Gday MagLiKaren hahaI think the new one is being a Harry or even...

Gday MagLi

Karen haha

I think the new one is being a Harry or even Megan...

But not this black duck.

I only have an opinion, like everyone based upon what I have read and have heard from interviews. I respect your opinion but also disagree and offer my analysis.

You would remember that during a 20 day period from the 18th of October to the 6th of November 2021, the sp rose from 3c to 16c. The catalyst for the short term spike was the start of tangible works at the demonstration site.

The announcement on the 19th of October 2021

"Funds raised will be used to finish the design and engineering services being conducted by Mincore Pty Ltd, LMG’s EPCM contractor, for its initial magnesium plant in the Latrobe Valley."

"In addition, the Placement will allow LMG to complete its early works program at Tramway Road and allow Mincore to prepare the major equipment packages for tender in the first quarter of 2022."

Then the 3rd of November gave the big kick, when LMG made the following announcements.

" Latrobe Magnesium to expand demonstration plant from 3,000 tpa to 10,000 tpa to meet world demand"

Even though the scale was revised again down to 1000tpa, the hype did the trick to kick the sp in the guts and drive it to 16c.

All of the above was before LMG exercised their right to buy the site on Tramway Rd and finalising the term sheet for funding. Both of these announced in December 2021 and of far greater significance, yet by then we well on they way back down in sp to 9c.

We closed yesterday at 7.5c after dwindling down to 5.5c last June. I would say that hardly represents the pricing in of the demonstration plant at all. We have been at a base of 7 to 7.5 for many months. In a holding pattern.

In a number of interviews DP has said the commissioning and proof of process via the demonstration plant is the catalyst for change. Change from retail to institutional investors and re-rate as confidence regarding a process that investors have only heard (not seen) as successful under laboratory conditions, is demonstrated as commercially viable.

The confidence the operating demonstration plant brings will directly lead into the 10,000+tpa Commercial Plant. 'Commercial' being The key word. The follow on confidence at that time (commissioning of demonstration plant) also straps on a rocket for the 100,000tpa commercial plant and confidence in its ability to deliver.

So once again I come to the same conclusion that I have for a long time, the demonstration plant operating is the pivot and I am loading up for July.

I envisage David Paterson standing beside the demo production line, with the team waving high the first LMG magnesium ingots produced via the LMG Hydromet process (At scale). The process proven, the metrics and expectations justified, the science and outcomes clearly (Demonstrated) , not at laboratory scale but in real world conditions. Yehaaar, we are of and running......

Australia Government, Victorian Government and the World wide magnesium market will get a good dose of smelling salts and a new paradigm will have begun.

Regards
Ken