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Excellent news - very happy for Dale and the local communities set to be completely rejuvenated - as well as Europe actually making a positive step forward - keep an eye out for partnerships etc now. Well done SAV!
As usual I will post a feeling as before: this project represents the potential first step for Europe to finally begin to find some dynamism and bring itself into the modern industrial economy by establishing a simple, conventioanl hard-rock lithium spodumene project within its boundaries, which will have a strong ripple effect benefitting locals, communities and industry participants - this includes socially as well as economically, and the environmental aims of this project are clear for all to see and the mine plans are the most environmentally minded that may have ever been prepared. I hope Portugal is ready to take on this mantle and crown as the first major mover toward a domestic Lithium-ion supply chain and begin to chip away at massive over-dependence of overseas actors. Fingers crossed for the local communities, the nationals of Portugal, the OEMs, the battery makers, the EU, the West - and ofc us shareholders!
GLA
Why would it not take until the end of the timeframe provided?
Most deals, transactions, government agency decisions etc use up all of their time (and then some in commercial settings, often leading to extensions) - huge decision for Portugal, Europe, EU and ofc SAV and us shareholders coming up.
GLA
End of next quarter for official final results. May get similar unaudited quarterly results though going forward following the last announcement - to be seen.
Would expect news on other fronts as well as the year progresses
GLA
Excellent news - well done to management and partners.
Great to see deal flow start and this taking shape - only just the beginning of what could be a very strong journey - hence the noteworthy tie up with Trafigura and MCB on finance - future deals won't be to far away imo!
GLA
Don't think they are saying that at all - several on here, including myself are encouraging other investors and other prospective investors to note the continuous improving performance of the company that is gradually delivering on its efforts to ramp up its 30,000tpa capacities and are indicating the strong financial results that are just around the corner (if you can think more than just a couple of quarters ahead!) should the company continue to deliver.
Plot a line on a graph for the targets with revenue and tonnage sales on each axis, derive the gross margin based on achieve margins to date, extrapolate and voila! All the best.
GLA
Yep - clearly the company is now entering another league in terms of financial performance so long as it continue its production and sales ramp up effectively.
For example:
The company achieved nearly £1m gross profit for the second half of the year - on sales of 2,291MTs (FY:3981-H1:1691) - we know Corporate & Admin costs for the half year is typically around that amount for TGR's half year periods. So EBITDA-wise and positive cash flow-wise, as Andii says TGR is likely EBITDA positive from this quarter (for the half year) if it achieves sales of c.3,000MTs - but as we know the stated guidance is 6,100-6,500MTs, AND those sales are targeted at higher prices than have been achieved to date, and will clearly achieved positive annual EBITDA + cash flow at this targeted level.
Capex spending for the 30,000tpa capacity now in place all complete. There was mention of expanding to 36,000tpa with very little relative additional spending.
Not hard to see where this is going imo with rising sales, steady costs/lowering costs in places imo
Any further increases in the graphite prices achieved would be transformational, which as a current producer means TGR is one of 2/3 ex-China listed companies able to benefit
GLA
Just look at the numbers - this is achieved on sales of under 4,000MTs - hoping for over 6x that much this FY at the 30,000tpa installed capacities!
Highlights
• Gross profit for FY23 increased 170% Year on Year (“YoY”) to £1,372,048 (FY22: £508,112)
• Total production increased by 59% YoY to 4,770 tons (FY22: 2,996 tons)
• Total Sales increased by 76% YoY to £2,890,010 (FY22: £1,645,308)
• Basket price realised per ton of graphite sold increased by 17% to £726 (FY22: £618)
Renewable energy now contributing to power generation on site, and as per the last operational update in early April we know the company is selling more and more high grade 97% larger flake concentrate as part of its basket = more sale + higher prices - looking very strong now for the current FY imo
GLA
Now those are some lovely results! Looking very strong going into this current year with the major capacity expansions in place imo
https://twitter.com/Alastai85608932/status/1655817247204548610?s=20
Huge opportunity now as TGR grows rapidly looking at those numbers - actually quite surprised they're that good considering the first half of the year back in early 2022.
