Latrobe Magnesium (LMG) Investor update summary

Project progress and milestones

• Demonstration plant is 90% installed and 25% commissioned; briquetting commissioning is underway, with reduction furnace commissioning due shortly.

• First magnesium crowns targeted by year-end as the final flowsheet validation point; next steps include hydromet circuit optimization, refining capacity and a full fly-ash-to-ingot approach next year.

U.S. development and schedule

• U.S. plant economic analysis showed an NPV range of $1.5 billion–$2.6 billion.

• Funding streams and early feasibility work targeted before Q1 next year; feasibility study expected to take 12–15 months, followed by a near-three-year build and production close to decade-end.

• Pre-FID work includes feedstock variability testing, feasibility and funding activities in parallel, and assessment of early work and long-lead equipment procurement; Bechtel is the preferred EPCM contractor.

Technical and execution risks

• Demonstration plant work has de-risked the flowsheet, process and equipment; further ferronickel slag testing will define feedstock variability and process design parameters.

• Ferronickel slag is confirmed as amenable to a flowsheet similar to the demonstration plant; processing it through the demo plant is not essential to feasibility-study inputs.

• Vertical retort technology has been piloted at CSIRO; engineering work with vendors will inform furnace design and automation ahead of the feasibility study.

• Management cited increased project discipline, controls and milestone commitments; long-lead procurement would depend on confidence in project value and capital allocation.