Talga Group Ltd. · ASX:TLG
Talga — Pareto Securities' Battery Metals & Mining Conference 2021
29 slides from Talga's conference presentation, Feb 24, 2021
Slide 1: ASX Release: Talga Presentation at Pareto Securities Conference
ASX Release 24 February 2021 ASX:TLG Talga Presentation at Pareto Securities’ Battery Metals & Mining Conference For personal use only Battery anode company Talga Group Ltd (“Talga” or “the Company”)(ASX:TLG) is pleased to provide a copy of the presentation delivered by the Company’s Managing Direct
Slide 2: Local Hero: Building Battery Anode Production in Sweden
For personal use only TALGA GROUP LTD (ASX:TLG) LOCAL HERO: BUILDING BATTERY ANODE PRODUCTION IN SWEDEN Pareto Securities’ Battery Metals & Mining Conference © TALGA GROUP LTD, FEBRUARY 2021
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer For personal use only Talga Group Ltd ACN 138 405 419 (the Company) is the issuer of this presentation. Niska Scoping Study The Niska Scoping Study is a preliminary technical and economic study of the potential viability of developing the Nunasvaara North, Niska S
Slide 4: EV Sales Take Off
EV Sales Take Off European EV sales rapidly increased in 2020 and OEMs dramatically expanding their offerings For personal use only EV Share of Sales (%) (1) Number of EVs Launched by 2025 (2) 0 20 40 60 80 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017
Slide 5: Big Auto Exits Combustion Engines
Big Auto Exits Combustion Engines Growing list of major automotive manufacturers commit to phase out internal combustion engines For personal use only 2020 2025 2030 2035 2040 2045 2050 Ban on New Sales or Production (EU Only or Global) 50% Target Stop on Development SOURCE: TRANSFORMATIVE URBAN MOB
Slide 6: Battery Material Demand
Battery Material Demand For personal use only EV demand and legislative pressure on internal combustion engines creating huge new demand for battery materials Graphite is the largest single active material in Li-ion battery by volume ~3.85 million tonnes coated graphite anode required by 2030 SOURCE
Slide 7: 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 8 GWh, later 32 GWh Ramp up to 40 GWh Germany, 2022 Slovakia, 2024 14 GWh, later 24 GWh 10 GWh United Kingdom, 2010 Germany, 2021 2.5 GWh Ramp up to
Slide 8: Supported by Government
Supported by Government Governments starting to ban new combustion engine cars All new passenger cars and Phase out the need to buy Goals set for EVs to reach light vans sold shall be zero gasoline and diesel cars 100% of total passenger emission vehicles and vans cars sold V V V 2025 2030 2032 2040
Slide 9: 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: responsibly extracted natural graphite 100% sustainable electricity local
Slide 10: Talga Group
Talga Group For personal use only Talga is building Europe’s largest anode supply chain, running on 100% renewable electricity and natural materials, to produce ultra-low emission anode products for greener Li-ion batteries Tier 1 location – Sweden; local to battery megafactories, with industry-lead
Slide 11: Talga Europe Operations
Talga Europe Operations European-based 100% controlled supply chain For personal use only • Talga Sweden Integrated graphite mine Anode & anode production Production • Talga Germany Pilot Process & Metallurgical process pilot Distribution facility & EU customer network • Talga UK Product Technology
Slide 12: Talga's Vittangi Project Sweden
Talga’s Vittangi Project Sweden Vertically integrated anode production For personal use only RAW MATERIALS Mining Mineral Processing Purification Coating ANODE MATERIALS 11 SEE: ASX:TLG 23 MAY 2019
Slide 13: Technical Leadership
For personal use only Dr Claudio Capiglia Dr Anna Motta Dr Fengming Liu Dr Karanveer S. Aneja Over 20 years of expertise in the Over 20 years of expertise in Over 12 years of industry Extensive knowledge of Technical lithium-ion battery (LiB) industry research management and experience with focus on