GLA
Good questions Andii - in terms of Syrah; they’ve had a dire time with their Balama mine. They built it to capacity of 350,000tpa but have never utilised it to its full capacity as when they built there was not enough demand back in 2018. Since then they’ve tried to operate at about 50% of that capacity but have struggled still with a basket dominated by fines, which the massive costs of running such a big processing plant at c.50% utilisation and recovery issues on the ground have outweighed lower fines prices as a result.
Syrah really needs ex-China natural graphite demand for fine flake to come online ASAP as is happening at readily, hence targeting the US and also notice where it sees massive value in having vertical integration as it’s business model.
TGR therefore has multiple potential advantages imo here’s a few off the top of my head:
1. Much lower capex required per tonne TGR wants to produce in Mozambique, as proven in Madagascar and further benefitted by Mozambique’s infrastructure, construction already done at Montepuez (about £10m worth already!) and the fact the grades are up to 3-4x higher in places than it is at the Madagascar projects.
2. TGR is preparing to develop and construct at a time of massive ex-China demand growth - it can have the pick to serve US/European/Asian markets (including of course India) straight off the bat, rather than have to rely on China for pricing which Syrah seemingly does.
3. If TGR vertically integrates with TSG or in some form at least sharing TSG tech then it can value add the whole range of downstream graphite products - not just EV Li-ion anode material such as coated/uncoated spherical graphite but the industrial side too e.g. expandable, foams etc as we saw mentioned being produced and already being sold into the UK to Minralis for example.
So essentially, lower capex and being a cash flow positive current producer that will help re-investment and debt payments helps reduce long term costs giving protections against lower Graphite prices compared to competition; there is a quickly growing market that TGR should be racing to win market share in and make partnerships to grow awareness of what it offers; and it has many lessons from other companies of how to navigate a strong and successful downstream route. Much to play for!
GLA
wow - still observing from afar after long ago selling out of what turned out to be a big disappointment - but today's RNS is big about the Shareholder Requisition notice - propositioning removal and replacement of the current directors!
Just looking at the sheer cost of Vulcan energy's plans for example - a massive underground brine and geothermal project, huge execution risk, financially and operationally which is set to cost EUR1.49BN, yes 1.49 BILLION euros.
Europe has much safer and more sensible projects to launch its domestic Lithium production strategy, one of course being SAV's at a much reduced risk involving conventional hard rock spodumene and much much lower cost of just over c.£100m and the trade offs for Portugal and Europe are huge by getting SAV into production as soon as possible imo
Just looking at the figures in the below linked Tweet by Simon from Benchmark for the Tesla Masterplan:
Tesla Master Plan 3: Critical Minerals take
Lithium is the stand out blocker for the energy transition needing $170Bn mining investment
Nickel is second ($145bn)cl, Graphite is third ($104bn)
For refining graphite shoots up to second needing $178bn, lithium still 1st ($204bn)
That's a total global investment requirement for Graphite of $178 BILLION - and that's an urgent number for without one of the elements critical for Li-ion batteries being scaled up in production then the whole supply chain struggles. Simply, a good place to start by governments, investment agencies, ESG investors and of course the OEMs may be the current producers able to rapidly expand, even better if possible to do cheaply vs other options. Huge opportunity for TGR to begin building markets share and demonstrate itself as a reliable supplier as one of only 2-3 current significant producers outside China.
https://twitter.com/sdmoores/status/1643868381957828609?s=20
GLA
Risk is Reward - only 3, including TGR, of those companies listed in that report are making any money hence the disconnect and why TGR’s mcap is so undervalued imo - the 30,000tpa level we are now at should result in good financial performances, even improved further by the company’s latest update suggesting the average basket price will rise this FY to over $900/MT - whereas many others are years from first production with projects far behind the developed stages of all TGR’s projects.
GLA