Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Shareholder Meeting (November 2008)
18 slides from Latrobe Magnesium's shareholder meeting presentation, Nov 28, 2008
Slide 1: Latrobe Magnesium Limited AGM Presentation November 2008
Latrobe Latrobe Magnesium Magnesium Limited Limited AGM AGM Presentation Presentation November November2008 2008 Latrobe Magnes um
Slide 2: Presentation
PRESENTATION ¾ Overview of the Magnesium Market. ¾ Thermal Reduction Process ¾ Development Plans for the Project. ¾ Project Economics ¾ Bangemall Exploration Area ¾ Northern Territory Exploration Areas Latrobe Magnes um
Slide 3: Magnesium Metal Production
1. Magnesium Metal Production US Magnesium forecast - - 2007 world production 663,000 tons; - 2012 forecast 1,000,000 tons; - 7.3% compound average growth rate Latrobe Magnes um
Slide 4: Av. Magnesium Metal Prices
1. Av. Magnesium Metal Prices US Spot Western Price US$ per lb 2004 1.58 2005 1.23 2006 1.15 2007 1.71 June 2008 3.50 FOB China Price 21 Nov 2008 1.25 (Price does not include US freight & duties) Latrobe Magnes um
Slide 5: Magnesium Market Summary
1. Magnesium Market Summary ¾ Growth in global magnesium market is being increasingly dominated by China. ¾ Increase in magnesium metal and alloy prices due to closure of Western plants. ¾ China operating costs increasing due to ferrosilicon, power and transportation costs. Latrobe Magnes um
Slide 6: Thermal Reduction Process
2. Thermal Reduction Process Latrobe Magnes um
Slide 7: Proposed LMG Process
2. Proposed LMG Process Latrobe Magnes um
Slide 8: Thermal Reduction Process
2. Thermal Reduction Process ¾ it is a simplified proven technology responsible for the majority of the World’s magnesium production; ¾ can produce small quantities of magnesium economically; ¾ the production is capable of being expanded on a modular basis; ¾ a significantly lower capital cost when
Slide 9: Development Plans For the Project
3. Development Plans For the Project Work currently underway – ¾ Complete the current laboratory testwork to remove the anhydrite from the ash. ¾ Process the intermediate ash through the retort to prove the effective production of magnesium. ¾ Send a beneficiated sample to China and use a commercial
Slide 10: Development Plans For the Project
3. Development Plans For the Project ¾ Finalise our negotiations with Hazelwood Power to extend our current agreement to December 2012. ¾ Initiate discussions with potential Strategic Partner from China to gauge their interest in participating in the Latrobe project. Latrobe Magnes um
Slide 11: Project Economics
4. Project Economics Initial Production Capacity - 5,000 tonnes C&M C&M LMG LMG A$/lb A$/lb A$/lb A$/lb Operating Operating Costs Costs 1.39 1.39 1.20 1.20 Capital Capital Costs Costs 0.12 0.12 0.09 0.09 (amortized (amortized over over 20 20 yrs) yrs) ------- ------- ------- ------- Total Total Proj
Slide 12: Project Economics: Financial Assumptions
4. Project Economics Financial Assumptions - Production of 5,000 tonnes - Selling price range US$1.25/lb - Exchange rate A$0.65 to US$1.00 - Equity / Debt ratio 60%:40% - Operating Costs range A$1.20 to A$1.39 per lb - Discount Rate 15% after tax Summary Low High Estimated Project Value - $M’s 7.4 2
Slide 13: Bangemall Exploration Area
5. Bangemall Exploration Area ¾ Location - 482 sq kms ¾ Prospectivity for Uranium and Gold ¾ Area was selected owing to the regional mineralisation Previous BHP work Abra Mining Ltd ¾ Recent WA approval granted to explore for Uranium. ¾ An exploration program is currently being developed. Latrob
Slide 14: Bangemall Project E09/1293 Radiometric Uranium Response
[-7330000 mN [7320000 mN [-7310000 mN Ww & r=} i=} [7300008 nN t 440000 mE-| 450000 mE-} e E09/1293 granted in two blocks e Total area 481.7 square kilometres Centipede Range Uranium Prospect 3.5kg/t U308 from grab samples 1,6km scintillometer anomaly Elevated Uranium Radiometric Response 5 10 kilom
Slide 15: Northern Territory Exploration Areas
6. Northern Territory Exploration Areas ¾ Location – 325 m2 kms ¾ Prospective for Uranium and Gold ¾ Area was selected owing to the previous mining activities. ¾ An exploration program has been developed and we are awaiting final Native Title approval to commence the work. Latrobe Magnes um
Slide 16: Latrobe Magnes um
Latrobe Magnes um
Slide 17: Regional Uranium Channel Map
REGIONAL URANIUM CHANNEL MAP "age CP oe Cluster of ore grad —— — o ae Uranium Anomaly 1.53 km In length by 0.33 km in width | 1.16 km in jength by ; | 0.56 km in width Uranium Anomaly y = 1.07 km in length by 0.71 km in width Uranium Anomaty 7 x 0.88 km in length by 0.55 kim in width 6.56 km in leng
Slide 18: Disclaimer
Disclaimer ¾ This presentation may contain forward looking looking statements 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 variety of variables and c
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