Latrobe Magnesium (LMG) H2 2024 earnings summary

Executive summary

• Completed commissioning of hydromet section and produced first magnesium oxide (MgO) in May 2024; demonstration plant capital costs rose to $60.7M, with $5.2M more expected for magnesium section.

• Raised $23.3M in capital during the year, plus $6M in July 2024 via underwritten rights issue to cover cost overruns and working capital.

• Progressed Stage 2 (10,000tpa) commercial plant with feasibility, funding, and expanded offtake agreement; established Malaysian subsidiary for Stage 3 (100,000tpa) plant.

• Net loss after tax was $4.74M, up from $2.44M prior year, mainly due to higher admin, team expansion, and deferred tax liability.

Financial highlights

• Revenue rose to $6.58M (from $1.94M), mainly from R&D tax rebates; total expenses increased to $5.92M (from $4.37M).

• Net loss after tax: $4.74M (2023: $2.44M); basic and diluted loss per share: 0.26 cents (2023: 0.15 cents).

• Cash and cash equivalents at year-end: $0.57M (2023: $6.89M); total assets: $95.4M (2023: $62.5M).

• Equity raised: $23.28M via share issues and placements; project finance facility increased to $28M post year-end.

• R&D tax rebate received: $12.9M in May 2024; 2024 rebate estimated at $15.9M, net $13.3M after tax liability.

Outlook and guidance

• Demonstration plant scheduled for restart and 1,000tpa MgO production in October 2024.

• Stage 2 (10,000tpa) plant targeted for operation by June 2026, pending approvals; funding supported by offtake agreement with floor price.

• Stage 3 (100,000tpa) Malaysian plant progressing with land allocation, permits, and power application; next phase pending environmental and power approvals.

• 2024 R&D tax rebate expected to be received in October/November 2024; further funding options under consideration, including sale and leaseback.