TLG 13.3% 75.0¢ talga resources ltd

Talga - SP Angel . Morning View . Wednesday 05 08 20

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    Talga Resources* (TLG AU) – A$0.52, Mkt cap A$128m – Feasibility Study and Talnode anode demand leads Talga to go directly to commercial production in 2022


    • Talga Resources reports the results of feasibility study work.

    • The studies combined with huge demand for their Talnode anode product is leading management to go directly to commercial production in 2022.

    • This is in preference to the previously proposed and more cautious staged approach.

    • The yield of the Talnode-C product form graphite concentrate has risen to 99% from 88% assumed in the PFS making a significant difference to the economics.

    • The recovery of Talnode-C from graphite ore has therefore increased to 90% from 80% previously assumed in the PFS.

    • This results in a 30% saving in energy, which we note is all renewably sourced. Greta will be pleased, maybe? but more to the point this is significant for the highly environmentally sensitive battery automotive companies.

    • Talnode-C anodes are demonstrating high capacity and fast charge performance in the qualification tests needed for accreditation. It’s no surprise to those of us who have visited Talga’s test facilities and seen the expert development work done to achieve this performance.

    • Production will go directly to 19,000tpa starting in 2022

    • DFS study should be finished in late Q1 2021.

    • A Scoping Study is also running on the Niska graphite project to the north of the existing mine (quarry). The two projects should eventually amalgamate in the future.

    • The press release gives more technical detail on the Talnode-C enhanced graphite anode product highlighting the ‘supercharging’ characteristics of the coated graphite anodes.

    Conclusion: Talga Resources is probably the most innovative and exciting listed battery anode company around. Its Talnode-C anodes enable enhanced battery performance and safety and are in substantial demand following testing by a number of battery and automotive manufacturers.

    We suspect Talga will have to run fast to keep pace with future demand for the product and we expect to see further expansion to the Vittangi project in Sweden. If I was running Northvolt I would want to own Talga right now!

    *SP Angel analysts have visited Talga’s battery research and development facilities and mine in Sweden and has acted as UK broker to Talga Resources

    Last edited by Gero: 05/08/20
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