Ann: Talga Supersizes Graphite Amid Booming Battery Anode Demand, page-62

Yep and as Mark outlined in the recent Rho Motion webinar, customers who wouldn’t pick up the phone 2 years ago are now ironically chasing Talga for potential supply! Mark also mentioned that just in the last few weeks, the urgency around raw materials supply has increased.

I think the additional drilling serves three main purposes:

1) Prove up the scale of the resource to give confidence to JV partners like Mitsui who prefer to invest long term (multi-decade) analogous to what the Japanese have done with iron ore in Australia.
2) Provide the drilling data to verify the scale, grade, depth etc of the resource to guide LKAB in terms of designing the optimal underground drill plan for large-scale production.
3) Prove to potential OEM/Battery Cell manufacturers that Talga has the resource size to not only sign long term offtakes, but potentially facilitate a direct investment in the business. I’m specifically looking at VW/NV here!

I’m sure there are many other reasons Mark is pursuing the drilling, but anyway you look at it, it suggests he is bullish on their ability to scale up the operation to levels that will make us shareholders very happy and wealthy indeed!