Magontec Limited · ASX:MGL
Magontec — Investor Presentation (February 2015)
34 slides from Magontec's investor presentation, Feb 2, 2015
Slide 1: Presentation for investor meetings (ASX cover letter)
For personal use only 2 February 2015 Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney, NSW, 2000 Dear Sirs, Presentation for investor meetings Please find attached a presentation on the activities of Magontec Limited for the purposes of investor meetings. Yours
Slide 2: Magontec Limited (MGL) February 2015
For personal use only Magontec Limited (MGL) February 2015
Slide 3: Disclaimer
DISCLAIMER This Presentation has been prepared by Magontec Limited (ABN 30 147 131 977) (Magontec or the Company). This Presentation contains summary information about Magontec and its activities current as at the date of this Presentation. The information in this Presentation is of a general backgr
Slide 4: Content
Content For personal use only 1. Company 2. Qinghai Project 3. Research & Development 4. Industry Overview 2
Slide 5: 1. Company
1. Company For personal use only Go beyond. 3
Slide 6: Corporate dashboard
Company Corporate dashboard (Financial numbers as at 30 June 2014) Corporate profile For personal use only Listed in Australia MGL.AX Substantial shareholders Market capitalisation A$22 million (@2c) Shares on issue 1,115 million Qinghai Salt Lake Magnesium 30% Gross assets A$83 million Allan Gray A
Slide 7: What does Magontec do?
Company What does Magontec do? For personal use only ─ Buys pure magnesium (Mg) and Mg alloy scrap to produce Mg alloy ingots ─ Manufactures magnesium and titanium anodes (Cathodic Corrosion Protection – CCP) 5
Slide 8: Who are Magontec's customers?
Company Who are Magontec’s customers? For personal use only ─ Sells Mg alloy ingots to OEMs and Tier 1’s in the die cast industry Powertool Automotive Electronics Gearbox housing Steering wheel armature Other ─ Sells Mg & Ti anodes to gas, electric and solar hot water tank makers 6
Slide 9: Common applications made from magnesium
Company Common applications made from magnesium AM50/60, AZ91, AS31 For personal use only Instrument panel structures (“IP Beam”) Steering wheel armatures Transmission housing Centre console 7 Manufacturers use Mg because it is a lightweight metal
Slide 10: New applications made from magnesium alloys
Company New applications made from magnesium alloys For personal use only Window frame Tailgate 8
Slide 11: Locations and capacities
Company Locations and capacities For personal use only Bottrop Golmud 2016 Toronto Santana Ji Shan HQ Xi’an Production Su Zhou Sales Office Technology Centre Cast House Project Alloy/Recycling Capacity Anode Capacity Bottrop Santana Xi‘an Suzhou Shanxi Sydney 1 CAST is a Technology Association 15 kt
Slide 12: Strategic position
Company Strategic position For personal use only A global magnesium alloy company Only Western magnesium alloy producer Own Chinese primary Mg alloy manufacturing base Own Mg alloy recycling facilities in Europe & Asia Global logistics and sales capabilities Comprehensive Mg alloy product
Slide 13: Strategic actions 2013 - 2016
Company Strategic actions 2013 - 2016 For personal use only Magnesium alloy manufacturing and recycling Building a competitive advantage in a global growth industry Recycling capacity in new die cast regions Romania, China ++ Reduce manufacturing costs Process change, automation New primar
Slide 14: 2. Qinghai Project
2. Qinghai Project For personal use only Go beyond. 12
Slide 15: Qinghai Project – manufacturing and resource location
Qinghai project Qinghai Project – manufacturing and resource location For personal use only Golmud Situated on a substantial resource in western China An established industrial location for > 50 years Electrified rail links to domestic and export markets Sponsored by Provincial Brine content
Slide 16: Electrolytic magnesium smelter complex and cast house schematic
Qinghai project Electrolytic magnesium smelter complex and cast house schematic For personal use only 14
Slide 17: Electrolytic magnesium smelter complex and cast house
Qinghai project Electrolytic magnesium smelter complex and cast house Mg complex constructed, owned and operated by QSLM Cost US$4 + billion For personal use only Mg alloy cast house equipment installed, owned and Cost US$12 million operated by Magontec 100,000 metric tonnes pa capacity Magnesiu
Slide 18: Qinghai & Magontec have signed Agreements
Qinghai project Qinghai & Magontec have signed 3 Agreements For personal use only Magnesium Alloy Cast House Build-to-suit-to-lease Operating Agreement Off-Take Price Agreement Agreement between between between Qinghai Salt Lake Magnesium Qinghai Salt Lake Magnesium Qinghai Salt Lake Magnesium and a
