Latrobe Magnesium (LMG) Q1 2026 TU earnings summary

Executive summary

• EPA Victoria reissued the Pilot Project Licence, confirming compliance and readiness for operations at the Demonstration Plant.

• Successful commissioning and start-up of the world-first Demonstration Plant for extracting MgO from brown coal ash, with continuous operations commencing in September 2025.

• Production of MgO validated the proprietary process, with over 200 tonnes of ash processed and seven tonnes of MgO produced by quarter-end.

• By-products such as char/silica, iron oxide, and agricultural lime were also produced, with samples prepared for validation trials.

• Environmental noise and air emissions testing confirmed compliance with EPA standards.

Significant events and developments

• Temporary plant shutdown occurred due to coating delamination on the Spray Roaster's gas transport fan; repairs prioritized and operations expected to resume promptly.

• LMG received a U.S. EXIM Bank Letter of Interest for up to USD $122M financing for the Stage 2 Commercial Plant.

• LMG submitted a proposal to the U.S. Department of Defense for critical minerals supply chain support.

• Legal proceedings with Mincore Pty Ltd advanced, with mediation ongoing and early evidence phase initiated.

Financial highlights

• $6M placement completed and $4M fully underwritten rights issue underway to fund Demonstration Plant commissioning and magnesium metal production.

• Cash at bank as of 30 September 2025 was $323K, increasing post-quarter with new capital raised.

• Estimated $6.3M R&D rebate submitted, with payment expected in November 2025.

• Proceeds from surplus land sale expected to generate up to $3M, to be used for debt repayment.

• Net cash used in operating activities for the quarter was $980K; net cash used in investing activities was $1.12M.