TLG - Talga Group

[Dona Ferentes]

Vittangi Mine Permit Appeals Rejected


The Swedish Land and Environment Court approved the environmental and Natura 2000 permit for Nunasvaara on 5 April 2023 (ASX:TLG 6 April 2023). A number of parties subsequently sought leave from the Swedish Land and Environment Court of Appeal to appeal the decision.

The Court of Appeal confirmed yesterday, 31 August 2023, that it has determined that there are no grounds to grant leave to appeal to any of the parties. The Land and Environment Court decision to grant the environmental and Natura 2000 permit therefore stands.

 

[basilio]

Vittangi Mine Permit Appeals Rejected


The Swedish Land and Environment Court approved the environmental and Natura 2000 permit for Nunasvaara on 5 April 2023 (ASX:TLG 6 April 2023). A number of parties subsequently sought leave from the Swedish Land and Environment Court of Appeal to appeal the decision.

The Court of Appeal confirmed yesterday, 31 August 2023, that it has determined that there are no grounds to grant leave to appeal to any of the parties. The Land and Environment Court decision to grant the environmental and Natura 2000 permit therefore stands.

This announcement seems to have changed market sentiment in TLG significantly. Big jump on high turnover on Friday. Another equally large jump in SP on high turnover today. Perhaps all the ducks are now lined up for production and commercial sale of their TalgC anode product.

They will begin building the factory on Sept 11th. The latest investment webinar highlights the successes in terms of finance, approvals, customer demand and anticipated binding anode agreements with clients. It is almost totally derisked. On teh vvolumes of teh past 2 trading days since the release of the webinar I suspect some bigger investors have decided to buy in.

Talga Investor Webinar Presentation (PDF 10,278.5 KB)

 

[basilio]

The ducks have lined up for Talga. Permission given for first factory. Finances sorted. Building started.
Lets see how it flys.

Talga Achieves Anode Project Milestones (PDF 2,624.5 KB)

 

[mullokintyre]

Congrats to all who held the faith, unlike myself.
Mick

 

[basilio]

One month later. All the ducks lined up and someone pulls out a shotgun.
It has dropped like a stone since finance, approvals and project starts were announced. They obviously need to win the Billion Dollar power ball lottery.

Anyway Talga just released a report updating their Graphite reserves. All looks rosy.

Talga boosts Swedish battery graphite

Battery materials and technology company Talga Group Ltd (“Talga” or “the Company”) (ASX:TLG)
is pleased to provide an update on exploration activities at its 100% owned Vittangi Graphite Project,
in northern Sweden (“Vittangi” or “the Project”).

The European Commission has designated natural graphite as a critical and strategic material,
primarily due to its use as the anode of lithium-ion batteries. Due to a current lack of local supply,
nearly all graphite anode material used by EV manufacturers in Europe is imported from Asia.

Talga holds the largest natural graphite resources in Europe classified to JORC standards, however
initial battery anode production plans of 19,500tpa (ASX:TLG 1 July 2021) address just a fraction of
planned local battery production capacity (1,450,000tpa by 20301).

To meet customer demand and facilitate the EU’s goals for local supply of strategic materials, the
Company continues to explore the extent of its natural graphite in Sweden. This work informs Talga’s
growth plans as the Company reviews options for expansions, new initiatives and development of
regional assets.

Vittangi Resource Update

As part of Vittangi Anode Project financing work streams, independent mining consultant SLR
Consulting Limited (SLR) has increased the Vittangi Graphite Project Global Mineral Resource cut-off
grade, resulting in an update to the Mineral Resource estimate (“MRE”).

Applying a 12.5%Cg cut-off grade across the entire project, and constrained within Whittle open pit
shells, the Vittangi MRE is now estimated to total 35.0Mt averaging 23.8%Cg, containing 8.3Mt of
graphite. This includes Indicated Resources estimated to total 26.7Mt averaging 24.3%Cg and
Inferred Resources estimated to total 8.3Mt averaging 22.1%Cg (see Table 3).

The updated Vittangi Graphite Mineral Resource estimate revises Talga’s Swedish graphite
resources to an estimated total of 70.8Mt averaging 18.8%Cg, containing 13.3Mt of graphite,
understood to be the largest resource of natural graphite in Europe. This includes Indicated Resources
estimated to total 30.1Mt averaging 22.4%Cg and Inferred Resources estimated to total 40.7Mt
averaging 16.2%Cg (see Table 5).

Talga boosts Swedish battery graphite (PDF 3,146.2 KB)

 

[basilio]

Talga "refreshed" their reporting of the Lithium Project. As always promising.

Aero Lithium Project Update - Sweden
Battery materials and technology company Talga Group Ltd (“Talga” or “the Company”) (ASX:TLG) is pleased to provide an update on exploration of its 100% owned Aero Lithium Project (“Aero” or “Project”), located in northern Sweden.

Exploration Completed

Following the discovery of multiple significant lithium-bearing pegmatites at Aero hosting surface mineralisation up to 1.95%Li2O (ASX:TLG 29 Aug 2023), Talga has completed follow-up exploration activities through September into the current end of autumn field season in Sweden.

...remote sensing surveys including geophysical and spectral data were analysed to identify.new lithium targets across the largely unexplored 134km2 Project area (see Figure 2).

..Samples collected during fieldwork have been dispatched to laboratories for assay and mineralogical studies, with results expected to be received in November 2023. A maiden drilling campaign at Aero is expected to commence in late Q4 2023 or early Q1 2024, following required site clearances. The initial campaign will comprise ‘scout’ diamond drilling in several strategic locations to better understand the
zonation, thickness, stratigraphy and structure of the main pegmatites. Subject to results, a major drill program will be conducted in the summer season (Q2-Q3 2024).

