On September 12, 2023, Talga announced construction has commenced on site, with early works beginning. However, on closer review, early construction works will cease prior to Winter. Assuming an 18 month construction program, the Anode plant will not be operational prior to June 2025. This is 2 years behind the original schedule.

The cause of the delay is attributable to the arduous Swedish approvals process, which is still continuing, with appeal to the high court on the cards. This will be resolved on the 28 of September. If there is an appeal, and it is accepted, then lord knows what happens.

There has been a steady increase in short interest since early May. This coincides with an announcement of an extension of time given for appeal submissions relating to the mining permit. It appears the short thesis relates to delays to the anode plant development, putting pressure on Talga's balance sheet, and hindering their ability to close out off-take agreements and financing.

On the finance front, Talga did report Financing of the anode development is fully resolved. this represents 60% of the anode plant capital cost. A question remains as to how Talga will raise the remaining capital. At the current share price, and assuming Talga finance 100% of the capital, a 20-25% dilution is in store.

Disc - HELD.