Talga’s Graphene Focus Paying Massive Dividends
After generating some of the best graphite results ever seen, Talga Resources Ltd. (ASX: TLG) (“Talga”) have secured deals with two graphene giants to provide essential materials for some of the world’s most ground-breaking new developments. Graphene has been flagged by as a revolutionary technology capable of opening a multitude of new markets, and Talga has the people, resources, and now the commercial go-ahead to be a true leader in their emerging field.
Talga announced on 22nd March that they had finalised a joint development agreement with Zinergy, a UK-based energy-tech company focused on producing ultra-thin batteries for which they require a superb quality graphene product. Graphene being extremely thin and highly conductive makes it the material-of-choice for use in the ink needed to print flexible circuitry. The pioneering technology will be used to further develop exciting applications such as wearable-tech, seen by most experts as an inevitable evolution in the booming mobile device sector.
Furthermore, and barely a week later, the company signed with Chemetell, a subsidiary of chemical-goliath BASF, to jointly develop Talga value-added graphene products for use in Chemetall surface treatment products. The joint development program aims to set new industry standards for eco-friendly, high performance, corrosion resistant surface treatments, further empowering Talga’s global impact and resulting in significant movement on company stocks.
Why Talga Graphene?
Talga’s Vittangi project already has an existing resource of 9.8 million tonnes at 25.3% graphitic carbon, which is the highest resource grade amongst all the graphite deposits globally. Further drilling was undertaken in December and January, resulting in a great Christmas for Talga, not only confirming that their mega-project has one of the best gradings in the world, but also accidentally proving the existence of significant cobalt and gold deposits throughout the area.
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Graphene is to be found wherever graphite lurks, but is notoriously difficult to separate and scale-up. The prohibitively expensive nature of graphene production scares away most companies, but Talga’s incredible resource purity is what opened up the opportunity for them to move-in on the true cutting-edge of the cleantech world.
The company’s focus will no doubt be on its fresh commercial graphite interests for a good while, but the additional opportunities brought about by the discovery of significant cobalt mineralisation will almost certainly come into play this year. Cobalt has received significant attention of late; since conflict-free supplies have grown in demand, the world is looking for offtake from more stable jurisdictions. The particular spread of assets to which Talga now has access, makes them a supreme choice for security of investment this year, as it is almost unthinkable that they would run out of high-end resources to commercialise anytime soon.
Talga have made some excellent market decisions over the last twelve months, switching from their Australian resources to the now-highly-anticipated smorgasbord of Swedish deposits. The area ranks highly for many reasons; notably its established bulk commodity infrastructure with open access rail, road and ports, and low cost power from hydro-electric and nuclear grid. A corporate tax rate of only 22%, and a tiny mineral production tax rate of 0.2% makes for a very workable model. Add to this the fact that the area has an abundance of highly-skilled workers and it’s no surprise that the place was ranked as the second-best mining jurisdiction in the world by the Fraser Institute in 2012-13.
Rarely has there been a company with so many irons in the hottest fires, and investment in these sharp-minded and quick-thinking people would provide much more than just financial returns; there’s progress in them there hills.
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