LMG 0.00% 4.6¢ latrobe magnesium limited

My understanding is that the demo plant will remain when and if...

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    My understanding is that the demo plant will remain when and if the 10,000tpa plant is built. It essentially will become a research plant which makes a lot of sense given the variations in feedstock and products. It allows them to research optimal settings/process for predetermines quality of Mg, and by-products. I can see in the longer them there will be a time when the by-products could be the main game and Mg could be the by-product.

    There seems to be by some an astounding obsession about cost of power for the Australian operations. It all comes down to economics. There are a range of options if the demo plant succeeds. Don't care if the demo plant operates at a loss - it's for research and the purpose of proving the hydormet process at commercial scale and optimise the whole process - which include power input and economics of power(whether it's a diesel plant on-site, gas fired power plant, grid supply, solar, wind, etc or all of the above). The 10,000tpa plant is hardly significant compared to the 10,000tpa plant but it does give LMG a lot of intangible value even if it ran at a loss(cleaning up undesirable fly ash waste and a technology that is transferrable to wherever there is fly ash (and there's plenty of it world wide with access to cheaper power cost). If the hydromet process is successful at scale I don't expect LMG to continue as it is - the bigger sharks will be circling.
 
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