Slide 1: Magontec Limited First Half 2018 - Interim Result
Magontec Limited (ASX: MGL) First Half 2018 - Interim Result August 2018
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by Magontec Limited (ABN 30 147 131 Past performance information given in this Presentation is given for illustrative operational risk associated with the Golmud Plant, fluctuations in magnesium 977) (Magontec or the Company). This Presentation contains
Slide 3: Magontec Limited – 2018 Interim Results
Magontec Limited – 2018 Interim Results Magontec Qinghai cast house now qualified by major Chinese customers, global qualification progressing 1H18 underlying net loss of ($0.15m)* included $1.3 million of non-cash depreciation. 1H18 positive underlying operating cash** generated of +$1.6m Mg alloys
Slide 4: Underlying Net Loss reduced to ($0.15m) during 1H18
FY 2018 Interim Result Underlying Net Loss* reduced to ($0.15m) during 1H18 Underlying Net Profit After Tax * ($M) $0.51m $0.61m $0.35m -$0.15m -$1.53m 1H16 2H16 1H17 2H17 1H18 * Reported net profit/loss excluding the effects of unrealised foreign exchange
Slide 5: Qinghai production profile showing positive trend
Magontec Qinghai production profile showing positive trend Magontec Qinghai Production (tonnes) 450 252 181 159 118 101 81 61 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18
Slide 6: Reconciliation of significant items in earnings
FY 2018 Interim Result Reconciliation of significant items in earnings 6 months to 6 months to 1H18 earnings mostly impacted 30-Jun-18 30-Jun-17 by $1 million loss charged to '$000 '$000 EBIT from Magontec Qinghai Net Profit Before Tax, unrealised FX and significant (MAQ) 1,133 1,239 items Significa
Slide 7: Overall performance showing an improving trend on 2H17
FY 2018 Interim Result Overall performance showing an improving trend on 2H17 Gross Profit ($M) and GP margin Underlying Operating Cashflow ($M)* 11.2% 11.4% 11.1% $2.5 10.5% $2.4 8.7% $1.8 $1.6 $0.6 $7.4 $7.0 $7.3 $5.3 $7.3 1H16 2H16 1H17 2H17 1H18 1H16 2H16 1H17 2H17 1H18 * Operating cashflow excl
Slide 8: EBITDA and EBIT trend stabilising, EBIT impacted by additional depreciation
FY 2018 Interim Result EBITDA and EBIT trend stabilising, EBIT impacted by additional depreciation from Magontec Qinghai EBITDA and EBIT contributions ($M) $2.34 $2.08 $1.92 $1.49 $1.44 $1.05 $0.73 $0.63 $0.33 -$0.52 1H16 2H16 1H17 2H17 1H18
Slide 9: Qinghai electrolytic magnesium smelter complex (Golmud)
Qinghai electrolytic magnesium smelter complex (Golmud) Magontec Qinghai MGL operates a new magnesium alloy cast Dehydration Reduction Cast house house at Golmud in Qinghai Province PRC Agreements Supply of 56,000 mtpa Exclusive Mg alloy rights Fixed off-take price metrics Lease (10+10 years) Produc
Slide 10: Qinghai will triple production and make Magontec the world's largest supplier
Magontec Qinghai will triple production and make Magontec the world’s largest supplier of electrolytic Mg alloy ~10% Mg alloy market share 2015 Target > 20% Mg alloy market share Largely high CO2 Largely high CO2 “Pidgeon process” “Pidgeon process”
Slide 11: Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* 45 Future Present Past 40 Qinghai 35 Kg CO2eq / kg Mg incl. credits for incl. use 30 Use of waste gas of SF6 25 incl. credits for by-products 20 15 incl. credits for by-products 10 5 0 Golmud 2017 Israel 2011 China 2011 Norway 1997 Electroly
Slide 12: Magontec has five recycling and manufacturing facilities in China, Germany and Romania
Magontec has five recycling and manufacturing facilities in China, Germany and Romania Production Sales Office Bottrop Santana Shanxi Toronto Golmud Tokyo Technology Centre Rhode Is Xi’an Cast House Project Sydney Melbourne Headquarters
Slide 13: Magontec's corporate transformation creates an exceptional platform for growth
Magontec’s corporate transformation creates an exceptional platform for growth Improving Primary Mg alloy “Green” Profit ASX Listed financial production magnesium “inflexion” point fundamentals volumes to triple
Slide 14: Magontec Limited
Magontec Limited 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 Potts Point Sydney NSW Germany Development Zone AUSTRALIA 2011 Xian, China, 710021 Tel +61 2 8005 4109 Tel +49 (0
Slide 15: Magontec Limited First Half 2018 - Interim Result
Magontec Limited (ASX: MGL) First Half 2018 - Interim Result August 2018