TLG Discussion 2022

[cosors]

Is this what you're looking for?

Not quite, but interesting! Thank you.
I think the matter has already been resolved. It was an employee in the interview who made that statement and the article was behind a PW that I could read at the time, and is now no longer available.

As an explanation - at the time, a friend with a Spanish payment option had paid for me the subscription for me. This is no longer possible. In addition, this back then special media area has been cancelled. That's why I can't find the article again.

 

[blondeaussie]

Not quite, but interesting! Thank you.
I think the matter has already been resolved. It was an employee in the interview who made that statement and the article was behind a PW that I could read at the time, and is now no longer available.invmm

Not quite, but interesting! Thank you.
I think the matter has already been resolved. It was an employee in the interview who made that statement and the article was behind a PW that I could read at the time, and is now no longer available.

Once they have the detailed plan and the mining concession appeals rejected, they could theoretically start producing for a niche market through the pilot plant while construction is underway. Not sure on output and viability due to transport costs. For the right customer I'm sure it wouldn't be a problem.

 

[Semmel]

While we wait on the YouTube version of the webinar, here is what @Gvan wrote on HC. Thx GVan!!

For those that missed the live webinar and have to wait for the upload:

Highlights from the webinar, Mark confirmed that Talga was apart of the CRM financing subgroup meeting on the 10th of April:

“Yes, when I was over there. After the decision, our team was already heavily involved, but yes we were present at the subgroup meeting and have been a close part and have also had private meetings, of course. We’re deeply involved.”

“That’s under negotiation right now. We’ve been in meetings recently. We’ve expressed what we like and what we want. They are contemplating that, and we’re having meetings with them and there are different aspects, which range from outright grant funding, to co-funding the private equity, all the way through to building strategic stock-piles and getting involved in offtake type work. Those negations are underway and I must point out that for strategic projects, they are customised per project. There is no one size fits all, like everyone is going to get a pool of a part a billions of dollars, its actually customised.”


Mark on whether this CRMA financial support will align with Talga’s FID timeline:

“The timing is working out fine. By the time that’s done, you’ll have your full permitting on the mine site done and offtakes in place, it should all come together at the right time. Certainly, there’s a really strong interest, our project is one of the more advanced, dare I say, poster children of critical raw material projects in Europe. So, it’s looking good for us getting the sort of support we want.”


Mark dropped some breadcrumbs when talking about conference meetings. They’re chosen when the company can kill two birds with one stone (conference + potential customer meetings/networking):

Recently in a conference in Italy: “Well, we were meeting with, who was there? CATL, the world’s largest battery maker, Italian battery maker FAAM, ACC, Ferrari, Verkor, Li-VEco, customers, investment partners. That’s why we’re there. We usually have meetings with them there at their facilities or we’re visiting something….We don’t usually do something from a pure promote point of view, it’s usually carefully crafted by our comms team and for commercial purposes.”


Mark also went into detail about Northvolt’s difficulties, and quashed any concerns that Talga will face similar problems with Chinese equipment suppliers:

“No, it’s not a problem. We made an early decision to make anode differently. We wanted really high yields, our material is different and we’ve totally manufactured our downstream process around our mine. We haven’t just squeezed our mine into an existing Chinese process. So, therefore we actually don’t use Chinese equipment at all. Which means we don’t have Chinese software, we don’t have Chinese chips, in the same way that Northvolt did and became a bit of a problem in various ways. By the way, we’re not exposed to Northvolt. For many years we had relations, but were very careful about our situation there. Word on the grapevine, there will be someone taking over that plant (Scania?) and that may be of great interest to us, who takes over that plant and when it goes back into production. No, it’s not a threat to us.

