Talga Group Ltd (ASX: TLG) shares are catching the eye of investors on Thursday morning.
In early trade, the ASX All Ords stock is up almost 80% to 72 cents.
Talga describes itself as a global leader in the development and production of sustainable battery materials. Its flagship product is known as Talnode-C and is a natural graphite anode material made in Sweden with an ultra-low carbon footprint.
Why is this ASX All Ords stock rocketing?
Investors have been scrambling to buy the battery materials company's shares this morning after it announced that it has had a major legal victory.
According to the release, the Swedish Supreme Court has dismissed all requests for leave to appeal the Environmental and Natura 2000 permit for Talga's Nunasvaara South natural graphite mine. It is part of the company's vertically integrated Vittangi Anode Project in northern Sweden.
The release notes that the Supreme Court's decision concludes the statutory appeals process. As a result, the Environmental and Natura 2000 permit is now officially in force.
This is a big win and means the company can now focus on progressing its project. It notes that the permit process follows several key milestones for the Vittangi Anode Project.
This includes the award of EUR70 million grant funding from the EU Innovation Fund for Talga's Lulea Anode Refinery and the approval of the Nunasvaara South graphite mine Exploitation Concession.
In light of this, the ASX All Ords stock's board could be close to making a Final Investment Decision (FID) on the project. It notes that an FID is likely once customer offtake agreements and financing structures are in place.
After which, the anticipated timeline for project construction, including commissioning, is projected to be 18 months to 24 months to first production.
Management commentary
The ASX All Ords stock's CEO, Martin Phillips, was very pleased with the Swedish Supreme Court's decision and is positive on the future. He said:
We are delighted with the successful conclusion of the environmental permitting process. The Vittangi Anode Project is vital for Europe's energy transition and strategic material supply. We look forward to continuing to work with our host communities and stakeholders throughout the execution phase to deliver sustainable, high performance anode materials for the European battery industry.
Despite today's very strong gain, Talga's shares remain down reasonably heavily since this time last year. During this time, the company's shares have lost approximately 20% of their value.
