Very timely announcement from Mark and team just as there was starting to be a few jitters with the higher volume selling for no apparent reason earlier this week.
I would like to check with management what factors outside of the company’s direct remit is preventing them reaching net zero emissions. I suspect they couldn’t speak to this directly (due to JV negotiations), but given the rapid advancements LKAB are making in underground mining and electrification of their mining fleet, this will be positive as well given Mark’s comments about the amazing synergies between LKAB’s Kiruna operations & Talga’s proposed graphite mining operations.
Mark provided almost a bakers dozen worth of breadcrumbs in the announcement specifically highlighting this LCA aligns to German automakers standards and VW’s commitment to carbon neutrality for the entire life cycle of its EV vehicles. A few of us on here have speculated that a deal with NV/VW could eventuate given his previous cryptic posts on Twitter, but the messaging in formal announcements is now becoming more bold, signalling his confidence that a deal will likely be done.
The incredible part is they now have active negations/qualification processes in place with 11 auto OEMs! So, whilst i believe a deal with an auto company is the key catalysts to truly re-rate the share price, that will just be the beginning and the market truly does not understand how big Talga can be.
There was a comment earlier in the thread about how VUL is well placed due to its Zero Carbon status and dual revenue stream. However, it is worth highlighting that TLG will have a least 3 revenue streams:
1) Talnode C
2) Talnode Si
3) Graphene
The very clever team at TLG are designing the refinery operations so that Talnode C will be the core product, but they can also produce quantities of Talnode Si and Graphene as co-products, which are far from by-products, but rather, very valuable co-products ensuring operating costs are minimised and profit margins are maximised.
Finally, Talga announced plans to sell its iron ore tenements (possibly to LKAB) in the last quarterly report, but haven’t commented on their Cobalt tenements and future plans. As was highlighted in another thread, NV are pushing for more Cobalt to be mined locally and Vulcan spin-off Kuniko is seeking to acquire more battery metal projects in Scandinavia. So, knowing Mark being the quiet achiever that he is, those tenements present a lot more value than the balance sheet is currently valuing them at and would be very interested if he enters into a JV with a Kuniko or a Glencore etc to develop/mine to potentially supply Zero Carbon Cobalt to Northvolt/VW as well.
Anyway, great announcement today and watching all the institutional funds flood into VUL, I just know as soon as TLG announces its JV financing arrangements and first offtakes, we will see similar gains!
Expand
(20min delay)