When we have some vehicle companies, and some defence related people come up and audit our place, they go through everything including mining equipment, lab equipment, who’s signing off on calibrating the scales in the lab etc. All has to be from other countries. We use a combination of European and some Asian/Japanese equipment that we developed our own processes for. These are propriety, some of our processes are patented. We use mostly equipment off the shelf, from other vendors used in different industries like food and the pharmaceutical industry... We use the highest quality machinery we get separately and we do not get it from standards Chinese vendors."

 

[anbuck]

Earlier this year, I expressed my pessimism about getting permits finalized in the near term and so far that's been correct, however I am turning more optimistic now. If it's true that the upcoming concession permit appeal will go into immediate legal force, unlike the environment permit, then I think both it as well as the detailed building plan will most likely get taken care of in the next 2-4 months, with some chance of it getting stretched to 6 months, and after that we'll finally be off to the races.

 

[curiousmagpie]

after that we'll finally be off to the races.

how can you compete with this



there will never be enough margin in it for western companies to be competitive AND make profits

 

[Pristine Gaze]

Here is Our analysis on the (Stock ASX:TLG):

PS: It is taken from: https://pristinegaze.com.au/editorial/

Talga Group Limited (ASX: TLG)​

ASX: TLG​

Talga Group Ltd. engages in the provision of graphene and graphite enhanced products for the global coatings, battery, construction and polymer composites markets. It operates through the following segments: Graphite Exploration, Graphite Development; and Research and Development. The company was founded on July 21, 2009, and is headquartered in West Perth, Australia.

Stock Performance Profile:​

(Source: TradingView) One-Year Performance Profile of TLG compared to ASX 200.

From the company reports:​

Talga Group Limited (ASX: TLG) recently reported its financial and operational performance for the quarter ending 31 December 2024.
A key milestone was the formal approval of the Environmental and Natura 2000 permit for the Nunasvaara South graphite mine, following the dismissal of all appeals by the Swedish Supreme Court.
Additionally, the Swedish Mining Inspectorate granted the exploitation concession for the project, further advancing its development.
The company’s Lulea Anode Refinery received a €70 million grant from the EU Innovation Fund, underscoring its technological innovation and strategic role in Europe’s energy transition.
As of 31 December 2024, Talga maintained a cash balance of $18.1 million, providing financial stability to support ongoing initiatives.

5-Year Financial Snapshot:​

(Graphic Source: TradingView)
Talga Group has significantly expanded its asset base in recent years, with total assets rising from $8.81 million in 2020 to $46 million in 2024. Meanwhile, liability growth has remained relatively modest, increasing from $1.57 million to $5.87 million over the same period. This favorable balance sheet development has led to a substantial improvement in book value for shareholders. Consequently, the company’s book value per share has grown from $0.03 in 2020 to $0.11 in 2024, enhancing the margin of safety for investors and strengthening the company’s financial stability.

Core Competencies:​

(Graphic Source: Company Reports)
Talga Group maintains a strong mineral resource base, holding the largest and highest-grade natural graphite deposits in Europe, totaling approximately 70.8 million tonnes. The asset is fully owned by Talga, reinforcing its strategic advantage in the sector. The company’s flagship Vittangi Project in Sweden benefits from favorable operational conditions, including low-cost production supported by a renewable power grid and well-developed infrastructure. Additionally, a significant portion of the resources fall under the indicated category, enhancing confidence in the project’s scalability. Talga’s strategic collaborations with leading industry players such as ABB and Worley, alongside financial backing from institutions like the European Investment Bank (EIB), further bolster its long-term growth prospects.

Global Macroeconomic Tailwinds:​

(Graphic Source: Pristine Gaze)
The recent imposition of 10% import tariffs by the U.S. on Chinese goods following Donald Trump’s return to office underscores the potential for escalating trade tensions between the two nations. In response, China has implemented similar tariffs on select U.S. agricultural products, signaling a broader trade conflict. Given that China dominates natural graphite production with a 77% global market share, this trade friction highlights the global reliance on Chinese supply. However, with increasing demand for natural graphite across multiple industries—including electric vehicles (EVs), energy storage systems, and nuclear power—Talga Group is well-positioned to benefit as a major non-Chinese graphite producer. This geopolitical shift could create substantial opportunities for the company to expand its market presence in both the U.S. and Europe, strengthening its role as a key supplier in the global graphite industry.

