Talga Group Ltd. · ASX:TLG
Talga — Talga Resources — Investor Presentation (November 2019)
34 slides from Talga's investor presentation, Nov 15, 2019
Slide 1: Investor Presentation: Becoming Europe's first vertically integrated producer of battery anode materials
For personal use only Talga Resources Investor Presentation: “Becoming Europe’s first vertically integrated producer of battery anode materials” © TALGA RESOURCES LTD, 15 NOVEMBER 2019
Slide 2: Forward Looking Statement & Disclaimer
Forward Looking Statement & Disclaimer This presentation has been prepared by Talga Resources Ltd (ACN 138 405 419) (“Issuer”) for the sole purpose of providing an overview of its current prospects and For personal use only proposed exploration and development strategy to recipients (“Recipient”). T
Slide 3: Talga Resources Ltd
Talga Resources Ltd TALGA MINE & CONCENTRATOR For personal use only FREYR PLANT A vertically integrated producer of advanced battery anode materials TALGA REFINERY and graphene additives with own supply of high grade graphite NORTHVOLT PLANT Focus is on building Europe’s first large scale lithium-io
Slide 4: Investment Highlights
Investment Highlights For personal use only High Margin Advanced Materials Business / In-house anode refinery to produce high-margin coated battery anode product (Talnode®-C) for sale directly to Li-ion battery manufacturers Exceptional Project Economics / May 2019 PFS estimates a $188m annual reven
Slide 5: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Share Price Year To Date ASX Code: TLG Share on Issue 222.2m ASX Share Price A$0.55 Cash (EO September Qtr) A$5.6m Debt Nil Market Cap A$122.2m Enterprise Value A$116.6m Board of Directors 6.8% Terry Stinson Chairman 11.5% Board & Management
Slide 6: Talga Anode Project - Overview
Talga Anode Project - Overview For personal use only BUILDING A SWEDISH ANODE PLANT TO SUPPLY LITHIUM-ION BATTERY INDUSTRY Talga is building a world class anode plant in northern Sweden to supply the growing global demand for Lithium-ion batteries • Project integrates a high-grade natural graphite m
Slide 7: Leading Graphite Resource Grade
Leading Graphite Resource Grade For personal use only Graphitic carbon (wt%) 0 5 10 15 20 25 30 Talga Mason Buxton Lincoln Focus Triton Syrah Kibaran Graphite One Sovereign Next Source Magnis Graphex Hexagon Westwater Ontario Northern SOURCE: PUBLISHED JORC/NI43-101 GLOBAL MINERAL RESOURCE GRADE. SE
Slide 8: Vittangi Mine & Concentrator
Vittangi Mine & Concentrator For personal use only 23.5% 100K 22 ORE GRADE TPA YEARS Ore Reserve grade Ore throughput rate at Project mine life solely as used in PFS onsite concentrator from 2Mt Ore Reserve PFS based solely on 1.9Mt ore reserve – part of Vittangi Project total 16.9Mt @ 25.6%Cg Open
Slide 9: Luleå Anode Refinery
Luleå Anode Refinery For personal use only SSAB Steel Mill Luleå Port LOW 19K 2020 CO POWER 2 TONNES CONSTRUCTION Sustainable grid power Average annual (year 3-22) First module construction from hydroelectricity anode production then operation to 2043+ Refinery purifies, shapes and coats the Vittang
Slide 10: Anode Product: Talnode-C
Anode Product: Talnode-C For personal use only FULLY COATED <10μm ACTIVE ANODE POWDER READY FOR CELL MANUFACTURER USE TALNODE-C Freezing temperature performance High power and fast charge Semi-synthetic properties 10 SEE: ASX:TLG 15 MAY 2018, 21 MAR 2019, 26 MAR 2019 AND 23 MAY 2019
Slide 11: Position in Supply Chain
