As I was watching my favourite tv show, ("Bargain Hunt' ) this afternoon, I thought about the fact that barging hunting is exactly what I am currently perusing with LMG. Chasing my 4.4c worth haha.
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This afternoon I read through the LMG IMARC presentation. @tropic with your knowledge and experience I believe you are very capable of sheading some light on this one please?
Only looking at the Major Inputs column.
Tick for fly ash supply.
The next three "Major Inputs" I have never thoughts about. Are the all contained within fly ash and ferro nickle slag?
The following is from about 10 websites, so I wont bother referncing them all this time.
FerrosiliconWhat is Ferrosilicon?
Ferrosilicon(FeSi) is made from semi-coke, silica, steel chips, and other products as raw materials, and is smelted by continuous operation in an open or semi-closed reduction furnace. The appearance of ferrosilicon is silver gray with a metallic luster, which can be processed into ferrosilicon lump, ferrosilicon granule, or ferrosilicon powder, according to customer requirements.
What is ferrosilicon used for?:
Use, applicable to LMG?
"Alloying agent: Ferro silicon can be used as an alloying agent for low-alloy structural steel, composite steel, spring steel, bearing steel, heat-resistant steel, and electric silicon steel smelting, to produce single crystal silicon or to prepare non-ferrous metal alloys."
"This unique multipurpose product is designed to displace moisture, penetrate rusted parts, lubricate, stop squeaks, clean surfaces, and protect them from corrosion. It has numerous uses in automotive and marine maintenance, transport, engineering, industrial and commercial equipment."
How is Ferrosilicon produced?
"Ferrosilicon is produced either in a blast furnace or electric arc furnace by the reduction of quartz sand (SiO2) with coke in the presence of iron. The melt is poured out of the furnace and solidifies in the form of a flat sheet."
Is Ferrosilicon readily available?
"In 2022, the average silicon import price amounted to $11,442 per ton"
Is the ferrosilicon within the ferro nickle slag?Quick lime"Generally Quicklime is the oxide of calcium – CaO. Quicklime is usually made by calcining limestone. The heating process liberates carbon dioxide from the limestone leaving calcium oxide. Calcium Oxide = Calcium Hydroxide. + Water."
"Quicklime is the common name for burnt limestone, calcium oxide (CaO).
How it's produced:
"Quicklime is produced by heating crushed limestone to around 1,100 degrees Celsius in a shaft furnace or rotary kiln. The heating of limestone releases carbon dioxide, leaving calcium oxide (CaCO3 produces CaO + CO2)."
I wont go further on Quick Lime but again but isnt Quick lime a by product rather than a
Major Input?
MagnesiteMagnetite is found in igneous, metamorphic, and sedimentary rocks. As its name implies, it is magnetic; it and other inherently magnetic iron-containing minerals are described as being ferrimagnetic.
Isn't magnesite within the slag and fly ash?
How again is this a Major Input and why did they not just say " Major Inputs: Ferro Nickle Slag or Fly Ash?
I find the graphic confusing. Would you mind explaining
@tropic or others please.
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Just something I noticed..
LMG IMARC 2023 Presentation 31/10/23"
LMG produces not just magnesium"
LMG is not producing anything as yet. Should say "LMG
will produce..."
Perhaps i'm just being pedantic.
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Progress Report 12/09/2023"LMG estimates an
incremental A$10 million in sales revenue as a result of the revised agreement which in turn should increase EBITDA for the10,000tpa plant to over $50M"
What is meant by incremental A$10 million in sales revenue? Does it mean that there will be a slow increase or simply a per annum increase?
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Understanding that the 100,000tpa plant is a long way from production and that MoU's can be as good as dunny paper, there is still apparent progress in establishing potential partners that I believe is very exciting to watch.
Annual Report to shareholders 27/09/23"LMG
anticipates ( regards as probable) signing non-binding Memorandum of Understanding (MoU’s) (Plural) with potential equity partners (Plural)
within the next quarter. (Not far away) These MoU’s will outline clauses requiring partners' (Plural) commitment to contribute development funding proportionate to
their equity holdings (Plural) in the project. Preliminary discussions with government sponsored banks (Plural) indicate that the desired level of
debt funding for the project is feasible in both size and tenure.
The one month later, further clarity...
Quarterly Activities/Appendix 5B Cash Flow Report 23/10/23
Stage 3, 100,000tpa Plant Project Update
"LMG
anticipates third party participation
will amount to
45% equity in the project and
will also provide
significant magnesium offtake agreements,(Plural) which will allow LMG to secure debt funding from government backed institutions."
Anticiaptes is a fairly strong word.
"Anticipates 45% equity". One may guestimate that there has been more detailed discussions than what we are privy to.
"Significant magnesium offtake agreements" (Multiple equity partners totalling 45%), again a guestimate may think that the offtake level has been deliberated with Japan, America and others???
"Debt funding from government backed
institutions" (Plural). This may be Australia, America (Especially due to a US anti-dumping duty of 141.5% payable on magnesium imports from China?) and/or Japan?) and (Especially due to America wishing to support the manufacture and supply of critical minerals in partnership with Australia).
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The American Connection
MEDIA RELEASE 24 Oct 2023 Prime Minister, Minister for Resources$2 billion expansion in critical minerals financing"This Taskforce is an important component of building our
Alliance with the United States for the future and delivers on commitments made by President Biden and Prime Minister Albanese at Hiroshima earlier this year."
"This expansion of the Critical Minerals Facility takes the Government's value-adding investments in Australian resources to
$6 billion".
"The Compact affirms the position of climate and clean energy as the third pillar of Australia's alliance with the United States."
Magnesium as a critical mineral is listed on the Australian and American Critical Mineral lists. Is LMG within the mix? I well and truly think so. IMO
https://www.pm.gov.au/media/2-billion-critical-minerals-boost-crucial-energy-transition#:~:text=The%20Compact%20affirms%20the%20position,Critical%20Minerals%20Strategy%202023%2D2030.@tropic I know you have mentioned the Chinese as potential Investors but I think that may be blocked by the Australian Government or even other equity partners, such as America (Especially due to a US anti-dumping duty of 141.5% payable on magnesium imports from China which greatly favours LMG and the American support for Australian critical minerals.
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Anyway, just some thoughts.
Regards Ken
(20min delay)