Outlook:​

(Graphic Source: Company Reports)
The battery market continues to experience substantial growth, with annual sales forecasts consistently revised upward. Talga Group has established its financial foundations while advancing key scoping studies and progressing Front-End Engineering Design (FEED) studies, marking the initiation of critical development activities for its primary project. On the product innovation front, the company has achieved notable advancements in graphite anode recycling with its Talnode-C Recycled Series. Recent testing has demonstrated high purity and capacity metrics for recycled graphite, aligning with increasing environmental considerations in battery production. The potential commercialization of this recycled anode product presents a significant opportunity for Talga to enhance its market presence.

Risk Analysis:​

Talga Group faces risks associated with the development and commercialization of its battery anode materials and graphene products. The company is exposed to fluctuating commodity prices, particularly graphite, which could impact profitability. Delays in project development, regulatory approvals, or securing offtake agreements pose financial and operational risks.

Technical Analysis:​

(Graphic Source: TradingView) Talga Group Limited (ASX: TLG) Weekly Time-Frame (WTF) Chart.
Talga has recently broken above its 14-day EMA, indicating a potential shift towards a bullish uptrend. Additionally, the stock maintains strong support around $0.43, aligning with its nearest Fibonacci retracement level, which helps mitigate downside risk for investors. The RSI stands at 51, suggesting a balanced momentum with a bullish bias over the mid-term.

Analyst’s Take:​

Talga is making significant progress toward the commercialization of its high-grade natural graphite project in Sweden. With strong global demand tailwinds, particularly from the U.S. and Europe, the company is well-positioned to capitalize on supply constraints in the graphite market. Its large-scale resource base and substantial ore reserves provide both immediate production potential and long-term scalability. Additionally, macroeconomic trends favoring localized supply chains and reduced dependence on China could enhance Talga’s market positioning. The company’s strategic focus on vertical integration, R&D, and product innovation further strengthens its competitive edge, potentially driving substantial shareholder value in the coming years.
As per Pristine Gaze, you may consider a “Buy” on “Talga Group Limited” at the closing price of “$0.495” (As of 4 February 2025).

*All currency figures are in Australian Dollars unless stated otherwise.
*All data sourced from Company Reports and TradingView.

 

[curiousmagpie]

Here is Our analysis on the (Stock ASX:TLG):

PS: It is taken from: https://pristinegaze.com.au/editorial/

Talga Group Limited (ASX: TLG)​

ASX: TLG​

Talga Group Ltd. engages in the provision of graphene and graphite enhanced products for the global coatings, battery, construction and polymer composites markets. It operates through the following segments: Graphite Exploration, Graphite Development; and Research and Development. The company was founded on July 21, 2009, and is headquartered in West Perth, Australia.

Stock Performance Profile:​

(Source: TradingView) One-Year Performance Profile of TLG compared to ASX 200.

From the company reports:​

Talga Group Limited (ASX: TLG) recently reported its financial and operational performance for the quarter ending 31 December 2024.
A key milestone was the formal approval of the Environmental and Natura 2000 permit for the Nunasvaara South graphite mine, following the dismissal of all appeals by the Swedish Supreme Court.
Additionally, the Swedish Mining Inspectorate granted the exploitation concession for the project, further advancing its development.
The company’s Lulea Anode Refinery received a €70 million grant from the EU Innovation Fund, underscoring its technological innovation and strategic role in Europe’s energy transition.
As of 31 December 2024, Talga maintained a cash balance of $18.1 million, providing financial stability to support ongoing initiatives.

