TLG - Talga Group

[basilio]

Talga just release a new presentation titled "Graphite vs Silicon". Basically an overview of the two substrates as the basis for new batteries.
The SP has dropped sharply, perhaps as a response to the presentation ?

IMV it's a very cautious story which highlights the big challenges facing scientists (including Talgas) trying to use silicon to radically improve battery capacity. There is IMV only a little indication from the presentation that Talgas efforts are showing good results.

A few possibilities
1) They don't want to risk near term sales (2-4years) of their Talnode C anode by projecting much better outcomes with the next generation technology.

2) Perhaps they are having real problems making Silicon work and are letting shareholders down a bit ?

3) In fact they are quietly confident they will make Silicon or sold state batteries a goer but right now they have all the funds they need to commercialise the Talnode C anode and moving 100,000 tons a year from 2025 looks pretty good so they don't need to spruik the market too much.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02382149-6A1035798?access_token=83ff96335c2d45a094df02a206a39ff4

 

[basilio]

I'm rethinking my observations about Talgas latest presentation.
They make it clear Silicon has great potential but also poses many problems.
They then make clear their solution is gradual and focused very strongly on integration into current processes.

On reflection it seems technically and commercially quite pragmatic and clever.

 

[Dona Ferentes]

I'm rethinking my observations about Talgas latest presentation.
They make it clear Silicon has great potential but also poses many problems.
They then make clear their solution is gradual and focused very strongly on integration into current processes.

On reflection it seems technically and commercially quite pragmatic and clever.

I listened to a webcast by Mark T recently. Impression I got is the end users expect exactitude in any and all product, and won't commit until then. So, the R&D is complex and each scale up offers no short cuts. But there's a pot of gold at the end.

Silicon dreams will be no different. Am very impressed how the technical team has coalesced.

 

[basilio]

Latest announcement from Talga is another MOU with a big battery company as partner for their anode production.
Lot of steps in this process of commercialisation of their product but good to see the journey is well underway.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02386588-6A1037632?access_token=83ff96335c2d45a094df02a206a39ff4

 

[basilio]

Latest announcement notes an extension of discussions around a proposed co-development with Mitsui and LKAB of the new anode plants.
I suppose it would have great to have confirmed a complete agreement but an extension to discussions seems positive and encouraging.

The market has been spooked however . SP down 8%

Battery anode and advanced materials company Talga Group Ltd (“Talga” or “the Company”) (ASX:TLG) is pleased to advise that the Letter of Intent (“LOI”) executed with LuossavaaraKiirunavaraa Aktiebolag (“LKAB”) and Mitsui & Co. Europe Plc (“Mitsui”) (ASX:TLG 2 November 2020) has been extended by mutual agreement until 30 November 2021.

The LOI considers co-development of Talga’s initial European green anode project for lithium-ion batteries. This includes construction of a scalable 19,000tpa anode production facility and integrated graphite mining operation in northern Sweden (“Vittangi Anode Project”) (ASX:TLG 23 May 2019) with an additional 85,000tpa expansion opportunity (“Niska Project”) (ASX:TLG 7 December 2020).

Since entering the LOI LKAB and Mitsui have been undertaking due diligence, including customer interactions, and advanced discussions on potential joint development. Terms of the potential joint venture are being positively progressed but remain to be agreed to and the parties will continue negotiations under the extended LOI.

The LOI extension provides LKAB and Mitsui the non-exclusive right to negotiate and enter into a binding joint venture agreement with Talga by 30 November 2021, or as mutually agreed. All other terms of the LOI remain unchanged.

Commenting on the agreement, Talga Managing Director Mark Thompson said: “Talga is very pleased to progress JV partner discussions with LKAB and Mitsui for the development of our European anode supply chain to serve the lithium-ion battery market from our Swedish operations. We look forward to continue exploring potential synergies across operations, investment and global sales/distribution in our partnership negotiations.”

