EV Anode plant update - some thoughts

I have read through many postings suggesting this announcement has negative overtones and/or has caused the share price to drop. The market is apparently always right, but we need to be careful on the time horizon for the market to absorb what has been released. I have held TLG for many years and I have been here before: an announcement is made and in the blink of an eye the share price drops by a significant amount.

Let us consider what has been released. TLG is in the process of installing its fully funded EV qualification processing facility (I have decided not use the word plant as it seems to have everybody confused) within the industrial complex of Svemin in Lulea, right next door to where the Stage 1 19,000 ton EVA production facility is to be situated. Who are Svemin? They are none other than the Swedish Association of Mines, Mineral and Metal Producers. How loud and clear does this need to be for the market to understand that this confirms support at the highest level in Sweden. The fact that the photo that has been included in the release does not look like the pilot plant at Rudolstadt in Germany to me and suggests that this process is well advanced at Svemin. I also note that Talga are included on the following committees at Svemin: the Environmental Committee and the Exploration Committee.

There has been no mention of any delay or slippage, the programme schedule from the announcements highlighted in todays update remain on track. Key items have been ordered and are being manufactured, the diagrams suggest a modular design for ease of installation. Who will do the installation? ABB of Sweden. In fact the customer interest continues to expand to three categories of anode battery material applications: automotive, 3C and ESS. The EVA plant design will include the ability to produce anode material with silicon additive and solid state batteries. How clear does it need to be that TLG are on track to produce Talnode-Si.

Where are the negatives?

So who would benefit from the price stagnation experienced since the capital raising to finance all these initiatives? I would suggest that key players would like to have a stake in the source of the material that will drive this advanced emerging technology to be delivered this decade. Therefore those vested interests would not want the share price to run away. The evidence strongly suggests accumulation by institutional investors as any large volume immediately drives the price up as there are no big sellers left.

This continued doubt in TLG evidenced by the 'are we there yet' questions and/or 'please read me another story' that remind me of childhood excursions. TLG make announcements when they have something tangible to say all in accordance with ASX listing rules and so far have delivered from initial research to advanced development stage.

Naturally please do your own research and draw your own conclusions