Position in Supply Chain Raw Materials Battery Materials Cell manufacture Battery Packs OEM For personal use only Graphite Anode Processors, Cobalt. Copper etc. Additives & Solvents Cathode Electrolyte Lithium Minerals Separators Binders Li-Salts Cell Housing SOURCE: RECRUIT, AVICIENNE. / NOTE: SELE
Slide 12: High Margin Business Model
High Margin Business Model For personal use only Vertically integrated business model allows Talga to upgrade its graphite ore to high value advanced anode material for direct use in lithium-ion batteries capturing margins from the complete supply chain Low costs are driven by the very high grade gr
Slide 13: Booming EU Battery Demand
Booming EU Battery Demand TALGA For personal use only SWEDEN 0Kt (50 GWh) Current graphite anode supply (100% imported from China, SUPPLY TODAY Japan and Korea) UK (7 GWh) POLAND GERMANY (70 GWh) 303Kt For graphite anode by 2028 (126 GWh) DEMAND 2028 CZECH REPUBLIC (9 GWh) Talga’s Swedish anode prod
Slide 14: Executing on Anode Project Plan
For personal use only Executing on Anode Project Plan Sample Scale Up and Project Development Stages
Slide 15: Talga Production Overview
Talga Production Overview For personal use only MINE-TO-PRODUCT BATTERY ANODE MATERIAL AND GRAPHENE ADDITIVE SUPPLY CHAIN End user Mining Processing Refining Talga Products Applications Talnode® Graphite High Power Battery Anode Material Natural Graphite Proprietary Process Ore Technology Talphene®
Slide 16: Talnode Path to Market
Talnode Path to Market Production For personal use only Customer production Customer Qualification under agreement Product performance External Tests trials towards offtake Internal Tests Independent >1,000 TONNES PRODUCT VOLUME battery facilities Development & laboratory scale 10 - 1,000KG 1 - 10KG
Slide 17: Talga Pilot Plant
Rudolstadt-Schwarza Industrial Estate, Thuringia, Germany For personal use only Talga Pilot Plant
Slide 18: Talga Pilot Plant
For personal use only Talga Pilot Plant
Slide 19: Q1 2020 Pilot Plant Scale Up
Q1 2020 Pilot Plant Scale Up For personal use only INCREASED TALNODE-C SAMPLE PRODUCTION FOR CUSTOMER QUALIFICATION Stockpile Ore Mill, Flotation & Purification Coating & Shaping Thermal Treatment Talga, Sweden Talga, Germany Talga, Japan Talga, Japan 2,000m3 graphite ore Product Order Size: 50-1,00
Slide 20: Staged Development Underway
Staged Development Underway For personal use only HIGH VALUE, LOW VOLUME OPERATION LOWERS ENVIRONMENTAL FOOTPRINT Talga 2015-16 Trial Mining Stage 1 commencement planned for 2020, with output of 5,000 tonnes of Talnode-C over two years from trial mining of 25,000 tonnes of ore processed via toll-mil
Slide 21: Stage 1 Mining and Refinery
Stage 1 Mining and Refinery For personal use only Q2 2020 – Q4 2022 STAGE 1 MINING OPERATION AND ANODE REFINERY 2020 Trial Mining Mill & Flotation Purification, Coating, Shaping & Thermal Treatment Talga, Sweden Tolling, Finland Talga, Sweden 25,000 ton Stage 1 Anode Refinery: graphite ore 2,500 ton
Slide 22: Stage 2 Mining and Refinery
Stage 2 Mining and Refinery For personal use only Q1 2021 (22 YEAR MINE LIFE) STAGE 2 MINING OPERATION AND ANODE REFINERY Full Scale Mining Operation Purification, Coating, Shaping & Thermal Treatment Talga, Sweden Talga, Sweden 100,000 ton/year 22,000 ton/year Stage 2 Anode Refinery: graphite ore g
Slide 23: Exceptional PFS Project Economics
