Slide 1: Magontec Limited Full Year 2020 Result
Magontec Limited (ASX: MGL) Full Year 2020 Result 26 February 2021 Nicholas Andrews, Executive Chairman of Magontec Limited has authorised the release of this document to the market on 26 February 2021
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by Magontec Limited (ABN 30 147 131 Past performance including risk factors associated with the industry in which Magontec operates 977) (Magontec or the Company). This Presentation contains summary and risks specific to Magontec, such as: construction,
Slide 3: Financial Result – 12 months to 31 December 2020
Financial Result – 12 months to 31 December 2020 Full Year 2020 loss: -$0.29m excluding unrealised FX Reconciliation of significant items in earnings (2019: loss -$1.34m) 12 months to 12 months to Qinghai primary Mg alloys 31-Dec-20 31-Dec-19 business reduces group '$000 '$000 profitability; Reporte
Slide 4: Higher GP margin from stronger sales of CCP (anode) and specialist metals
Higher GP margin from stronger sales of CCP (anode) and specialist metals 2020 profitability reduced by lower recycling and primary Mg metal sales due to COVID-19/QSLM supply Gross Profit ($M) and GP margin Underlying Operating Cashflow ($M)* 12.8% $4.9 $5.0 11.3% 11.3% 9.6% 10.0% $3.9 9.3% $3.5 $2.
Slide 5: EBITDA and EBIT stronger in 2020
EBITDA and EBIT stronger in 2020 2020 & 2019 results negatively impacted by Magontec Qinghai primary magnesium alloys business EBITDA and EBIT contributions ($M) $4.6 $4.3 $3.5 $3.3 $2.7 $2.5 $2.0 $1.8 $1.6 $1.5 $0.4 $0.1 -$0.3 -$0.5 2014 2015 2016 2017 2018 2019 2020
Slide 6: FY 2020 Full Year Result
FY 2020 Full Year Result Underlying Net Loss* of $0.3m in 2020 (Loss of $1.3m in 2019) Underlying Net Profit After Tax * ($M) FY 2017 FY 2018** FY 2019** FY 2020** $0.5m -$0.3m -$1.2m -$1.3m • Reported net profit/loss excluding the effects of unrealised foreign exchange ** Includes Depreciation of $
Slide 7: Cathodic Corrosion Protection – a growing contribution to Magontec profit
Cathodic Corrosion Protection (CCP) – a growing contribution to Magontec profit Magnesium and electronic anodes contribute around 70% of global Gross Profit Cathodic Corrosion Protection $10 $40 $8 $30 Gross Profit Revenue $6 $20 $4 $10 $2 $0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 CCP Gros
Slide 8: Qinghai electrolytic magnesium smelter complex (Golmud)
Qinghai electrolytic magnesium smelter complex (Golmud) Supply of QSLM liquid pure Mg to Magontec cast house remains suspended Magontec Qinghai MGL operates an Mg alloy cast house at Dehydration Reduction Cast house Golmud in Qinghai province PRC Agreements Supply of 56,000 mtpa Exclusive Mg alloy r
Slide 9: Qinghai production steady at lower levels
Magontec Qinghai production steady at lower levels • Output reduced in 2020 • All raw material currently from external sources • Volumes recovering post-COVID 3,000 Quarterly production at Magontec Qinghai (metric tonnes) 2,500 2,000 1,500 1,000 500 0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q2
Slide 10: Qinghai's pure Mg supplier has the lowest CO2 footprint of any Mg plant
Magontec Qinghai’s pure Mg supplier has the lowest CO2 footprint of any Mg plant New survey from DLR# underlines strong competitive position of QSLM’s Qinghai Project Kilos of CO2 emissions per Kilo of Mg produced by plant 30 Qinghai (2020 survey by DLR) # 25 Kg CO2eq / kg Mg 20 15 10 5 0 QSLM, Chin
Slide 11: Magontec operates
Magontec operates: • 4 recycling and manufacturing facilities in China, Germany and Romania • A global sales and technical support network Production Sales Office Bottrop Santana Golmud Tokyo Technology Centre St Louis Rhode Is Xi’an Mg Alloy Cast House Sydney Melbourne Headquarters
Slide 12: Rising profit contribution from CCP and specialist metals in 2020
Rising profit contribution from CCP and specialist metals in 2020 Resolution of Qinghai pure Mg raw material supply a critical metric for 2021 A much improved financial A strong and growing Industry-leading ASX Listed result ex-Qinghai global CCP business environmental credentials
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 8084 7813 Tel +49 (0
Slide 14: Magontec Limited Full Year 2020 Result
Magontec Limited (ASX: MGL) Full Year 2020 Result 26 February 2021