Latrobe Magnesium (LMG) Q1 2025 TU earnings summary

Executive summary

• Environmental Management Plan for site clearing at Samalaju Industrial Park to be completed in Q1 2025.

• Ongoing engagement with potential equity partners and offtake agreements for 50,000 tonnes of magnesium per annum to secure debt funding.

• Demonstration Plant in Victoria's Latrobe Valley has produced magnesium oxide; full plant commissioning expected in H2 2024.

• Commercial Plant with 10,000 tpa magnesium capacity targeted for completion in H2 2026, with long-term contracts to US distributors.

Financial highlights

• Net cash used in operating activities for the quarter was $2.22 million.

• Net cash used in investing activities was $4.43 million, mainly for property, plant, and equipment.

• Net cash from financing activities was $8.04 million, including $5.2 million from equity and $3 million from borrowings.

• Cash and cash equivalents at quarter end were $1.95 million.

Outlook and guidance

• EMP for site clearing expected Q1 2025; full Demonstration Plant commissioning in H2 2024.

• Commercial Plant completion targeted for H2 2026, with offtake agreements supporting future funding.