Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Investor Presentation (November 2022)
27 slides from Latrobe Magnesium's investor presentation, Nov 9, 2022
Slide 1: Community Presentation
For personal use only Community Presentation November - 2022 David Paterson – Director & Chief Executive Officer
Slide 2: Disclaimer
Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with For personal use only 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 and
Slide 3: Company Overview: Board of Directors and Management Team
Company Overview Board of Directors Management Team For personal use only Jock Murray - Non-executive Chairman ❖ Had a distinguished military career for almost 30 years before retiring as a Colonel in 1994. ❖ Has held numerous directorships including non-executive Chairman of Omni Tanker Holding Pty
Slide 4: Capital Structure and Location
Capital Structure and Location Latrobe Magnesium is an Australian listed public company under the ASX code LMG. For personal use only ASX Code LMG Shares on Issue 1,612 million Sydney: Corporate Head Office Share Price* $0.084 Melbourne: Hazelwood North: Project Office Production Site Market Cap. $1
Slide 5: LMG Summary
LMG Summary Magnesium is a Critical Raw Material in Australia, USA, EU, and Japan. China currently supply 88% of world demand, creating a risk For personal use only for global supply chains which experienced difficulties in the last quarter of 2021. The global magnesium market is forecast to double
Slide 6: Magnesium: The Green Metal
For personal use only Magnesium: The Green Metal Key Statistics Current and Emerging Uses Die Cast Parts Aluminium Sheet Die Cast Components Aluminium Alloys DEMAND Titanium Refining BY INDUSTRY* Steel Desulfurisation Other Bioabsorbable Stents Magnesium Batteries *Source: IME Institute of Process M
Slide 7: Magnesium market is set to double over next decade
Magnesium market is set to double over next decade • Magnesium has the best high strength-to-weight ratio of common structural metals, e.g. 75% lighter than steel, 33% lighter than For personal use only aluminum & titanium • In 2020 world magnesium production was ~ 1 million tonnes. China supplies ~
Slide 8: The Demonstration Plant
The Demonstration Plant • Will produce 1,000 tonnes per annum of magnesium, with an For personal use only estimated capex of $40m • Processing fly ash from the Energy Australian, Yallourn West power station. • Converting 100% of fly ash waste into saleable products: o Magnesium o Supplementary cemen
Slide 9: A commitment to local employment
For personal use only A commitment to local employment Initial benefit Value-adding for the future Potential to Construction of Operation of the Creating Continued work with retain & reskill the demonstration demonstration opportunities companies, unions, workers from plant will generate plant will
Slide 10: Supporting the Latrobe Valley Economy
Supporting the Latrobe Valley Economy Estimated 3:1 > $850,000 For personal use only direct to indirect Using local suppliers & 100% of early works awarded Job generation contractors where possible to local contractors Plans to further support employment & economic development in the region through:
Slide 11: Sponsoring the Latrobe Valley
For personal use only Sponsoring the Latrobe Valley Latrobe Magnesium was delighted to become a primary sponsor of the Morwell East Football and Netball Club
Slide 12: How will the fly ash be transported to LMG?
For personal use only How will the fly ash be transported to LMG? • Fly ash will be supplied from the existing ash facility at Energy Australia’s Yallourn West power station • It will be transported by covered truck on existing roads through existing industrial areas using established local contract
Slide 13: How will the fly ash be transported to LMG?
How will the fly ash be transported to LMG? Proposed Ash Transport Route Exit Yallourn via For personal use only Sandwash Road Past Australian Paper Travel through rural roads Through Industrial areas Continuing through industrial areas south of Princes Fwy At no time does the route pass through pop
Slide 14: A Low Emissions Demonstration Plant
For personal use only A Low Emissions Demonstration Plant ● A complete study of the expected emissions to air was conducted in 2020 which were well below all minimum standards ● All emitted pollutants from the LMG plant comply with the Victorian criteria specified in the SEPP AQM guidelines, with al
Slide 15: Tackling CO2 emissions
Tackling CO2 emissions • LMG’s process produces a third the CO2 of the magnesium industry average, 8 to 10 tonnes of CO2 per For personal use only tonne of magnesium • The demonstration plant will use electricity & gas, predominantly for its furnaces • The Latrobe Valley is transitioning from brown
Slide 16: The ULAB Project
For personal use only The ULAB Project ● LMG has no affiliation with Pure and is a stakeholder in the project, like the rest of the community ● LMG has conducted a base line study to determine any existing contamination on its site ● This study will be used as a starting point for regular monitoring
Slide 17: The Commercial Plant
The Commercial Plant – Stage 2 ● LMG has commissioned expert studies & will use learnings from the demonstration plant to determine the potential For personal use only economic capacity of a commercial magnesium plant at its Hazelwood North site ● LMG is developing a commercial scale plant producing
Slide 18: Continued Community Engagement
Continued Community Engagement LMG is committed to working openly & constructively with the Latrobe Valley community & interested stakeholders For personal use only in developing our magnesium business. We will: Continue to run regular, open community meetings to keep people up to date & answer ques
Slide 19: Process Overview
For personal use only Process Overview Nov - 2022 Ronan Gillen COO 19
Slide 20: Site Plan
Site Plan Gatehouse For personal use only Mg Refining Reagents Spray Roaster Thermal Reduction LPG Acid Ash Leaching/By- Unloading Maintenance products Laydown Admin Workshop 20
Slide 21: Process Plant
For personal use only Process Plant Ash is unloaded by truck directly into the ash storage bin Ash Unloading and Storage Acid leaching process dissolves the minerals in the ash, releasing Magnesium and other elements into solution. Acid Leaching Iron Removal separates out Iron from Magnesium solutio
Slide 22: Process Plant
For personal use only Process Plant Calcium Removal separates out Calcium from Magnesium solution and produces a Calcium Carbonate by-product (Ag-Lime) which is separately sold Calcium Carbonate is filtered Iron Filtration and loaded into trucks for transport by a loader Iron Oxide is also filtered
Slide 23: Process Plant
For personal use only Process Plant Spray Roaster converts Magnesium solution to Magnesium Stack Oxide powder at 600 deg C The acid is regenerated and reused in acid leach Spray Roaster Vessel Spray Roaster is 20m tall and off gases are scrubbed and cleaned Acid Tank before steam is released Scrubbe
Slide 24: Process Plant
Process Plant Magnesium Oxide is combined with Quicklime For personal use only and Ferrosilicon, formed into briquettes, and placed into the thermal reduction furnaces. Over 12 hours and 1200 deg C, the Magnesium reacts and turns into a vapour. The Furnaces vapour is then cooled and the Magnesium so
Slide 25: Process Plant
For personal use only Process Plant Briquetting plant combines the quicklime, Ferrosilicon and Magnesium Oxide to form pillow shaped briquettes. Magnesite Ferrosilicon is used a reducing agent Briquetting Plant Magnesite is used as a reagent in Iron Removal Ferrosilicon 25
Slide 26: Process Plant
Process Plant LPG is located a safe distance from the rest of the process plant. For personal use only The water treatment plant ensures that no untreated water is discharged to the environment. Cooling Tower LPG Bullet Emergency Water Treatment Ash Plant Storage 26
Slide 27: Questions?
For personal use only Questions? 27
Latrobe Magnesium — Investor Presentation (November 2022) on 6ix