Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Investor Presentation (October 2009)
16 slides from Latrobe Magnesium's investor presentation, Oct 9, 2009
Slide 1: Brokers Presentation
For personal use only Latrobe Latrobe Magnesium Magnesium Limited Limited Brokers Brokers Presentation Presentation 99October October2009 2009 Latrobe Magnes um
Slide 2: Presentation
PRESENTATION For personal use only 1. Overview of the Magnesium Market. 2. Hydromet Process 3. Thermal Reduction Process 4. Development Plans for the Project. 5. Indicative Timetable 6. Project Economics Latrobe Magnes um
Slide 3: Magnesium Metal Production
1. For personal use only Magnesium Metal Production US Magnesium forecast - - 2008 world production 750,000 tons; - 2012 forecast 1,000,000 tons; - 7.3% compound average growth rate Latrobe Magnes um
Slide 4: Av. Magnesium Metal Prices
1. For personal use only Av. Magnesium Metal Prices FOB China Price US$ per tonne 1 July 2008 5,400 30 June 2009 2,500 9 October 2009 2,700 Projected Price 3,000 – 4,000 (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 closure of Western plants. ¾ China operating costs increasing due to export tax, ferrosilicon, power and transportatio
Slide 6: Hydromet Process
2. Hydromet Process ¾ Hydromet Process is a water process For personal use only utilising low cost industrial reagents to produce a source material with chemical characteristics similar to Dolime ¾ Reduces the Na2O; K2O; SiO2; Fe2O3; SO3 to acceptable levels ¾ Beneficiated material then processed us
Slide 7: Hydromet Process
2. Hydromet Process For personal use only ¾ Hydromet Process provisional patent lodged by Ecoengineers ¾ Heads of Agreement executed for : ¾ - Ownerhip to be 50/50 between Latrobe and Ecoengineers ¾ - Latrobe to have exclusive worldwide licensing rights Latrobe Magnes um
Slide 8: Thermal Reduction Process
3. Thermal Reduction Process For personal use only Latrobe Magnes um
Slide 9: Proposed LMG Process
3. Proposed LMG Process For personal use only Latrobe Magnes um
Slide 10: Thermal Reduction Process
3. 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 11: Development Plans For the Project
4. Development Plans For the Project Plans for the next 6 months – For personal use only ¾ Complete the current laboratory testwork to remove the ettringite from the ash. ¾ Process the intermediate ash through a laboratory retort to prove the efficient production of magnesium. ¾ Send a beneficiated
Slide 12: Development Plans For the Project
4. Development Plans For the Project For personal use only ¾ Finalise our negotiations with Hazelwood Power to extend our current agreement . ¾ Initiate discussions with potential Strategic Partner to gauge their interest in participating in the Latrobe project. Latrobe Magnes um
Slide 13: Indicative Timetable
5. Indicative Timetable For personal use only Latrobe Magnes um
Slide 14: Project Economics
6. 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 15: Project Economics
6. Project Economics For personal use only Financial Assumptions - Production of 5,000 tonnes expanding to 10,000 tonnes - Selling price US$3,000 per tonne - Exchange rate A$0.76 to US$1.00 - Equity / Debt ratio 60%:40% - Operating Costs range A$1.20 per lb - Constant Constant Discount Discount Rate
Slide 16: Disclaimer
Disclaimer ¾ This presentation may contain forward looking statements For personal use only 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 an
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