TLG Ann: ACC and Talga sign non-binding Offtake for 60kt Anode Supply - 27th Sep 2022, 9:27am

[Diogenese]

I have the feeling, the current runup is at least partly related to the expected binding offtake with ACC. I read the Announcement again and there is one sentence that I dont quite understand its meaning.



Ok, what exactly does this mean if anything? If they make a non-binding contract, but have a "legally binding obligation" to sign a binding offtake by end of this month, how is this not already a binding offtake? Why the snake-around? Or does this only apply to the DD part? In which case, how to you legally force someone to make an honest investigation? I am a bit confused.

Hi Semmel,

Before they sign the binding offtake, they must use "normal" (commercially reasonable) efforts to complete due diligence. Of course, if the DD is unsatisfactory, the deal is off.

 

[Semmel]

Ahh ok, it only applies to the DD part then. Good. Seems kind of redundent to me, since the entire purpose of the contract is to do the DD. But maybe legal speak makes it necessary.

 

[Diogenese]

Ahh ok, it only applies to the DD part then. Good. Seems kind of redundent to me, since the entire purpose of the contract is to do the DD. But maybe legal speak makes it necessary.

Because of the "and", it may be read as requiring the signing of the offtake if the DD is satisfactory.

 

[ACinEur]

My take is that the sentence is there to effectively say…’we have a broad agreement’ we just need the legal / commercial teams to finalise the details… I’ve seen similar wording in contracts in my professional life (not mining) So unless there is some unexpected show stopper that no one has thought of IMO this will get signed as a Binding Offtake…

 

[WheresTheMonkey]

Still waiting for binding agreement...........................

 

[BigDog]

I’d suggest we will o

Still waiting for binding agreement...........................

I’d suggest we will be yawning for no more than 7 days, morning of AGM.

If nothing drops by then we’ll see a delay out until March however my hunch is we will be happy in a week’s time.

 

[Semmel]

I dont wan to be a party pooper, but Ill believe it when I see it. Not getting excited for this yet due to past experiences.

 

[WheresTheMonkey]

I dont wan to be a party pooper, but Ill believe it when I see it. Not getting excited for this yet due to past experiences.

 

[WheresTheMonkey]

Hi Semmel,

Before they sign the binding offtake, they must use "normal" (commercially reasonable) efforts to complete due diligence. Of course, if the DD is unsatisfactory, the deal is off.

The DD would have been unsatisfactory if the qualified "going concern" audit report (which is about as bad as you can get from an auditor) had not been addressed by the $30M capital raise.

As a chartered accountant I'd actually like to know why the possibility of a qualified "going concern" audit report was not foreseen months ago. That's "asleep at the wheel" stuff for a ASX listed Chief Financial Officer who is supposed to be well aware and anticipating any auditor concerns in advance .

It's certainly not a career highlight for her. A bit of a mis-step.

The CR should have been undertaken in April/May/June/July before the report was even prepared. Perhaps MT decided to accept a bad audit report rather than raise in that period. Obviously speculation on my part.

 

[Semmel]

The DD would have been unsatisfactory if the qualified "going concern" audit report (which is about as bad as you can get from an auditor) had not been addressed by the $30M capital raise.

As a chartered accountant I'd actually like to know why the possibility of a qualified "going concern" audit report was not foreseen months ago. That's "asleep at the wheel" stuff for a ASX listed Chief Financial Officer who is supposed to be well aware and anticipating any auditor concerns in advance .

It's certainly not a career highlight for her. A bit of a mis-step.

The CR should have been undertaken in April/May/June/July before the report was even prepared. Perhaps MT decided to accept a bad audit report rather than raise in that period. Obviously speculation on my part.

Can you specify where you found the 'going concern' statement? I mean, we knew months ago that talga is not flush with money. I (a financial noob) have voiced the opinion that talga needs to cut all non essential activities to survive the current economic winter without a CR. I asked mark at the previous quarterly how Talga plans to address the finances. It's bloody obvious that a something had to be done. Maybe they were hoping for more favorable market conditions? Probably.. but who knows?

 

[WheresTheMonkey]

Can you specify where you found the 'going concern' statement? I mean, we knew months ago that talga is not flush with money. I (a financial noob) have voiced the opinion that talga needs to cut all non essential activities to survive the current economic winter without a CR. I asked mark at the previous quarterly how Talga plans to address the finances. It's bloody obvious that a something had to be done. Maybe they were hoping for more favorable market conditions? Probably.. but who knows?

Ask and you shall receive. Page 113 of the Annual Report

 

[Semmel]

Ask and you shall receive. Page 113 of the Annual Report

Ohh wow, you really need to know what to look for.. Thx for digging this out!

 

[WheresTheMonkey]

 

[Vigdorian]

Resource upgrade tomorrow ! I’m 30% sure.

 

[WheresTheMonkey]

Resource upgrade tomorrow ! I’m 30% sure.

There needs to be an announcement on ACC tomorrow or MT's credibility on deadlines will take another hit. Either a binding offtake or a very short extension of negotiations.

Hard to determine what might be the delay when it's already been disclosed as a floating price.

 

[scep]

A possible contract would be in signed in an European timezone. About 10 hours to go before exchanges close. Nevertheless, yes, it is exciting GLTA

 

[Diogenese]

 

[Semmel]

Feels like ground hog day..

 

[Diogenese]

Feels like ground hog day..

What's the world record for holding one's breath?

 

[cosors]

A possible contract would be in signed in an European timezone. About 10 hours to go before exchanges close. Nevertheless, yes, it is exciting GLTA

It's the 29th here so nothing is likely to happen here today. Tomorrow is another day.) I'll keep my fingers crossed for all of us.