After the disappointment, time for reflection.
Time-wise, it is disappointing. Value wise, it is the best option. Looking at Mark as the strategist he is, we can expect other avenues already being worked at. Months ago, the contract with ABB was indicative that Talga wanted to remain in control of the mining process. From LKAB’s perspective, they have already a very ambitious programme lined up to fulfill their growth and green ambitions. Working as a contractor! for Talga does not easily fit in and would only be acceptable against favourable conditions. They also underestimated Talga’s board resolve and asked too much (at least for the moment) from the Talga shareholders.
Mitsui remains in focus and I understand the discussion about their unique and added value to Talga’s development. My rational is that Mitsui can provide global support to the wider product scope than only anode materials, next to provide capital for its realisation.
Under the radar is still the role of their commercial advisor JP Morgan. That is not an LOI, that is an active position. I don’t know their scope and influence, but just imagine the complexity and effort required to manage Talga’s contacts and agreements with tens of tens different companies upstream and downstream next to maintaining contacts with government bodies and staying abreast, or better, being in the front line, of (competitor) and own product developments.
Mark and his team is managing this, including giving regular breadcrumbs to those very hungry shareholders.
COVID does not help as personal contact in partnerships is so important to gain trust and understanding. Therefor, having quality leadership in strategic and geographical important areas is crucial. They are and expanded nicely in Europe.
My conclusion: Mark and his team are doing a stellar job facing enormous strategic challenges. Mind you, of their own making as their ambition is set high. When will all their efforts come to fruition is anybody’s guess, but I have trust that we will be eating the fruits when (the time is) ripe.
For me Talga reflects the saying: “the impossible we do immediately, miracles take a bit longer”.
I am in for the miracle.
(20min delay)