Total Graphite Final Results: Production Improves, but Funding and Vatomina Risks Remain

Total Graphite's final results show a company that has survived a difficult turnaround, repaired parts of its balance sheet and restored its London listing. The harder job now is turning that corporate progress into a consistently profitable mining operation.

Annual graphite production increased by 37% to 2,964 tonnes, while revenue edged 6% higher to £1.67 million. However, the group still recorded a £5.94 million loss after tax and used £3.13 million of cash in its operating activities.

Most importantly, production at the Vatomina mine is temporarily paused while further technical and operational work is completed. That leaves investors waiting for evidence that the project's planned 18,000 tonnes per annum capacity can translate into reliable output and positive margins.

The full figures are available in the original company announcement.

Total Graphite's key figures

Metric	2026	2025	Change
Graphite production	2,964 tonnes	2,169 tonnes	Up 37%
Sales volume	2,706 tonnes	2,240 tonnes	Up 21%
Revenue	£1.67 million	£1.58 million	Up 6%
Average selling price	£615 per tonne	£703 per tonne	Down 13%
Cost per tonne sold, excluding depreciation	£779	£1,017	Down 23%
Gross loss	£1.61 million	£1.87 million	Improved
Operating loss	£5.10 million	£5.30 million	Improved
Loss after tax	£5.94 million	£5.88 million	Slightly worse
Operating cash outflow	£3.13 million	£1.59 million	Increased
Year-end cash	£277,000	£172,000	Increased

The operating figures contain some genuine progress. Higher production helped reduce the cost per tonne sold from £1,017 to £779, excluding depreciation.

Unfortunately, that still exceeded the average selling price of £615 per tonne. In simple terms, the group's direct production economics remained loss-making even before depreciation and central administrative costs were included.

The lower selling price also limited the benefit of the higher volumes. Sales rose by 466 tonnes, yet revenue increased by only £90,000.

Vatomina remains the central investment question

Vatomina in Madagascar is Total Graphite's only producing mine and the platform on which management intends to build the wider business.

The operation began the year with theoretical capacity of 12,000 tonnes per annum. Management relocated processing equipment from the inactive Sahamamy project as part of a plan to increase that figure to 18,000 tonnes per annum.

Improvements included two additional pre-concentration units, extra mining vehicles, a larger dryer and changes to procurement and production planning. Pre-concentration removes some waste material before ore enters the main processing plant.

Despite these changes, Vatomina operated intermittently and produced only 2,964 tonnes during the year. Operations were suspended in September 2025 and restarted at the end of March 2026 following a fundraising.

The latest update says production has since been temporarily paused while work identified by an independent technical review is completed. This covers drilling, mine planning, ore handling, plant configuration, processing efficiency and supporting infrastructure.

Management argues that fixing these issues properly should support stronger volumes, improved reliability and better long-term economics. That is reasonable in principle. Continuing to produce at negative margins simply to meet a headline output target would not create much value.

The risk is that Vatomina has already encountered poor ore-grade identification, equipment breakdowns, inadequate spare parts, plant inefficiencies and difficult weather. During the year, 48 mining days were lost to weather between May and August 2025 alone.

Investors therefore need more than another production restart. They need evidence of sustained throughput, acceptable product quality and a cost per tonne below the realised selling price.

The recapitalisation reduced liabilities but diluted shareholders

Total Graphite, which was formerly known as Tirupati Graphite PLC, restored trading in its shares in March 2026. It also completed a substantial recapitalisation.

On 26 March 2026, the company issued 463,986,504 new ordinary shares to settle convertible loan note liabilities totalling £7.45 million, including accrued interest. This reduced financial pressure, but it also created substantial dilution for existing shareholders.

Total liabilities fell from £8.82 million to £6.36 million. Loans and borrowings declined from £4.96 million to £2.15 million, with no non-current borrowing recorded at the year end.

That is a stronger balance sheet, but liquidity remains tight. Group cash stood at just £277,000 on 31 March 2026, although this had risen to £1 million by 24 July 2026. Restricted cash of £1.72 million is held as security and does not represent freely available liquidity.

A remaining £1.92 million of 2022 convertible loan notes, plus accrued interest, matures on 31 March 2027 unless holders choose to convert into shares.

Going concern warning puts funding in focus

The accounts contain a material uncertainty that may cast significant doubt on Total Graphite's ability to continue as a going concern.

Management's forecasts run to 31 October 2027, but its strategy requires additional funding. The company says it is in advanced discussions with potential counterparties, although there is no guarantee that the required capital will be secured on time.

The annual report is direct about the consequences: without new funding or alternative arrangements with finance providers, the company would probably become insolvent.

This is the clearest financial risk in the results. The group generated only £1.67 million of revenue, reported a £5.94 million annual loss and experienced an operating cash outflow of £3.13 million. Future fundraising could also lead to further shareholder dilution.

A large resource base, but development requires capital

Total Graphite reported group mineral resources of 181 million tonnes grading 7.8% total graphitic carbon, containing 14.16 million tonnes of graphite. Mineral resources indicate estimated material in the ground, but they are not the same as economically proven ore reserves.

The largest resources sit within the Mozambique portfolio. Montepuez and Balama Central contain combined resources of more than 152 million tonnes, but both projects remain under force majeure because of insurgency activity in Cabo Delgado.

The facilities have not been directly affected, and a site visit took place in May 2026. Management intends to update the projects' feasibility studies before considering a final investment decision. Existing studies date from 2017 or require updating, so their stated net present values should not be treated as current project valuations.

Sahamamy offers another possible source of future production, but it has remained on care and maintenance since April 2024. Some equipment has been moved to Vatomina and would need replacing before a restart. Reactivation is also likely to require extra finance or a joint venture partner.

What investors should watch next

The strategic pitch is broader than a single mine. Total Graphite wants to combine Madagascan production, Mozambique development assets, graphite trading and higher-value downstream materials into an integrated supply chain.

For now, though, the investment case rests on a shorter and more practical list of milestones:

• completion of the Vatomina optimisation programme;
• a timetable for restarting production;
• evidence of reliable output and lower operating costs;
• additional funding and its terms;
• treatment of the convertible loan notes due in March 2027;
• progress on Sahamamy and the Mozambique feasibility updates; and
• the outcome of the post-year-end Portfolio Optimisation Review.

Total Graphite enters its next financial year with less debt, a restored listing and a clearer strategy. It also enters it with paused production, limited cash and a continued need for external capital. The turnaround has moved beyond corporate rescue, but the operational proof is still to come.