Latrobe Magnesium (LMG) H2 2024 earnings summary

Executive summary

• Significant progress on the Latrobe Magnesium Project, including completion and commissioning of the hydromet section and production of MgO in May 2024.

• Capital costs for the demonstration plant increased to $60.7M, with an additional $5.2M estimated for completion.

• Raised $23.3M in capital during the year, plus $6M in July 2024 via an underwritten rights issue.

• Advanced plans for a 10,000tpa commercial plant and a 100,000tpa plant in Malaysia, securing land and progressing permits.

Financial highlights

• Net loss after tax of $4,742,588 for FY2024, compared to a $2,438,497 loss in FY2023.

• Revenue of $262,823 and other income of $6,321,565, mainly from R&D tax rebates.

• Total assets increased to $95.4M from $62.5M year-over-year.

• Cash and cash equivalents at year-end were $565,150, down from $6.9M.

• Equity raised through multiple placements and a share purchase plan, totaling $23.3M.

Outlook and guidance

• MgO plant scheduled for official handover and ramp-up to 1,000tpa production in October 2024.

• Stage 2 commercial plant feasibility and funding underway, with operations targeted for June 2026.

• Stage 3 Malaysian plant progressing with land secured and permits pending.

• 2024 R&D tax rebate expected to be $13.3M net, with 2025 rebate estimated between $11M and $13M.