Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Investor Presentation (May 2008)
13 slides from Latrobe Magnesium's investor presentation, May 8, 2008
Slide 1: Broker's Presentation, May 2008
For personal use only Latrobe Latrobe Magnesium Magnesium Limited Limited Broker’s Presentation Broker’s Presentation May May2008 2008 Latrobe Magnes um
Slide 2: Presentation
PRESENTATION For personal use only ¾ Overview of the Magnesium Market. ¾ Thermal Reduction Process ¾ Development Plans for the Project. ¾ Project Economics Latrobe Magnes um
Slide 3: Magnesium Metal Production
1. For personal use only 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 For personal use only 2004 1.58 2005 1.23 2006 1.15 2007 1.71 Jan 2008 2.80-3.15 FOB China Price 5 May 2008 2.40 (Price does not include US freight & duties) Latrobe Magnes um
Slide 5: Magnesium Market Summary
1. Magnesium Market Summary For personal use only ¾ Growth in global magnesium market is being increasingly dominated by China. ¾ Increase in magnesium metal and alloy prices due to uncertainty of supply. ¾ More western plants close due to cost factors ¾ China operating costs increasing Latrobe Magn
Slide 6: Thermal Reduction Process
2. Thermal Reduction Process For personal use only Latrobe Magnes um
Slide 7: Proposed LMG Process
2. Proposed LMG Process For personal use only Latrobe Magnes um
Slide 8: Thermal Reduction Process
2. Thermal Reduction Process ¾ it is a simplified proven technology responsible for For personal use only 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 lo
Slide 9: Development Plans For the Project
3. Development Plans For the Project Work to be completed by June 2008 – For personal use only ¾ Complete the current laboratory testwork to maximise the MgO content in the ash. ¾ Process an ash sample through the laboratory retort to prove the process is effective for the production of magnesium. ¾
Slide 10: Development Plans For the Project
3. Development Plans For the Project For personal use only 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 Ma
Slide 11: Project Economics
4. Project Economics Initial Production Capacity - 5,000 tonnes For personal use only 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) ------- ------- ------- --
Slide 12: Project Economics: Financial Assumptions
4. Project Economics For personal use only Financial Assumptions - Production of 5,000 tonnes - Selling price range US$2.00 to US$2.40/lb - Exchange rate range A$0.80 to A$0.90 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 Summ
Slide 13: Disclaimer
Disclaimer ¾ This presentation may contain forward looking looking statements For personal use only 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 vari