5-Year Financial Snapshot:​

(Graphic Source: TradingView)
Talga Group has significantly expanded its asset base in recent years, with total assets rising from $8.81 million in 2020 to $46 million in 2024. Meanwhile, liability growth has remained relatively modest, increasing from $1.57 million to $5.87 million over the same period. This favorable balance sheet development has led to a substantial improvement in book value for shareholders. Consequently, the company’s book value per share has grown from $0.03 in 2020 to $0.11 in 2024, enhancing the margin of safety for investors and strengthening the company’s financial stability.

Core Competencies:​

(Graphic Source: Company Reports)
Talga Group maintains a strong mineral resource base, holding the largest and highest-grade natural graphite deposits in Europe, totaling approximately 70.8 million tonnes. The asset is fully owned by Talga, reinforcing its strategic advantage in the sector. The company’s flagship Vittangi Project in Sweden benefits from favorable operational conditions, including low-cost production supported by a renewable power grid and well-developed infrastructure. Additionally, a significant portion of the resources fall under the indicated category, enhancing confidence in the project’s scalability. Talga’s strategic collaborations with leading industry players such as ABB and Worley, alongside financial backing from institutions like the European Investment Bank (EIB), further bolster its long-term growth prospects.

Global Macroeconomic Tailwinds:​

(Graphic Source: Pristine Gaze)
The recent imposition of 10% import tariffs by the U.S. on Chinese goods following Donald Trump’s return to office underscores the potential for escalating trade tensions between the two nations. In response, China has implemented similar tariffs on select U.S. agricultural products, signaling a broader trade conflict. Given that China dominates natural graphite production with a 77% global market share, this trade friction highlights the global reliance on Chinese supply. However, with increasing demand for natural graphite across multiple industries—including electric vehicles (EVs), energy storage systems, and nuclear power—Talga Group is well-positioned to benefit as a major non-Chinese graphite producer. This geopolitical shift could create substantial opportunities for the company to expand its market presence in both the U.S. and Europe, strengthening its role as a key supplier in the global graphite industry.

Outlook:​

(Graphic Source: Company Reports)
The battery market continues to experience substantial growth, with annual sales forecasts consistently revised upward. Talga Group has established its financial foundations while advancing key scoping studies and progressing Front-End Engineering Design (FEED) studies, marking the initiation of critical development activities for its primary project. On the product innovation front, the company has achieved notable advancements in graphite anode recycling with its Talnode-C Recycled Series. Recent testing has demonstrated high purity and capacity metrics for recycled graphite, aligning with increasing environmental considerations in battery production. The potential commercialization of this recycled anode product presents a significant opportunity for Talga to enhance its market presence.

Risk Analysis:​

Talga Group faces risks associated with the development and commercialization of its battery anode materials and graphene products. The company is exposed to fluctuating commodity prices, particularly graphite, which could impact profitability. Delays in project development, regulatory approvals, or securing offtake agreements pose financial and operational risks.

Technical Analysis:​

(Graphic Source: TradingView) Talga Group Limited (ASX: TLG) Weekly Time-Frame (WTF) Chart.
Talga has recently broken above its 14-day EMA, indicating a potential shift towards a bullish uptrend. Additionally, the stock maintains strong support around $0.43, aligning with its nearest Fibonacci retracement level, which helps mitigate downside risk for investors. The RSI stands at 51, suggesting a balanced momentum with a bullish bias over the mid-term.

Analyst’s Take:​

Talga is making significant progress toward the commercialization of its high-grade natural graphite project in Sweden. With strong global demand tailwinds, particularly from the U.S. and Europe, the company is well-positioned to capitalize on supply constraints in the graphite market. Its large-scale resource base and substantial ore reserves provide both immediate production potential and long-term scalability. Additionally, macroeconomic trends favoring localized supply chains and reduced dependence on China could enhance Talga’s market positioning. The company’s strategic focus on vertical integration, R&D, and product innovation further strengthens its competitive edge, potentially driving substantial shareholder value in the coming years.
As per Pristine Gaze, you may consider a “Buy” on “Talga Group Limited” at the closing price of “$0.495” (As of 4 February 2025).