 

[basilio]

Last few days has seen Talga shares take a hit. I think the underlying economics and development of their project is still exceptionally sound. Hopefully the low SP brings out some value investors and perhaps the company starts some selective spruiking of it's future.

 

[basilio]

Yep just bounced back after I picked it for next months comp and before the start of july..

 

[Dona Ferentes]

Yep just bounced back after I picked it for next months comp and before the start of july..

The DFS is out. Defined as robust. ... Don't sweat too much, bas

 

[basilio]

The DFS is out. Defined as robust. ... Don't sweat too much, bas

Surprise, surprise.. I have always been impressed with the basic parameters and the managerial capacity of Talga to turn these into a profitable operation that may actually benefit shareholders. This is definitely the time to wheel out the DFS and reinforce the actual metrics of their case.

So their trick now is to see what sort of partnerships they need/want to do ensure the factory is built in due course.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02390252-6A1038921?access_token=83ff96335c2d45a094df02a206a39ff4

 

[basilio]

TLG released a presentation for an EV Technology seminar on 14th July. Since the release the SP has drifted down again.

I think the downer was the observation that they expected the anode plants to be operational from 2024. My memory was that there would be production from possibly 2022 to 2023. Pushing this out to 2024 is disappointing. Perhaps raises concerns about cash flow until then ?

14/07/2021
12:25 pm

Presentation - Rho Motion EV Battery Technology Seminar

 

[basilio]

TLG released a presentation for an EV Technology seminar on 14th July. Since the release the SP has drifted down again.

I think the downer was the observation that they expected the anode plants to be operational from 2024. My memory was that there would be production from possibly 2022 to 2023. Pushing this out to 2024 is disappointing. Perhaps raises concerns about cash flow until then ?

14/07/2021
12:25 pm

Presentation - Rho Motion EV Battery Technology Seminar

Right... So after all my winging and moaning about the SP yesterday, today Talga has attracted some keen interest and has jumped 8% .

So who knows what the story is. Perhaps there is a partnership announcement in the wings ? Or just that some new investor believes this is well undervalued.

 

[Dona Ferentes]

Wright’s law, the theory that the more of something that gets produced, the faster its cost goes down.

- the closer to production, the more the upside is screwed down.

 

[basilio]

Sharp drop this morning on high turnover. Someone is wanting out.

Could be a buying opportunity ?

 

[basilio]

Still strong selling pressure. Another big dump in early afternoon saw the price drop to $1.29.

Curious.

 

[Dona Ferentes]

Still strong selling pressure. Another big dump in early afternoon saw the price drop to $1.29.

The true believers are out buying today, @basilio .... TLG rising to $1.45, on this Announcement?

Life Cycle Assessment Highlights Talga’s World-Leading Green Battery Anode

• Life Cycle Assessment (LCA) shows Talga's flagship battery anode product, Talnode®-C, is world’s greenest graphite anode
• This initial LCA into Talga's planned lithium-ion battery anode production in Sweden was completed by Hitachi ABB Power Grids
• Production of Talnode®-C emits 96% less greenhouse gas than incumbent EV battery anode produced in China
• Equivalent to a reduction of ~2,900,000 tonnes of CO2 per million EVs produced
• Results show 86% of Talnode®-C production emissions are inherited from external suppliers, allowing for further optimisation through strategic procurement processes
• LCA accords to ISO 14040 - 14044 standards and the German Association of Automotive Industry principles for data collection

 

[basilio]

Powerful response today.

The true believers are out buying today, @basilio .... TLG rising to $1.45, on this Announcement?

