Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Investor Presentation (December 2019)
21 slides from Latrobe Magnesium's investor presentation, Dec 5, 2019
Slide 1: LMG Community Briefing
For personal use only Latrobe Magnes um LMG Community Briefing 5 December 2019 David Paterson ASX: CEO LMG
Slide 2: Presentation contents
Latrobe Presentation contents Magnes um For personal use only 1. Latrobe project 2. Project benefits 3. Yallourn power station 4. LMG sites 5. Plant layout and processes 6. Magnesium market 7. Environmental factors and reports 8. Feasibility study results 9. Timetable 10. Corporate overview 2
Slide 3: 1. Latrobe Project
Latrobe 1. Latrobe Project Magnes um For personal use only Will convert 100% of the Yallourn fly ash into sustainable products Ash waste converted into magnesium, supplementary cementitious materials & 3 by- products Initial plant will employ est. 75 in construction and 54 people on-going Ex
Slide 4: 2. Project Benefits
Latrobe 2. Project Benefits Magnes um • Annual local expenditure estimated at $4,500 per tonne of Mg For personal use only ($14M & $180M) • Local capex spend $34M initial plant & $300M expanded plant • Maximise use of local manufacturers, suppliers, construction • For example, will double Sibelco’s
Slide 5: 3. Yallourn Site
Latrobe 3. Yallourn Site Magnes um For personal use only 5
Slide 6: 4. LMG site
Latrobe 4. LMG site Magnes um For personal use only Swop Line from Yallourn Natural Gas Pipeline Swop Line From Hazelwood 320 Tramway Site 6
Slide 7: 4. LMG building Tramway Site Building
Latrobe 4. LMG building Magnes um For personal use only 7 320 Tramway Site Building
Slide 8: 5. Plant Layout
Latrobe 5. Plant Layout Magnes um For personal use only 8
Slide 9: 5. Hydromet Process
Latrobe 5. Hydromet Process Magnes um For personal use only LMG hydromet process is 2 stages: dissolving the magnesium, iron and calcium minerals with HCl, & precipitating out calcium as CaCO3 & iron as hematite (Fe2O3) converting MgCl2 into MgO & recovering the HCl for reuse in the process 9
Slide 10: 5. Smelter Process & Product
Latrobe 5. Smelter Process & Product Magnes um For personal use only MgO produced by LMG’s hydromet process is then mixed with ferrosilicon & burnt lime, briquetted & processed through a horizontal retort smelter at 1250C Products from these two processes: - magnesium metal - supplementary cementiti
Slide 11: 6. Magnesium market
Latrobe 6. Magnesium market Magnes um For personal use only Magnesium is the light and strong ‘green metal’ – 75% lighter than steel, 33% lighter than aluminium & titanium World Magnesium production ~950,000 t in 2018. China supplies 85% .~410,000 tpa exported to US, Japan & EU Magnesium expec
Slide 12: 6. Magnesium market growth
Latrobe 6. Magnesium market growth Magnes um For personal use only A number of current Chinese producers will not be able to meet emission standards Buyers looking for diversified and clean producers to reduce supplier risk In last 3 years, aluminium sheet containing >6% Mg used in cars for th
Slide 13: 7. Environmental reports
Latrobe 7. Environmental reports Magnes um For personal use only GHD appointed to prepare reports for RD&D and Council approvals, being: • traffic impact study, • Tramway road site landscape plan, • air impact plan, • noise assessment, • “best practice” assessment of the processes employed and equip
Slide 14: 7. Environment CO2 emissions
Latrobe 7. Environment CO2emissions Magnes um For personal use only GHD are to prepare the final report for lodgement with EPA and Council in January 2020 Current estimate of the plant’s CO2 emissions are in the order of 10 tonnes per tonne of magnesium Total CO2 emissions for the magnesium pr
Slide 15: 7. Environmental factors
Latrobe 7. Environmental factors Magnes um For personal use only Truck Movements Local - per day Fly Ash 4 Quicklime 1 Locally sold products 4 ---- 9 Freeway movements 5 ---- Total 14 == 15
Slide 16: 8. Feasibility study results
Latrobe 8. Feasibility study results Magnes um For personal use only Capital Requirements 3,000 tpa A$M Project finance 30 Equity 12 Victorian grant 12 ----- Total project funding 54 === Capex estimated at A$54M . 16
Slide 17: 8. Feasibility study results (cont'd)
8. Feasibility study results Latrobe (cont’d) Magnes um For personal use only Operating Profit & Loss 3,000 tpa A$M Revenue 31.9 Gross Profit 7.0 EBITDA 6.5 Major Assumptions 1. Magnesium price US$2,650/t FOB China & USA price $2.30/lb & 73% of revenue. 2. SCM represents 12% of revenue. 3. Current e
Slide 18: 9. Timetable
Latrobe 9. Timetable Magnes um For personal use only Completed feasibility study Aug 2019 Ash supply agreement with Yallourn Oct 2019 Secure funding by end of Feb 2020 Receive planning, EPA RD&D approval and FID by Feb 2020 (on-track) Start construction in Feb 2020 Commence production at
Slide 19: 10. Corporate Overview
Latrobe 10. Corporate Overview Magnes um For personal use only Directors 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 accoun
Slide 20: 10. Corporate Overview (cont'd)
10. Corporate Overview Latrobe Magnes um (cont’d) For personal use only 1. Consultants • Jim Siemon - Project Director - Chemical engineer with honours and employed by Rio Tinto, Zinifex, Nystar. • CSIRO, Melbourne - magnesium & smelter processing • Clark & Marron – magnesium industry experts • Minc
Slide 21: 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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