Talga Group Ltd. · ASX:TLG
Talga — Investor Presentation (October 2022)
53 slides from Talga's investor presentation, Oct 7, 2022
Slide 1: Talga Group Ltd Corporate Presentation
Talga Group Ltd Corporate Presentation © Talga Group Ltd, October 2022
Slide 2: Authorisation
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Authorisation This Presentation is dated 7 October 2022 and has been prepared by Talga Group Ltd (Talga or Company) in connection with Talga's proposed equity raising of new ordinary shares in Talga (New Shares) comprising a placement of New Share
Slide 3: Forward-looking statements (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Forward-looking statements (cont.) No guarantee, representation or warranty, express or implied, is made as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns, statements or tax treatment in relation
Slide 4: Additional Disclaimer (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Additional Disclaimer (cont.) • all duty and liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any expenses, losses, damage or costs incurred by you as a result of your participat
Slide 5: Overview of the offer
Overview of the offer 5
Slide 6: Details of the Offer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Details of the Offer • Institutional placement to professional and sophisticated investors to raise A$22 million (the "Offer"). • Proceeds will be used to fund advancement of the Vittangi Anode Project, expanded operation of the Electric Vehicle A
Slide 7: Sources and Use of Proceeds
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Sources and Use of Proceeds Sources of Proceeds A$MM Institutional Placement1 22.0 Total 22.0 Use of Proceeds1 A$MM Vittangi Anode Project early works / long lead items 6.0 EVA and trial mine processing and operating costs 6.5 Resource expansion d
Slide 8: Offer Timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Offer Timetable Placement Timetable Date SPP Record Date (5:00pm (AWST)) Thursday, 6 October 2022 Trading halt Thursday, 6 October 2022 Placement Thursday, 6 October 2022 Announcement of Placement and SPP Friday, 7 October 2022 Trading halt lifted
Slide 9: Company overview
talga Company overview
Slide 10: Corporate overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Corporate overview Talga is delivering on its strategy to become a significant producer of CAPITAL STRUCTURE Li-ion battery anode products and technologies ASX Listing Code: TLG Market Capitalisation: $390.4M Listed Shares: 304.9M Unlisted Options
Slide 11: Sustainable, integrated and cost efficient production of anode for lithium-ion batteries
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Sustainable, integrated and cost efficient production of anode for lithium-ion batteries Green anode – up to 6x lower CO2-eq than China/Africa based supply chains1. Highest grade natural resource in world2, largest in Europe and uniquely suited fo
Slide 12: Localised supply for European battery market
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Localised supply for European battery market (∼1,1TWh capacity by 2031 requiring 1.3Mt anode) Integrated Operations in northern Sweden Vittangi graphite mine and concentrator Luleå Anode Plant Source: Cic Energigune, February 2022, Benchmark Miner
Slide 13: Company Update – Delivering on strategy
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Company Update – Delivering on strategy 2021/2022 Milestones reached Targeted upcoming catalysts/milestones ü Completed DFS for 100% owned Vittangi • CY2023 project financing and commencement of Mine-to-Anode Project. FEEDs and project constructio
Slide 14: Commercial strategy: European EV manufacturers
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Commercial strategy: European EV manufacturers Talga is in the final stage of a long technical qualification process with numerous EV and battery manufacturers Customer Selection and Commercial strategy ensures Product Positioning Customer Qualifi
Slide 15: Securing first anode supply agreement
Securing first anode supply agreement Non-binding anode offtake term sheet signed with Automotive Cells Company (ACC), targeting binding agreement by 30 November 2022. Supply of 60,000 tonnes of Talnode®-C over initial 5-year term starting 2026 from Talga’s Vittangi Anode Project in Sweden. Expected
Slide 16: Project funding – European financiers
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Project funding – European financiers Swedish Export Credit Corporation (SEK), Letter of Interest to support financing of Vittangi Project. Swiss Export Risk Insurance (SERV), Letter of Support to finance a portion of construction costs of Vittang
Slide 17: Mine and Anode plant permitting
Mine and Anode plant permitting Fully permitted 2015/2016 Nunasvaara South trial mine successfully completed and rehabilitated. Fully permitted 2021/2022 Niska South trial mine. DFS Nunasvaara South commercial mine permits progressing for 19,500tpa anode production. Environmental permit Court hearin
Slide 18: Integrated and 100% controlled anode operation
