Slide 1: Latrobe Magnesium Feasibility Study Presentation
For personal use only Latrobe Magnes um Feasibility Study Presentation 2 September 2019 David Paterson ASX: CEO LMG
Slide 2: Presentation contents
Latrobe Presentation contents Magnes um For personal use only 1. Latrobe project 2. Yallourn power station 3. LMG sites 4. Plant Layout and processes 5. Magnesium market 6. Feasibility study results 7. Timetable 2
Slide 3: 1. Latrobe Project
Latrobe 1. Latrobe Project Magnes um For personal use only Project will convert 100% of the treated Yallourn ash into sustainable products Ash waste will be converted into mainly magnesium & 2 supplementary cementitious materials. Plus 2 additional products Initial plant will employ >54 people
Slide 4: 2. Yallourn Site
Latrobe 2. Yallourn Site Magnes um For personal use only 4
Slide 5: 3. LMG site
Latrobe 3. LMG site Magnes um For personal use only Swop Line from Yallourn Natural Gas Pipeline Swop Line From Hazelwood 320 Tramway Site 5
Slide 6: 3. LMG building Tramway Site Building
Latrobe 3. LMG building Magnes um For personal use only 6 320 Tramway Site Building
Slide 7: 4. Plant Layout
Latrobe 4. Plant Layout Magnes um For personal use only 7
Slide 8: 4. Hydromet Process
Latrobe 4. Hydromet Process Magnes um For personal use only LMG hydromet process is 4 stages: removal of char and silica by cycloning removal of sodium by agitation in a tank with soda ash dissolving the magnesioferrite with HCl, & precipitating out MgCl, CaCl & Fe2O3 converting MgCl into Mg
Slide 9: 4. Smelter Process & Product
Latrobe 4. Smelter Process & Product Magnes um For personal use only MgO produced by LMG’s hydromet process is then mixed with ferrosilicon & burnt lime, briquetted & processed through a horizontal retort smelter at 1250C Products produced using these processes: - magnesium - supplementary cementiti
Slide 10: 5. Magnesium market
Latrobe 5. Magnesium market Magnes um For personal use only Magnesium is the green metal – it is lightest & strongest metal - 75% lighter than steel, 33% lighter than aluminium & titanium Magnesium production ~1 million tpa. China supplies 85% of world production. ~410,000 tpa exported to US, Ja
Slide 11: 5. Magnesium market cont'd
5. Magnesium market Latrobe Magnes um cont’d For personal use only Environment emissions standards in China threaten number of producers 3 metals used to light weight cars – aluminium, magnesium & carbon fibre In last 3 years, aluminium sheet (>6% Mg) used in panels for cars for the first time
Slide 12: 5. Magnesium is a CRM in EU
Latrobe 5. Magnesium is a CRM in EU Magnes um For personal use only 12
Slide 13: 6. Financial overview
Latrobe 6. Financial overview Magnes um For personal use only Capital Requirements 3,000 tpa A$M Project finance 28 Equity 12 Victorian & Federal grants 12 Exclusivity payment 4 ----- Total project funding 56 === Capex estimated at A$54M with working capital of A$2M 13
Slide 14: 6. Financial overview (cont'd)
6. Financial overview Latrobe (cont’d) Magnes um For personal use only Operating Profit & Loss 3,000tpa A$M Revenue 30.9 Gross Profit 6.1 EBITDA 5.6 Major Assumptions 1. Magnesium price US$2,650/t FOB China & USA price $2.30/lb & 70% of revenue. 2. Current exchange rate US$0.67 14
Slide 15: 7. Timetable
Latrobe 7. Timetable Magnes um For personal use only Complete feasibility study by Aug 2019 Finalise ash supply agreement with Yallourn by end of Sept 2019 Secure funding from financiers & govt grants by end of Nov 2019 Receive necessary site & EPA approval and FID by Dec 2019 Start constr
Slide 16: 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