Yep, glad I put in my application for the SPP last Wednesday given the early close!
Looking forward to Talga and ACC converting the offtake into a binding deal by the end of November, but based on Mark's comments in the latest interview on Matt Fernley's podcast, we can also expect more offtake deals to emerge. The big question for me is whether it will be Talnode-C or Talnode-Si. I imagine Talga may get enhanced media coverage if it happens to be Talnode-Si, given it is a relatively new battery tech and there has been limited ability by other aspirants to commercialise Silicon anodes. This would be a massive stamp of credibility that Talga is not just a graphite miner. but instead a battery materials/speciality chemicals company that Tier 1 automotive companies have signed offtake deals for both Talnode-C & Talnode-Si
Apart from the usual permits, financing and offtake deals that we can expect over the next few months, a few other things i'm looking forward to hearing from Talga on include:
First graphene offtakes - now that Talga have their first Anode customer (almost) locked in, they can now proceed with some confidence on the cost structures for graphene volumes and pricing to underpin offtake negotiations. We know the packaging trials have been ongoing with Billerud Korsnas for many years, so perhaps the timing might be right for a deal there. Or, perhaps it could be in the concrete space. Our downpamping friend Beach42 kindly reminded us of all the potential partners Talga has done graphene trials with over the years - so will be interesting who pops up first!
Cathode Additive offtakes - will supply of cathode additives be aligned to those Auto OEM customers Talga sign binding offtake deals with for Anodes? Or, will they be standalone offtake deals that may or may not include existing anode customers?
Plans for Talga's non-graphite deposits - In earlier presentations, Talga have stated they are seeking to commercialise their non-graphite mining tenements (such as the Copper-Cobalt mine, Atik East). There hasn't been any updates on this since, so it would be interesting to hear what Talga's long term plans are to commercialise these assets. Whilsts, i don't want the company to take their eye off the ball and focus on non-core assets, it would be very interesting if Talga have some spare commercial operating cash after this cap raise to sink a few holes into Atik East where "staff have identified extensive lithium bearing pegmatites". Given how hot the lithium sector is at the moment, any drilling success on the lithium front would potentially catalyse the share price much higher than current levels (see extract from the Talga website below).
From Talga Website https://talgagroup.eu-central-1.linodeobjects.com/app/uploads/2022/03/22023831/06.E_Mineral_Resource_Fact_Sheet_BatteryMetals.pdf Other Battery Metal Projects In addition to Kiskama Talga owns two other copper-cobalt projects in north Sweden at an earlier stage of exploration including the Lautakoski and Aitik East Projects. Aitik East is located 25km east from the giant Aitik mine of Boliden, and has been explored only by surface sampling to date, with outcrop rock sample assay highlights including 4.8% Cu, 1.2g/t Au, 66g/t Ag, 0.6% Mo plus anomalous levels of Tellurium and Bismuth. In addition, Talga staff have identified extensive lithium-bearing pegmatites at Aitik East. While at an early stage of exploration the presence of cobalt and lithium in substantial scale host rocks is important for the prospect of a European battery supply chain and security of critical minerals. Talga is seeking commercial opportunities for the projects as a whole to explore their fuller potential.
TLG Price at posting:
$1.21 Sentiment: Buy Disclosure: Held
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