissions studies planned.

 

Mozambique Flake Graphite Overview

The Company holds two world-class, high-grade, hard rock flake graphite
projects in northern Mozambique's Cabo Delgado province: the Montepuez and
Balama Central projects (the "Mozambique Projects").

 

·    Combined, the two assets hold over 13 million tons of contained
graphite at an average grade above 8% TGC. The latest mineral resources
statements for each project below, as updated in early 2025 by the original
Competent Person and reported in  the Competent Persons Report as at 30
September 2025, were published within the Prospectus in late March 2026.

 

·    In updating the DFS for the Montepuez project, the Company will
evaluate alternative development scenarios, aimed at reducing the upfront
capex and introducing optimisations developed from recent projects.

 

 Mozambique Flake Graphite Mineral Resource Statement as at 30 September 2025
 Deposit      Resource Classification                   Contained Graphite (kt)

                                       Tonnes   Grade
              (Mt)                              (%TGC)
 Elephant     Measured                 5.3      8.3     440
 (Montepuez)  Indicated                29.6     8.1     2,400
              Measured and Indicated   34.9     8.1     2,840
              Inferred                 33.9     6.8     2,310
              Total                    68.8     7.5     5,150
 Buffalo      Measured                 5.5      9.0     500
 (Montepuez)  Indicated                16.5     10.3    1,700
              Measured and Indicated   22.0     10.0    2,200
              Inferred                 19.7     8.9     1,750
              Total                    41.7     9.5     3,950

 

 

 Deposit         Resource Classification                   Contained Graphite (kt)

                                          Tonnes   Grade
                 (Mt)                              (%TGC)
 Balama Central  Measured                 -        -       -
                 Indicated                50.1     7.7     3,860
                 Measured and Indicated   50.1     7.7     3,860
                 Inferred                 7.8      9.0     700
                 Total                    57.9     7.9     4,560

 

·    It is noted that there remains significant exploration potential
across both the Montepuez and Balama Central projects.

 

Arun Somani, CEO of Total Graphite, commented:

"It is important for the overall development of the Group to continue
progressing our significant, world-class assets in Mozambique to support large
scale offtake opportunities which currently exist into the energy transition
sector. The large-scale assets also hold potential to supply future downstream
production assets of the Company. We look forward to engaging with consultants
to support the planning and future implementation of newly commissioned
studies which align with the vision for Total Graphite to become a globally
significant, vertically integrated natural graphite company, and further
updating the market as we progress."

 

 

ENDS

Enquiries:

 Total Graphite Plc                      info@tirupati.co.uk (mailto:info@tirupati.co.uk)

                                                                                              info@tirupati.co.uk (mailto:info@tirupati.co.uk)
 Arun Somani - Chief Executive Officer   IR@tirupati.co.uk (mailto:IR@tirupati.co.uk)

                                                                                            IR@tirupati.co.uk (mailto:IR@tirupati.co.uk)

 Alastair Bath - Investor Relations      +44 7356 057 265

 AlbR Capital Limited - Financial Adviser                                                     +44 (0) 20 7469 0930

 David Coffman / Dan Harris

 

info@tirupati.co.uk (mailto:info@tirupati.co.uk)

IR@tirupati.co.uk (mailto:IR@tirupati.co.uk)

 

AlbR Capital Limited - Financial Adviser

David Coffman / Dan Harris

+44 (0) 20 7469 0930

 

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