Life Cycle Assessment Highlights Talga’s World-Leading Green Battery Anode

• Life Cycle Assessment (LCA) shows Talga's flagship battery anode product, Talnode®-C, is world’s greenest graphite anode
• This initial LCA into Talga's planned lithium-ion battery anode production in Sweden was completed by Hitachi ABB Power Grids
• Production of Talnode®-C emits 96% less greenhouse gas than incumbent EV battery anode produced in China
• Equivalent to a reduction of ~2,900,000 tonnes of CO2 per million EVs produced
• Results show 86% of Talnode®-C production emissions are inherited from external suppliers, allowing for further optimisation through strategic procurement processes
• LCA accords to ISO 14040 - 14044 standards and the German Association of Automotive Industry principles for data collection

Indeed ! I saw that story and the SP response. I think it's well warranted in terms of how Talgas product will be viewed by businesses and governments wanting to reduce their cabon footprint.

Have to say that yesterdays sellers might be feeling a bit miffed.

 

[basilio]

Significant story. What is significant is how much interest business has expressed in buying the graphite anodes. They have already advanced their anode production goals to 100,000 tons a year for 2025-26 and that seems on the skinny side.

Depth Extension Drilling Commences at Europe's Largest Graphite Resource

• Testing of resource depth extensions underway at Vittangi Graphite Project in Sweden, the source of the world's greenest Li-ion battery anodes
• Depth extension drilling expected to be completed by mid-October, with study of assay results beginning in Q4 2021
• Follows geotechnical and measured resource drilling programs completed this month at Nunasvaara South, the initial development within the Vittangi project

....The drilling campaign and the Niska Scoping Study are a result of significant external commercial interest in Talga’s green graphite anodes for Li-ion batteries. Engaged customers' annual demand, including current expressions of interest and targeted 2025 anode supply, now exceeds 14 times the 19,500tpa Talnode®-C production capacity outlined in the Vittangi Anode Project DFS (ASX:TLG 1 July 2021). By 2030, engaged customers’ demand is estimated to exceed 50 times the DFS capacity with 30% of this demand coming from European manufacturers.

Confidential qualification processes using Talnode® samples have increased to 62 active programs across 48 customer engagements. Talga is now working directly with 11 automotive companies and the majority of announced battery manufacturers in Europe under advancing qualification and procurement processes.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02414449-6A1047800?access_token=83ff96335c2d45a094df02a206a39ff4

 

[Dona Ferentes]

By 2030, engaged customers’ demand is estimated to exceed 50 times the DFS capacity with 30% of this demand coming from European manufacturers.

Confidential qualification processes using Talnode® samples have increased to 62 active programs across 48 customer engagements. Talga is now working directly with 11 automotive companies and the majority of announced battery manufacturers in Europe under advancing qualification and procurement processes.

@Garpal Gumnut . The sprint to production is actually a laborious grind, to get EV batteries into cars. RNU would be way back in the race, but the glittering prize is what they're all after.

 

[basilio]

TLG shares have jumped after a Press release outlining expansion of their agreement with ABB. It highlights the progress they are making to construction of their graphite concentrater and anode production facilities.

ABB and Talga Expand Agreement to Mine Electrification

Battery anode and advanced materials company Talga Group Ltd (“Talga” or “the Company”) is pleased to advise that following successful completion of its Detailed Feasibility Study it has extended and expanded the Memorandum of Understanding (“MoU”) with global technology leader ABB. Talga is constructing an ultra-low emission battery anode production facility and integrated graphite mining operation in northern Sweden, using 100% renewable electricity to supply greener anode for lithium-ion batteries.

According to a recent Life Cycle Assessment prepared by Hitachi ABB Power Grids, the production process of Talga's flagship anode product Talnode®-C emits 96% less CO2 equivalent (CO2-eq) than the anode material most commonly used in EV batteries today. This is equal to a reduction of approximately 2.9 million tonnes of CO2-eq per million electric vehicles1.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02420627-6A1049982?access_token=83ff96335c2d45a094df02a206a39ff4

 

[basilio]

Todays announcement has certainly sparked some buying support. Up 11% to date on heavy demand.

There may be more behind this announcement but perhaps there has been some new decisions made from investors about getting on board or topping up their portfolios.