Author: Fiona Craig

Total Graphite (LSE:TGR) is accelerating development work at its Vatomina graphite project in Madagascar as it prepares the operation for a planned production restart. Ongoing drilling, mine planning, infrastructure improvements and final processing plant optimisation are intended to increase operational efficiency and deliver consistent, higher-grade graphite production, with output expected to exceed 1,000 tonnes per month from January 2027.

Experienced mining executive appointed to oversee operations

To support the next phase of development, the company has named experienced mining engineer Graeme Chester as Head of Operations in Madagascar. Chester will oversee the site’s operational readiness programme after previously carrying out a detailed technical assessment of the project.

His responsibilities include introducing internationally recognised operating procedures, improving operational reporting systems and strengthening the local workforce. The appointment is expected to play a key role in preparing the Vatomina project for long-term, sustainable production while supporting Total Graphite’s position within the global graphite supply chain.

Vatomina project moves toward production restart

The current programme focuses on completing the remaining optimisation work across mining and processing operations before production resumes. By enhancing plant performance and refining mine plans, the company aims to establish a stable supply of higher-quality graphite capable of meeting future industrial and battery materials demand.

The targeted restart forms part of Total Graphite’s broader strategy to develop a dependable graphite production platform as demand for critical minerals continues to grow alongside the global energy transition.

About Total Graphite plc

Total Graphite plc is a graphite development company focused on building an integrated mine-to-materials supply chain for the clean energy economy. Its flagship Vatomina graphite project in Madagascar is intended to provide a reliable source of graphite for industrial applications and the expanding battery materials market.

The Investment Company plc (LSE:INV) has secured approximately £7.5 million in new equity financing through a combination of a retail offer, placing and subscription, providing additional capital to support its updated investment strategy. The London-listed investment vehicle intends to use the proceeds in accordance with its proposed investment objective and policy as it reshapes its portfolio and future capital allocation plans.

Retail offer complements larger capital raise

The retail offer, conducted through the Bookbuild platform and launched on 15 July, attracted subscriptions totalling £299,482.88. Investors committed to 391,942 new ordinary shares at an issue price of 76.41 pence per share.

The retail fundraising follows an earlier placing and subscription that generated approximately £7.16 million, bringing the total amount raised to around £7.5 million. Completion of the fundraising remains subject to the admission of the new ordinary shares to trading, which is expected to take place on 28 July.

The company expects the additional capital to help execute its revised investment mandate and provide greater flexibility as it implements its updated investment approach.

Strategy update aims to reshape portfolio

The fundraising forms part of The Investment Company’s broader strategic transition as it seeks shareholder approval for a revised investment objective and policy. Management intends to deploy the newly raised funds in line with this updated framework, reflecting a shift in how the company plans to allocate capital and pursue future investment opportunities.

Financial position remains mixed

Despite maintaining a debt-free balance sheet, the company continues to face challenges from inconsistent financial performance and limited cash generation. Valuation metrics remain affected by ongoing losses, while technical indicators point to a broadly neutral-to-weaker trading picture.

However, the proposed change in investment policy, together with the recent recapitalisation and available tender option, could provide shareholders with greater strategic flexibility and support the company’s longer-term repositioning.

About The Investment Company

The Investment Company plc is a UK-listed investment company whose ordinary shares trade on the Main Market of the London Stock Exchange under the ticker INV. The business operates as a diversified investment vehicle and is in the process of aligning its investment activities with a revised investment objective and policy designed to support its updated long-term strategy.

Oil prices extended their gains on Thursday, with Brent crude climbing above $97 per barrel after Houthi militants claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, heightening concerns over global energy supplies.

September Brent crude futures rose 3.6% to $97.45 per barrel, while West Texas Intermediate (WTI) futures gained 2.7% to $89.17 per barrel.

The latest advance lifted Brent to its strongest level since early June, reversing the decline that followed the temporary ceasefire between the United States and Iran.

Shipping risks return to the forefront

According to the Houthis, the Saudi tankers ENCELA and LAYLIA were targeted for allegedly violating a recently announced maritime blockade.

Although Saudi officials have not reported any damage, the attacks have reinforced concerns that the conflict is spreading to critical maritime trade routes used by the global energy industry.

Earlier warnings from the group about blocking Saudi-linked shipping through the Bab el-Mandeb Strait have intensified fears of prolonged disruption. Any sustained interruption could force vessels to take longer routes around southern Africa, raising freight costs and delaying deliveries.

Markets monitor Hormuz developments

Investors also remained focused on the Strait of Hormuz after another round of U.S. military strikes on Iran increased geopolitical uncertainty.

Iran’s Revolutionary Guards reported an explosion near a mined shipping lane south of the strait, adding that one tanker caught fire while two others changed course.

Iranian authorities reiterated that the Strait of Hormuz was “fully closed” and stated that commercial oil tankers would require prior coordination before entering the waterway.

With both Hormuz and Bab el-Mandeb handling a substantial share of global crude exports, traders continue to price in elevated geopolitical risk.

U.S. inventories rise unexpectedly

Fresh inventory figures from the U.S. Energy Information Administration showed commercial crude stockpiles increased by 2.0 million barrels to 411.7 million barrels during the week ended July 17.

Gasoline inventories rose by 0.8 million barrels, distillate stocks increased by 1.4 million barrels and total commercial petroleum inventories climbed by 11.6 million barrels.

The unexpected inventory build provided some balance to supply concerns, although geopolitical developments continued to dominate market sentiment.

