Talga Group Ltd. · ASX:TLG
Talga — Investor Presentation (August 2022)
38 slides from Talga's investor presentation, Aug 3, 2022
Slide 1: Talga Webinar Presentation (ASX Release)
ASX Release ASX:TLG 3 August 2022 Talga Webinar Presentation For personal use only Battery materials company Talga Group Ltd (“Talga” or “the Company”)(TLG:ASX) is pleased to provide a copy of the presentation to be delivered by the Company’s Managing Director Mark Thompson during today’s investor w
Slide 2: About Talga; Forward-Looking Statements & Disclaimer
About Talga Talga Group Ltd (ASX:TLG) is building a European battery anode and graphene additives supply chain, to offer advanced materials critical to its customers’ innovation and the shift towards a more sustainable world. Vertical integration, including ownership of several high-grade Swedish gr
Slide 3: Talga Group Ltd Quarterly Investor Webinar
For personal use only Talga Group Ltd Quarterly Investor Webinar 3 August 2022 © Talga Group Ltd, August 2022
Slide 4: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer Talga Group Ltd ACN 138 405 419 (the Company) is the issuer of this presentation. For personal use only 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 5: Introduction to Talga Group
Introduction to Talga Group For personal use only Talga is building a European supply chain of battery & advanced materials critical to the shift towards a more sustainable world The company is differentiated by full vertical integration, unique mineral sources and ownership of production technology
Slide 6: Corporate Overview
Corporate Overview CAPITAL STRUCTURE For personal use only ASX:TLG Market Capitalisation: $417.8M Listed Shares: 304.9M Unlisted Options: 13.4M (1) Cash as at 30 June 2022: $13M MAJOR SHAREHOLDERS Mark Thompson – M. Director 4.7% Kinetic Investment Partners 4.4% Pentwater Capital Management 2.0% Yan
Slide 7: Experienced Board and Management Team
Experienced Board and Management Team Strong technological and operational leadership with on the ground European presence For personal use only Board of Directors Terry Stinson Mark Thompson Grant Mooney Steve Lowe Ola Rinnan Non-Executive Chairman Managing Director & Founder Non-Executive Director
Slide 8: Talga Operations
Kiruna Talga Operations Luleå For personal use only Osaka Perth, Australia Stockholm Group head office Luleå & Kiruna, Sweden Rudolstadt Anode production & graphite deposits Cambridge Cambridge, UK Product and R&D technology center Rudolstadt, Germany Production process pilot facility & EU customer
Slide 9: Quality ESG Commitment
Quality ESG Commitment For personal use only • 1st resource company committed to EU Principles for Sustainable Raw Materials • High standard of corporate governance with established ESG framework • Social and Environmental Management Systems and Policies accord to Equator Principles • Sustainability
Slide 10: Our Mission
Our Mission For personal use only to enable the world’s most sustainable batteries and consumer products through innovative graphitic materials
Slide 11: Natural Graphite - Critical Mineral Supply Chain
Natural Graphite - Critical Mineral Supply Chain For personal use only Graphite supply chain reliant on China Natural Graphite has Critical Mineral Status due to its vital role in decarbonisation 14% 14% China 6% Brazil 9% Mining Madagascar 58% Mozambique Other Only 2% of “China maintains a hold Eur
Slide 12: Graphite in Li-ion batteries
Graphite in Li-ion batteries Graphite (as the anode) is main volume mineral in commercial Li-ion batteries For personal use only Battery - NCA Talga’s Battery – NCA+ Talnode®-C Anode Battery – NCM 333 Cathode Battery – NCM 532 Battery – NCM 622 Battery – NCM 811 Battery – LFP Battery – LMO 50 100 15
Slide 13: Battery Megatrend Driven by Electrification
Battery Megatrend Driven by Electrification Demand for Li-ion battery materials rapidly increasing across transport, stationary and 3C markets For personal use only Electric vehicles as % of global total passenger vehicle sales 80% 70% 60% 50% 40% 30% 20% 10% Today 0% 2018 2020 2022 2024 2026 2028 2
