Ann: TNG receives $1.8M from Research & Development rebate, page-14

From Patersons


Making Steady Progress Despite Headwinds

Investment Highlights

* TNG Limited (TNG) remains focussed on procuring the necessary financial and customer support to develop its flagship Mount Peake Vanadium-Titanium-Iron (V-Ti-Fe) Project, a potential world-class project with promising published financial outcomes based on its recently published Definitive Feasibility Study (DFS).

* A solid foundation was set in September 2015 when TNG signed an initial binding Life-Of-Mine offtake agreement for a minimum of 50% of Mount Peake's vanadium output with Korean ferro-vanadium group, WOOJIN IND.CO Ltd (WOOJIN).

* TNG is currently securing project approvals, further off-take agreements and project financing with construction slated to commence in mid-2016 and, potentially, first production in 2018/19.

* While TNG will need to raise substantial capital to fund the development of Mount Peake, we believe the Project is of sufficient financial robustness to support a significant component of debt financing, especially considering the tightening of supply in the vanadium market and the falling Australian Dollar.

* We rate TNG as a Speculative Buy and expect a potential positive re-rating if it is able to secure further product off-take agreements and finalise project financing arrangements.
Rob Brierley
Head of Research