Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Shareholder Meeting (December 2020)
26 slides from Latrobe Magnesium's shareholder meeting presentation, Dec 23, 2020
Slide 1: Investment Presentation AGM December 2020
Latrobe Magnes um For personal use only Investment Presentation AGM December 2020 David Paterson CEO ASX: LMG
Slide 2: Presentation Contents
Latrobe Presentation Contents Magnes um 1. Latrobe Project For personal use only 2. LMG’s Comparative Advantages 3. LMG Site 4. Plant Layout 5. Hydromet Process 6. Hydromet IP 7. LMG Products 8. Magnesium Market 9. Magnesium Producers 10. SCM & Amorphous Silica 11. Green Credentials 12. CO2 Emission
Slide 3: 1. Latrobe Project
Latrobe Magnes um 1. Latrobe Project • LMG’s objective is to exploit its hydromet technology globally as a low For personal use only cost, low CO2 producer of magnesium, supplementary cementitious material (SCM) and amorphous silica. • LMG is building a $50m demonstration plant to convert various br
Slide 4: 2. LMG Comparative Advantages
Latrobe 2. LMG Comparative Advantages Magnes um Advantages of LMG’s hydromet technology: For personal use only • The only process capable of extracting magnesium and SCM from fly ash and ferro nickel slag feedstocks. • Cost competitive - LMG’s ferro nickel slag project has half the operating cost of
Slide 5: 2. LMG Comparative Advantage (continued)
Latrobe Magnes um 2. LMG Comparative Advantage (continued) For personal use only LMG is uniquely placed to meet Australian demand for SCM and amorphous silica: • No CO2 emissions. • Black coal fly ash and silica slag availability in decline, down 0.5M tpa each due to power station closures and reduc
Slide 6: 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 Investment Presentation December 2020 66
Slide 7: 4. Plant Layout
Latrobe Magnes um 4. Plant Layout For personal use only Investment Presentation December 2020 77
Slide 8: 5. Hydromet Process
Latrobe Magnes um 5. Hydromet Process • LMG hydromet process uses either acid or alkali to treat fly ash and For personal use only ferro nickel slag. • Yallourn’s magnesioferrite ash and the ferro nickel slag’s enstatite and fosterite are approx the same hardness and density and so rely on LMG’s aci
Slide 9: 6. Hydromet IP
Latrobe Magnes um 6. Hydromet IP • LMG’s alkali process is patented worldwide wherever there is brown For personal use only coal deposits e.g. EU, USA, China, India, Indonesia and Australia. • LMG’s acid process is owned by LMG and LMG will be applying for a patent within the next 12 months. • IMO s
Slide 10: 7. LMG Products
Latrobe Magnes um 7. LMG Products For personal use only LMG products are Yallourn fly ash t per t Ferro Nickel Slag t per Mg t Mg Magnesium 1.0 1.0 SCM 5.8 4.6 Amorphous Silica 0 3.5 Hermatite 2.6 0.9 AG Lime 4.6 0 Char/Silica 2.0 0 Carbon Credits 13 22 Investment Presentation December 2020 10
Slide 11: 8. Magnesium Market
Latrobe Magnes um 8. Magnesium Market • Magnesium is the light and strong ‘green metal’ –75% lighter than steel, 33% lighter For personal use only than aluminium & titanium. • World Magnesium production ~ 1M t in 2020. China supplies 85% .~440,000 tpa exported to mainly to US, Japan & EU. • Magnesiu
Slide 12: 9. Magnesium Producers
Latrobe Magnes um 9. Magnesium Producers Production No of Operating Costs Territory Amount in Comments For personal use only Producers US$ per t tonnes China 50 900,000 1,850 - 2,500 Under environmental pressure to improve particulate emissions Russia 4 60,000 2,000 Imports up to 10,000tpa North Ame
Slide 13: 10. SCM & Amorphous Silica
Latrobe Magnes um 10. SCM & Amorphous Silica • LMG’s demonstration plant produces 5.8 tonnes SCM per tonne of Mg-3,000t For personal use only plant, i.e. 17,000tpa & for its 40,000t plant, 230,000 tpa. • No CO2 emissions in the production of LMG’s SCM. • All LMG’s cement tests have been conducted by
Slide 14: 10. SCM & Amorphous Silica (continued)
