Talga Resources Ltd: A diversified mineral developer
Talga Resources (ASX: “TLG”) is a diversified mineral explorer and developer focused on its world-class graphite assets in northern Sweden.
The company’s assets include the highest grade of JORC/NI43-101 graphite resource in the world, as well as iron ore resources in Sweden and high grade gold projects in Australia.
Sweden is recognised as one of the best countries in which to develop and operate a mine, and Talga Resources is amongst a very small group of Australian companies with high-quality graphite, copper/gold and iron assets in a such a low sovereign risk country.
Key investment highlights:
- Grade - Highest grade graphite resource in the world to JORC/NI 43-101 standard (Nunasvaara total Indicated and Inferred JORC resource 7.6Mt @ 24.4% Cg) provides the opportunity for low cost production and high margins.
- Location – Top mining jurisdiction, rated No.2 in world by Fraser Institute, on doorstep of major graphite markets and consumers. Corporate tax rate 22% and minerals tax rate 0.2%.
- Scale – Current Nunasvaara resource exceeds 20 year open-cut mine life at 300Ktpa base case mining rate.
- Infrastructure – Adjacent to high-quality bulk mineral infrastructure and very low-cost power.
- Equity - All deposits owned 100%.
- Product suite - Multiple deposits cater for demand from ultrafine flake to coarse flake graphite end users.
- Growth profile - JORC compliant exploration targets total 117-178Mt @ 17-23% Cg with further 6 graphite deposits defined to drill status, but focus is on grade/profitability.
- Leverage – Capital structure designed to offer leverage for success. Management are largest shareholders.