2021 AGM Presentation
ASX:TLG 25 November 2021, Perth, Australia Annual General Meeting Talga is building a European supply chain of advanced materials critical to our customers’ innovation and the shift towards a more sustainable world Vertical integration with 100% ownership of mineral resources, processing and product provides security of supply for customers and creates long-lasting value for stakeholders Our strong in-house expertise spans mineral exploration and development, processing technology, product R&D and marketing Battery anode & advanced materials We are Talga Global Operations Perth Osaka Rudolstadt Stockholm Cambridge Luleå Kiruna Perth, Australia Corporate head o ! ce Cambridge, United Kingdom Ba " ery anode product and technology centre Osaka, Japan Commercial o ! ce and product development Rudolstadt, Germany Metallurgical process pilot facility and EU customer network Kiruna, Sweden Integrated graphite mine Luleå, Sweden Anode Production Group head office Perth, Australia Anode production & integrated graphite mine Luleå & Kiruna, Sweden Battery anode product & technology center Cambridge, UK Metallurgical process pilot facility & EU customer network Rudolstadt, Germany Commercial office & product development Osaka, Japan Market focused R&D and development of next generation battery and advanced materials for future commercialisation Fast-tracked decision for mass-producible Talnode ® -Si silicon anode Continued development of solid state Talnode ® -E battery anode technology CALIBRE cathode additive program Talphene ® graphene product development across numerous commercial customer programs and in co-funded research projects Developing future technology ASX:TLG 14 OCT 2020, 30 APRIL 2021 For higher energy density sought by customers battery roadmaps Particle design enables a range of loadings in existing commercial anode blends Graphene silicon composite electrode additive focused on high volume production processes EV and 3C customer testing and scale-ups underway Intellectual Property applications lodged Silicon Anode: Talnode®-Si 12-month ATF-Innovate UK funded feasibility program to evaluate Talga materials as conductive Li-ion battery cathode additives Includes technical feasibility /performance testing along with commercial feasibility, market and pricing analysis Conductive Cathode Additive Solid state batteries suffer a range of technical and commercial issues, particularly for larger applications (EVs) Talga is developing a graphitic-metal composite for easier processability, safer handling, scalable industrial manufacturing and lower costs Solid State: Talnode ® -E Illustration not Talga specific approach. Source: 2020 Lee et al (Samsung) High-energy long- cycling all-solid-state lithium metal batteries enabled by silver–carbon composite anodes) CURRENT COLLECTOR SEPERATOR CURRENT COLLECTOR SEPERATOR Li + Li + Active Material Carbon Black Talga Additive CURRENT COLLECTOR SEPERATOR Li + Project Approach: Evaluate Talga product partially and fully replacing incumbent additives Functionalised fit-for-purpose Talphene ® additives for global large volume applications with performance and sustainability key drivers Applications include: - anticorrosion and antibacterial coatings - food packaging - rubber and plastics - batteries - metal alloys - construction materials Approval from the European Chemicals Agency (ECHA), under the EU’s REACH regulations to commercially manufacture up to 10 tonnes of graphene per annum Graphene Product Development Production processes tailored to maximise benefits of unique graphite source US patent for integrated mining method and electrochemical exfoliation process Proprietary Talga anode coating technology developed with feedback from auto OEMs Talga’s fully funded Swedish Electric Vehicle Anode qualification on track for Q1 2022 full commissioning Graphene and 3C / ESS battery anode sample production at German pilot facility Production process innovation First coated anode production