Slide 1: First Half 2019 - Interim Result
For personal use only Magontec Limited (ASX: MGL) First Half 2019 - Interim Result 29 August 2019
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Magontec Limited (ABN 30 147 131 Future performance Not an offer 977) (Magontec or the Company). This Presentation contains summary information about Magontec and its activities current as at the date of this This Presentation c
Slide 3: Reporting Highlights
Magontec Limited – 2019 Half Year Result Reporting Highlights ANODES (CATHODIC CORROSION PROTECTION - CCP) - Gross Profit up 15% across all CCP For personal use only businesses - Increased market share and expansion to new markets - Higher volumes and improved competitiveness through automation PRIM
Slide 4: Financial Highlights
2019 Half Year Result Financial Highlights 6 months to 6 months to Gross Profit up 9% on higher For personal use only 30-Jun-18 margins. Gross Profit increase 30-Jun-19 overall driven by CCP businesses Gross Profit $7.96m $7.30m Underlying NPAT of +$0.40m** includes $0.65 million of non- Gross Profi
Slide 5: Reconciliation of significant items in earnings
2019 Half Year Result Reconciliation of significant items in earnings For personal use only 6 months to 6 months to 30-Jun-19 30-Jun-18 '$000 '$000 Net Profit Before Tax, unrealised FX and significant items* 1,533 611 Significant items before tax Less non-cash equity expense (65) (28) Less MAQ depre
Slide 6: Qinghai production continues to rise – albeit below expectations
Magontec Qinghai production continues to rise – albeit below expectations Magontec Qinghai Production (tonnes) For personal use only 4,219 2,901 700 106 2H17 1H18 2H18 1H19
Slide 7: Magnesium Anode Volumes continues to increase, Metal Volumes lower
2019 Half Year Result Magnesium Anode Volumes continues to increase, Metal Volumes lower For personal use only Magnesium Anode Magnesium Alloy Sales Volumes (mt) Metal Sales Volumes (mt) 18,853 18,002 1,035 1,027 2H 16,851 2H 929 1H 1H 1,251 20,093 20,946 958 931 1,030 18,135 15,134 FY16 FY17 FY18 F
Slide 8: Underlying Net Profit increased to +$0.4m in 1H 2019
2019 Half Year Result Underlying Net Profit* increased to +$0.4m in 1H 2019, compared with -$0.145m loss in 1H 2018 For personal use only Underlying Net Profit After Tax * ($M) $0.404m ($0.145m) 1H18 1H19 • Reported net profit/loss excluding the effects of unrealised foreign exchange
Slide 9: Overall performance continues to show an improving trend
2019 Half Year Result Overall performance continues to show an improving trend For personal use only Gross Profit ($M) and GP margin Underlying Operating Cashflow ($M)* 11.8% $2.7 11.2% $2.4 11.1% $1.8 $1.6 10.5% $7.4 $7.3 $7.3 $8.0 1H16 1H17 1H18 1H19 1H16 1H17 1H18 1H19 * Operating cashflow exclud
Slide 10: EBITDA and Underlying NPAT trend stable despite rising non-cash depreciation
2019 Half Year Result EBITDA and Underlying NPAT trend stable despite rising non-cash depreciation from Magontec Qinghai For personal use only EBITDA, Underlying NPAT and Depreciation ($M) EBITDA Underlying NPAT $2.57 Depreciation $2.08 $1.92 $1.60 $1.44 $1.35 $0.86 $0.81 $0.51 $0.35 $0.40 ($0.14) 1
Slide 11: Magontec Qinghai
Qinghai electrolytic magnesium smelter complex (Golmud) Magontec Qinghai MGL operates a new For personal use only magnesium alloy cast Dehydration Reduction Cast house house at Golmud in Qinghai Province PRC Agreements Supply of 56,000 mtpa Exclusive Mg alloy rights Fixed off-take price metrics Leas
Slide 12: Qinghai will triple production and make Magontec the world's largest supplier
Magontec Qinghai will triple production and make Magontec the world’s largest supplier of electrolytic Mg alloy For personal use only ~10% Mg alloy market share 2018 Target > 20% Mg alloy market share Largely high CO2 Largely high CO2 “Pidgeon process” “Pidgeon process”
Slide 13: Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* For personal use only 45 Future Present Past 40 Qinghai 35 Kg CO2eq / kg Mg incl. credits for incl. use 30 Use of waste gas of SF6 25 incl. credits for by-products 20 15 incl. credits for by-products 10 5 0 Golmud 2017 Israel 2011 China 2011
Slide 14: Four recycling and manufacturing facilities in China, Germany and Romania
Magontec has four recycling and manufacturing facilities in China, Germany and Romania Production For personal use only Sales Office Bottrop Santana Toronto Golmud Tokyo Technology Centre Rhode Is Xi’an Cast House Project Sydney Melbourne Headquarters
Slide 15: Corporate transformation creates an exceptional platform for growth
Magontec’s corporate transformation creates an exceptional platform for growth For personal use only Improving Primary Mg alloy “Green” Profit ASX Listed financial production magnesium “inflexion” point fundamentals volumes to triple
Slide 16: Magontec Limited contact details
Magontec Limited For personal use only MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road, Suite 1.03 46a Macleay St 46240 Bottrop Xian Economic and Potts Point Sydney NSW Germany Development Zone AUSTRALIA 2011 Xian, China, 710021 Tel +61
Slide 17: First Half 2019 - Interim Result
For personal use only Magontec Limited (ASX: MGL) First Half 2019 - Interim Result 29 August 2019