Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Investor Presentation (April 2025)
34 slides from Latrobe Magnesium's investor presentation, Apr 4, 2025
Slide 1: Investor Presentation
For personal use only Investor Presentation ASX: LMG April 2025
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by Latrobe Magnesium Limited (ACN 009 173 611) (Company) in relation to an equity capital raising by the Company consisting of a placement of Company shares to certain ‘sophisticated’ and ‘professional’ investors (as defined by the Corporations Act 200
Slide 3: Disclaimer
Disclaimer INVESTMENT RISK There are a number of risks specific to the Company and of a general nature which may affect the future operating and financial performance of the Company and the value of an investment in the Company, including and not limited to the Company's capital requirements, the
Slide 4: Disclaimer
Disclaimer INTERNATIONAL OFFER RESTRICTIONS This Presentation does not constitute an offer of new Securities (New Securities) of the Company in any jurisdiction in which it would be unlawful. In particular, this Presentation may not be distributed to any person, and the New Securities may not be off
Slide 5: Disclaimer
Disclaimer Singapore This document and any other materials relating to the New Shares (as defined in this Presentation) have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or mat
Slide 6: Investment Highlights
Investment Highlights Latrobe Magnesium’s (LMG) world-first, low-cost and environmentally sustainable hydromet / thermal reduction process converts brown coal fly ash into magnesium metal and other valuable commodities Australia’s first sustainable Magnesium Oxide (MgO) production. LMG has successfu
Slide 7: Demonstration Plant
Demonstration Plant Construction of the MgO component of the Demonstration Plant has been completed, validating Latrobe’s patented MgO processing capabilities. LMG intends to sell all MgO produced from the Demonstration Plant production to its Australian offtake partner Demonstration Plant Construct
Slide 8: Equity Raising Overview
Equity Raising Overview ▪ The equity raising will consist of an institutional placement (Placement) and a proposed underwritten Share Purchase Plan (SPP) (together, the Offer) to raise approximately A$3.5 million. ▪ The Placement is seeking to raise approximately A$2.75 million by issuing approximat
Slide 9: Sources and Uses of Funds
Sources and Uses of Funds Funds from the equity raising will be used to produce MgO at steady-state for three months at the Demonstration Plant, repay creditors and provide working capital; should LMG secure the sale of 4.3ha of excess land at its Tramway Road site, proceeds will be used to fund wor
Slide 10: Equity Raising Timetable (Indicative)
Equity Raising Timetable (Indicative) Event Date (AEDT) Record Date for eligibility to participate in SPP 5:00pm, Tuesday, 1 April 2025 Trading halt and launch of Placement Wednesday, 2 April 2025 Trading halt lifted and announcement of completion of Placement Friday, 4 April 2025 Dispatch SPP Offer
Slide 11: Corporate Overview
Corporate Overview Capitalisation Summary and Top Shareholders 1,2 Shareholder Summary ASX Ticker LMG 10.4% 2.1% Directors and Management 3 Share Price A$0.013 Shares outstanding 2,348.5m 17.6% RnD Funding Unquoted Securities 166.2m For personal use only Other Top 20 Shareholders Market capitalisati
Slide 12: Board and Management
Board and Management Jock Murray AO, Chairman David Paterson, CEO and Director ✓ Extensive financial background, including with NSW Department of Transport, ✓ Qualified non-practicing Chartered Accountant, including with Tricontinental The Hills Motorway (M2) and Terminals Australia. Corporation and
Slide 13: Magnesium: The Critical Green Mineral
Magnesium: The Critical Green Mineral Magnesium is a critical input to auto-vehicles to reduce vehicle weight and improve efficiency, especially in electric vehicles Global Magnesium Demand and Magnesium Consumption by Market Sector (2023)1 End-Use Overview Mt 5.8% CAGR • Magnesium castings are used
Slide 14: Operations Overview
Operations Overview LMG’s hydromet process, developed over decades, holds unique international patents for the recovery of magnesium from brown coal ash and ferro nickel slag Plant Feedstock Emissions Financials1 Assumptions Project Status • Demonstration Plant commissioned and producing magnesium o
Slide 15: Achievements and Near-Term Milestones
Achievements and Near-Term Milestones Following first MgO production in May 2024, LMG will shortly produce steady-state MgO at the Demonstration Plant, with first magnesium metal production targeted for calendar year’s end 2023 2024 H1-25 H2-25 2026 2027 onwards Demonstration Plant and Corporate Mil
Slide 16: Scalability of Operations
Scalability of Operations Latrobe Magnesium’s patented hydromet process will be scaled to a 10ktpa Commercial Plant, ten times the magnesium output of the Demonstration Plant and using a similar flow sheet Process and Flow Sheet • Latrobe Magnesium’s 1ktpa Demonstration Plant has a similar flow shee
