Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — The German Mining Network (June 2017)
18 slides from Latrobe Magnesium's conference presentation, Jun 14, 2017
Slide 1: The German Mining Network
For personal use only Latrobe Magnes um The German Mining Network June 2017 David Paterson ASX: CEO LMG
Slide 2: Presentation contents
Latrobe Presentation contents Magnes um For personal use only 1. Project Summary 2. LMG location and site 3. Magnesium market and developments 4. LMG process 5. Financial overview 6. RWE Power 2
Slide 3: 1. Project summary
Latrobe 1. Project summary Magnes um Build a plant in the Latrobe Valley to produce For personal use only magnesium and cement material converting 95% of the brown coal fly ash waste into usable materials. Products CO2 friendly – 60% less emissions when compared to normal Pidgeon Process. Comp
Slide 4: 2. LMG location
Latrobe 2. LMG location Magnes um For personal use only 150 km from City of Melbourne 4
Slide 5: 2. LMG site
2. LMG site Latrobe Magnes um For personal use only Swop Line from Yallourn Swop Line from Hazelwood Natural Gas Pipeline Proposed Slurry Pipeline 320 Tramway Site 5
Slide 6: 2. LMG building
2. LMG building Latrobe Magnes um For personal use only 6 320 Tramway Site Building
Slide 7: 2. LMG plant layout
Latrobe 2. LMG plant layout Magnes um For personal use only 7
Slide 8: Magnesium uses
Latrobe 3. Magnesium uses Magnes um % For personal use only • Aluminium alloy 37 • Die casting for automobiles 32 • Steel desulphurization 15 • Titanium sponge 10 • Other die casting 6 ----- 100 === 8
Slide 9: Magnesium production
Latrobe 3. Magnesium production Magnes um For personal use only Primary magnesium metal production • 2000 210,300 tonnes • 2013 770,000 tonnes • 2016 900,000 tonnes • 2024 projected production 1,700,000 tonnes Mg growth predicted from the increase consumption of aluminium sheet in motor cars. Curren
Slide 10: Magnesium projections
Latrobe 3. Magnesium projections Magnes um For personal use only China projections for average Mg use in cars - • 2017 8.6 kg 253,000 tonnes • 2020 15 kg 495,000 tonnes • 2025 25 kg 825,000 tonnes • 2030 45 kg 1,485,000 tonnes China produces some 30M cars or 30% of world production in 2017. Japan pr
Slide 11: Latest developments
Latrobe 3. Latest developments Magnes um For personal use only 1. Adoption of aluminium sheet by car manufacturers • Ford retool F150 truck US$5B in 2015, Ford Super truck US$1.3B in 2017and Fusion (Focus) in 2018. • Jaguar retool UK$1.7B • GM retool for Cadillac CT6 in 2016. 2. Aluminium sheet inve
Slide 12: Magnesium developments
Latrobe 3. Magnesium developments Magnes um For personal use only 2015 FORD F150 All Aluminium Body (1-6% Mg) 12
Slide 13: Magnesium developments
Latrobe 3. Magnesium developments Magnes um For personal use only Cadillac CT6 64% Al 36% Steel 13
Slide 14: Magnesium and emissions
Latrobe 3. Magnesium and emissions Magnes um USA EPA Targets 2012 2015 2025 For personal use only 2012 to 2025 mpg mpg mpg Increase % Compact car (Honda Fit) 30 35 46 53 Midsize car (Ford Fusion) 25 25 42 68 Full Size car (Chrysler 300) 21 23 35 66 Pick up truck (Ford F150) 17 21 25 47 Penalty curre
Slide 15: 4. LMG process
Latrobe 4. LMG process Magnes um Unique & proprietary process For personal use only • Combination of its unique patented hydromet process with the proven thermal reduction process in operation since 1941. • Hydromet process uses standard industrial reagents & equipment to remove impurities from the
Slide 16: 5. Financial overview
Latrobe 5. Financial overview Magnes um 3,000 40,000 For personal use only Capital Requirements tonnes tonnes A$M’s A$M’s R&D Funding 16 16 Victorian Governments 12 12 LMG Equity & Exclusivity Payments 12 72 Debt Funding (Export-Import Bank) 0 200 ---- ----- Total Project Funding 40 300 == === Capex
Slide 17: 6. RWE Power
Latrobe 6. RWE Power Magnes um For personal use only Develop a 30,000 tpa Mg plant near Cologne • LMG has completed a concept study in 2014 on RWE’s Hambach mine which is 2X the size of its Latrobe Project • MoU signed June 2016 to : - Conduct large scale test by Sept 2017 - Complete bankable feasib
Slide 18: 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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