Latrobe Magnes um 10. SCM & Amorphous Silica (continued) For personal use only • LMG’s demonstration plant will also use ferro nickel slag feedstock and so be able to produce up to 3.5 tonnes amorphous silica per tonne of Mg-3,000t plant, i.e. 10,500tpa & for its 40,000t plant, 140,000 tpa. • LMG’s
Slide 15: 11. Green Credentials
Latrobe 11. Green Credentials Magnes um • LMG’s project remediates mining sites by recycling 100% of For personal use only potentially hazardous wastes into valuable saleable products. Fly ash dams risk contaminating water systems and effecting the environment. Fly ash if it dries out and becomes ai
Slide 16: 12. CO2 Emissions
Latrobe Magnes um 12. CO2 Emissions • LMG’s CO2 emissions estimates for the plant are: For personal use only CO2 t/tMg Brown coal fly ash 7.5 Ferro nickel slag -2.1 • China magnesium producers average emissions are 20 tonnes of CO2 per t Mg. • Under new Chinese regulation there is pressure on China
Slide 17: 13. Financial Overview
Latrobe 13. Financial Overview Magnes um Yallourn – brown coal fly ash project For personal use only Capex 3,000 tpa $M 40,000 tpa $M Project Finance 30 320 Equity 20 110 Total project funding 50 430 Operating Profit Revenue 31 366 EBITDA 4 90 Project processes Yallourn fly ash (reserve estimate 5.5
Slide 18: 13. Financial Overview (continued)
Latrobe 13. Financial Overview (continued) Magnes um Ferro nickel slag project For personal use only Capex 100,000 tpa $M Project Finance 840 Equity 280 Total project funding 1,120 Operating Profit Revenue 810 EBITDA 376 Ferro nickel slag will be processed at the rate of 600,000 tpa. Operating cost
Slide 19: 14. Project Consumables
Latrobe Magnes um 14. Project Consumables LMG’s six key consumables represent some 84% of operating costs: For personal use only 1. Ferrosilicon (23%) - is being sourced from OMH Holdings Limited who own a low cost producers in Sarawak. 2. Ash (0%) – supplied by EnergyAustralia Yallourn on a no cost
Slide 20: 15. Project Risks
Latrobe Magnes um 15. Project Risks Identified risks and their mitigants are: For personal use only • Consumable supply - most products will be contracted from suppliers. • Technological - repetitious laboratory testing of production flow sheet, gap analyses and robust design and engineering plannin
Slide 21: 15. Project Risks (continued)
Latrobe Magnes um 15. Project Risks (continued) • Construction – The plant has 5 components (see slide 5) which need For personal use only to be connected. Each components will be tendered in packages directly with acceptable suppliers. The long lead time item (spray roaster) has already been tender
Slide 22: 16. Timetable
Latrobe Magnes um 16. Timetable 1. Completed feasibility study Aug 2019 & updated study May 2020. For personal use only 2. Ash supply agreement with Yallourn Oct 2019. 3. Received AusIndustry Finding for $54m plant as eligible under the R&D Tax Incentive Aug 2020 4. Received Council planning and EPA
Slide 23: 17. Corporate Overview
Latrobe 17. Corporate Overview Magnes um Directors For personal use only Jock Murray - Non exec chairman Studied economic, history and engineering management & was Colonel of SAS, Director General NSW Transport, Advisor to Mallesons and NSW Infrastructure David Paterson - Director & CEO Chartered ac
Slide 24: 17. Corporate Overview (continued)
Latrobe 17. Corporate Overview (continued) Magnes um Consultants For personal use only Jim Siemon - Project Director Chemical engineer with honours and employed by Rio Tinto, Zinifex, Nystar. Ronan Gillen - COO Metallurgical engineer, ex Fluor major projects consultant to BHP, Alcan and others CSIRO
Slide 25: 17. Corporate Overview (continued)
Latrobe 17. Corporate Overview (continued) Magnes um For personal use only LMG’s Capital Structure M’s Shares on Issue 1,290 Warrants on Issue at $0.02 13 Warrants on Issue at $0.03 36 Total shares, if warrants paid 1,399 Market Capitalisation at A$0.025 per share equal to $32M Investment Presentati
Slide 26: Disclaimer
Latrobe Magnes um Disclaimer 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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