Gold prices remained near a two-week high on Thursday as investors weighed safe-haven demand generated by escalating tensions in the Middle East against concerns that rising oil prices could keep inflation elevated and delay any easing of U.S. monetary policy.

Spot gold (XAU/USD) edged 0.1% lower to $4,127.99 an ounce, while Gold Futures slipped 0.5% to $4,130.62. Silver (XAG/USD) gained 0.3% to $59.88 an ounce and platinum (XPT/USD) advanced 0.8% to $1,658.28.

After climbing roughly 3% over the previous two sessions, bullion paused as investors evaluated the next major catalysts.

Oil prices reinforce inflation concerns

The conflict between the United States and Iran continued to dominate financial markets, with renewed attacks on commercial shipping in the Red Sea adding to concerns over global energy supplies.

The disruption has helped keep crude oil prices elevated, increasing expectations that inflation could remain above central bank targets for longer.

A prolonged period of higher inflation could encourage the Federal Reserve to maintain restrictive interest rates, a scenario that typically limits upside for non-yielding assets such as gold.

Focus turns to next week’s Federal Reserve meeting

Markets remain uncertain about the Fed’s next move, with investors closely watching next week’s policy meeting for updated guidance on interest rates.

Any indication that policymakers intend to keep borrowing costs elevated for an extended period could influence precious metal prices in the near term.

Investor demand remains resilient

Analysts at ANZ said investor appetite for gold has remained resilient despite expectations of tighter monetary policy.

The bank highlighted rising speculative long positions and stronger inflows into gold-backed exchange-traded funds, suggesting that many investors continue to use bullion as a hedge against market volatility and expensive equity valuations.

Gold has also remained comfortably above the key $4,000 level, with traders watching whether the metal can extend its recovery toward resistance around $4,200.

U.S. equity futures traded lower on Thursday as investors evaluated earnings from several technology heavyweights, while attention also shifted to the European Central Bank’s latest interest rate decision against a backdrop of elevated oil prices and geopolitical uncertainty.

Investor sentiment weakens amid inflation concerns

Futures linked to the Dow Jones, S&P 500 and Nasdaq 100 all slipped around 0.4% before the opening bell, extending a cautious mood across global markets.

Renewed military tensions between the United States and Iran, together with attacks threatening key shipping routes in the Strait of Hormuz and the Red Sea, continued to support higher crude oil prices. The move has intensified concerns that energy-driven inflation could remain persistent, complicating the outlook for central bank policy.

Big Tech continues to invest heavily in AI

Alphabet (NASDAQ:GOOG) announced another increase in capital spending as it accelerates investment in artificial intelligence infrastructure.

The company lifted its annual capital expenditure target to approximately $205 billion and reported negative free cash flow after second-quarter investment spending climbed to around $45 billion. Investors are increasingly focused on whether these substantial AI investments will translate into stronger long-term earnings growth.

Tesla (NASDAQ:TSLA) also remained under pressure after reporting negative free cash flow as spending on AI and robotics accelerated. Chief Executive Elon Musk defended the elevated investment levels, describing them as essential to the company’s future strategy despite a negative short-term impact on cash generation.

Meanwhile, IBM (NYSE:IBM) lowered its full-year revenue growth forecast following weaker infrastructure sales during the second quarter, although management reiterated confidence in the company’s long-term AI opportunities.

ECB decision takes centre stage

Market attention now turns to the European Central Bank, which is widely expected to leave interest rates unchanged at 2.25%.

However, investors will closely examine the accompanying statement and comments from President Christine Lagarde for signals on whether policymakers remain concerned about inflation risks stemming from higher energy prices and geopolitical instability.

With inflation still running above target, traders continue to assess whether borrowing costs could remain elevated for longer than previously anticipated.

New passenger car registrations across Europe posted another month of solid growth in June, supported by continued demand for electric and hybrid vehicles despite ongoing geopolitical uncertainty.

According to data released by the European Automobile Manufacturers’ Association (ACEA), registrations across the European Union, EFTA countries and the United Kingdom increased 13.1% year-on-year to 1.41 million vehicles.

During the first six months of 2026, total registrations rose 6.1% to 7.23 million units.

Electrified vehicles continue to drive market expansion

ACEA said the European automotive market continued to benefit from strong consumer interest in electrified vehicles, even as geopolitical tensions continued to cloud the economic outlook.

Battery-electric vehicle (BEV) registrations climbed 51.0% in June to 360,843 units.

Plug-in hybrid registrations increased 22.7%, while hybrid-electric vehicle sales advanced 17.1%.

In contrast, demand for conventional combustion vehicles weakened, with petrol registrations falling 12.2% and diesel registrations declining 16.9% compared with June 2025.

Chinese brands expand market share

Chinese manufacturers continued to strengthen their position in the European market.

BYD (USOTC:BYDDY) nearly tripled its June registrations compared with the same month last year, while Chery Automobile (HK:9973) recorded a 271% increase in sales. SAIC Motor also posted strong growth, with registrations rising 50.7%.

Tesla (NASDAQ:TSLA) also delivered a robust performance, reporting a 72.1% increase in registrations during June.

Electric vehicles increase their share of the market

Battery-electric vehicles accounted for 20.7% of all new registrations across the European Union during the first half of 2026, up from 15.6% a year earlier.

Hybrid vehicles remained the region’s leading powertrain, representing 37.3% of all new vehicle registrations across the bloc.