TLG Ann: Talga battery anode project receives EIB finance approval - 20th Jun 2023, 8:23am

annb0t

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TLG Ann: Talga battery anode project receives EIB finance approval
Price Sensitive: Y
Date: 20th Jun 2023, 8:23am

>>> Read announcement: Google: TLG Market Announcements
 
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Cart before Horse ?

But I'm happy

Happy Bbc Earth GIF by BBC America
 
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TentCity

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Cart before Horse ?

But I'm happy

Happy Bbc Earth GIF by BBC America
Yep, i'm just hoping this isn't the nice positive announcement snuck out just prior to leave to appeal is granted on the mine permitting to keep our spirits up.

Irrespectively, great confirmation that the EIB is on board and adds further strength and weight to Talga's importance to the EU's decarbonisation agenda and ability to negotiate further finance/offtake deals on a more solid footing.
 
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ACinEur

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Nice corner stone debt, should allow other providers to have comfort and may be the box needed to get them on board. Would have preferred to see the permits resolved first…but may well help put pressure on to get these done…
 
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catdog

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Yep, i'm just hoping this isn't the nice positive announcement snuck out just prior to leave to appeal is granted on the mine permitting to keep our spirits up.

Irrespectively, great confirmation that the EIB is on board and adds further strength and weight to Talga's importance to the EU's decarbonisation agenda and ability to negotiate further finance/offtake deals on a more solid footing.
I'm hoping the same thing too.

I had a look at Botnia Exploration's experience with the permit process. They were the first new mine to be permitted in Sweden in 10 years.

The Court of Appeal made a ruling in December 2020 to grant the permit, and the Nature Conservation Society (who are involved in our permit case as well) appealed to the Supreme Court. It took until October 2021 for the Supreme Court to decide that no leave to appeal should be granted.

A total of 10 months from the Court of Appeal's ruling for the permit to actually gain force.

I'm not 100% sure if their case is anything to go off as I can't find much detail, but if the Court of Appeal grant leave to appeal and then it's appealed to the Supreme Court we could be looking at another 12 - 18 months for the permit to gain foce.

That would seriously delay Talga's plans as they want to start mining this year.
 
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We got a little bit of a write up in The Australian this morning

40 MINUTES AGO

Talga secures $239m European bank loan​

Valerina Changarathil

VALERINA CHANGARATHIL
WA battery materials company Talga Group says the European Investment Bank board has approved €150m ($239m) senior debt funding to underpin its Vittangi graphite anode project in Sweden.
The project will use renewable electricity to produce an initial 19,500 tonnes per year of green anode for lithium-ion batteries from an integrated mine and anode refinery operation in northern Sweden.
Talga is targeting project debt gearing of up to 60 per cent and the EIB’s financing, subject to final negotiations, will form part of the debt financing package being finalised with multiple leading export credit agencies, commercial banks and international financial institutions.
Talga managing director Mark Thompson said the EIB approval represents "a key milestone… cornerstoning our debt financing package and affirming the underlying strength of our business and capabilities to produce world-class critical battery materials in Europe". Shares in Talga last at $1.29.
 
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anbuck

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I'm hoping the same thing too.

I had a look at Botnia Exploration's experience with the permit process. They were the first new mine to be permitted in Sweden in 10 years.

The Court of Appeal made a ruling in December 2020 to grant the permit, and the Nature Conservation Society (who are involved in our permit case as well) appealed to the Supreme Court. It took until October 2021 for the Supreme Court to decide that no leave to appeal should be granted.

A total of 10 months from the Court of Appeal's ruling for the permit to actually gain force.

I'm not 100% sure if their case is anything to go off as I can't find much detail, but if the Court of Appeal grant leave to appeal and then it's appealed to the Supreme Court we could be looking at another 12 - 18 months for the permit to gain foce.

That would seriously delay Talga's plans as they want to start mining this year.
I was trying to look into the timing of that case previously, but could only find news articles about the final supreme court ruling. Where did you find the other info?
 
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anbuck

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catdog

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What I had previously found indicated that it would only take a month for the Supreme Court to rule on leave to appeal, so it'd be interesting to understand what was happening during those ten months in the Botnia case.


https://www.domstol.se/en/supreme-court/about-proceedings/appeals-and-leave-to-appeal/
Yeah I have no idea why it took so long. All I could find was this article from Svemin - https://www.svemin.se/en/news/news/green-light-for-swedens-first-new-mine-in-10-years/

Article is from 06/10/2021 and says:

On Wednesday, Botnia Exploration was informed by the Supreme Court that no leave to appeal was granted on the Swedish Society for Nature Conservation’s appeal. Thus, the Land and Environmental Court of Appeal’s ruling from December 2020 gains legal force and Sweden’s first new mine in over ten years can thus start operations.

