TLG - Media, page-5358

Here's a nice warm cup of pessimism for your Tuesdee mornin'. I am not going to provide any counterpoints so you can come to your own conclusions:

• No one wants to buy TLG anode. Perhaps OEMs end up favouring synthetic for the supposedly more consistent performance. Or perhaps OEMs favour natural graphite from another source because the TLG anode is no good.
• Permits. Or should I say PERMITS. No anode without graphite, no graphite without permits.
• New battery tech makes graphitic anodes obsolete.
• Partner risk. Talga enters into a JV with Company Y and Company X. Both companies go under and Talga is left stranded.
• Key management risk. If, say, Mark Thompson is no longer MD, the company may be unable to realise their project goals. Or it might make the company more susceptible to a takeover that doesn't favour shareholders.
• 'Green Revolution' legislation is repealed. Legacy OEMs feel no pressure from governments, and continue to trot out ICEs. Demand decreases. Or otherwise, OEMs might make EVs but source their material from more CO2 intensive operations, so TLG loses a bit of their edge.
• General mining risks. Mining goes ahead but a spanner is thrown in the works. For example, check out Rio Tinto accidentally blasting a sacred Aboriginal site and the fallout from that. Rio Tinto can shrug that off, but something like that might be catastrophic for a smaller company.
• Interest rates go up. This might make it more difficult to secure funding for the project. 484m USD capex needed for the 19k tpa.
• Oversupply of anode into the market. Mines and processing plants scale up faster than forecasted and product floods into the market.

Before I get angry messages, I am not saying any of these are likely to happen but they are in the realm of possibility.