Talga Group (TLG) Q2 2025 TU earnings summary

Executive summary

• Secured key permits for Nunasvaara South graphite mine, including Environmental and Natura 2000 permit and exploitation concession, marking major progress for the Vittangi Anode Project.

• Luleå Anode Refinery awarded €70 million EU Innovation Fund grant, highlighting project innovation and European energy transition support.

• Advanced TalnodeⓇ-C Recycled Series product development and expanded commercial activities, including new partnerships in Europe and the US.

• Transitioned key corporate roles to Europe, with new interim Group Finance Director and Group Director - Corporate Finance appointed.

• Ended quarter with A$18.1 million cash and market capitalisation of ~A$188.9 million.

Financial highlights

• Cash balance at 31 December 2024: A$18.1 million.

• Market capitalisation at quarter end: ~A$188.9 million.

• Net cash used in operating activities for the quarter: A$7.3 million.

• Net cash used in investing activities: A$0.5 million for the quarter.

• Net cash from financing activities: A$-0.04 million for the quarter; A$17.9 million for the half-year.

Outlook and guidance

• Focus on advancing customer offtake agreements and project financing for the Vittangi Anode Project, targeting a Final Investment Decision.

• Awaiting EU Critical Raw Materials Act Strategic Project status decision in Q1 2025, which could expedite permitting and financing.

• Swedish government directed local municipality to adopt detailed plan for Nunasvaara South by May 2025, supporting project timeline.

• Market expects continued growth in battery energy storage and EV sectors, with potential for higher synthetic graphite prices in 2025.