Slide 14: Driving immense new graphite anode demand
Driving immense new graphite anode demand Battery anode demand disrupting 1Mtpa natural graphite market and supply chain For personal use only Forecast: Natural graphite anode demand 4,500,000 • Almost all existing and new battery manufacturing 4,000,000 capacity uses graphite anodes • Natural graph
Slide 15: Vast battery demand starting in EU
Vast battery demand starting in EU Planned battery capacity >1TWh by 2030 requires >1.2Mt graphite anode per annum For personal use only Source: Cic Energigune, June 2022, Benchmark Mineral Intelligence, January 2022, 13 Benchmark Mineral Intelligence, Lithium Ion Battery Gigafactory Assessment, Jul
Slide 16: Talga owns Europe's largest graphite resources
Talga owns Europe’s largest graphite resources For personal use only European Graphite Mineral Resources classified to JORC or NI43-101 standards Battery Capacity Company Project Mineral Resource Contained Graphite equivalence2 (Million tonnes) 1 Talga Vittangi 30.1Mt @ 24.1%Cg 7.2 4,625 GWh-eq 2 Ta
Slide 17: Vittangi Anode Project: Overview
Vittangi Anode Project: Overview For personal use only Talga has completed a Detailed Feasibility Study Integrated Operations (DFS) for an integrated mine-to-anode operation in northern Sweden producing Talnode®-C in Sweden Vittangi graphite mine and concentrator Features: - responsible mining of un
Slide 18: Integrated and 100% controlled anode operation
Integrated and 100% controlled anode operation For personal use only Graphite concentrate Precursor anode material Active anode material Mining and Concentration Shaping and Purification Coating Talnode® Li-ion Batteries Natural graphite ore Graphite concentrate downstream processed with proprietary
Slide 19: Project Development updates
Project Development updates For personal use only Vittangi Anode Project milestones ü Jul 2021: Completed Detailed Feasibility Study for 100% owned Vittangi Anode Project ü Aug 2021: Hitachi lifecycle assessment delivers world-leading environmental credentials for Talnode®-C Commissioned (on time, u
Slide 20: Electric Vehicle Anode 'EVA' Plant, Sweden
Electric Vehicle Anode ‘EVA’ Plant, Sweden For personal use only First Li-ion battery anode plant in Europe Vital facility for advanced stage of customer qualification process, purchase agreements and financing Production of Talnode®-C using Vittangi graphite commenced in April 2022 Proprietary in-h
Slide 21: Talnode-C attractive performance characteristics
Talnode®-C attractive performance characteristics For personal use only Energy Density Faster Charging Lower Cell Resistance High energy density for increased Fast charge rate outperforms High conductivity material range or lighter weight. existing commercial anodes. decreases thermal build up, impr
Slide 22: Delivering Cleaner Anode
Delivering Cleaner Anode Talnode®-C cradle-to-gate LCA accords to ISO 14040-14044 and German Association of Auto For personal use only Industry China Synthetic China Natural Syrah (Mozambique- USA) Northern (Canada) Saves 2,900kg CO2-eq Leading Edge (Sweden) per Electric Vehicle1 Talga (Sweden) 0 5
Slide 23: Anode Product Commercial Strategy
Anode Product Commercial Strategy For personal use only Following product positioning, price selection and pricing strategy, Talga is in final qualification stages with numerous customers Qualification requires extensive large-scale testing and bespoke product development Current qualification proce
Slide 24: Financing Strategy
Financing Strategy For personal use only Talga has appointed specialist advisory group BurnVoir Corporate Finance as corporate advisor and arranger of project finance for the construction of the Vittangi Anode Project BurnVoir has arranged development finance for a number of battery metals projects
Slide 25: Project Funding – European Financiers
