Ann: Quarterly Activities Report, page-13

that's all well and true but you didn't take into account the government subsidies for recycling waist.
250k per year for transport and logistics can be claimed
Dollar for dollar up to 5m for infrastructure projects
And other incentives that reduce waist from landfills and carbon footprint globally.

As stated by LMG, the process to produce magnesium takes less energy then conventional ways.
And costs less for US to buy from Australia then China due to anti dumping laws.

At least one US and Japan magnesium importer already signed a contract to buy all 3000 tpa from the pilot plant and more from the 40,000 tpa future plant from LMG.

Maybe I'm wrong about some of these things I don't know. But to me, it's worth the risk. Besides the above, management has expressed passion for the project, and that's a large bonus in my book.