So that's 10 months from the Court of Appeals ruling to the Supreme Court declining leave to appeal.
 
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brewm0re

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Thanks Cat Dog and Anbuck for that info. Great to know that we have feedstock awaiting from the trial mine for the refinery to churn out anodes. Here’s hoping/anticipating a positive solid outcome tomorrow and appeals won’t drag out for the Lulea refinery permit. MT indicating that should be quicker, being a ‘different kettle of fish’.
 
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Semmel

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So we now have good chances to gain funding from other banks. I think the EIB is leading the pack and we will see one or two more players enter the credit rounds within 2 months. :)

I don't think we will get all that is required, so we might need to finance 30% or do by project equity. Not Talga shares, project shares. At least that is what Mark said in the past.

Let's hope the factory permit and appeals process resolution will light a bigger fire under talgas share price.
 
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cosors

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My thought was immediately the EIB calls Talga on the 14th and the 15th and and. And then she calls the court: what's the situation, we've been standing over the buzzer here since the 14th, at least give us an indication if there's a showstopper.

MT words I have nothing to add. We should look at it positively. As noted, the warehouse is full of material to start up.

The EU is going ahead - though not as much as hoped - making the decision easier for the others. Besides the Nordic ones, there's also the Swiss thing. Just comes to mind that this may be the reason that Talga is now also listed in Switzerland.

And do I understand it correctly that this is first the template of the EU and that will be finalized when the financing with the other banks is approved? So the EIB keeps the option open to bridge a possible gap at the end and give more if the required amount is not met?

Whatever. For the time being, I take a very positive view and stick to MT's words. It is an important milestone and now it can go into the execution phase.

Who of us expected money before the decision of the court?

To me it feels like there is no showstopper but things that can be handled. But the whole funding thing is not my spot so all just my feeling.

The other issue with Botnia: I wouldn't try to draw comparisons. Every case I heard about was unique. And Talga is the first case ever that fits into Sweden's new role of responsibility for green transition.
The howls about Kallak are still loud. But this is about the new green Tec.

What do you think of the wording? Is the EU fulfilling its role and rounding out the package if something is still missing? They have enough money.

___
In addition, there is the end of the fiscal year and the shorts are also still in the room. Good ann.
 
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Semmel

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When is tax loss selling season usually over? I guess its soonish, isnt it? Like end of June or a few days before? The week of 26th might be where buying pressure returns more than it is today.

Though having said that.. it appears the market is very careful and conservative. I expect the share price to react to certainty in the offtakes much more than anything else. Once we have an official number on our sell price and volume, and analysts can accurately compute future earnings, its going to give the stock a lot of fire. At moment, the Talnode-C sell price and therefore the valuation of TLG is very uncertain. But once we get our product price confirmed with inc on a piece of paper, its gonna be mountain climbing season, not some small boulders.

Anyway, very glad with this announcement. It came earlier than I expected. I thought the EIB wants to see the permits being finalized first. At least.. the factory permits. I dont think they care much about the appeals. Now its time for other financial institutions to get moving :)
 
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Tax loss selling finishes Friday 30 June
 
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Semmel

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So buying pressure comes back the week after?
 
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Monkeymandan

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Here’s the Environmental and Social Data Sheet from the EIB assessment.

It looks like they did make the funding determination despite the fact the permit appeal process is pending. I suppose it’s still possible they have some inside intel, but I think the granted permit was sufficient for them to press go, given the critical nature of the project.

It talks at length about impact on the Reindeer herders and references the ongoing appeal, but clearly they are aligned with the Environmental Court’s initial judgement and see the ways in which Talga has bent over backwards, and continues to do so, to mitigate the impacts on Reindeer husbandry.
 

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cosors

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Here’s the Environmental and Social Data Sheet from the EIB assessment.

It looks like they did make the funding determination despite the fact the permit appeal process is pending. I suppose it’s still possible they have some inside intel, but I think the granted permit was sufficient for them to press go, given the critical nature of the project.

It talks at length about impact on the Reindeer herders and references the ongoing appeal, but clearly they are aligned with the Environmental Court’s initial judgement and see the ways in which Talga has bent over backwards, and continues to do so, to mitigate the impacts on Reindeer husbandry.
Thank you for this insightful document! I will read it in full this weekend. What I saw on the quick shows me that they have evaluated the case neutrally and without weighting for one aspect. Thanks again!
 
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Tim

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Anyone with theories for why we haven't heard a verdict on the appeals?
 
Anyone with theories for why we haven't heard a verdict on the appeals?
I'm not usually into conspiracies but I did like the one over at HC that the Mining Decision is being held up deliberately until the Refinery appeal period 21 June plus 21 days (12 July) is over to starve the Antis of any new possible angle to appeal the Refinery permit.

But that involves internal judicial collusion at a minimum so I doubt it
 
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