Talga Group Ltd. · ASX:TLG
Talga — Shareholder Meeting (November 2020)
35 slides from Talga's shareholder meeting presentation, Nov 12, 2020
Slide 1: 2020 Annual General Meeting
For personal use only 2020 Annual General Meeting Talga Resources Ltd © TALGA RESOURCES LTD, ANNUAL GENERAL MEETING, 12 NOVEMBER 2020
Slide 2: Talga (ASX:TLG)
Talga (ASX:TLG) For personal use only A highly integrated producer of advanced battery anode materials and graphene additives Building a European supply chain of advanced materials critical to our customers’ innovation and the shift towards a more sustainable world Vertical integration with 100% own
Slide 3: Corporate Overview
Corporate Overview CAPITAL STRUCTURE For personal use only ASX Listing Code: TLG ASX:TLG SHARE PRICE (YEAR TO DATE) Market Capitalisation: $469M Listed Shares: 265.1M Unlisted Options: 7.0M Cash: $12.6M MAJOR SHAREHOLDERS Smedvig – Family Office 9.7% JP Morgan Nominees 8.8% SHAREHOLDERS Mark Thompso
Slide 4: Our Journey So Far
Our Journey So Far For personal use only 2010 Talga founded by Mark Thompson and listed on ASX (code TLG) 2011 Acquires first graphite permits in Sweden 2012 Acquires Teck subsidiary to gain control of Vittangi graphite project. Drills out world’s highest grade JORC graphite resource 2014 Develops b
Slide 5: Europe Operations
Europe Operations European-based 100% controlled supply chain to serve global markets For personal use only • Talga Sweden Integrated graphite mine & Graphite Deposits anode production in Luleå & Refinery • Talga Germany Pilot Process & Rudolstadt test process facility & Distribution direct rail to
Slide 6: In-house Expertise
In-house Expertise For personal use only Deep industry knowledge enables direct commercial customer relationships and competitive advantage Talga develops high performance Lithium-ion battery anodes and graphene additives using its unique: natural carbon source processing technology in-house product
Slide 7: Graphene Additives
Graphene Additives For personal use only Functionalised fit-for-purpose graphene additives targeting global large volume applications with performance and sustainability as key drivers Talga’s graphene (Talphene®) products continue commercialisation in a multitude of applications Emerging market for
Slide 8: Anode Products
Anode Products Well positioned for future growth with current and new anode technologies For personal use only Strong range of anode products designed to position Talga ahead of evolving market demands Positioned to capitalise on expansion of multiple technologies which will command premiums SEE: AS
Slide 9: Growing Partnerships
Growing Partnerships Talga’s unique assets and commercial potential attracts reputable industry partnerships For personal use only SEE: ASX:TLG 30 OCT 2015 and 5 FEB, 26 MAR, 4 SEP 2018 and 15 JAN, 2 OCT, 8 OCT, 24 OCT 2019 and 31 JAN, 20 MAR, 13 MAY, 27 MAY, 24 JUNE, 2 NOV 2020. 9
Slide 10: 2020 Strong Performance
2020 Strong Performance Delivering milestones and advancing towards higher value For personal use only ASX:TLG SHARE PRICE (A$/SHARE) ✓ 25,000t trial mine permit approved ✓ 100,000tpa mine permits submitted ✓ 19,000tpa anode DFS commenced ✓ LOI signed with LKAB and Mitsui ✓ 15% increase in Vittangi
Slide 11: EV sales set to grow 700% by 2030
EV sales set to grow 700% by 2030 Long-heralded shift to Electric Vehicles underway, driving new demand for Li-ion batteries For personal use only 16 14 12 Million/annum 10 8 6 WE ARE 4 HERE 2 SOURCE: WOOD MACKENZIE ”ENERGY TRANSITION OUTLOOK H1 2020”, SEPTEMBER 2020. 11
Slide 12: Battery Material Demand
Battery Material Demand Graphite is the largest volume active material in Li-ion battery For personal use only EV demand and legislative pressure on internal combustion engines creating huge new demand for battery materials on top of rebounding industrial demand There is ~10x graphite than lithium i
Slide 13: EU: Fastest Growing Battery Market
EU: Fastest Growing Battery Market For personal use only Germany, 2024 Sweden, 2021 16 GWh, later 24 GWh 32 GWh, later 40 GWh Norway, 2024 Norway, 2023 8GWh, later 32 GWh Ramp up to 32 GWh + 2 GWh Germany, 2022 Slovakia, 2024 14 GWh, later 100 GWh 10 GWh United Kingdom, 2010 Germany, 2021 2.5 GWh Ra
Slide 14: Battery Opportunity
Battery Opportunity For personal use only Build a new anode supply chain outside of Asia to serve the European and North American markets Production of the most sustainable and lowest-cost anode for Li-ion batteries would use: natural graphite (not synthetic) sustainable electricity locally produced
Slide 15: Building the Solution
Building the Solution For personal use only Talga is building a wholly owned fully integrated anode supply chain in Sweden with development of its anode refinery fed by graphite from Talga’s Vittangi project Planned 19,000tpa of anode production for 22 years from 2023 following Electric Vehicle Anod
Slide 16: Project Advantage
Project Advantage Vittangi Project has a range of inherent competitive advantages For personal use only ✓ Highest grade graphite resource ✓ 100% anode flake (no industrial products) ✓ Exceptional anode yield (90%+) ✓ Located in Tier-1 investment jurisdiction ✓ Access to sustainable low-cost power ✓
Slide 17: Low Cost and Low Emission Leader
