@WheresTheMonkeyCause a capital raise ain’t gonna happen. As the...

@WheresTheMonkey

Cause a capital raise ain’t gonna happen.

As the largest individual shareholder, you can be rest assured MT will do anything to avoid diluting his headline equity any further.

The purpose of the last capital raise was to fully fund the EVA Plant. The purpose of the EVA Plant is to complete final customer qualification and procurement for binding offtake agreements. These binding offtake agreements will underwrite debt for stage 1.

This will be very very very cheap debt. In fact, the cheapest it has ever been. The European Central Bank currently have negative interest and the EU has set up big slush funds to fight climate change. Talga fits the bill perfectly and MT was on a call just this week with a European Member of Parliament and the European Commissions head of the Raw Materials Unit, talking about the importance of critical raw materials for the electrification revolution!!

Take a look at Lake Resources who are just a Lithium miner in Argentina…their PFS had CAPEX of US$544 million and they received LOIs for funding from the Canadian and UK credit export agencies for up to 70% of the project costs at 1.77%. The LOIs are subject to a DFS, customer contracts and environmental assessments.

Well guess what, Talga need about US$480 million and have a DFS and environmental assessment (LCA). They’re just waiting on customer contracts following the EVA plant output.

LKAB are a key part of the electric circular economy being established in Sweden (Northvolt, Volvo, SSAB, Vattenfal, Scania etc) and have perfect synergies with the mining and raw materials aspect of Talga. I would be very very surprised if they were out.

However, I wouldn’t be surprised at all if Mitsui are out. Talga don’t need their money so what are they bringing? Customers, distribution, manufacturing knowledge? Sounds like Talga has more potential customers than they can poke a stick at (50x demand in the DFS). Distribution? They can just put it on an electric truck down the road to Northvolt or a train over to Germany. Manufacturing? ABB and Swerim have the anode plant sorted.

In terms of customers, it will be a game of musical chairs and the question is who will be left without a chair? (the graphite Tesla might be a giveaway of who one of the contenders is). Let the bidding war begin!

Talga sure is a slow burner but it will explode in a big way and leave everyone very surprised. Well some but not me…the writing is on the wall, you just have to look.