Slide 1: Full Year 2018 Result
Magontec Limited (ASX: MGL) Full Year 2018 Result 28 February 2019
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by Magontec Limited (ABN 30 147 131 Past performance information given in this Presentation is given for illustrative operational risk associated with the Golmud Plant, fluctuations in magnesium 977) (Magontec or the Company). This Presentation contains
Slide 3: 2018 Full Year Results
Magontec Limited – 2018 Full Year Results 2018 underlying net profit of +$0.5m* included $0.95 million of extra non-cash depreciation over 2017 from the Magontec Qinghai facility 2018 positive underlying operating cash** generated of +$5.0m Magontec Qinghai cast house qualified by global customer ba
Slide 4: FY 2018 Full Year Result
FY 2018 Full Year Result Underlying Net Profit* increased to $0.5m in 2018, compared with $1.2m loss in 2017 Underlying Net Profit After Tax * ($M) FY 2017 FY 2018** $0.5m -$1.2m • Reported net profit/loss excluding the effects of unrealised foreign exchange ** Includes Depreciation of $0.95m on Mag
Slide 5: Qinghai production profile showing positive quarterly trend
Magontec Qinghai production profile showing positive quarterly trend Magontec Qinghai Production (tonnes) 1,794 1,107 420 280 1Q 2018 2Q 2018 3Q 2018 4Q 2018
Slide 6: Reconciliation of significant items in earnings
FY 2018 Full Year Result Reconciliation of significant items in earnings 12 months to 12 months to 31-Dec-18 31-Dec-17 2018 reported profit of $776k '$000 '$000 included an additional $951k of Net Profit Before Tax, unrealised FX and significant non cash depreciation from the 2,266 685 items MAQ fac
Slide 7: Overall performance showing an improving trend on 2017
FY 2018 Full Year Result Overall performance showing an improving trend on 2017 Gross Profit ($M) and GP margin Underlying Operating Cashflow ($M)* 11.3% 11.3% $5.0 $4.9 9.3% 9.6% $3.5 6.4% $2.3 $0.7 $8.5 $12.9 $14.4 $12.5 $14.8 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 * Operating cashflow
Slide 8: EBITDA and EBIT trend stabilising
FY 2018 Full Year Result EBITDA and EBIT trend stabilising, EBIT impacted by additional depreciation from Magontec Qinghai EBITDA and EBIT contributions ($M) $4.6 $4.3 $3.3 $2.5 $2.0 $1.8 $1.6 $1.5 $0.1 -$0.3 2014 2015 2016 2017 2018
Slide 9: Qinghai electrolytic magnesium smelter complex (Golmud)
Qinghai electrolytic magnesium smelter complex (Golmud) Magontec Qinghai MGL operates a new 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 Lease (10+10 years) Produc
Slide 10: 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 ~10% Mg alloy market share 2015 Target > 20% Mg alloy market share Largely high CO2 Largely high CO2 “Pidgeon process” “Pidgeon process”
Slide 11: Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* 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 Norway 1997 Electroly
Slide 12: Magontec has four recycling and manufacturing facilities in China, Germany and Romania
Magontec has four recycling and manufacturing facilities in China, Germany and Romania Production Sales Office Bottrop Santana Toronto Golmud Tokyo Technology Centre Rhode Is Xi’an Cast House Project Sydney Melbourne Headquarters
Slide 13: Magontec's corporate transformation creates an exceptional platform for growth
Magontec’s corporate transformation creates an exceptional platform for growth Improving Primary Mg alloy “Green” Profit ASX Listed financial production magnesium “inflexion” point fundamentals volumes to triple
Slide 14: Magontec Limited
Magontec Limited 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 2 8005 4109 Tel +49 (0
Slide 15: Full Year 2018 Result
Magontec Limited (ASX: MGL) Full Year 2018 Result 28 February 2019