Latrobe Magnesium (LMG) H2 2025 earnings summary

Executive summary

• Commissioned the hydromet section of the magnesium plant, producing MgO in May 2024, with ongoing modifications and upgrades to improve operability and efficiency.

• Raised $5M in equity and debt in April 2025 to fund working capital and demonstration plant operations.

• Progressed Stage 2 (10,000tpa) and Stage 3 (100,000tpa) magnesium plant projects, including land allocation and power agreements in Malaysia.

• Entered into new ash supply and power agreements, and advanced legal proceedings regarding a contractor dispute.

Financial highlights

• Net loss after tax reduced to $2.66M from $4.74M year-over-year, mainly due to lower admin and R&D costs.

• Revenue for the year was $2.73M, primarily from R&D tax rebates and other income.

• Cash and cash equivalents increased to $2.42M from $0.57M year-over-year.

• Total assets at 30 June 2025 were $92.5M, with net assets of $48.7M.

• Major capital raisings totaled $9.45M, increasing contributed equity to $86.46M.

Outlook and guidance

• Demonstration plant to operate at steady state in September 2025, with plans to commission the magnesium section by February 2027, subject to funding.

• Stage 2 commercial plant targeted for December 2027, pending approvals and funding.

• Ongoing pursuit of government grants and potential land sale to support operations and capital requirements.