Ann: Investment Webinar, page-8

I couldn't get on-line yesterday to see and hear the presentation or questions.

I just got to looking at the presentation slides - I'm just lost for words and can only reiterate what I have said in the past, we need new leadership!!!
I'll refrain from saying anuthing else on that for now.

One thing that caught my eye was in slide 8 which says:
• First half of Demonstration Plant has been commissioned to produce Magnesium Oxide as an interim product
I expected that we were beyond half-way when all that is left is the reduction step from MgO to Mg? So we are only at 50% of stage 1?? Do we have the finances to complete build of the remaining 50% of stage 1?

The other point that caught my eye was in the flow chart(slide 6, I think it is), the last part of the process says:

• Convert MgO into Mg & SCM using thermal reduction

My reading tells me that all the SCM is embedded in the MgO. Therefore the MgO purity will be quite low. That probably explains why in the picture on page 2 of the annoucement on the 13th May of the guy pouring MgO through his hands, the colour of the MgO is quite dark - like a dark creamy colour which I think is from the high level of impurities(ie the SCM) so it's more so an MgO composite rather than MgO product. I have worked with MgO in the past and it was a brilliant white powder. The point I am trying to make is that:
1. We most likely won't get any purity figures for the MgO other than composition components.
2. I expect that the value/ton of MgO will decrease substantially because the Mg content will be much less than 60% due to the SCM embedded with it. Don't know if there will be a premium paid for the SCM, let's hope so?

They still should be able to provide extraction efficiency ie how much of the Mg in the original fly ash has been recovered into the MgO composite. That will indicate how well the hydromet process selectively extracts the Mg from the fly ash, though they may want to wait until they have optimised the operation of the plant for maximum extraction efficiency.

Happy to be corrected if my reasoning is flawed.

Was a question asked whether LMG was applyng for a loan from the critical minerals fund?? Once they have some extraction efficiency metrics to demonstrate how well the hydromet process works they can then use that in their application.