Talon Metals Corp. (TLO.TO)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Recent news has been generally positive, with the commencement of a draft guideline supporting domestic nickel preference and strong enforcement mechanisms implementing IRA Foreign Entity of Concern requirements. It also struck a $115M deal for a nickel ore processing plant that will supply Tesla. Its price spiked 20% recently, but it is a small company ($168M market cap), which is pre-revenue and has a small cash balance of $10.5M. 

There are a few large shareholders, The Pallinghurst Group and RCF Management whole own 16% and 14% of shares, respectively. We believe that a lot of its price decline is due to the steady decline in the price of nickel since late 2022. If the price of nickel sees a rebound and sustained positive momentum, we believe TLO can perform well, but until then, since it is pre-revenue, we believe it will largely follow the price of nickel.
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Interesting. There are two classes of nickel: good and very good, the latter used in batteries for e-cars--high demand. TLO has a deposit in Minnesota that could be fruitful in the next three years.