Latrobe Magnesium Limited · ASX:LMG
Latrobe Magnesium — Shareholder Meeting (November 2011)
17 slides from Latrobe Magnesium's shareholder meeting presentation, Nov 16, 2011
Slide 1: Annual General Meeting November 2011
For personal use only Latrobe Magnes um Annual General Meeting November 2011 David Paterson ASX: Chairman LMG
Slide 2: Presentation
Latrobe Presentation Magnes um For personal use only • Investment highlights • Overview of magnesium project • Magnesium market • Hydromet process • Thermal reduction process • LMG magnesium • LMG progress • Financial overview • Demonstration plant • Project benefits • Errida creek • Capital raising
Slide 3: Investment highlights
Latrobe Investment highlights Magnes um For personal use only • Loss $606,149 ( 2010 Loss $276,001) • Completion of the LMG prefeasibilty study • LMG exclusive agreement with Hazelwood power station for 10+ years • LMG exclusive agreement with Yallourn power stations in Latrobe Valley, Victoria • LM
Slide 4: Magnesium uses
Latrobe Magnesium uses Magnes um For personal use only Magnesium use approx 1/3 each in: • Steel desulphurisation • Alloy in aluminium production especially cans • Motor car parts for strength & weight savings
Slide 5: Magnesium metal production
Latrobe Magnesium metal production Magnes um For personal use only US Magnesium forecast • 2009 world production 600,000 tons • 2010 world production 750,000 tons • 2012 forecast 1m tons 7.3% compound average growth
Slide 6: Magnesium market summary
Latrobe Magnesium market summary Magnes um For personal use only • Global magnesium market dominated by China production – 80% to 85% • New production in Malaysia in 2011 & Korea expected to first produce in 2012 • New CO2 emission/weight regulations for car industry in Europe/US for reduced weight
Slide 7: Hydromet process
Latrobe Hydromet process Magnes um For personal use only • Hydromet process is acqueous processing using standard industrial reagents • Remove impurities from the ash Na2O, K2O, SiO2, Fe2O3 & SO3 • Beneficiated material can then be used in the established thermal reduction process to produce magnesi
Slide 8: Thermal reduction process
Latrobe Thermal reduction process Magnes um For personal use only • Simplified proven technology responsible for most of world’s magnesium production • Can economically produce small quantities of magnesium • Production can be expanded on modular basis • Much lower capital cost compared to electroly
Slide 9: Proposed LMG process
Latrobe Proposed LMG process Magnes um For personal use only
Slide 10: LMG magnesium
Latrobe LMG magnesium Magnes um For personal use only
Slide 11: Financial overview
Latrobe Financial overview Magnes um For personal use only 40,000 Operating Parameters tonnes A$/tonne Revenue – Magnesium, cement, carbon credits & char 5,300 Cash operating costs (3,800) -------- Operating surplus (pre loan repay) 1,500 ==== Capex A$300M NPV – A$108M Demonstration plant – Capex A$
Slide 12: LMG progress
Latrobe LMG progress Magnes um For personal use only • Completed pre-feasibility study on a 10,000 t/a plant • Initiated discussions with a Chinese technology provider • Expanded the range of fly ashes under test • Aiming to complete bankable feasibility study by March 2013 • Targeting to complete c
Slide 13: Demonstration plant
Latrobe Demonstration plant Magnes um For personal use only • 10,000 t/a plant required to be cash flow positive & meet Australian market • Key aspects to demonstrate, before expansion: • Reliability of the Hydromet process • Capability to upgrade the range of ashes • Successfully operate the therma
Slide 14: Project benefits
Latrobe Project benefits Magnes um For personal use only • Improve the environmental management & reduction of Latrobe Valley fly ash by up to 75% • Reduce CO2 emissions of up to 15 tonnes per tonne of magnesium and cement compared to overseas producers • Employ ~100 workers in Stage 1 & 300 at 40,0
Slide 15: Errida creek
Latrobe Errida creek Magnes um For personal use only A very large highly prospective rare earth project • Three REE target styles: • Alluvial monazite in vast alluvial terraces • Chinese-type Ion absorption clays in extensive laterite areas • Carbonatite dyke swarms • Previous exploration has detect
Slide 16: Capital Raisings
Latrobe Capital Raisings Magnes um For personal use only • Placement of $ 402,500 completed • Fully underwritten SPP of $1m to close 7 december • Issue price 2.3 cents (17% discount to current price of 2.8 cents) • Trading history 2011 – low 2.3 cents high 4.3 cents • NPV per share (post Issue) 14 c
Slide 17: 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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