Talga Value Proposition

The quarterly report tells us a number of things:

1. The updated FEED capital expenditure is €250 million ($270M USD), of which
   • €150 million debt funded from the European Investment Bank (60%)
   • €70 million grant from the EU Innovation Fund (if we can secure)
   • So the potential capex that is unfunded is €30 million ($32M USD) and Talga is exploring prospective equity funding options - therefore I believe there is limited further funding required.
2. The DFS capital cost estimate was $484M USD, so it appears as though this reduced, which all else constant, means the DFS pre-tax NPV of $1,054M USD increases (and even more so with the grant, and debt if at below market rates).
3. In terms of market cap:
   • Talga ended the September 2024 with A$25.9 million cash-in-bank
   • Company has 429 million quoted ordinary shares, 12.9 million unlisted options and 53.6 million shareholder loyalty options on issue (at $0.55)
   • So total cash is $55M AUD (diluted), 495.5 million shares diluted
   • At $0.60 share price, our market cap = $300M AUD ($200M USD)
   • Enterprise Value is $245M AUD ($160M USD)

So an Enterprise Value of $160M USD, for access to a project that now has permits and appears to be almost funded.

Even more strange, market cap was $403M AUD ($266M USD) in 2021 which was above today's market cap. Today, we are significantly derived as we have a permit, have funding options, and have MOU agreements in place

I'll be surprised if this lasts at current prices and extremely happy I got to accumulate more today...

Quarterly Report 30 October 2024

• Subsequent to the quarter, Talga’s Luleå Anode Refinery, a key part of the integrated Vittangi Anode Project, was selected for a €70 million (~AU$115 million) grant from the EU Innovation Fund (ASX:TLG 25 October 2024).
• The grant will complement the Vittangi Anode Project’s debt funding consortium, which includes multiple government-owned export credit agencies and European commercial banks, as it moves towards obtaining credit approved term sheets. The debt package, underpinned by the approval of €150 million from the European Investment Bank, is expected to cover the Project debt target (up to 60%) of the updated FEED capital expenditure as well as related debt financing and project completion costs. Simultaneously, Talga is advancing a range of prospective equity funding options.

DFS Feasibility March 2021