Talon Metals Corp T.TLO

Good to Sell Talon now while you have the chance

[AnalyzeStock]

Talon is a big time sale for a ton of reasons - to name just a few, 1) This is primarily a Nickel mine with only about 20% copper revenue (per PEA). 2) Nickel prices are going down AND Tesla is phasing out Nickel batteries. Two months ago in the 1Q22 report Tesla said nearly 50% of their vehicles are LFP (no nickel) and they don't even have their LFP gigafactory up and running. Plus they are transitioning their entire fixed storage line to LFP ... its a cheaper and better technology. 3) TLOFF is WAY too diluted to be of value ... it funds itself by issuing more stock and they are starting to push near 800M shares. They have not even completed a feasibility study so they don't even know if this will go. But even if it looks feasible, Talon will be +1B shares and they don't have enough cash to build. They have maybe $30M to date but they need $400M to build an underground mine. So once that get that financing and pay high off the high return on that investment maybe they make say $50M during the life of the mine. Divide that by the number of shares ... the total value over the life of the mine is less than 10 cents per share. So sell now ... definitely.

[SeekingReturn]

Some parts are correct like the dilution but a lot of your arguement has substantial holes. For one, Tesla and Talon have an agreement where Talon will supply Tesla with 165 million pounds of nickel along with participating in shared by product such as Cobalt and Iron (LFP). Tesla is not the only game in town either, many of the ICE makers are converting a portion of their auto lines to EVs. As

[SeekingReturn]

as of 2021 annual consumption was 2.85 million tonnes (vs an inventory of 67,000 tonnes).