Latrobe Magnesium (LMG) Investor update summary

Strategic Growth Initiatives

• Prioritizing U.S. expansion with a planned $1.1–$1.5 billion, 50,000 tpa magnesium plant in South Carolina, supported by advanced negotiations for land and offtake agreements covering over 60% of output, and a 20-year feedstock MOU.

• U.S. project leverages patent-protected hydrometallurgical technology to address critical supply concentration, as 91–97% of global magnesium comes from China and Russia.

• Malaysia and Australia remain in the project pipeline, with Malaysia awaiting regulatory approval for feedstock imports and the Australian project delayed by local legislation.

• U.S. government policy and funding support for critical minerals, including magnesium, underpin the investment case and market opportunity.

Technical Progress and Milestones

• Demonstration plant in Latrobe Valley is 70% complete, with phase I-B (pyrometallurgical process) targeting magnesium crown production by year-end and full commissioning for magnesium metal expected in H2 2026.

• Refinery module to convert crowns to ingots is under construction, with delivery targeted for March 2027.

• Technical validation campaigns have produced 20 tonnes of magnesium oxide, and further pilot work on ferronickel slag is planned to de-risk U.S. flowsheet.

• Focus on automation and safety differentiates the process from conventional methods.

Financial Update and Capital Management

• Secured A$8.5 million in new equity via a placement (A$5.1M) and an underwritten entitlement offer (A$3.4M), both at A$0.015 per share, with strong participation from new and existing investors.

• Proceeds fund plant completion, US plant study, working capital, and corporate costs, with A$3.8M allocated to Phase 1B, A$1.7M to commissioning/site, A$1.3M to refinery, A$0.5M to commercial studies, and A$5.7M to corporate/working capital (offset by a FY27 R&D tax rebate estimate of A$4.5M).

• Refinancing strategy aims to reduce interest costs from 24% to below 10% and extinguish external liabilities.

• $15 million non-binding equity support for U.S. feasibility stage, contingent on matching funding from another U.S. strategic partner.

• Long State facility remains available but will not be used for future equity capital; Long State to exit its shareholding.