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- Materials provider Talga Resources (TLG) has taken steps to prevent the spread of COVID-19 across its operations over four countries
- The measures include ensuring staff work remotely, continuing projects at reduced rates, and focusing on non-physical labour
- To reduce costs, the company’s executive team, senior management, and the board will take 20 to 50 per cent salary cuts
- Talga’s share price is up 1.75 per cent, trading for 29 cents per share
Materials provider Talga Resources (TLG) has made a number of COVID-related adjustments at its operations here and overseas.
The company has operations in Australia, the U.K., Germany, and Sweden.
Talga’s head office in Western Australia has implemented a work-from-home policy for all staff. Employees are delivering all corporate functions remotely and will continue to do so for some time.
Development of the company’s Vittangi Anode Project will continue, but with minor interruptions. In particular, travel bans have affected some due diligence processes, such as visits to the site. Talga expects to finalise the Stage 1 DFS in 2020’s second quarter.
In the U.K., strict quarantine rules are in full force. As such, all staff at Cambridge are working remotely and dealing with customers via phone and video conference. Technical staff are also providing support to Talga’s Sales and Marketing teams.
The company is still participating in electric vehicle technology projects and customer graphene programs. However, there are restrictions, such as the as temporary closure of facilities leased from the University of Cambridge.
With onsite work suspended, Talga staff are focusing on non-physical labour that they can do remotely. This includes data analysis, research, publications, reporting, and commercial development.
The company’s test facility in Rudolstadt, Germany, is continuing its processing and sample piloting activities. However, these are happening at a reduced rate, due to government-recommended precautions.
Talga’s operations hope to finalise samples and materials that are already in production. Simultaneously, the company is preparing for further reductions or complete temporary suspensions.
Talga believes that its current Talphite and Talnode product stocks are enough to meet short-term demand. With its European and Japanese partners, the company is still providing Talnode-C and graphene materials to customers.
In Sweden, contractors are also working remotely. Talga has submitted statutory permitting for Stage 1 of the Vittangi Anode Project, and received environment permits for Stage 1 mining. The company is currently completing Stage 2 permit applications, which should be submitted in 2020’s second quarter.
Talga’s Managing Director, Mark Thompson, stated that the health and safety of the company’s employees, partners, customers, and surrounding communities is a top priority.
“However, we have taken measures to allow Talga to continue moving critical initiatives forward, albeit in part at a slower rate, while minimising risks for the company.
By collaborating with our customers, partners, and potential financiers, we are well placed to navigate this challenging period, whilst continuing to maximise progress,” he said.
In order to maximise capital, Talga has implemented a cost reduction programme. Most notably, the company’s executive team, senior management, and board will all take significant salary reductions. The pay cuts will range from 20 to 50 per cent, and last for the rest of the financial year.
Talga’s share price is up 1.75 per cent, trading for 29 cents per share at 11:59 am AEDT.
