Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Investor Presentation (October 2012)
12 slides from Latrobe Magnesium's investor presentation, Oct 10, 2012
Slide 1: Twilight Presentation
For personal use only Latrobe Magnes um Twilight Presentation October 2012 David Paterson ASX: Chairman LMG
Slide 2: 1. Summary
1. Summary Latrobe Magnes um For personal use only Latrobe’s 40,000 tonnes per annum magnesium plant from December 2015 Revenue $225m Operation costs $174m Operation surplus $ 51m pa Capex $210m Plant life/feedstock in excess of 20 years assumed 2
Slide 3: 2. Magnesium: Latrobe Magnesium opportunity
2. Magnesium Latrobe Magnes um For personal use only Latrobe Magnesium opportunity 75% of fly ash waste converted into % • Magnesium 10 • Portland Cement/HAC 60 • Char 5 75 Also,10 to 15 tonnes carbon credits created per tonne of Mg 3
Slide 4: 2. Magnesium Uses
Latrobe 2. Magnesium Magnes um For personal use only Magnesium Uses % • Steel desulfurisation 25 • Alloy in aluminium 45 • Car parts for strength & weight savings 30 ---- 100 New China uses – planes & trains New Korea uses – consumer goods (laptops, mobile phones etc) 4
Slide 5: 2. Magnesium sources 2011
Latrobe 2. Magnesium Magnes um Magnesium sources 2011 (‘000 tons) For personal use only • China 660 83% • Russia 37 • USA 44 • Israel 28 • Kazakhstan 20 • Brazil 16 • Other 4 809 5
Slide 6: 3. LMG Process
Latrobe 3. LMG Process Magnes um For personal use only LMG business parts • Access to brown coal fly ash with sufficient MgO • Use of proprietary hydromet technology combined with the proven thermal reduction process • Construction expertise contracted for thermal reduction process & its modernisati
Slide 7: 3. LMG Hydromet Process
Latrobe 3. LMG Hydromet Process Magnes um Hydromet process For personal use only • Combines unique patented hydromet process with proven thermal reduction process in operation since 1941 • Standard industrial reagents to remove impurities from the ash – SO3, Fe2O3, SiO2, Na2O & K2O • Cyclone extract
Slide 8: 3. LMG Thermal Process
Latrobe 3. LMG Thermal Process Magnes um For personal use only Process attributes • Simplified proven technology as in 83% of world magnesium production • Can economically produce small quantities of magnesium • Production can be expanded on modular basis • Much lower capital cost compared to electr
Slide 9: 4. Corporate Background
4. Corporate Background Latrobe Magnes um For personal use only History Listed on ASX (LMG) in 2002 Dealing with Latrobe Valley brown coal fly ash for 10+ years Tested every proven magnesium process technology Breakthrough with hydromet process 2½ years ago ~100 lab tests & 20 retort tests
Slide 10: 5. Financial Overview: Other Opportunities
5. Financial Overview Latrobe Magnes um Other Opportunities For personal use only LMG agreement with RWE Germany, annual fly ash from one mine sufficient to produce 35,000 tonnes of magnesium pa Brown coal lignite deposits have been identified • Brandenburg, former East Germany • Poland • US – Wyomi
Slide 11: 7. Milestones
Latrobe 7. Milestones Magnes um For personal use only • Oct 2011 completed pre-feasibility study on a 10,000 tpa plant • Apr 2012 signed Chinese technology cooperation agreement • Sep 2012 expand range of fly ashes – RWE & Yallourn • Oct 2012 finalise agreements for fly ash & land • Oct 2012 start b
Slide 12: 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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