Low Cost and Low Emission Leader The same factors that make Talga cost competitive also drive lower emissions For personal use only 900 $9,000 Coated Anode Production Cost (US$/tonne) 800 $8,000 CO2-emissions (g CO2/kWh) 700 $7,000 600 $6,000 500 $5,000 400 $4,000 300 $3,000 200 $2,000 100 $1,000 0
Slide 18: Graphite Anode Moat
Graphite Anode Moat Full in-house technology capability with 100% controlled deposit-to-product supply chain For personal use only High quality production using natural graphite from unique high grade graphite resource + Strong processing and in-house product technology to bridge battery anode moat
Slide 19: Anode Supply Chain
Anode Supply Chain Talga is an integrated battery material supplier comparable to chemical providers in EV value chain For personal use only Raw Materials Coated Anode Cell manufacture Power Train Automotive OEM Graphite Miners Graphite Shapers/ Spheronisers Graphite Purifiers SOURCE: RECRUIT, AVICI
Slide 20: Vittangi Roadmap
Vittangi Roadmap For personal use only Niska Expansion Graphite Resources: 6.5Mt Vittangi Anode Project Development options being defined Graphite Ore Reserve: 1.9Mt Niska Scoping Study: Nov 2020 Production: 19,000tpa Products: Talnode-C & graphene Planned Start: Year 2023 component of Talnode-Si SE
Slide 21: Talga Growth Strategy
Talga Growth Strategy Growing in line with our target market and our customers For personal use only 2025 EXPANSION 2023 - European megafactory growth COMMERCIAL - Niska expansion - Next generation anodes - European megafactories online - Nunasvaara South production - 19,000tpa refinery anode capaci
Slide 22: Significant Recent Developments
Significant Recent Developments LOI with LKAB & Mitsui for Swedish project development, plus UK feasibility government support For personal use only LKAB PHOTO CREDIT: FREDRIC ALM/LKAB SOURCES: www.apcuk.co.uk/news/apc-funding-announcement-nov20/, www.gov.uk/government/news/49-million-uplift-drives-
Slide 23: Looking Ahead
Looking Ahead Potential near to medium term catalysts For personal use only Release of Niska (expansion) scoping study Mine and refinery Approvals Funding for full-scale development Off-take and commercial partnerships with key customers JVs for project development and Talnode commercialisation Rele
Slide 24: A Greener (Battery) Future
A Greener (Battery) Future For personal use only Talga is building a responsible and globally competitive anode production business in Europe
Slide 25: Disclaimer
Disclaimer For personal use only Talga Resources Ltd ACN 138 405 419 (the Company) is the issuer of this presentation. Forward-looking statements This presentation contains forward-looking statements. Those forward-looking statements reflect views held only as at the date of this presentation. Any s
Slide 26: Talga Resources Ltd contact details
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: info@talgagroup.com Website: www.talgagroup.com GLOBAL OPERATIONS Talga Sweden: Vänortvägen 2, 981 32 Kiruna, Sweden Talga Sweden: Storgata
Slide 27: Appendix
For personal use only Appendix
Slide 28: Board of Directors
Board of Directors Substantial commercialisation experience across resource, innovation and development projects For personal use only Terry Stinson Mark Thompson Grant Mooney Steve Lowe Ola Rinnan Non-Executive Managing Director Non-Executive Non-Executive Non-Executive Chairman & Founder Director
Slide 29: Year In Review
Year In Review For personal use only Completion of strongly supported Share Purchase Plan (13 December 2019) Second commercial scale graphene coating trial (17 December 2019) Successful 60 tonne pilot flotation program (30 January 2020) Environmental approval received for Talga trial mine (3 March 2
Slide 30: Year In Review
Year In Review For personal use only Vittangi project supported by Swedish National Interest demarcation (18 June 2020) Talga looks to expand battery anode production capacity (24 June 2020) Talga Board changes (17 July 2020) Outstanding feasibility work and studies results (5 August 2020) A$10M ins
Slide 31: Year In Review
Year In Review For personal use only Talga appoints CEO of European operations (19 October 2020) LKAB, Mitsui & Talga confirm intent to jointly develop anode project (2 November 2020) Government supports Talga UK anode refinery study (4 November 2020) Talga silicon anode receives UK Government suppo
Slide 32: Project Development Timeline
Project Development Timeline Trial mine approved and full scale mining applications submitted for 2023 production For personal use only 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 25,000 TONNE TRIAL MINE PERMIT MINE PERMIT SUBMISSIONS COMMERCIAL DFS MINE & REFINERY APPROVALS
Slide 33: PFS Key Outcomes
PFS Key Outcomes For personal use only Confirms technically and financially robust project 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 $M $174 Pay
Slide 34: 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 23.5 Proven 0 0 Probable 1,935,000 23.5 Mineral Resources 1, 2, 4, 5, 7, 8, 9 Tonnes Graphite (% Cg) Vittangi Nunasvaara (JORC 2012) 14,900,000 23.4 Indicated 10,400,000 2
Slide 35: Competent Person Statements
Competent Person Statements For personal use only The Niska Mineral Resource estimate was first reported in the Company’s announcement dated 15 October 2019 titled ‘Talga boosts Swedish graphite project with maiden Niska resource’. The Company confirms that it is not aware of any new information or