plant in Europe (Luleå, Sweden) Critical step in progressing automotive OEM procurement processes Plant will produce active anode material for EV batteries at large-scale quantities aligned with customer requirements Milestone installation of first anode coating equipment achieved Full commissioning on track for Q1 2022 Electric Vehicle Anode Plant ASX:TLG 24 NOV 2021 Piloting of process technologies and production of customer qualification samples outputting advanced material additives (Talphene®) and battery materials (Talnode®) Milling, exfoliation and concentration processing lines with filter and drying stages, mixing, coating and packaging. Product quality control laboratory and coating testing facility REACH and ISO certified Rudolstadt Pilot Processing Facility Strategic exploration activities to underpin potential future expansions of anode and advanced materials business 2021 phase of Niska Trial Mine successfully completed providing feed material for EVA plant SkyTEM geophysical survey show Vittangi Graphite Project units to be more continuous Extensive drilling program initiated across strategic graphite targets to support resource growth and production expansions plans High-grade graphite intercepted across initial 2021 drill holes aiding preparation for mine establishment Exploring for sustainable growth ASX:TLG 26 OCT 2021, 24 NOV 2021 Permitted 25,000 tonnes of feed ore for subsequent refining into Talnode ®- C to be used in large scale production testing for the EV supply chain First ~2,500 tonne phase successfully completed with raw material stored for processing and refining Exploitation concession applications for the Niska expansion submitted to Swedish authorities earlier this year 2021 Trial Mining: Niska South ASX:TLG 24 NOV 2021 Market growth for anode drives exploration to define more resources and grow reserves Completed SkyTEM geophysical survey reveals Vittangi graphite-bearing units more continuous than previously recognised Significant new high-grade target identified near planned mill called Nunasvaara east Drilling of extensions of resources and new targets completed with first results received Initial 6 holes intercept high-grade graphite in DFS starter pit (Pit 4) with results to guide optimisation 2021 Exploration and Drilling Campaign 2021 Drilling Targets ASX:TLG 26 OCT 2021, 24 NOV 2021 Sustainability is at our core Supplying green products that have a role in a cleaner future is not enough; we need to do so sustainably Emissions Scope 1-3 LCA on Talnode ® -C production completed by Hitachi ABB Environmental and Social Management System under development Inaugural Sustainability and People report published as part of 2021 Annual Report Committed to EU Principals for Sustainable Raw Materials ASX:TLG 25 OCT 2021, 12 AUG 2021 Near term production plans focused on Talga’s flagship lithium-ion battery anode product Talnode®-C Highly engineered graphite anode material with ultra-low CO2 emission profile Excellent charging performance at high load and low temperature High rate and excellent capacity retention (>90%) during fast charging Effective for applications that require a higher rate (> 10C) such as for PHEVs and HEV Li-ion Battery Anode: Talnode®-C Sales managers employed across strategic regions including UK and Western Europe, Nordics and Central Europe, Japan and Hong Kong Globally recognised ISO 9001:2015 certification awarded for current stage production and distribution of graphite and graphene products Recruitment of production quality controllers for the EVA plant underway Broader quality assurance program being implemented across Talga’s operations in preparation for commercial production Sales and Distribution Designed to operate both as a 100% replacement of synthetic anodes and a drop - in performance additive Product offering dependent on customer requirements Talga is seeking to partner with the cleanest synthetic graphite anode producers with commercial alignment to serve global customer