Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Shareholder Meeting (November 2015)
20 slides from Latrobe Magnesium's shareholder meeting presentation, Nov 26, 2015
Slide 1: AGM Presentation
For personal use only Latrobe Magnes um AGM Presentation 26 November 2015 David Paterson ASX: CEO LMG
Slide 2: Presentation contents
Latrobe Presentation contents Magnes um For personal use only 1. 2015 highlights 2. Project summary 3. Magnesium – its market & developments 4. LMG process 5. LMG site 6. Timelines and milestones 7. Financial overview 8. Corporate overview 2
Slide 3: Year 2015 highlights
Latrobe 1. Year 2015 highlights Magnes um • Extended the options on the Latrobe Valley site For personal use only • Processed the large bulk fly ash sample through a full scale commercial Chinese plant and received above average magnesium recoveries • Strong results achieved from the cementitious ma
Slide 4: Project summary
Latrobe 2. Project summary Magnes um Magnesium is a growth metal, with aluminium For personal use only & magnesium sheet in cars lowering CO2 emissions March 2016 complete feasibility study, financing arrangements & begin ordering the plant Third quarter 2017 – become Australia’s only magnesiu
Slide 5: Magnesium production
Latrobe 3. Magnesium production Magnes um For personal use only Primary magnesium metal production • 2000 210,300 tonnes • 2013 770,000 tonnes • 2014 869,000 tonnes • 2024 projected production 1,700,000 tonnes Annual growth 6-7% Above estimates assumes average Mg in cars grow from 3.1kg to 6.0kg. If
Slide 6: Magnesium uses
Latrobe 3. Magnesium uses Magnes um For personal use only % • Aluminium alloy 34 • Die casting for automobiles 26 • Steel desulphurization 18 • Titanium sponge 17 • Other die casting 5 ----- 100 === New uses – planes (FAA approved 3/2015), trains, magnesium sheet & consumer products (laptops, mobile
Slide 7: Magnesium & cars
Latrobe 3. Magnesium & cars Magnes um For personal use only 7
Slide 8: Cars & emissions
Latrobe 3. Magnesium & emissions Magnes um USA EPA Targets 2012 2015 2025 For personal use only 2012 to 2025 mpg mpg mpg Increase % Compact car (Honda Fit) 30 35 46 53 Midsize car (Ford Fusion) 25 25 42 68 Full Size car (Chrysler 300) 21 23 35 66 Pick up truck (Ford F150) 17 21 25 47 Penalty current
Slide 9: Developments: 2015 Ford F150
Latrobe 3. Magnesium developments Magnes um For personal use only 2015 FORD F150 All Aluminium Body (1-6% Mg) 9
Slide 10: Developments: new aluminium sheet application and alloys
Latrobe 3. Magnesium developments Magnes um For personal use only 1. New Aluminium Sheet application Ford F150 • 750,000 sales - Mg usage increase to 15kg - weight reduction 320kg (17%) with 13% emission saving Ford Fusion • 250,000 sales – Mg usage increase to 16 kg from 2.3kg – weight reduction 35
Slide 11: Developments: new processes and magnesium sheet
Latrobe 3. Magnesium developments Magnes um For personal use only 3. New Processes – Germany • TeMaKplus project – developed processing technologies for industrial scale production of magnesium sheet & strip materials to produce parts at competitive cost to aluminium & steel • 11 major industrial co
Slide 12: LMG process
Latrobe 4. LMG process Magnes um For personal use only Unique & proprietary process • Combination of its unique patented hydromet process with the proven thermal reduction process in operation since 1941 • Hydromet process uses standard industrial reagents & equipment to remove impurities from the b
Slide 13: LMG process
Latrobe 4. LMG process Magnes um For personal use only 13
Slide 14: LMG Process: China Sample
4. LMG Process: China Sample Latrobe Magnes um For personal use only Supplementary Magnesium crown cementitious material 14
Slide 15: LMG Site
Latrobe 5. LMG Site Magnes um For personal use only Swop Line from Yallourn Swop Line from Hazelwood Natural Gas Pipeline Proposed Slurry Pipeline 320 Tramway Site 15
Slide 16: LMG Site: Tramway Site Building
Latrobe 5. LMG Site Magnes um For personal use only 16 320 Tramway Site Building
Slide 17: Timelines/Milestones
Latrobe 6. Timelines/Milestones Magnes um For personal use only Key Dates • Feb 2016 complete vertical retort test work • Mar 2016 conclude MOU with major customers & suppliers • Mar 2016 complete feasibility study, financing arrangements & start ordering equipment • Jul 2016 commence installing equ
Slide 18: Financial overview
Latrobe 7. Financial overview Magnes um 40,000 For personal use only Operating Parameters tonnes A$/tonne Magnesium revenue 4,608 Net Cash operating costs (2,851) -------- Operating surplus 1,757 ==== Exchange Rate US$71:A$1.00 Capex for 5,000tpa A$40M Capex for 40,000tpa A$250M NPV pre equity at 12
Slide 19: Corporate Overview
Latrobe 8. Corporate Overview Magnes um Directors and Staff For personal use only Jock Murray Non exec chairman David Paterson Director & CEO Kevin Torpey Director & mining consultant John Lee Non exec director Philip Bruce Non exec director Jim Siemon Project director David Wandmaker
Slide 20: Disclaimer
Latrobe Disclaimer Magnes um For personal use only • This presentation may contain forward looking statements that are subject to risk factors associated with the magnesium business. • It is believed that the expectations reflected in these statements are reasonable but they may be affected by a var
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