Latrobe Magnesium : Investment Presentation

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• 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 variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially including but not limited to: price fluctuations, actual demand, currency fluctuations, production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.
• Investors should undertake their own analysis and obtain independent advice before investing in LMG shares.
• All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

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Latrobe Magnesium is one of the most advanced Magnesium projects globally

EPA and government approval have already been received for the demonstration plant. The company is completing process design work which will be finalised by the end of December, allowing the company to commence tendering the major equipment parcels for the demonstration plant.

Demonstration plant will generate annual revenue in the order of $110m

Once constructed, the 10,000 tpa plant is expected to generate in the order of $110m in revenue and EBITDA of ~$42m. The company plans to continue the expansion of operations toward a 40,000 tpa plant within 12 months of initial production. It will also be looking to complete a prefeasibility study on a 100,000 tpa plant using ferro nickel slag as its feedstock.

Magnesium market is continuing to grow

China, the world's primary supplier of magnesium, has begun a 13-year plan to increase Mg in cars from 8.6kg to 45kg by 2030, requiring 1 million tonnes of new Mg production per annum. Global magnesium demand is set to increase to 2 million tonnes by 2027.

ESG credentialled clean metals producer

LMG produces up to 50% less CO2 than other Magnesium producers using their acid process and produces no CO2 in the production of SCM. LMG uses waste material from the burning of coal as the primary feedstock, allowing for the recycling of hazardous materials.

Decades worth of supply

Sufficient fly ash from the Yallourn Power Station to supply a 40,000 tpa plant for the next 20 years, which would cover less than 3% of the growth in demand for Magnesium that will occur over the same period.

Experienced Board and Management Team

Over a century of combined experience in resources companies across the board and management with directorships held in numerous ASX listed companies, directed towards creating a globally and environmentally competitive supplier of Magnesium within Australia.

Investor Presentation - May 2021

Management Team

Ronan Gillen - Chief Operating Officer

• Over 20 years experience in the resources industry in areas of Engineering, Operations and Project Management with Fluor and others.

Jim Siemon - Technical Director

• Chemical engineer who has held various metallurgical R&D management toles with Nystar, Zinifex, Pasminco, Rio Tinti and CRA.

John Catterson - Commercial Manager

• Over 25 years in banking, including startup business as well as involvement in major infrastructure construction projects.

Brett Trigger - Procurement & Contract Manager

• Has 17 years experience in Supply Chain in industries such as Automotive, Resources and Defence employed by Cleanaway, Ford JV in Thailand and German defence group.

Sal Awad - Project Engineer

• Over 10 years experience as a project engineer, delivering EPCM services to the mining, energy and chemicals industries employed by Worley and Fluor.

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The current estimate for the first 1,000 tpa plant has recently been reduced to $39M, following the completion of several value engineering studies.

Further capital cost savings may result from the completion of the design and engineering activities together with additional test work results.

The project funding also has a standby facility of $3M should the costs exceed $39M.

The surplus working capital of $2M will be used to assist with the funding of the feasibility studies for the 10,000 tpa plant in the Latrobe Valley and the 100,000 tpa plant overseas.

Capital Structure (post Nov placement)