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Integrated and 100% controlled anode operation Graphite concentrate Precursor anode material Active anode material Mining and Concentration Shaping and Purification Coating Talnode® Li-ion Batteries Natural graphite ore Graphite concentrate downst
Slide 19: 2022 Trial Mining - Vittangi Graphite Project
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 2022 Trial Mining - Vittangi Graphite Project 19
Slide 20: Electric Vehicle Anode Plant (EVA), Luleå, Sweden
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Electric Vehicle Anode Plant (EVA), Luleå, Sweden Images Left: EVA main processing hall. Top Right: Talga staff operating coating stage. Bottom right: Integrated EVA battery lab and quality control. 20
Slide 21: Talnode-C attractive performance characteristics
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Talnode®-C attractive performance characteristics Energy Density High energy density for increased range or lighter weight Faster Charging Fast charge rate and higher regen-braking energy recovery Lower Cell Resistance High conductivity decreases
Slide 22: Quality ESG commitment
Quality ESG commitment 1st resource company committed to EU Principles for Sustainable Raw Materials. High standard of corporate governance with established framework. Social and Environmental Management Systems and Policies in place accords to Equator Principles. Sustainability and People report pu
Slide 23: Delivering green battery anode
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Delivering green battery anode Talnode®-C cradle-to-gate LCA accords to ISO 14040-14044 and German Association of Auto Industry China Synthetic China Natural Saves 2,900kg CO2-eq per Electric Vehicle1 Talga (Sweden) 0 5 10 15 20 25 30 35 Tonne CO2
Slide 24: Path to >100,000tpa anode production
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Path to >100,000tpa anode production Niska adds to Vittangi to make Talga one of the largest anode producers outside China Niska North Niska Expansion(1) (2020 Scoping Study) Nunasvaara South(1) Talnode®-C 84,700tpa (2021 DFS) Talphene® 8,470tpa N
Slide 25: Graphite is critical to European battery value chain
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Graphite is critical to European battery value chain Graphite Mineral Resources classified to JORC or NI43-101 standards Contained Graphite Battery Capacity Company Project Mineral Resource equivalence2 (Million tonnes) 1 Talga Vittangi 30.1Mt @ 2
Slide 26: Significant resource growth potential
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Significant resource growth potential Significant upside with ability to strategically support European battery supply chain for decades 2021 Vittangi drilling returns world-class grades (e.g. 90m @ 30.8% Cg) with subsequent mineral resource updat
Slide 27: Innovations in battery materials
Innovations in battery materials Market focused development of next generation battery and advanced materials for future commercialisation Mass-producible Talnode®-Si silicon anode scaling up in Germany. Conductive additive for cathode markets. Development of solid state Talnode®-E battery anode tec
Slide 28: Partnerships for a greener future
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Partnerships for a greener future Working with respected battery customers and development partners under public partnerships and non- disclosure, including global automotive OEMs and majority of European battery producers 28 See: ASX:TLG 30 Oct 2
Slide 29: Industry Overview
Industry Overview 29
Slide 30: Rapidly rising EV and HEV penetration rates
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Rapidly rising EV and HEV penetration rates Forecast: EVs as a percent of total passenger vehicle sales 80% 70.2% 66.1% 61.9% 57.8% 60% 54.2% 50.3% 47.1% 43.2% 39.1% 40% 35.1% 31.0% 27.0% 23.3% 19.1% 16.2% 20% 15.4% 13.7% 12.1% 10.3% 8.5% 4.8% - 2
Slide 31: Graphite supply chain is entirely reliant on China, akin to Rare Earths
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Graphite supply chain is entirely reliant on China, akin to Rare Earths Typical use of minerals in battery electric vehicles Natural Graphite Supply Chains Mining Processing 300 14% 14% 1% 6% 250 9% 58% 99% 200 China Brazil Madagascar (kg per vehi
Slide 32: Driving immense new graphite anode demand
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Driving immense new graphite anode demand Disruption of traditional (industrial) graphite markets and supply chains Forecast: Battery anode demand Rising energy and input costs (needle coke, coal) for 8.0 manufacture of synthetic graphite anode is
Slide 33: Talga Group Ltd
Talga Group Ltd ASX Code: TLG Group Head Office: Suite 3.03, Level 3 46 Colin Street, West Perth, Australia Phone Number: +61 8 9481 6667 Email Address: info@talgagroup.com Website: www.talgagroup.com 33
Slide 34: Appendix A
Appendix A Board and Management Team Supplementary Project Details JORC Graphite Reserve and Resources JORC Exploration Target 34
Slide 35: Key Management Personnel
