Talga Group Ltd. · ASX:TLG
Talga — Talga Resources — Benchmark Minerals Week Graphite & Anodes 2019
40 slides from Talga's conference presentation, Nov 11, 2019
Slide 1: Talga Presentation at Benchmark Minerals Graphite & Anodes 2019
ASX Release 11 November 2019 ASX:TLG Talga Presentation at Benchmark Minerals Graphite & Anodes 2019 For personal use only Advanced battery anode materials and graphene additives provider Talga Resources Ltd (“Talga” or “the Company”) (ASX:TLG) is pleased to provide a copy of the presentation to be
Slide 2: Feeding the Beast: Establishing a European Li-ion Anode Supply
For personal use only Feeding the Beast Establishing a European Li-ion Anode Supply Mark Thompson Managing Director Benchmark Minerals Week Los Angeles, 11-12 November 2019 © TALGA RESOURCES LTD, 11 NOVEMBER 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: Introduction
Introduction For personal use only Talga is a vertically integrated producer of advanced battery anode materials and graphene additives We are building Europe’s first large scale lithium-ion battery anode plant to produce at first 19,000t annum coated anode 100% ownership of mineral supply in Sweden
Slide 5: Leading the Way
Leading the Way For personal use only Europe is charging ahead with electrification plus governments legislate change to achieve low/zero emission targets at ambitious timelines Norway Restrictive policies 2025 Germany Ban of ICEs 2030 Netherlands Ban of ICEs 2030 Sweden Ban of ICEs 2030 France Ban
Slide 6: Fastest Growing Demand is in Europe
Fastest Growing Demand is in Europe For personal use only Growth rate of Li-ion Battery Manufacturing (GWh) 18.00 16.00 Megafactory Capacity since 2018 Growth rate multiples Li-ion 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2018 2023 2028 Asia (excl China) China Europe North America SOURCE: BENCHMAR
Slide 7: Growing Anode Demand in EU
Growing Anode Demand in EU TALGA For personal use only SWEDEN (50 GWh) 303Kt DEMAND For graphite anode in EU by 2028 UK (7 GWh) 0Kt POLAND Current EU sourced graphite GERMANY (70 GWh) (126 GWh) anode (100% imported) TODAY CZECH REPUBLIC (9 GWh) Talga is strategically located to enter HUNGARY the mar
Slide 8: Talga Anode Project
Talga Anode Project For personal use only TALGA IS BUILDING A WORLD CLASS ANODE PLANT IN NORTHERN SWEDEN • Project integrates a high-grade natural graphite mine & concentrator to a wholly owned anode refinery • Close proximity to road, rail & export facilities linking directly to customers • In-hous
Slide 9: 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 10: 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 11: Global Margin Leader
Global Margin Leader For personal use only COLLECTIVE ADVANTAGES ENABLE TALGA TO BE GLOBALLY LOW COST PRODUCER Coated Anode Production Cost (US$/tonne) $9,000 $8,000 Ultra high grade ore $7,000 $6,000 100% anode flake size $5,000 $4,000 $3,000 High Process yield (88%) $2,000 $1,000 Low cost grid pow
Slide 12: 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 13: Executing on Anode Project Plan
For personal use only Executing on Anode Project Plan Talnode-C Scale Up and Project Development Stages
Slide 14: Talga Operations
Talga Operations For personal use only HEADQUARTERED IN AUSTRALIA WITH MAJOR OPERATIONS AND BUSINESS UNITS IN EUROPE Graphite Source Talga Sweden 100%-owned Graphite and Cobalt/Copper mineral deposits under development Pilot Process & Sample Supply Talga Germany 100%-owned pilot scale facility scali
Slide 15: Our Expertise
BATTERY & ANODE Our Expertise For personal use only Talga develops its own high performance Li-ion anodes and battery materials enabled by its unique; natural carbon source type processing technology in-house material engineering technology Strong in-house technology capability with over 20 PhD’s an
Slide 16: In-house Anode Development
In-house Anode Development For personal use only ELECTROLYTE/ADDITIVES CELL BUILDING FEC/VC, LP30 Half/full cell, C/A ratio, calendaring, expansion MILLING/SHAPING BINDER Loading ratio, Duration, Cost, PSD CMC/SBR, PAA, PVDF MIXING THERMAL/ANNEALING Sequence, duration, speed, Temperature, BET, PSD,
Slide 17: Talnode-C