demand for blends and to maximise market opportunities Talnode® - C Product Offering To enable the world’s most sustainable batteries and consumer products through innovative graphitic materials Our Mission EV sales driving battery boom SOURCE: SCHMIDT AUTOMOTIVE RESEARCH - WESTERN EUROPE 18 MARKETS, BEV MIX (OCTOBER 2021). Battery and Hybrid EV sales and market penetration rates now rapidly increasing Current EV anodes are predominantly synthetic graphite but natural anode increasing market share due to favourable environmental footprint and rising cost of synthetic feedstock Silicon will be additive to graphite-dominant blends New technologies (solid state) expected to take time to commercialise and will see limited mainstream uptake due to cost and manufacturing limitations Resulting in immense new anode demand Battery demand will drive multi-decadal growth for anode and disrupt supply chains SOURCE: BENCHMARK MINERAL INTELLIGENCE Talga is building a fully integrated battery anode supply chain in Sweden Initial 19,500tpa of coated anode production from 2024 using clean renewable energy and high grade, responsibly extracted natural graphite from Talga’s Vittangi project the solution Vittangi Mine & Concentrator Luleå Anode Plant Vertically Integrated Anode Production - Sweden Highest grade graphite JORC resource 100% anode flake (no industrial products) Exceptional anode yield (90%+) Located in Tier-1 investment jurisdiction Access to sustainable low-cost power Proximal to the European EV supply chain Inherent project advantages ASX:TLG 23 MAY 2019, 1 JULY 2020 and APPENDIX Enabling green electrification Batteries are crucial to reducing greenhouse gas emissions, and green batteries require green anodes Graphite anode represent up to 40-50% volume of the active materials in Li-ion batteries 34 LCA 1 results show Talga anode production emits 96% less CO 2 -eq when compared to incumbent EV material Equaling -2.9 tonnes CO 2 reduction per EV produced 2 1.5 1. Talnode®-C Life Cycle Assessment results presented in Talga ASX release on 12 August 2021. 2. Assumes 76.5KwH battery pack being average of VW ID.4 1st and Tesla Model 3 Performance. Note: 1KWh = 1.2Kg anode (Source: Benchmark Mineral Intelligence report). SOURCE: Rho motion COP26 Signatories: Automotive SEE: ASX:TLG 23 MAY 2019; 24 JUNE and 7 DEC 2020; 1 JULY 2021 (1) REFER TO THE CAUTIONARY STATEMENT IN RESPECT OF THE NISKA SCOPING STUDY ON PAGE 2. (2) INCLUDES US$171M MINE AND CONCENTRATOR, PURIFICATION PLANT US$197MM, ANODE PLANT US$304MM, INDIRECT REFINERY US$168MM, INFRASTRUCTURE US$202MM and CONTINGENCY US$206MM AS PER SCOPING STUDY RELEASED 7 DECEMBER 2020. Niska adds to Vittangi to make Talga one of the largest anode producers outside China Path to >100,000tpa anode production Legend Graphite JORC Resources Graphite Deposits Mine Pit PFS Mine Operation PFRS Mine Layout Access Road 2021-22 DEVELOPMENT EVA PLANT 2024 COMMERCIAL 19,500tpa Niska South Niska North Nunasvaara North Nunasvaara South Niska Expansion (1) (2020 Scoping Study) Talnode®-C 84,700tpa Talphene® 8,470tpa Life of Mine 14 years Pre-tax NPV 8 base case US$3,540M Pre-tax IRR 47% Capex (inc. contingency) US$1,246M (2) 2025 EXPANSION TO ~104,000tpa SEE: ASX:TLG 30 OCT 2015 and 5 FEB, 26 MAR, 4 SEP 2018 and 15 JAN, 2 OCT, 8 OCT, 24 OCT 2019 and 31 JAN, 20 MAR, 13 MAY, 27 MAY, 24 JUNE, 2 NOV, 24 NOV 2020 and 22 JUN, 28 JUN 2021. Working with respected battery customers and technology and development partners Talga partnerships for a greener future Corporate Overview NOTE: MARKET CAPITALISATION AS AT 24 NOVEMBER 2021, SHAREHOLDERS AS AT 2 AUGUST 2021. (1) UNLISTED OPTIONS INCLUDE PERFORMANCE RIGHTS SUBJECT TO VESTING CONDITIONS. STOCKMARKET CODES/TICKERS Primary listing in Australia on the ASX (TLG) with OTC trading in Germany (TGX) and US (TLGRF) ASX:TLG (12 MONTHS) CAPITAL STRUCTURE ASX Listing Code: Market Capitalisation: Listed Shares: Unlisted Options: Cash as at 30 September 2021: TLG $519.5M 304.7M 13.4M (1) $46.0M