Magontec Limited · ASX:MGL
Magontec — MST Financial Cash Generators Forum (June 2022)
20 slides from Magontec's conference presentation, Jun 9, 2022
Slide 1: Investor Presentation Notice to ASX
Suite 1.03, Level 1 46A Macleay St Potts Point NSW 2011 For personal use only Australia Ph: +61 2 8084 7813 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney, NSW 2000 9 June 2022 Dear Sir, Madam Investor Presentation Notice Please find attached a presentati
Slide 2: Magontec Limited
For personal use only Magontec Limited ASX:MGL Nicholas Andrews Executive Chairman & CEO June 2022
Slide 3: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Magontec Limited (ABN 30 147 Past performance Investment Risk and other risks 131 977) (Magontec or the Company). This Presentation contains summary Past performance information given in this Presentation is given for Investment
Slide 4: Shareholder Structure
Magontec Limited Shareholder Structure For personal use only ASX Code: MGL Total Per Share Qinghai Salt Lake Magnesium Co Ltd Ordinary shares on issue Retail 28.7% following consolidation 76,729,210 30.7% Market capitalisation1 $29.2 million 38.0 cents/share Book value of net assets – 31 March 2022
Slide 5: Two businesses
Magontec Limited: ASX Code: MGL Two businesses For personal use only Magnesium Alloys Anodes / CCP Primary & recycled Magnesium and magnesium alloys electronic anodes Pure Mg & Scrap Electronic Mg alloy & other alloying returns components components elements Mg alloy Cathodic ingots Corrosion Generi
Slide 6: Magnesium Alloys: Primary production and Recycling
Magnesium Alloys: Primary production and Recycling A supplier to the global magnesium die casting industry For personal use only Primary Mg Mg scrap recycling Installed capacity Europe’s largest supplier ex-PRC in Europe 24k mtpa Mg recycler Magontec Primary Mg Mg alloy recycling Primary Customer Mg
Slide 7: Magnesium Alloy Revenues, Profit and Volumes
Magnesium Alloy Revenues, Profit and Volumes For personal use only $6.73 Global Mg alloy and specialist metals sales volumes Global Metals Revenues and Gross Profit (A$M) (metric tonnes) $3.30 2021 10,736 9,103 $2.05 $34.3 $0.96 $1.22 $0.74 $0.75 2020 8,442 10,688 $0.24 $0.37 $24.4 QSLM suspends liq
Slide 8: Cathodic Corrosion Protection (CCP)
Cathodic Corrosion Protection (CCP) Every water tank in every house requires corrosion protection For personal use only New Buildings 20% CCP 80% Replacement Magnesium Electronic anodes Industry drivers Climate change Urbanisation (water heater installation) Switch from oil/gas to electric heat pump
Slide 9: Cathodic Corrosion Protection (CCP) / anodes
Cathodic Corrosion Protection (CCP) / anodes For personal use only Global CCP Revenues and Gross Profit (A$M) $7.1 Global magnesium anode sales volumes (metric tonnes) $17.6 2021 1,639 1,656 $4.3 $3.3 $3.6 $2.5 $13.8 2020 1,451 1,587 $2.4 $2.1 $2.1 $1.6 $10.5 2019 1,251 1,343 $10.0 $8.5 $8.7 $7.8 $7
Slide 10: Global Manufacturing & Distribution Platform
Global Manufacturing & Distribution Platform For personal use only Japan St Louis Bottrop, Ge Xi’an, PRC Rhode Is Qinghai, PRC Santana, Ro Sydney Production Technology Sales Head Melbourne Centre Office Office 4 manufacturing locations in Sales distribution Research activities/ Germany, Romania and
Slide 11: Magnesium (Mg) alloys
Magnesium (Mg) alloys For personal use only Light and strong Unique Specific Low density properties applications structural metal Stress resistance Aluminium 2.70g/cm3 Mg 36% lighter Thermal conductivity Iron 7.87g/cm3 Mg 78% lighter Corrosion Magnesium 1.74g/cm3
Slide 12: Revenue & Gross Profit - Quarters to 1Q 2022
Revenue & Gross Profit - 9 Quarters to 1Q 2022 Sharply rising magnesium price driving revenue and profitability For personal use only Revenue ($M) and Magnesium price (¥’000) ¥38.9 Gross Profit ($M) and GP margin (%) ¥34.6 - inventory effect - benefits low quality scrap processing 26.6% ¥28.0 $51.8
Slide 13: Working Capital & Cashflow - Quarters to 1Q 2022
Working Capital & Cashflow - 9 Quarters to 1Q 2022 Rising Mg price also increases working capital requirement but underlying cash generation up strongly For personal use only Quarterly movements in Working Capital ($M) Reported Reported andCashflow ($M) Underlying Operating Cashflow* ($M) $10.6 $4.4
Slide 14: Net Debt and Working Capital Funding - Quarters to 1Q 2022
Net Debt and Working Capital Funding - 9 Quarters to 1Q 2022 Net Debt continues to fall even as Working Capital demand rises For personal use only Net Debt - Down from $10m to $5m Working Capital Funded by Debt & Equity($M) → Debt funding of WC at historic lows $42.9 12% $36.3 $33.7 $34.1 $32.1 $32.
Slide 15: Qinghai electrolytic magnesium smelter complex
Qinghai electrolytic magnesium smelter complex 100,000 tonnes per annum > ~ 10% of global production For personal use only Dehydration* Reduction* Cast house# Agreements Lease Agreement 10 + 10 Year option 56,000 mtpa supply Mg alloys exclusivity Off Take Price formula *QSLM assets # Cast House sh
Slide 16: Magontec Qinghai will use the lowest CO2 Mg ever produced
Magontec Qinghai will use the lowest CO2 Mg ever produced* For personal use only Qinghai 35 Future Present 30 Kg CO2eq / kg Mg Includes credits for 25 use of waste gas 20 15 Includes credits for by-products 10 5 0 Golmud 2020 China 2020 Electrolysis Pidgeon process *German Aerospace Institute of Veh
Slide 17: Magontec Qinghai magnesium alloy cast house
Magontec Qinghai magnesium alloy cast house For personal use only Revenue and profit Currently operating Cast house impact opportunity Delayed SOP at low levels 2021 Target Mg production mtpa 7k 56k Revenue A$ $30m $300m* Cast house Contribution Loss Profit Industry CO2 output High Low SOP Timetable
Slide 18: Magontec's corporate transformation creates an exceptional platform for growth
Magontec’s corporate transformation creates an exceptional platform for growth For personal use only Mg Mg ASX Listed Capitalisation $30m Improving financial fundamentals Primary Mg alloy production growth “Green” magnesium Profit “inflexion” point
Slide 19: Thank You
Thank You For personal use only 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
Slide 20: Magontec Limited
For personal use only Magontec Limited ASX:MGL Nicholas Andrews Executive Chairman & CEO June 2022
Magontec — MST Financial Cash Generators Forum (June 2022) on 6ix