Slide 1: Magontec Limited Full Year 2019 Result
Magontec Limited (ASX: MGL) Full Year 2019 Result 28 February 2020 Nicholas Andrews, Executive Chairman of Magontec Limited has authorised the release of this document to the market on 28 February 2020
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: FY 2019 Full Year Result
FY 2019 Full Year Result Magontec Limited (MGL) Reconciliation of significant items in earnings announces a Full Year 2019 Net Profit Before Tax (excluding 12 months to 12 months to significant items) of $440,000 31-Dec-19 31-Dec-18 compared with a Net Profit Before Tax of $2.27 million in '$000 '$0
Slide 4: Underlying Net Loss of $1.3m in 19
FY 2019 Full Year Result Underlying Net Loss* of $1.3m in 2019 Underlying Net Profit After Tax * ($M) FY 2017 FY 2018** FY 2019** $0.5m -$1.2m -$1.3m • Reported net profit/loss excluding the effects of unrealised foreign exchange ** Includes Depreciation of $0.95m and $0.96m on Magontec Qinghai Magn
Slide 5: Qinghai production profile showing positive quarterly trend
Magontec Qinghai production profile showing positive quarterly trend Magontec Qinghai Production (tonnes) 2,625 2,423 2,204 2,015 1,794 1,107 420 280 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
Slide 6: Overall performance showing a declining trend on 2018
FY 2019 Full Year Result Overall performance showing a declining trend on 2018 due to lack of scale at Magontec Qinghai Gross Profit ($M) and GP margin Underlying Operating Cashflow ($M)* 11.3% 11.3% $5.0 $4.9 10.0% 9.3% 9.6% $3.5 6.4% $2.9 $2.3 $0.7 $8.5 $12.9 $14.4 $12.5 $14.8 $13.1 2014 2015 2016
Slide 7: EBITDA and EBIT trend
FY 2019 Full Year Result EBITDA and EBIT trend – EBITDA remains positive, EBIT impacted by $0.96m of non cash depreciation EBITDA and EBIT contributions ($M) $4.6 $4.3 $3.3 $2.7 $2.5 $2.0 $1.8 $1.6 $1.5 $0.1 -$0.3 -$0.5 2014 2015 2016 2017 2018
Slide 8: 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 9: 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 10: 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 11: Four recycling and manufacturing facilities in China, Germany and Romania
Magontec has four recycling and manufacturing facilities in China, Germany and Romania Production Sales Office Bottrop Santana Toronto Golmud Tokyo Technology Centre Rhode Is Xi’an Cast House Project Sydney Melbourne Headquarters
Slide 12: 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 13: 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 14: Magontec Limited Full Year 2019 Result
Magontec Limited (ASX: MGL) Full Year 2019 Result 28 February 2019