Project Funding – European Financiers For personal use only Swedish Export Credit Agency (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 Vittangi Project. Swiss content linked to A
Slide 26: Mine Permitting
Mine Permitting For personal use only Fully permitted trial mine for open pit extraction of ~25,000 tonnes graphite ore underway Positive submissions from Norrbotten County (Local) Administrative Board stating Project’s environmental permit could be approved with appropriate conditions Permit court
Slide 27: Trial mine underway
Trial mine underway Left top and bottom: Vittangi Graphite Project trial mine operations during the period included lining of ore, waste and topsoil stockpile areas and commencement of excavations. Below: Trial mine impact monitoring includes dust measurement For personal use only stations. These st
Slide 28: Timelapse of Vittangi Graphite Trial Mine Commencement
Timelapse of Vittangi Graphite Trial Mine Commencement For personal use only 26
Slide 29: Path to >100,000tpa anode production
Path to >100,000tpa anode production Niska adds to Vittangi to make Talga one of the largest anode producers outside China For personal use only Niska North Niska Expansion (2020 Scoping Study) 2 Nunasvaara South Talnode®-C 84,700tpa (2021 DFS) 1 Talphene® 8,470tpa Niska South Talnode®-C 19,500tpa L
Slide 30: Graphene - adding value
Graphene - adding value Graphene products expand Talga’s addressable markets and opportunities to derive further For personal use only efficiency and commercial gains from Vittangi Talnode®-Si graphene from anode byproduct CALIBER study: technical and commercial feasibility of producing conductive a
Slide 31: Vittangi Graphite Growth
Vittangi Graphite Growth Resource upside with ability to support and expand European battery supply chain for decades For personal use only Vittangi Stage 1 DFS based solely on Ore Reserve (yellow zone in figure to right) constrained to market-entry target ~20Ktpa anode production for at least 20 ye
Slide 32: Exploration Feeds Mineral Endowment
Exploration Feeds Mineral Endowment Continued drilling success at Vittangi For personal use only 2022 drilling uncovers 2km ‘Niska Link’ with maximum values reaching 46% Cg (at 14.7m, NIS22008) (see ASX:TLG 6 July 2022). Significant downhole intercepts include: • 84m @ 20.2% Cg incl. 37m @ 29.6% Cg
Slide 33: Upcoming catalysts
Upcoming catalysts Talga is delivering on its strategy to become a significant vertically integrated producer of Li-ion battery For personal use only anode products and technologies Targeted short term milestones • Finalise FEED to optimise anode project economics into financing process • Finalise r
Slide 34: Outreach
3/8/2022 Outreach For personal use only During the quarter, Talga presented at the following industry events: • RawMaterials Summit, Germany • Euro Mines Expo, Sweden • AABC, Germany • Join Sweden Summit, Sweden • IMLB, Australia • Macquarie Group Critical Minerals, Australia • The Battery Show Euro
Slide 35: Talga Group Ltd
For personal use only 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 36: JORC Graphite Reserve and Resources
JORC Graphite Reserve and Resources For personal use only Ore Reserve 3, 5 Tonnes Graphite (% Cg) Nunasvaara (JORC 2012) 2,260,140 24.1 Probable 2,260,140 24.1 Mineral Resources 1, 2, 4, 6, 7, 8 Tonnes Graphite (% Cg) Vittangi (JORC 2012) 30,100,000 24.1 Indicated 22,600,000 24.9 Inferred 7,500,000
Slide 37: European Natural Graphite Peer Comparison
European Natural Graphite Peer Comparison For personal use only Contained Company Project Study Resource Tonnage Grade Information Source Tonnage Indicated 22,600,000 24.9 Talga Group, Company Announcement, 27 May 2022 Talga Vittangi DFS 7,249,000 https://talgagroup.eu-central-1.linodeobjects.com/ap
Slide 38: Competent Person Statements
Competent Person Statements For personal use only 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 that it is not aware of any ne