Slide 17: Hydromet Process and Product
Hydromet Process and Product The Demonstration Plant has proven LMG’s patented hydromet process, de-risking the technology ahead of Commercial Plant FID Patented Process and Product Overview Flow Sheet – Demonstration and Commercial Plant Ash is leached with acid solution during the leaching process
Slide 18: Magnesium: Annotated Pricing
Magnesium: Annotated Pricing Current magnesium spot prices remain higher than long-term averages, reflecting supply chain concentration risks despite global growth headwinds US$/lb Price decrease in the US following Prices decline to historical high inventory levels at aluminium levels on the back o
Slide 19: Summary
Summary Latrobe Magnesium: A future globally significant Australian producer of sustainable magnesium metal that is poised to re-rate in the near term Steady-state MgO production and first sales 1 LMG will soon produce MgO at nameplate from its 1,000tpa Demonstration Plant, demonstrating a sustainab
Slide 20: Appendix A: Market Overview
For personal use only Appendix A Market Overview
Slide 21: Magnesium: Demand and Supply Outlook
Magnesium: Demand and Supply Outlook Significant growth in magnesium demand is forecast from the automotive sector, particularly the uptake of aluminium auto body sheets. China’s increasing cost base will likely reduce its competitiveness, as Western governments look to diversify non-China magnesium
Slide 22: Magnesium: Pricing Environment
Magnesium: Pricing Environment Magnesium is generally traded under offtake agreements which are reviewed annually, with pricing often being within +/- 10% of the relevant spot price.1 Future prices are often volatile and frequently subject to geopolitical tensions US Tariffs Anti-Dumping Tariffs2 •
Slide 23: Appendix B: Key Risks
For personal use only Key Risks Appendix B
Slide 24: Key Risks
Key Risks Set out below are the principal risks and uncertainties associated with LMG and its subsidiaries, which are likely to have an effect on LMG’s future financial prospects. The risks do not constitute an exhaustive list of all risks involved with an investment in the Company. It is not possib
Slide 25: Key Risks
Key Risks (4) General Economic Climate General economic conditions, movements in interest rates and inflation rates, currency exchange rates and commodity prices may have an adverse effect on LMG's potential for future development and production activities, as well as the ability to fund those activ
Slide 26: Key Risks
Key Risks (8) Change of Production Risks The capacity of LMG to achieve production will depend on a wide range of factors including capital costs and operating costs that may be applicable to the individual projects and the capacity of the Group to fund those costs. If production is achieved, unanti
Slide 27: Key Risks
Key Risks Processing activities, including those carried out at the Demonstration Plant, carry risk and as such, activities may be curtailed, delayed or cancelled as a result of a number of factors outside LMG's control. These include technical difficulties, securing and maintaining inputs, weather
Slide 28: Key Risks
Key Risks (17) Laws and Authorisations LMG's operations will be subject to various laws and plans, including those in respect of development permit and licence requirements, industrial relations, environment, land use, water, occupational health and plants and animals (for example laws or permitting
Slide 29: Key Risks
Key Risks (22) Changes in Tax Rules or Their Interpretation Changes in tax law (including value added or indirect taxes and stamp duties), or changes in the way tax laws are interpreted, may impact LMG's tax liabilities or the tax treatment of a LMG shareholder’s investment. In particular, both the
Slide 30: Key Risks – Issue of Shares
Key Risks – Issue of Shares (1) General Risks Associated with an Investment in Shares There are general risks associated with investments in equity securities. No assurances can be given that the New Shares will trade at or above the price at which they are issued. None of LMG, its directors or an
Slide 31: Appendix C: Summary of Underwriting Agreement
For personal use only Appendix C Summary of Underwriting Agreement
Slide 32: Underwriting Agreement
Underwriting Agreement The Lead Manager has agreed to lead manage the Offer and underwrite the Share Purchase Plan on the terms and conditions set out in the Underwriting Agreement. The Underwriting Agreement contains customary representations and warranties and indemnities in favour of the Lead Ma
Slide 33: Underwriting Agreement
Underwriting Agreement iv. either: • a general moratorium on commercial banking activities in Australia, the United States of America, Canada, Malaysia, the United Kingdom, Hong Kong, Singapore or the People's Republic of China, any member state of the European Union, any member of NATO, or Singapor
Slide 34: Thank You!
Thank You! For personal use only 320 Tramway Road Hazlewood North, Victoria 3840 Phone: +61 (0)2 9279 2033 Email: enquire@latrobemagnesium.com
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