Hi Bosto According to Talga's DFS release back in July 2021, the...

Hi Bosto

According to Talga's DFS release back in July 2021, the cost of the project was US484m.



The Euro to USD exchange rate is just above parity, so today's 300 million Euro announcement equates to $309m USD (if Talga get the full amount, which is not guaranteed).

Therefore, Talga needs to secure another USD$200m to build the project. However, MT has stated in the investor webinar that due to inflation and supply chain issues (which is impacting all projects), the cost of the project has gone up. He hasn't stated by exactly how much, but the work Talga did in the FEED (Front End Engineering Design) and Value Engineering that was completed a few months ago has optimised the build and found some significant savings, limiting the capex increase. Therefore, it would be realistic to expect the cost to build the project may be over USD$500m.




Remember that Talga is aiming to secure 60% of its funding via debt providers, of which the EIB today is just one. Talga still have Letter of Intent (LOIs) with the Swedish Export Credit Agency (SEK), Swiss Export Risk Insurance (SERV), Nordic Investment Bank etc. Therefore, there is plenty of additional debt funding deals that can be announced on that front.




The 40% Equity component is planned to come from a JV with Mitsui AND/OR other 'strategic partners' taking a stake in the project. As per the screen shot below from one of Talga's investor presentations, there is clearly a few Auto OEMs sniffing around who would love to get a strategic stake in Talga to secure their anode supply chain.