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What does MM think of Talga Group (TLG)?

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What does MM think of Talga Group (TLG)?

Good Morning, I currently hold TLG, I wondered how MM view this company. Recently elevated to the ASX300, has just released an announcement that the MOU it had with Mitsui for years is no longer in operation. This relieves TLG of any JV obligations with Mitsui as now the financing opportunities have changed somewhat for a company with its major asset, now deemed a critical raw material, in Europe. It has one more hurdle to overcome which is the mining permit decision due on April 5th. I see this company as long term hold, but I wonder how others view it, as there can always be issues that the better educated stock market gurus take into account and the likes of me can't see regards Chris Darby

Answer

Hi Chris,

For those not familiar with TLG its a WA based $550mn battery anode and graphene additive business which MM has not invested in to-date. As such we will fall back on our technical viewpoint in todays volatile environment for the ESG space i.e. in 2022 TLG corrected -55% after surging over 10x since the markets aggressive COVID sell-off i.e. a similar move to most of the ESG just on steroids!

We like TLG into any weakness around the $1.50 support area but we need to be conscious that it is a volatile beast that can often move ~10% in one-day.

 

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Talga Group (TLG)
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