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Experienced Board and Management Team Strong technological and operational leadership with on the ground European presence Board of Directors Terry Stinson Mark Thompson Grant Mooney Steve Lowe Ola Rinnan Non-Executive Chairman Managing Director &
Slide 36: Vittangi DFS & Niska Scoping Study Key Outcomes
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Vittangi DFS & Niska Scoping Study Key Outcomes Parameter Units Vittangi Niska Annual ore mining rate tonnes 100,000 400,000 Average annual production of Talnode®-C tonnes 19,500 84,700 Average annual production of Talphene® tonnes - 8,470 Life of
Slide 37: JORC Graphite Reserve and Resources
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES JORC Graphite Reserve and Resources Ore Reserve Tonnes Graphite (% Cg) Nunasvaara (JORC 2012) 2,260,140 24.1 Probable 2,260,140 24.1 Mineral Resources Tonnes Graphite (% Cg) Vittangi (JORC 2012) 30,100,000 24.1 Indicated 22,600,000 24.9 Inferred 7
Slide 38: JORC Exploration Target
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES JORC Exploration Target 2021 Exploration Target Vittangi Graphite Project Vittangi (JORC 2012) Low High Tonnage Range 170Mt 200Mt Grade Range 20% Cg 30% Cg Note that the potential quantity and grade of the Exploration Target is conceptual in natur
Slide 39: Competent Person Statements
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Competent Person Statements The Vittangi Mineral Resource estimate was first reported in the Company’s announcement dated 27 May 2022 titled ‘Talga’s battery anode growth ambitions boosted with 54% graphite resource increase’. The Company confirms
Slide 40: European Natural Graphite Peer Comparison
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES European Natural Graphite Peer Comparison Contained Company Project Study Resource Tonnage Grade Information Source Tonnage Indicated 22,600,000 24.9 Company Announcement, 27 May 2022 Talga Vittangi DFS 7,249,000 https://talgagroup.eu-central-1.li
Slide 41: Appendix B Risk Factors
Appendix B Risk Factors 41
Slide 42: Key Risks (1/6)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risks (1/6) This section identifies the areas that the directors regard as the major risks associated with an investment in the Company. Investors should be aware that an investment in the Company involves many risks, which may be different to
Slide 43: Key Risks (2/6)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risks (2/6) Licences, Permits, Processing and Approvals Risks The Company's current and future operations are subject to receiving and maintaining licences, permits and approvals from appropriate governmental authorities. In particular, the Co
Slide 44: Key Risks (3/6)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risks (3/6) Development and Commercialisation The Company’s ability to generate revenues from its multiple anode and graphene products in the future will be subject to a number of factors, including but not limited to the technologies performi
Slide 45: Key Risks (4/6)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risks (4/6) Reserve Estimates The Reserve estimates have been carefully prepared by an appropriately qualified person in compliance with the JORC guidelines and in appropriate instances are verified by independent mining experts. Estimated val
Slide 46: Key Risks (5/6)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risks (5/6) Climate Change Risk Climate change is a risk the Company has considered, particularly related to its operations in the mining industry. The climate change risks particularly attributable to the Company include: • the emergence of n
Slide 47: Key Risks (6/6)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risks (6/6) Force Majeure The Company's projects now or in the future may be adversely affected by risks outside the control of the Company, including fires, labour unrest, civil disorder, war, subversive activities or sabotage, floods, pandem
Slide 48: Appendix C Foreign Selling Restrictions
Appendix C Foreign Selling Restrictions 48
Slide 49: International Offer Restrictions (1/2)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES International Offer Restrictions (1/2) This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any pe
Slide 50: International Offer Restrictions (2/2)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES International Offer Restrictions (2/2) Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. According
Slide 51: Appendix D Key Terms Of Placement Agreement
Appendix D Key Terms Of Placement Agreement 51
Slide 52: Key Terms of the Placement Agreement (1/2)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Terms of the Placement Agreement (1/2) 1.1 Conditions Morgan Stanley Australia Securities Limited (ABN 55 078 652 276) and Euroz Hartleys Limited (ABN 33 104 195 057) (Joint Lead Managers) are acting as joint lead managers and bookrunners of t
Slide 53: Key Terms of the Placement Agreement (2/2)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Terms of the Placement Agreement (2/2) 1.3 Termination events qualified by materiality The Joint Lead Managers may terminate their obligations under the Placement Agreement if any of the following events occur, subject to the Joint Lead Manage