TLG News: We're Keeping An Eye On Talga Group's (ASX:TLG) Cash Burn Rate - 22nd Mar 2022, 4:15pm

[annb0t]

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.

So, the natural question for Talga Group (ASX:TLG) shareholders is whether they should be concerned by its rate of cash burn....

>>> Read more: We're Keeping An Eye On Talga Group's (ASX:TLG) Cash Burn Rate

 

[WheresTheMonkey]

I think they might be building an EVA plant which is what the previous capital raise was all about.

Meaning = this cash burn was completely expected

 

[Semmel]

Complete BS article. First, it compares Talga to Amazon. Yeah right. Exactly the same. And then it doesn't even go deep enough to scrape the paint off the surface. Why don't they ask why there was such an increase in cash burn rate? To give you an answer, Talga kitted out an EVA facility. That's where the money went. And they will not continue to kit out EVA facilities in the future. One is enough. So extrapolating the cash burn rate based on a period of time where they bought expensive equipment is just BS. It's going down and talga has much more runway than they calculate. Talga can also stop diamlnd drilling their deposits if push comes to shove. Delaying characterizing their mineral resources to later. Not ideal but would not hurt much. So .. this article lacks basic knowledge of Talga and is not worth the pixels it is occupying on my screen.

WTM was faster ... And less snobby than me

 

[Rayster]

This is a generic article with TLG inserted. The "cash burn" as it says, was to fund an EVA that will generate modest income very soon. I saw someone mention it on HC and it is just ill informed people or scare mongers that would have a concern "cash burn". I don't see TLG needed another generic capital raising again with project financing just around the corner.

 

[BigDog]

Not wanting to repeat what WTM and Semmel have stated in response to this “TLG News” article, but what a load of rubbish it is in its current state. Substantiated facts need to be presented with any “news” article that is worthy of digestion by the readers.

From the way it is written it implies TLG are building multiple EVA plants for the foreseeable future hence cash burn will remain the same.

For those still wondering, the 1 EVA plant that has already been built, meaning cash burn decreases dramatically.

Certainly not saying a cap raise will not be needed sometime into the future, but let’s call beloney beloney when we see it! (I’m a simple person and I do like beloney so no offense to the beloney in the world)

 

[WheresTheMonkey]

Complete BS article. First, it compares Talga to Amazon. Yeah right. Exactly the same. And then it doesn't even go deep enough to scrape the paint off the surface. Why don't they ask why there was such an increase in cash burn rate? To give you an answer, Talga kitted out an EVA facility. That's where the money went. And they will not continue to kit out EVA facilities in the future. One is enough. So extrapolating the cash burn rate based on a period of time where they bought expensive equipment is just BS. It's going down and talga has much more runway than they calculate. Talga can also stop diamlnd drilling their deposits if push comes to shove. Delaying characterizing their mineral resources to later. Not ideal but would not hurt much. So .. this article lacks basic knowledge of Talga and is not worth the pixels it is occupying on my screen.

WTM was faster ... And less snobby than me

Yes you do snob very well .....LOL

 

[TentCity]

Yeah completely expected and zero context in the article why Talga’s cash burn has accelerated, which was of course to build the EV Anode qualification plant, which is officially coming online next week!! This is the final stage of qualification with OEM’s and we have 20+ customers lined up and we can expect offtake deals to follow in the next few months.

Furthermore, throughout Mark’s management of the business for 10+ years, he has consciously minimised dilution so logically he will be pursuing multiple avenues for funding including via EU Green Funds, potential financing via offtakers & of course Mitsui. So, this BS narrative that Talga will do a cap raise to retail shareholders for the full capex of the project is nonsense.

Permits, Offtakes & funding agreement could all occur in the next few months, and we have the cash runway to see some of those catalysts potentially re-rate the stock significant rather than raising $$ at the current share price.

 

[kram]

Personally I wouldn't give this article a second thought .

Just another Simply Wall St generic ''insert stock code here'' copy & paste , complete with colour & bolding . Nothing more than click bait to drive foot traffic in order to keep the advertising $$$ rolling in .

 

[zeeb0t]

Personally I wouldn't give this ''news'' a second thought .

Just another Simply Wall St generic copy & paste , complete with colour & bolding .... ''concerned about the content ? get in touch with us directly'' .
What does concern me is the inaccuracy of the ''information'' & analysis Simply Wall St continually feed to the general public .

Not sure why this ''news'' warranted posting , let alone having a thread devoted to it .

Just fyi it is an automated system that picks up stock news and posts it. The context or mood is not judged.

 

[Semmel]

Just fyi it is an automated system that picks up stock news and posts it. The context or mood is not judged.

I actually like that system. Yes, this article was trash, but I like the aggregation effect and to know what is out there. I personally would never go to yahoo to search for stuff about TLG. We will see how good this works in the future when there are hopefully more articles about talga.

We might as well have been the first human eyes that saw this text. Kind of ironic.. an article made automatically by some mashines picked up automatically by the forum bots and posted here.

 

[FREYR]

Just fyi it is an automated system that picks up stock news and posts it. The context or mood is not judged.

We're all happy you posted it. Comments are really directed against the authors of the article, I think.

 

[FREYR]

I actually like that system. Yes, this article was trash, but I like the aggregation effect and to know what is out there. I personally would never go to yahoo to search for stuff about TLG. We will see how good this works in the future when there are hopefully more articles about talga.

We might as well have been the first human eyes that saw this text. Kind of ironic.. an article made automatically by some mashines picked up automatically by the forum bots and posted here.

Is that for real? You reckon there are no human authors for the article? That sounds like Elon Musk's grave warnings about AI.

 

[kram]

Just fyi it is an automated system that picks up stock news and posts it. The context or mood is not judged.

Noted & thanks , post edited . Pity the bot's aren't fitted with a BS meter .

 

[Semmel]

Is that for real? You reckon there are no human authors for the article? That sounds like Elon Musk's grave warnings about AI.

Yeah, i read it and thought some moron did 0 research on TLG but had the genius idea to write an article anyway. Then it hit me when zeeb0t said it was aggregated automatically.. the text had 0 information in it that wasn't from the recent balance sheet. It wouldn't be hard to code something up that reads balance sheets and spits out texts like this. AI not needed, just a large collection of text fragments that are selected based on balance sheet content.

 

[FREYR]

Yeah, i read it and thought some moron did 0 research on TLG but had the genius idea to write an article anyway. Then it hit me when zeeb0t said it was aggregated automatically.. the text had 0 information in it that wasn't from the recent balance sheet. It wouldn't be hard to code something up that reads balance sheets and spits out texts like this. AI not needed, just a large collection of text fragments that are selected based on balance sheet content.

That's bizarre. I skimmed through it too fast and I never noticed that it was a standard text with the details plugged in for TALGA, all as you say from the last balance sheet. No wonder the quality of scholarly articles has declined.