Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Shareholder Meeting (November 2014)
18 slides from Latrobe Magnesium's shareholder meeting presentation, Nov 27, 2014
Slide 1: Latrobe Magnesium AGM Presentation November 2014
For personal use only Latrobe Magnes um AGM Presentation November 2014 David Paterson ASX: Chairman LMG
Slide 2: Presentation
Latrobe Presentation Magnes um For personal use only 1. 2014 year highlights 2. Project Summary 3. LMG opportunity 4. LMG process 5. LMG Site 6. LMG Current Activities 7. Timelines and milestones 8. Financial overview 2
Slide 3: 2014 year highlights
Latrobe 1. Year 2014 highlights Magnes um For personal use only • Granting of Australian hydromet patent • Strong results achieved in the cementitious material • Securing a site within the Latrobe Valley • Completed the RWE Power Concept Study • Produced a large bulk sample, processed it through a f
Slide 4: Project Summary
Latrobe 2. Project Summary Magnes um For personal use only Magnesium is strong growth metal, with potential car panel production being a game changer (market increase up to10 times) 2015 complete bankable feasibility study & begin construction of plant Further significant cost savings to be in
Slide 5: LMG opportunity: magnesium uses
Latrobe 3. LMG opportunity Magnes um For personal use only Magnesium uses % • Steel desulphurization 22 • Titanium sponge 12 • Alloy in aluminium can production 33 • Motor car parts for strength & 33 weight savings ----- 100 === New uses – planes, trains & consumer products (laptops, mobile phones e
Slide 6: LMG opportunity
Latrobe 3. LMG opportunity Magnes um For personal use only 6
Slide 7: Automotive Opportunity
Latrobe 3. LMG opportunity Magnes um For personal use only Automotive Opportunity CO2 per kms EU 2012 figure 120 g EU 2020 target 95 g Emission reduction 25 g Weight reduction required 250 kg or 15% of medium size car US auto study revealed that above weight reduction can be achieved by replacing 38
Slide 8: Primary Magnesium metal production
Latrobe 3. LMG opportunity Magnes um For personal use only Primary Magnesium metal production • 2000 210,300 tons • 2012 693,000 tons • 2013 792,000 tons • 2023 projected production 1,600,000 tons Annual growth 6-7%. Above excludes alloys and powders. China – 85% of world production. 8
Slide 9: LMG process
Latrobe 4. LMG process Magnes um For personal use only 9
Slide 10: LMG Process: China Sample
4. LMG Process: China Sample Latrobe Magnes um For personal use only Slag powder & Slag Magnesium crown 10
Slide 11: LMG Site
Latrobe 5. 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 11
Slide 12: LMG Site Tramway Site Plan (11 hectare)
Latrobe 5. LMG Site Magnes um For personal use only 12 320 Tramway Site Plan (11 hectare)
Slide 13: LMG Site Tramway Site Building
Latrobe 5. LMG Site Magnes um For personal use only 13 320 Tramway Site Building
Slide 14: LMG Current Activities
Latrobe 6. LMG Current Activities Magnes um For personal use only • Finalising Latrobe Valley fly ash agreement. • Completing a detailed assessment of the cementitious material from the China sample. • Conducting further test work on iron removal. 14
Slide 15: Timelines & milestones
Latrobe 7. Timelines & milestones Magnes um For personal use only Key Dates • Nov 2014 results of the Chinese bulk sample. • Jan 2015 receive results from the cementitious analyses. • Mar –June 2015 conclude MOU with major customers & suppliers. • June 2015 complete bankable feasibility study. • Jul
Slide 16: Financial overview
Latrobe 8. Financial overview Magnes um For personal use only 5,000 40,000 Financial Parameters tonnes tonnes A$/tonne A$/tonne Magnesium revenue 4,218 4,218 Net Cash operating costs (3,840) (2,635) -------- -------- Operating surplus 378 1,583 ==== ==== Capex A$45M A$285M NPV at 12% discount factor
Slide 17: Financial Overview: cost improvements
8. Financial Overview Latrobe Magnes um Cost improvements through further process For personal use only optimisation – • Further iron reduction in BFA reduces FeSi usage possible savings up to A$200 per tonne of Mg. • Possible new magnetite product. • Use of vertical retorts may save 20% in capital
Slide 18: 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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