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.

The Deals

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.

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.

What Next?

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.

Talga CEO on Chemetall Deal and Becoming a Commercialized Graphene Player

Mark Thompson, Managing Director of Talga Resources Ltd. (ASX: TLG), in an interview with InvestorIntel’s CEO Tracy Weslosky discuss their joint development agreement (JDA) with Chemetall, part of BASF, and their new, “mega [cobalt] project.” The deal with Chemetall will commercialize graphene and will position them in the $10 billion a year metal protective treatments sector. Talga signed another JDA with Zinergy, a UK-based flexible battery company earlier this year. Moreover, they picked up pristine cobalt assets in Kiskama, Sweden in 2012. They confirmed the sensational results of historical drill cores and will have assaying results to appraise the entire property. Talga has another cobalt rich project to the southeast: the Lautakoski iron oxide copper gold (IOCG) deposit. Mark will explore the dynamic cleantech applications for the graphene market at the Cleantech and Technology Metals Summit on May 15 and 16.

Tracy Weslosky: Allow me to start by congratulating you on your announcement with Chemetall. I understand your stock is moving rapidly on the news. Can you give us some highlights?

Mark Thompson: Chemetall is a subsidiary of BASF, which is one of the world’s tier one global coatings and chemical giants. This is a very significant group to allow essentially us to go public with a relationship with them and what follows quite along, a sampling regime. We’re commercializing some products. We have a product development deal with them that seems to be the last building block in people’s minds about the commercial ability of graphene.

Tracy Weslosky: Let’s take that a step further. I actually read that you’re looking at having revenue by Q2 of this year. Is that correct, and can you tell us just a little bit more about that?

Mark Thompson: Even though it’s a sample development or I should say a product development agreement, Chemetall have agreed to buy the material from that program. This will provide income to Talga – obviously very small at first and then hopefully growing throughout the length of the agreement. Then there will be a separate discussion about commercializing that material, but still significant in that, it’s quite an evolution from just providing raw materials. This is actually more of a value added situation.

Tracy Weslosky: It is value added. Of course, this helps with corrosion. Can you give us an overview about how significant this graphene commercialization process is?

Mark Thompson: First of all, what we like about graphene and coatings is it has a massive improvement in performance. Particularly with anti-corrosion, graphene can outperform currently used materials, like chrome, that are used in these coatings now. The ultra-thin and impermeable nature of graphene, plus its electrical conductivity allows it to outperform a lot of other materials. You get a really big bang for your buck by putting graphene into your coating. You get a lot of leverage from that because you also need a very small amount of graphene in that coating…to access the full interview, click here

Disclaimer Talga Resources Ltd. is and advertorial member of InvestorIntel.