As the broader ASX grapples with lockdown blues, Talga Group Ltd [ASX:TLG] defies expectations.
The battery materials company is trading share price 0.79% higher at the time of writing. Lifted higher thanks to news from Talga’s Swedish graphite projects.
A development that management has dubbed a ‘supersizing’ of their total target.
Let’s take a closer look…
Significant increase in graphite
According to Talga, their latest surveys at the Vittangi project have delivered some remarkable results. They are now forecasting a 170–200 million tonne target, with a 20–30% graphite grade.
A staggering increase from the previously estimated 24–46 million tonne forecast. Which also carried a 20–30% graphite grade estimate.
That is fantastic news for the company, especially as there is still a lot of room for further exploration and confirmation.
Much of which will be revealed in time once drilling programs get underway on 29 July. With ongoing exploration efforts slated to continue for the next 12–18 months. All of which will (hopefully) feed into the broader battery boom for this emerging miner.
As Managing Director Mark Thompson comments:
‘The building blocks of more sustainable transport and a cleaner environment include battery materials and components, such as Talga’s green graphite anodes. Recent customer feedback leads us to more fully define the true extent of our high-grade graphite resources in Sweden and explore the increased scale potential for global battery markets.
‘By establishing this significant vertically integrated natural graphite anode business in Europe, we can clean up existing supply chains and be a positive high-technology addition to the regional economy.’
For investors’ sake, hopefully, he is correct…
What’s next for the Talga Share Price?
Beyond today’s good news, the focus will now turn to drilling, as I said, with Talga ready and raring to go with some actual digging.
Once underway, this should help back up these early forecasts. Either reinforcing the ‘supersized’ opportunity or bringing expectations back down to Earth.
Either way, it will be an exciting and busy time for all involved.
Elsewhere, at their Jalkunen project, though, further work is also set to begin soon. With ongoing drilling and reviews set to come in the near future as well. All of which will precede an eventual scoping study and licence application.
So, hopefully, the positive momentum will carry forward with these efforts.
In the meantime, if you’re looking for more battery metal opportunities, there is plenty to choose from. The resurgence in lithium, in particular, is one area not to overlook. With massive movements already seen in recent months.
Check out our latest report for more insight into the ‘bounce back’ and three of our top lithium picks, which you can access, for free, right here.
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here