Slide 14: Anode Technology Moat
Anode Technology Moat Full in-house technology capability with 100% controlled mine-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 a
Slide 15: Position in the Supply Chain
Position in the Supply Chain Integrated supplier of anode products directly to EV battery manufacturers For personal use only Raw Materials Battery Materials Cell Manufacturer & OEMs OEM ü Highly engineered differentiated products Anode ü Proprietary processes & product development Graphite Miners /
Slide 16: Building the Solution
Building the Solution For personal use only Planned anode refinery in Luleå, Sweden to be fed graphite feedstock from Talga’s Vittangi project to produce 19,000tpa coated anode (Talnode®-C) for 22 years starting in 2023 PFS shows strong financial potential with pre-tax annual revenue of US$188m and
Slide 17: Talga Anode Products
Talga Anode Products Talga graphite derived battery anode range designed for growth and ‘future-proofing’ For personal use only Silicon Talnode®-Si Silicon-graphene anode Current Anode for higher energy density Solid State Talnode®-C Talnode®-E Energy Capacity Graphite anode for large volume, low co
Slide 18: Path to >100,000tpa Anode Production
Path to >100,000tpa Anode Production Niska adds to Vittangi to become largest anode producer outside China For personal use only Vittangi Anode Project (PFS) Niska Expansion(1) (Scoping Study) Talnode®-C 19,000tpa Talnode®-C 84,700tpa Niska North LOM 22 years Talphene® 8,470tpa Pre-tax NPV8 US$1,056
Slide 19: For Talga it Pays to be Green
For Talga it Pays to be Green The same factors that make Talga cost competitive also drive lower emissions For personal use only CO2-emissions Coated Anode Production Cost 900 $9,000 800 $8,000 700 $7,000 600 $6,000 US$/tonne gm CO2/kWh 500 $5,000 400 $4,000 300 $3,000 200 $2,000 100 $1,000 0 $0 ASI
Slide 20: Growing Partnerships
Growing Partnerships Confidential qualification processes under active customer engagements including majority of For personal use only announced European Li-ion battery manufacturers and six of the world’s major automotive OEMs SEE: ASX:TLG 30 OCT 2015 and 5 FEB, 26 MAR, 4 SEP 2018 and 15 JAN, 2 OC
Slide 21: Looking Ahead
Looking Ahead Potential near to medium term catalysts For personal use only JVs for Vittangi project development and funding Off-take and commercial partnerships with key customers UK feasibility studies for additional Talnode®-C and Talnode®-Si production sites Release of Vittangi Anode Project DFS
Slide 22: Corporate Overview
Corporate Overview CAPITAL STRUCTURE ASX Listing Code: TLG Market Capitalisation: $456M For personal use only ASX:TLG PERFORMANCE (12 MONTHS) Listed Shares: 303.2M Unlisted Options: 12.9M(1) Cash as at 31 December 2020: $32.4M SPP Cash (ASX:TLG 20 Jan 2021): $30.0M MAJOR SHAREHOLDERS Mark Thompson –
Slide 23: Talga Group Ltd Contact Details
For personal use only TALGA GROUP 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: Storgatan 7,
Slide 24: Appendix
For personal use only Appendix
Slide 25: Vittangi Anode Project: Timeline
Vittangi Anode Project: Timeline For personal use only Trial mine approved and full-scale mining applications submitted for 2023 production 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 APPROV
Slide 26: Vittangi Anode Project PFS
Vittangi Anode Project PFS For personal use only Key outcomes confirms technically and financially robust initial 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-
Slide 27: Niska Scoping Study
Niska Scoping Study For personal use only Key outcomes outlines pathway to globally significant battery anode production PARAMETER UNITS OUTCOME Annual ore mining rate tonnes 400,000 Average annual production of Talnode®-C tonnes 84,700 Average annual production of Talphene® tonnes 8,470 Life of Min
Slide 28: 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 29: 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
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