MAJOR SHAREHOLDERS Mark Thompson – M. Director Kinetic Investment Partners UBS AG UBS Securities Australia Charles Schwab & Co. Inc TOP 20 SHAREHOLDERS Total number of shareholders 4.7% 4.4% 2.1% 2.0% 1.7% 30.0% 11,168 Upcoming catalysts and milestones EVA plant production and completion of customer qualifications Permitting of Nunasvaara South graphite mine and advanced Niska expansion permits Project financing and JV’s Balance of drilling results and subsequent resource and reserve upgrades Finalisation of silicon anode production strategy and manufacturing sites Customer orders for key graphene products Growing for the Future TALGA GROUP LTD ASX Code: TLG Group Head Office: 1st Floor, 2 Richardson Street, West Perth WA 6005, Australia Phone Number: +61 8 9481 6667 Email Address: firstname.lastname@example.org Website: www.talgagroup.com Ore Reserve 3, 6 Tonnes Graphite (% Cg) Nunasvaara (JORC 2012) 2,260,140 24.1 Probable 2,260,140 24.1 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 25.6 Inferred 4,500,000 18.3 Vittangi Niska (JORC 2012) 4,600,000 25.8 Indicated 4,600,000 25.8 Jalkunen (JORC 2012) 31,500,000 14.9 Inferred 31,500,000 14.9 Raitajärvi (JORC 2004) 4,300,000 7.1 Indicated 3,400,000 7.3 Inferred 900,000 6.4 Total Mineral Resources 55,300,000 17.5 NOTE: 1. MINERAL RESOURCES ARE INCLUSIVE OF ORE RESERVES. 2. MINERAL RESOURCES ARE REPORTED AT VARIOUS CUT OFF GRADES: NUNASVAARA AND NISKA 10%Cg, JALKUNEN 5%Cg AND RAITAJÄRVI 5%Cg. 3. ORE RESERVE IS REPORTED AT A CUT OFF GRADE OF 12%Cg. 4. ERRORS MAY EXIST DUE TO ROUNDING. SEE: ASX:TLG (5) 17 SEP 2020, (6) 1 JUL 2021, (7) 15 OCT 2019, (8) 27 AUG 2015 AND (9) 26 AUG 2013. JORC Graphite Reserve and Resources Competent Person Statements 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 data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed. The Nunasvaara Mineral Resource estimate was first reported in the Company’s announcement dated 17 September 2020 titled ‘Talga Boosts European Natural Graphite Resources’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed. The Nunasvaara Ore Reserve statement was reported in the Company’s announcement dated 1 July 2021 titled ‘Robust Vittangi Anode Project DFS’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Reserve estimate in the previous market announcement continue to apply and have not materially changed. The Jalkunen Mineral Resource estimate was first reported in the Company’s announcement dated 27 August 2015 titled ‘Talga Trebles Total Graphite Resource to Global Scale’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed. The Raitajärvi Mineral Resource estimate was first reported in the Company’s announcement dated 26 August 2013 titled ‘500% Increase to 307,300 Tonnes Contained Graphite in New Resource Upgrade for Talga’s Swedish Project’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the previous market announcement continue to apply and have not materially changed. The Company first reported the production targets and forecast financial information referred to in this presentation in accordance with Listing Rules 5.16 and 5.17 in its announcement titled ‘Robust Vittangi Anode Project DFS' dated 1 July 2021. The Company confirms that all material assumptions underpinning those production targets and forecast financial information derived from those production targets continue to apply and have not materially changed. The Information in this announcement that relates to prior exploration results for the Vittangi graphite project is extracted from ASX announcements available to view on the Company’s website at www.talgagroup.com. The Company confirms that it is not aware of any new information or data that materially affects the exploration results included in the relevant original market announcements. The Company confirms that the form and context in which the Competent Person and Qualified Person’s findings are presented have not been materially modified from the relevant original market announcements.