Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Shareholder Meeting (November 2016)
19 slides from Latrobe Magnesium's shareholder meeting presentation, Nov 22, 2016
Slide 1: Annual General Meeting Presentation
For personal use only Latrobe Magnes um Annual General Meeting Presentation November 2016 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. Useable products 6. Financial overview 7. State Economic Benefits 8. RWE Power 2
Slide 3: 1. Project summary
Latrobe 1. Project summary Magnes um For personal use only Build a plant in the Latrobe Valley to produce magnesium and cement material converting 95% of the brown coal fly ash waste into usable materials. Potential to double in size. Products CO2 friendly - 18 tonnes carbon credits Finalise f
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
Latrobe 2. LMG site 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 Tramway Site Building
Latrobe 2. LMG building 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: 3. Magnesium uses
Latrobe 3. Magnesium uses Magnes um For personal use only % • Aluminium alloy 34 • Die casting for automobiles 26 • Steel desulphurization 18 • Titanium sponge 17 • Other die casting 5 ----- 100 === 8
Slide 9: 3. Magnesium production
Latrobe 3. Magnesium production Magnes um Primary magnesium metal production For personal use only • 2000 210,300 tonnes • 2013 770,000 tonnes • 2014 869,000 tonnes • 2024 projected production 1,700,000 tonnes Mg growth predicted from the increase consumption of aluminium sheet in motor cars. Curren
Slide 10: 3. 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$1.7B • GM retool for Cadillac CT6 in 2016 2. Aluminium sheet invest
Slide 11: 3. Magnesium developments
Latrobe 3. Magnesium developments Magnes um For personal use only 2015 FORD F150 All Aluminium Body (1-6% Mg) 11
Slide 12: 3. Magnesium developments
Latrobe 3. Magnesium developments Magnes um For personal use only Cadillac CT6 64% Al 36% Steel 12
Slide 13: 3. Magnesium and emissions
Latrobe 3. Magnesium and emissions Magnes um USA EPA Targets 2012 2015 20252012 to 2025 For personal use only mpg mpg mpg Increase % Compact car (Honda Fit) 30 35 46 53 Midsize car (Ford Fusion) 25 25 42 68 Full Size car (Chrysler 300) 21 23 35 66 Pick up truck (Ford F150) 17 21 25 47 Penalty curren
Slide 14: 4. LMG process
Latrobe 4. LMG process Magnes um Unique & proprietary process For personal use only • Combination of its unique patented hydromet process with the proven thermal reduction process in operation since 1941 • Hydromet process uses standard industrial reagents & equipment to remove impurities from the b
Slide 15: 5. Useable products
Latrobe 5. Useable products Magnes um For personal use only Recycle 95% of Waste into Useable Products, based on 40,000 tpa plant • Magnesium - import replacement of up to 10,000 tpa in Australia • Fly Ash – Victoria has no supplier and imports 320,000 tpa with Government biggest benefactor with roa
Slide 16: 6. Financial overview
Latrobe 6. Financial overview Magnes um 5,000 40,000 For personal use only Capital tonnes tonnes A$M’s A$M’s Federal Governments 23 25 Victorian Governments 10 10 LMG Equity & Exclusivity Payments 10 70 Debt Funding (Export-Import Bank) 10 200 ---- ----- Total Project Funding 53 305 == === Capex for
Slide 17: 7. State economic benefits
Latrobe 7. State economic benefits Magnes um For personal use only Industrial Ecology and Circular Economy principles • Job creation – up to 150 new permanent jobs and 450 indirect jobs with 200 construction jobs • Support regional development – imports 300,000 tpa and exports 360,000 tpa from the V
Slide 18: 8. RWE Power
Latrobe 8. 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 - Complete bankable feasibility study -
Slide 19: 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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