Exceptional PFS Project Economics PFS HAS ESTABLISHED HIGH ECONOMIC PERFORMANCE FROM STAGED DEVELOPMENT For personal use only $1,056M 55% $188M NET PRESENT VALUE IRR ANNUAL REVENUE Estimated pre-tax project Estimated pre-tax project Estimated LOM 22 year net present value internal rate of return ann
Slide 24: Indicative Timeline
Indicative Timeline DFS 1 DFS 2 STAGE 1use only 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 TRIAL MINE APPROVAL DESIGN & CONSTRUCTION STAGEpersonal MINING & PROCESSING COMMISSIONING TALNODE-C PRODUCTION MINE APPROVALS 2 MINE ESTABLISHMENT DESIGN & CONSTRUCTIO
Slide 25: New Technology Pipeline
New Technology Pipeline For personal use only In-house technical and material capability to create battery innovations and respond to market technology changes Talnode-X: Formulated graphite anode for 20C ultra-fast charge (0-100% in 3 minutes) Talnode-Si: Graphene silicon-anode for higher energy de
Slide 26: Technical Partners
Technical Partners For personal use only IN-HOUSE AND COLLABORATIVE PRODUCT DEVELOPMENT SEE: ASX:TLG 5 FEB 2018, 26 MAR 2018, 4 SEP 2018, 15 JAN 2019, 2 OCT 2019, 8 OCT 2019 & 24 OCT 2019
Slide 27: Activities & Newsflow
Activities & Newsflow For personal use only Customer qualification sample production ramping up with strong customer demand Rudolstadt process facility upgrade underway for DFS metallurgical work and increasing anode market samples Offtake and project financing discussion underway with range of part
Slide 28: Talga Resources Ltd
For personal use only TALGA RESOURCES LTD ASX Code: TLG Head Office: 1st Floor, 2 Richardson Street, West Perth WA 6005, Australia Phone: +61 8 9481 6667 Email: admin@talgaresources.com Website: www.talgaresources.com GLOBAL OPERATIONS Talga Sweden: Vänortvägen 2, 981 32 Kiruna, Sweden Talga Sweden:
Slide 29: Competent Person Statements
Competent Person Statements The information in this report that relates to Graphite Resource Estimation for the Vittangi Project is based on information compiled by Oliver Mapeto and reviewed by Albert Thamm. Both Mr Mapeto and Mr For personal use only Thamm are consultants to the Company. Mr Mapeto
Slide 30: Appendix
For personal use only Appendix
Slide 31: PFS Key Outcomes
PFS Key Outcomes CONFIRMS TECHNICALLY AND FINANCIALLY ROBUST PROJECT For personal use only PARAMETER UNITS OUTCOME Annual ore mining rate tonnes 100,000 Average annual production of Talnode-C tonnes 19,000 Life of Mine (LOM) years 22 Pre-tax NPV8 (real) $M $1,056 Pre-tax IRR % 55% Capex Stage 1 $M $
Slide 32: JORC Graphite Reserve & Resources
JORC Graphite Reserve & Resources For personal use only Ore Reserve 3, 6 Tonnes Graphite (% Cg) Nunasvaara (JORC 2012) 1,935,000 23.53 Proven 0 0 Probable 1,935,000 23.53 Mineral Resources 1, 2, 4, 5, 7, 8, 9 Tonnes Graphite (% Cg) Vittangi Nunasvaara (JORC 2012) 12,300,000 25.57 Indicated 10,700,00
Slide 33: Peer Comparison Information
Peer Comparison Information MINERAL RESOURCES ESTIMATE GRADE JORC/NI43-101 For personal use only Company Project Stage MRE Grade Cut-off Grade Information Source ASX Announcement, 27 April 2017 Talga Nunasvaara Development 25.5 17 https://www.asx.com.au/asxpdf/20170427/pdf/43h rrm62qg5hp8.pdf Compan
Slide 34: Peer Comparison Information
Peer Comparison Information MINERAL RESOURCES ESTIMATE GRADE JORC/NI43-101 For personal use only Company Project Stage MRE Grade Cut-off Grade Information Source Company Website, 19th September 2019 Sovereign Mallingunde Development 7.1 4 www.sovereignmetals.com.au/projects ASX Announcement, 28 Augu
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