VigdorianThe latest announcement is as expected, TLG continues...

Vigdorian

The latest announcement is as expected, TLG continues to deliver on the timeline of those aspects over which it has control. Management do not get ahead of themselves and continue towards their stated goals one step at a time. The translated newsletter in Gero's latest post is very telling they are adding staff as they need them and producing many different preproduction quantities to suit each potential customer's needs.

The opening of the facility last month was attended by customers (the list is at the end of the last quarterly) and high level Swedish parliamentarians, the Foreign Minister no less, which speaks volumes on the importance of this project on the international stage and the European one in particular. TLG is still doing all the heavy lifting, which is noted by TLG's potential customers and Swedish Government circles, quite an achievement for a small to medium sized company. The financial support will come when the current work being undertaken by TLG derisks the project so much that it becomes a no brainer. All the options for financing remain open and as the year progresses TLG's management is in the driving seat.

TLG stood by Mitsui when LKAB bailed, this is a demonstration of honourable conduct in Japanese eyes, under pressure they stand by their word. I suspect Mitsui will continue to stand by TLG. I note TLG still maintains an office in Japan.

I continue to read clear misinformation by the usual trolls, SYR is now the deposit that will save the world. Clearly this deposit is very large, but when making comparisons we need to compare apples with apples. Size in a world context obviously matters, but so does quality. SYR is producing graphite, which then needs to be refined (76% recovery from ore). The activate anode material (AAM) TLG are already producing will not happen until late 2023 and then full production, just 11,250tons per annum, will not occur until 18 months later by early 2025. The step up to 45,000 tons takes another couple of years to 2026, with 100,000 tons in the later part of the decade. SYR has a capacity to produce 350,000 tons of graphite per annum, which speaks volumes on the amount of graphite that actually ends up as 45,000 tons AAM to be generous. Cost of production is well over US$ 3000 per ton, whilst TLG is still under US $ 2,000 using renewable energy. SYR talk about a near term target of 18 microns, whilst TLG is already achieving 10 microns. I will skip over the fact that material from SYR's mine in Mozambique will need to travel half way around the world to the US. The supply line is vulnerable to any unrest in Mozambique as it needs to be transported overland to port.

Finally discounting Inferred Resources, not yet proven to be economic, TLG has enough graphitic material (AAM) to operate for 20 years at 1,000,000 tons per annum according to the numbers in the latest release that do not yet include the material in the link between Niska South and Niska North identified by the 2021 Sky TEM electromagnetic survey, which identified the new Nunasvaara East deposit recently drilled in 2021. I note the Niska link results will be released later this year followed by another updated Reserve/Resource statement that should cement the importance of this deposit in the European context. This should easily underpin a production profile of well over 120,000 tons AAM per annum and probably double that figure just on the basis of current Reserves/ Indicated Resources (commercially viable), backed by a cutoff grade of 10% against a grade of just over 11% for SYR's Indicated Resources.

I know, which stock I would hold on the basis of this back of the envelope assessment, so please do your own research and draw your own conclusions.

I continue to hold.