I took a few notes yesterday. Most of it has been covered...

I took a few notes yesterday. Most of it has been covered already but thought I'd add them anway. All in all good update especially around Talnode-Si.

Graphene

- Other Graphene applications are not currently the focus as the fast growth and commercialisation opportunities are in battery materials and additives. I don't think they're too worried about the ship coatings for now. Made a joke about the ships last being seen sailing into the Bermuda Triangle hahaha

Customer qualifications

- In B stage qualification with some groups and some more advanced at C stage

- Made the distinction between qualification and offtakes for graphite v other battery metals such as Lithium. As long as these metals meet a certain purity they can be purchased as a feedstock. This is why there have been offtakes with lithium miners subject to qualification

- Anode is a battery ready product that takes longer as it requires physical testing and qualification for each specific application

ACC Offtake

- Apologized for the delay but said it’s a big contract they need to work through. It’s still active but mentioned ACC are chopping and changing

Talnode Si

- There was a lot of juicy information about Talnode Si and I think the potential size and value of this business is going to surprise everyone. There was a very quiet confidence from MT and I think there's a lot happening behind the scenes at the moment

- They’re currently looking at sites to produce commercial quantities of Talnode-Si

- Using byproduct of Talnode C production to then sell at much higher price point as Talnode Si

- 4680 and NCM811 are a good place for Talnode Si – “if you know what I mean”. More Tesla breadcrumbs?

- In terms of recycling they’re taking black mass from spent batteries to see if they can produce graphene for Talnode Si

- It can’t currently be used for anode/Talnode-C as there are materials in the black mass which affect purity and it would take too much energy to try to purify currently. It would take more energy to purify than to mine and refine graphite so not really worth it

- Sufficient volumes also won’t be there from recycling as there aren’t enough spent batteries and there will also be significant losses from the material that can’t be used

- It could be an option for a graphene framework for the silicon instead of for lithiation

- They could also use graphite from other sources for Talnode Si. The value is in the proprietary processing technology. I believe this is Talga’s secret sauce and why they’re and advanced battery materials company and not just a miner

- Yes they have a mine and can capture the full value chain but doesn’t mean they can’t use other sources of graphite for the Talnode Si which sells at a much higher price point and can still capture a lot of the margin

- This could allow Talga to scale their proprietary process technology into other contents more quickly

- First Talnode Si plant likely in Germany with 2-3 year timeline to start of production. Looking to finish internal feasibility study to prove up numbers and need a customer to underwrite demand for the plant.

- Reasons for Germany would be multi-various (i.e. this is where the customer/s are, and current location of pilot plant)

- Have had customers coming through checking it out. I get the feeling there’s someone pretty serious if they’re fast tracking commercialisation and builiding out the feasibility studies

- This is a scalable way of going to production as thousands of tonnes can be produced around the world with the production technology they have

Permits

- Could be 6-8 weeks for decision following the 23^rd February. Will get the decision date on the 23^rd of February

Funding

- $300 million euros from EIB seems pretty advanced

- Also quite an advanced stage with other financiers, Nordic Investment Bank, Swiss Export Credit agency etc they are also the financiers for some of Talga’s customers

- Majority of the project financing will be debt

- There will be a gap for equity but looking at different formats for this not just headline stock

- My guess is likely project equity from a cornerstone customer. We know many of the OEMs have expressed an interest in investing down the value chain to the miners/materials companies

What percentage of the companies are serious in anofftake agreement?

- Probably only room for 2 or 3 customers based on current plans

- More with potential expansions

- Different customers are at different stages. A matter of time of when they come in and will be first in best dressed

Average time to qualify an anode material

- Most OEMs are at capacity for testing and have been asking Talga to build the cells and send them back for testing

- First 6-12 months – A samples

- Another year or more to get close to an agreement

- Some are starting to mature and some are just starting out

What’s the timeline for the resource upgrade

- Nearing completion but not a vital part of current plans and wanted to conserve cash for first stage scale up. Says it’s not far away now

- I didn’t 100% believe this and kind of got the feeling they’re holding it back for now. Surely most of the cost was in the drilling which has already been done… obviously that’s just an assumption