Talga Group Ltd. · ASX:TLG
Talga — Talga Resources — Benchmark Mineral Intelligence World Tour 2019
33 slides from Talga's conference presentation, Sep 20, 2019
Slide 1: Talga Presentation at Benchmark Minerals World Tour event in Perth
ASX Release 20 September 2019 ASX:TLG Talga Presentation at Benchmark Minerals World Tour event in Perth For personal use only Advanced battery anode material and graphene additives provider, Talga Resources Ltd (“Talga” or “the Company”) (ASX:TLG), is pleased to provide a copy of the presentation d
Slide 2: Talga Anode Project
For personal use only Talga Anode Project The world’s most sustainable anode material BENCHMARK WORLD TOUR / © TALGA RESOURCES LTD, SEPTEMBER 2019
Slide 3: Forward Looking Statement & Disclaimer
Forward Looking Statement & Disclaimer For personal use only 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 proposed exploration and development strategy to recipients (“Recipient”). T
Slide 4: Talga Resources
Talga Resources For personal use only We are a producer of advanced battery anode materials and graphene additives Since being founded and listing on the ASX in 2010, Talga moved to find and develop the highest grade and largest graphite deposits in Europe We now employ 35 technical and professional
Slide 5: Legislated Electrification
LEGISLATED Electrification For personal use only WHERE SCOPE TERM LIKELIHOOD China Ban of ICEs N/A High Denmark CO2 targets 2050 Medium France Ban of ICEs 2040 Medium Germany Ban of ICEs 2030 Medium India Ban of ICEs 2030 Low Netherlands Ban of ICEs 2030 High Norway Restrictive policies 2025 High So
Slide 6: 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) 303Kt POLAND For graphite anode by 2028 GERMANY (70 GWh) (126 GWh) DEMAND 2028 CZECH REPUBLIC (9 GWh) Talga’s Swedish anode prod
Slide 7: Talga Anode Project
Talga Anode Project 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 demand for lithium-ion batteries Our project integrates a high-grade natural graphite mine & concentrat
Slide 8: Anode Refinery - Luleå
Anode Refinery - Luleå 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 Vittangi
Slide 9: Anode Product: Talnode-C
Anode Product: Talnode-C For personal use only COATED, SHAPED <10μm ACTIVE ANODE POWDER READY FOR CELL MANUFACTURER USE TALNODE-C Freezing temperature performance High power and fast charge Semi-synthetic properties SEE: ASX:TLG 15 MAY 2018, 21 MAR 2019, 26 MAR 2019 AND 23 MAY 2019
Slide 10: Position in Supply Chain
Position in Supply Chain For personal use only Raw Materials Battery Materials Cell manufacture Battery Packs OEM Graphite Anode Processors, Cobalt. Copper etc. Additives & Solvents Cathode Electrolyte Lithium Minerals Separators Binders Li-Salts Cell Housing SOURCE: RECRUIT, AVICIENNE. NOTE, SELECT
Slide 11: Anode vs Graphite – Price
Anode vs Graphite –Price For personal use only $20,000 Price (US$/tonne) Coated Synthetic anode Upper end $18,000 $16,000 $14,000 Coated Anode $12,000 Price range 2 TALNODE-C Coated Anod (PFS) $10,000 $8,000 Coated Natural anode Lower end $6,000 1 Uncoated Spherical (99.95%C, 10 μm) $4,000 $2,000 Fl
Slide 12: Vittangi Graphite Project
Vittangi Graphite Project TALGA MINE & CONCENTRATOR For personal use only PREMIER INVESTMENT AND LOGISTIC LOCATION FREYR PLANT TALGA REFINERY NORTHVOLT PLANT • Large Swedish deposits representing a strategic European and Global supply opportunity • Vittangi Project alone has JORC Mineral Resources o
Slide 13: The Swedish Mining Zone
SWEDISH The Mining Zone For personal use only Existing quality infrastructure Operating open cut mines High level of mining innovation Productivity 6 times higher than international standards* AITIK MINE, NORRBOTTEN SOURCE: *P3 MANAGMENT CONSULTING FIRM, NOVEMBER 2017
Slide 14: Low Cost Swedish Renewable Energy
LOW COST Swedish Renewable Energy For personal use only 500 CO2-emissions (g CO2/kWh) IRELAND 450 GERMANY Abundance of low CO2 power (Hydro and Wind) distributed via NETHERLANDS 400 UK 350 extensive quality grid network 300 250 Perfectly suitable for sustainable 200 DENMARK low cost production of ba
Slide 15: Mine & Concentrator - Vittangi
Mine & Concentrator - Vittangi For personal use only 23.5% 100K 22 ORE GRADE TPA YEARS Ore Reserve grade in Ore throughput rate at Project mine life solely graphitic carbon onsite concentrator from 2Mt Ore Reserve Open pit mine sequence to backfill and rehabilitate as operation progresses. High grad