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 16 SEE: ASX:TLG 15 MAY 2018, 21 MAR 2019, 26 MAR 2019 AND 23 MAY 2019
Slide 18: Outstanding at Low Temperature
Outstanding at Low Temperature For personal use only RETENTION OF 100% CAPACITY AND 100% CYCLE EFFICIENCY AT FREEZING TEMPERATURE (0°C) 120% 100% Capacity Retention 80% 60% 40% 20% 0% 25°C 0°C Market Leader Talnode-C SEE: ASX:TLG 21 MAR 2019 17
Slide 19: Endurance Under High Power + Fast Charge
Endurance Under High Power + Fast Charge For personal use only TALNODE-C IN REAL-WORLD ENDURANCE TEST OF INDUSTRIAL POUCH CELLS AT LOW TEMPERATURE THE LACAMA, DEVELOPED BY IV ELECTRICS THE STELVIO PASS, ITALY SEE: ASX:TLG 26 MAR 2019 18
Slide 20: IV Electrics – 'Stelvio' test
IV Electrics – ‘Stelvio’ test For personal use only BENCHMARKING OF TALNODE-C BY ELECTRIC M/CYCLE MANUFACTURER IV ELECTRICS (FORMER ITALIAN VOLT) Time (s) for cell voltage to fall below 3.2V, at 14°C Cyclic test simulating driving up a mountain at high speed Talnode™-C Measures the ability of the ce
Slide 21: 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 22: 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 23: Talga Pilot Plant, Rudolstadt-Schwarza
Rudolstadt-Schwarza Industrial Estate, Thuringia, Germany For personal use only Talga Pilot Plant
Slide 24: Talga Pilot Plant
For personal use only Talga Pilot Plant
Slide 25: 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 Luleå Refine
Slide 26: Planned Mining and Refinery
Planned Mining and Refinery For personal use only Q1 2021 STAGE 2 MINING OPERATION AND ANODE REFINERY (22 YEAR MINE LIFE) Full Scale Mining Operation Purification, Coating, Shaping & Thermal Treatment Vittangi Project, Nunasvaara, Sweden Luleå, Sweden 100,000 ton/year 22,000 ton/year Stage 2 Anode R
Slide 27: Indicative Timeline
Indicative Timeline STAGE 1 use only DFS 1 DFS 2 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 For personal MINING & PROCESSING COMMISSIONING TALNODE-C PRODUCTION MINE APPROVALS 2 MINE ESTABLISHMENT STAGE DESIGN & CONST
Slide 28: Further Growth Opportunities
For personal use only Further Growth Opportunities Developing range of new high-performance anode materials
Slide 29: Silicon Anode: Talnode-Si
Silicon Anode: Talnode-Si For personal use only HIGH CAPACITY ANODE USING SILICON AND IN-HOUSE GRAPHENE UNDER DEVELOPMENT Graphene silicon composite (containing 31% Si) as additive for existing Li-ion graphite anodes Reversible capacity up to 1,100 mAh/gr in half cell tests using 80% Talnode-Si/20%
Slide 30: Solid State Anode: Talnode-E
Solid State Anode: Talnode-E For personal use only DEVELOPING COMMERCIAL ANODE FOR SOLID STATE LI-ION BATTERIES Solid state batteries suffer technical and commercial issues in practice, particularly at larger scale and where metallic lithium used as anode Talga is developing a graphitic anode to rep
Slide 31: Technical Partners
Technical Partners For personal use only IN-HOUSE AND COLLABORATIVE PRODUCT DEVELOPMENT SEE: ASX:TLG 15 MAY 2018, 16 OCT 2018, 24 OCT 2018, 19 FEB 2019, 21 MAR 2019 & 26 MAR 2019
Slide 32: The Opportunity
TALGA The Opportunity For personal use only Uniquely leveraged to booming Li-ion battery demand in Europe Downstream market position and lowest cost curve ensures economic performance & longevity Own IP and product pipeline to capitalise on emerging battery technologies Complies with greener and mor
Slide 33: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Share Price Year To Date ASX Code: TLG Share on Issue 222m ASX Share Price A$0.53 Cash (EO September Qtr) A$5.6m Debt Nil Market Cap A$117.7m Enterprise Value A$112.1m Board of Directors 6.8% Terry Stinson Chairman 11.5% Board & Management M
Slide 34: 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: admin@talgaresources.com Website: www.talgaresources.com GLOBAL OPERATIONS Talga Sweden: Vänortvägen 2, 981 32 Kiruna, Sweden Talga Sweden:
Slide 35: 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 36: Appendix
For personal use only Appendix
Slide 37: 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 38: 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 39: 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 40: 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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