Slide 19: Golmud Cast House – ready for Phase A installation
Qinghai project Golmud Cast House – ready for Phase A installation January 2015 For personal use only 17
Slide 20: The Qinghai Project is an environmental model
Qinghai project The Qinghai Project is an environmental model For personal use only Best hydro power resources in China. Wind 0.10% Source of 3 major Chinese rivers (Yellow, Yangzte, and Canglan) Solar 9.10% Future growth in solar and hydro Coal 15.50% Hydro 75.30% 18
Slide 21: Comparison CO2 eq / kg Magontec Qinghai vs Mg and Al
Qinghai project Comparison CO2 eq / kg Magontec Qinghai2 vs Various Mg1 + Al1 For personal use only 20 kg Qinghai Salt Lake Magnesium CO2 credentials : 36% below next best (RIMA in Brazil) 18 kg 49% below world aluminium average 14 kg 13 kg 10 kg 6 kg Pidgeon - av. Magontec Yitong Electrolysis R
Slide 22: Qinghai timetable – current estimate
Qinghai project Qinghai timetable – current estimate For personal use only Installation and commissioning timetable Jan Magontec Phase A equipment acquired and on-site (Line 1 – 14k mt) Feb/Mch Phase A equipment installation 2015 Apr/May Dehydration units & electrolysis cell house completion May to
Slide 23: Qinghai summary
Qinghai project Qinghai summary For personal use only A profound impact on Magontec: Competitive in every global magnesium alloy market Triple magnesium alloy production volume Transform profitability of PRC activities Improve profitability in downstream activities 21
Slide 24: 3. Research & Development
3. Research & Development For personal use only Go beyond. 22
Slide 25: A strong focus on the future and on quality
Research & Development A strong focus on the future and on quality For personal use only R&D teams in Germany, China and Australia Production & process experts in each business R&D partnerships with universities, research institutes & customers 3-year product development program with Austral
Slide 26: Magontec high-temperature alloys
Research & Development Magontec high-temperature alloys For personal use only AE44 alloy family • Enhances castability, mechanical properties and high temperature resistance • Potential to become foundation for future Mg alloy Engine Covers developments AE44 alloy applications increasingly used
Slide 27: 3. Industry Overview
3. Industry Overview For personal use only Go beyond. 25
Slide 28: Chinese pure Magnesium vs pure Aluminium ingot prices
Industry overview Chinese pure Magnesium Vs pure Aluminium ingot prices For personal use only ¥20,000 Magnesium v Aluminium (1 January 2010 - 20 January 2015) ¥19,000 Al Ingot 99.7% China RMB ¥18,000 Mg 99.9% China RMB Mg price adjusted for density (80%) ¥17,000 ¥16,000 ¥15,000 ¥14,000 ¥13,000 ¥12,0
Slide 29: Pure magnesium supply
Industry overview Pure magnesium supply For personal use only Global supply was 861Kt in 2013, of which China produced Other, 7% 681Kt China Israel, 3% 79% USA, 7% Global supply rose 18.4% year- on-year in 2013 Russia 4% Chinese capacity declined 6% to 1.9 MTPY, of which 67% (1.3 MTPY) is acti
Slide 30: Chinese magnesium consumption
Industry overview Chinese magnesium consumption “Automotive” and “Other” die cast Mg consumption rose 36% For personal use only Aluminium Alloying Iron & Steel Metal Reduction Die Casting - Auto Die Casting - Other Other in 2013* 350 21.1 Total Mg consumption up 41% 300 year-on-year* 21.7 250
Slide 31: Automotive and Other Mg Die Cast Sector Growth Forecast to 2023
Industry overview Automotive and Other Mg Die Cast Sector Growth Forecast to 2023 For personal use only Mg is expected to 2,400 Forecast see growth in Global supply demand from all major consumer Rest of World industries China 1,600 Japan '000 tonnes of Magnesium EU Automotive die cast demand is
Slide 32: Vehicle emission legislation – global comparisons
Industry overview Vehicle emission legislation – global comparisons For personal use only NEDC gCO2/km 100 kg of weight Year US California Canada EU Australia Japan China S. Korea reduction reduces 2002 261 261 244 166 252 157 213 2003 259 239 164 156 232 ~10g of CO2 2004 262 239 162 247 154 218 e
Slide 33: Summary
Summary For personal use only The Qinghai project will be transformative for Magontec and for the magnesium industry Magontec has a strong position in Qinghai underpinned by three comprehensive agreements QSLM is an equity partner in Magontec – not a disinterested counterparty The magnesium
Slide 34: Thank you for your time
Thank you for your time For personal use only MAGONTEC Group MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road, Suite 1.03 46a Macleay St 46240 Bottrop Xian Economic and Technological Potts Point Sydney NSW 2011 Germany Development Zone AU