Talga is also engaged in early discussions with potential strategic partners to advance the Aero Project, with
the Talga management team remaining focused on executing the Vittangi Anode Project.

Aero Lithium Project Update (PDF 9,486.6 KB)

 

[Dona Ferentes]

Talga has been sold off in the last few weeks/ days ... dumped to 96c at open today. Hasn't been this low since 2020.

 

[Dona Ferentes]

Talga has been sold off in the last few weeks/ days ... dumped to 96c at open today. Hasn't been this low since 2020.

and lower. ... now 89c. Down in the dumps. Someone must know something? " Environmentalists " with another court challenge?

 

[basilio]

Unnerving .. I can't remember Talga falling steeply before bad news. They have always seemed very tight.

But this sell off looks concerning. Theoretically it should be all systems go at the moment. All the ducks lined up.

 

[galumay]

One I am watching to see if they can make an investible business out of it, huge upside according to the narrative, but a zero is still a real possibility. Sort of thing you either put a few speccy dollars in at the very beginning and just bottom drawer it, or wait until it proves to be an actual profitable business.

It's hard work! Business has already burnt thru more than half the cash they raised last year, shareholders being continually diluted by CR's to support the cash fire.

 

[frugal.rock]

 

[basilio]

Good recovery today. I think the collapse yesterday was some largish investor deciding to sell out and probably triggering some extra stop loss sales on the way. Certainly people believing Talga offers exceptional value today.

With regard to burning money. Talga is now building a factory to make and sell its anodes. It has lined up all the finance. It has offtake agreements. One would have to believe that these loans will cover all building and operational costs until production is established.

Yes it could all come crashing down. There are a few major wars happening. Financial systems are scketchy. But they are not making some obscure product. These anodes are essential to a rapidly expanding battery market.

 

[galumay]

Good recovery today. I think the collapse yesterday was some largish investor deciding to sell out and probably triggering some extra stop loss sales on the way. Certainly people believing Talga offers exceptional value today.

With regard to burning money. Talga is now building a factory to make and sell its anodes. It has lined up all the finance. It has offtake agreements. One would have to believe that these loans will cover all building and operational costs until production is established.

Yes it could all come crashing down. There are a few major wars happening. Financial systems are scketchy. But they are not making some obscure product. These anodes are essential to a rapidly expanding battery market.

I guess my point is that it's all just narrative speculation. The way I look at it the financials tell us the story of the health of the business, narrative doesn't pay the bills or provide FCF. In my view there is no value other than the sum of the discounted, future cash flows, so in the case of pre-profitable businesses like Talga there is no value, just price.

Having the best product in the world doesn't necessarily mean a viable business.

My opinion is these sort of speculative plays its better to be patient and not take a position until the business is viable even though this means paying a much higher entry price. The reason for this is I want to minimise the risk of total loss of capital in my investments. Its aligned with Munger's statement, ."It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be intelligent."

Of course with my approach I will miss out on a lot of potential gains, but hopefully the offset is I will miss out on a lot of actual losses!

 

[frugal.rock]

One would have to believe

it could all come crashing down

It has lined up all the finance.

Business has already burnt thru more than half the cash they raised last year

Solid downtrend since April

 

[Dona Ferentes]

back above $1
.

China Restricts Graphite Exports​

China announced export controls on natural and synthetic graphite last Friday, citing national and supply security. Here are the key takeaways from Benchmark Minerals Intelligence:

• "China dominates graphite mining, processing, and anode production, and is set to produce 67% of global natural graphite this year."
• "In the short term the policy could make it more difficult for overseas companies to buy Chinese graphite feedstock products."
• "Longer term, however, the policy could accelerate a build-out of the battery anode supply chain in the West."

 

[basilio]

More details on Chinas decision to restrict graphite exports

China, world's top graphite producer, tightens exports of key battery material

 

[Dona Ferentes]

Monday, 6 November 2023, Talga announced a non-underwritten SPP, giving eligible shareholders the opportunity to apply for up to A$30,000 worth of Shares without incurring brokerage or transaction costs. The issue price of the New Shares under the SPP is A$1.00 per New Share

Proceeds from the SPP will be used to progress critical path development activities for the Vittangi Anode Project, including Refinery site establishment costs, and general working capital.
.
... last time, a SPP was held, the flow of money meant that it halted well before closure date, about half way through, from memory. Talga probably got some rude letters, but as the issue price was $1.10, those who missed out were lucky.

Now $1.09

 

[frugal.rock]

On behalf of the Board of Talga Group Ltd (ACN 138 405 419) ("Company" or "Talga"), I am pleased to offer you the opportunity to subscribe for fully paid ordinary shares in the Company ("Shares") under a Share Purchase Plan ("SPP") to raise an intended sum of A$15 million (before costs).

Monday, 6 November 2023, Talga announced a non-underwritten SPP, giving eligible shareholders
the opportunity to apply for up to A$30,000 worth of Shares ("New Shares") without incurring
brokerage or transaction costs.

The issue price of the New Shares under the SPP is A$1.00 per New
Share ("Issue Price").

Proceeds from the SPP will be used to progress critical path development activities for the Vittangi Anode Project, including Refinery site establishment costs, and general working capital.

Looking to be cash hungry after this as well...

 

[Dona Ferentes]

is it 400 million they need, to get the plant up and running? Tricky game, lining up debt.

- SPP opens and dispatch of SPP Booklet Monday, 6 November 2023
- SPP closes (5:00pm (AWST)) Friday, 24 November 2023

 

[frugal.rock]

Proceeds from the SPP will be used to progress critical path development activities for the Vittangi Anode Project, including Refinery site establishment costs, and general working capital

is it 400 million they need, to get the plant up and running? Tricky game, lining up debt

Sounds like they need site fencing and director's fees...