*All currency figures are in Australian Dollars unless stated otherwise.
*All data sourced from Company Reports and TradingView.

so recommendation was to sell today yeah?

 

[Pharvest]

Sure you're a magpie? Seems to me you're a fucken goose.

 

[curiousmagpie]

Sure you're a magpie? Seems to me you're a fucken goose.

a goose that has consistently proved to be correct

 

[ACinEur]

OFFTAKE !!!!!

 

[ACinEur]

Details…

 

[Tim]

"That aside, I really want to see a concrete offtake/supply agreement to be put at ease and know these customers mean business." - Me in the other thread last week.

Great timing haha!

Not even concerned that it's a small one.
What's more important to me is this demonstrably proves the plan has legs. Congrats to Talga for achieving this Milestone.

 

[Tim]

In addition, we got an update on The Orb in the last webinar, confirming the Orb is safe, that shareholders may one day be able to see it, and that shareholders may have an opportunity to own a miniature Orb. Fantastic.

Before every webinar I request an update, sometimes it's addressed and sometimes we hear nothing. But I'm never discouraged, for I know Talga understands the long term mission. There is a real possibility that one day, if the company has done well, I will fly to Perth to see the Orb. Possibly even lick it. I know that must sound absurd, but you can't tell me that a smooth polished hexagon face of graphite doesn't tempt you. Look in your heart of hearts and you will see.

 

[Monkeymandan]

Let’s go Talga! Maybe my marriage stands a chance after all…

 

[JNRB]

Congrats everyone, great news!

 

[Semmel]

Whooo, a binding offtake finally!

Ok, lets unpack! First read it yourself... ok, with that out of the way, lets get to the details.

Financials/Talga survival

We have an offtake of 3000t over 4 years. That is, on average 750t per year, but probably has a ramp to it. The announcement sais we will initially supply this offtake from the EVA plant and as the factory ramps, increase the volume. This tells me that the majority of the volume comes at the end. We dont have clear information on the capacity of the EVA plant, but I suspect its not more than 2-3% of the factory. i.e. about 500t per year at best. And its not going to be particularly profitable. BUT, as we already build the facility and we need to operate it anyway to supply samples for testing our product, its safe to say that the additional cost of running it for commercial use is lower than the customer would pay for the product. i.e. its a net win for Talga.

Say we sell 500t per year for the time being. We dont get pricing information, so lets guess its a generous $10k per t. I hope its more but I fear is closer to $8k/t (thats US $). In any case, assume 10k/t, which would make us $5M per year initially. Or.. 1.25m USD per quarter. That translates to 1.9M AUD per quarter. Looking at the last QR, that accounts for roughly 1/3 of the running cost of Talga. Not enough to survive, but enough to get through 2 more quarters before the funds run out. That is, if Talga receives funds immediately.

Convenienltly, the announcement specifically names the date where this offtake stars. i.e. Yesterday, 13.5.2025. I assume that piece of information is there to help us piece together that the above scenario is indeed in the cards. Meaning we are in the process of delivering stockpiled product from the EVA plant and will receive payment before we run out of cash. If we are lucky, we have enough to supply the full first year of product, i.e. 500t and receive the full 5M USD within a few months. However, full speculation/whishful thinking on this one. In any case, it seems Talga will survive the next 1 or 2 quarters without a CR and .. knowing this contract is going forwards, it is the primary reason why they didnt do a CR. Good job Talga!

Technology/Product

So, Nyobolt is a company targeting fast charging applications. If THEY are willing to use Talnode-C, this is the biggest and best indication of the quality of our product. Seriously, we had nothing but positive news about Talnode-C but the lack of customers made me thinking that there is a crocodile lurking in the swamp somewhere. With Nyobolt now going for it, its the best and most visible Acknowledgement we can have. Very cool!