Slide 16: 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 17: Unique Ore: Naturally Anode Sized
10,000t 10,000t Unique Ore 100-150µm graphite flakes Industry Standard 10µm graphite flakes Talga Vittangi For personal use only NATURALLY ANODE SIZED Super-homogenous highly crystalline flake graphite naturally 12% LOSS sized for anode particles 50% LOSS 100% product output is anode, no ‘basket’ or
Slide 18: Coated Graphite Anode Cost
Coated Graphite Anode Cost For personal use only COLLECTIVE ADVANTAGES ENABLE TALGA TO BE GLOBALLY LOW COST PRODUCER $9,000 Production Cost (US$/tonne) $8,000 Ultra high grade ore $7,000 $6,000 $5,000 Low cost grid power $4,000 $3,000 $2,000 High Process yield $1,000 $0 1 2 TALGA CHINA SYNTHETIC 3 S
Slide 19: Staged Development Underway
Staged Development Underway For personal use only HIGH VALUE, LOW VOLUME OPERATION LOWERS ENVIRONMENTAL FOOTPRINT 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-milling and first Refinery mod
Slide 20: Project PFS Results
Project PFS Results For personal use only HIGH ECONOMIC PERFORMANCE FROM STAGED DEVELOPMENT $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 annual steady state revenue $27M $147
Slide 21: Pathway to Production
DFS 1 DFS 2 2019 2020 2021 2022 2023 use1 only 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 STAGE MINING & PROCESSING COMMISSIONING For personal TALNODE-C PRODUCTION MINE APPROVALS STAGE 2 MINE ESTABLISHMENT DESIGN & CONSTRUCTION COMMISSIONING
Slide 22: Anode Marketing Process
Anode Marketing Process Production Customer production For personal use only 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 - 10K
Slide 23: Latest Activities
Latest Activities For personal use only MARKETING Customer qualification sample production ramping up with & SALES strong customer demand TALNODE-C Rudolstadt process facility upgrade underway for DFS SCALEUP metallurgical work and increasing anode market samples OFFTAKE Process underway with range
Slide 24: Latest Activities
Latest Activities For personal use only PROJECT Application submitted to authorities for Stage 1 (25,000t trial PERMITTING mine & 5,000t Talnode-C production) target approval by Q1/20 DFS Definitive feasibility study underway targeting March 2020 STAGE 1 for investment decision. Quotes and initial d
Slide 25: The Opportunity
TALGA The Opportunity For personal use only Uniquely leveraged to booming battery megafactory demand in Europe Downstream market position and lowest cost curve ensures capability to ride out cycles Own technology and product pipeline to capitalise on next generation batteries as they commercialise C
Slide 26: Overview
ASX:TLG Overview BOARD OF DIRECTORS For personal use only Terry Stinson Non-Executive Chairman Mark Thompson Managing Director A$90.0M ~5000 Grant Mooney Non-Executive Director MARKET CAP* SHAREHOLDERS Steve Lowe Non-Executive Director Ola Rinnan Non-Executive Director A$7.7M A$0 Andrew Willis Non-E
Slide 27: 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 EUROPEAN OPERATIONS Talga Sweden: Vänortvägen 2, 981 32 Kiruna, Sweden Talga Swede
Slide 28: Competent Person Statements
Competent Person Statements For personal use only 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 Thamm are consultants to the Company. Mr Mapeto
Slide 29: Appendix
For personal use only Appendix
Slide 30: 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 Stage 1 $M $
Slide 31: JORC Graphite Reserve & Resources
JORC Graphite Reserve & Resources For personal use only Ore Reserve 3 Tonnes Graphite (% Cg) Nunasvaara (JORC 2012) 1,935,000 23.53 Proven 0 0 Probable 1,935,000 23.53 Mineral Resources 1, 2 Tonnes Graphite (% Cg) Nunasvaara (JORC 2012) 12,300,000 25.57 Indicated 10,700,000 25.7 Inferred 1,600,000 2
Slide 32: Peer Comparison Information
Peer Comparison Information For personal use only MINERAL RESOURCES ESTIMATE GRADE JORC/NI43-101 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 33: Peer Comparison Information
Peer Comparison Information For personal use only MINERAL RESOURCES ESTIMATE GRADE JORC/NI43-101 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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