Hi @jumpstartThank you.These are my thoughts on your idea"LMG...

Hi @jumpstart

Thank you.

These are my thoughts on your idea

"LMG produces not just magnesium but other valuable saleable products from its feedstock. These products generate some 40% to
50% of its revenue." IMARC Presentation - Nov 2022
David Paterson has confirmed that ~45% of the 100,000tpa total revenue = ( US$820m) is to be generated by SCM. (Yes, ferro nickel salg project also).
- 45% of US$820m = AU$530m (At todays exchange rate).
- $530 million of our total revenue is pretty hard to justify giving away in lieu of tax.

The impact upon the project forecast $474mm EBITDA would mean a project of monumental failure imo.

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I was also looking at the math and have been confused with what appears to be errors or anomalies.
Happy to be corrected and also to wait for the PFS, the following are only thoughts and i'm just killing time waiting for the next decent announcment.

The first anomoly?
In the announcment it reads:
"LMG will need in the order 600,000tpa of ferro nickel per annum to produce 100,000tpa of magnesium."
"The chemistry of the SLN ferro-nickel slag is 33%MgO, 55%SiO and 9%Fe2O3" (Leaving 3%)
https://www.latrobemagnesium.com/investor-center/announcements

SiO = Silicon Monoxide IS NOT silica dioxide SiO2.
Two very different compounds and I dont think for a moment it is SiO (Silicon Monoxide) within the ferro nickel slag.

"SiO coatings are used for optical applications in reflectors, flood lamps, mirrors, jewelry and other products"
https://materion.com/resource-center/newsletters/newsletter-archives/coating-materials-news-2000-to-2010/silicon-monoxide-sio#:~:text=SiO%20coatings%20are%20used%20for,other%20materials%20for%20reflective%20coatings.

Compared to SiO2
"About 95% of the commercial use of silicon dioxide (sand) occurs in the construction industry, e.g. for the production of concrete (Portland cement concrete)." https://en.wikipedia.org/wiki/Silicon_dioxide

I would appreciate a better understanding as it sound very wrong to me and it would have significant implications if SiO is correct as I cannot find SiO used in SCM's. Again, happy to be corrected.

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If "The chemistry of the SLN ferro-nickel slag is 33%MgO, 55%SiO (SiO2?) and 9%Fe2O3" (Leaving 3% of what?), 67% of the slag is not Mg.
So if 600,000tpa of slag is needed to produce 100,000tpa of Mg,
33% of 600,000 = 198,000tpa Mg (I understand that not all Mg can be recovered but just shy of a 100% difference does not sound correct). I have seen the Mg loss somewhere in LMG material and am confident it was around 10%? I will keep digging.
67% of 600,000 = 402,000tpa + remainder of Mg, approx 450,000tpa of other material to be moved, transported and/or exported?
~450,000tpa of SCM per year!?


Yet based on the LMG table below (Yes, I know the slag can have different compounds based upon its source), the difference is striking.
SCM 4.6t/t Mg + Amorphous Silica (SiO2) @ 3.5t/t Mg and Hermatite (Iron Oxide - Fe2O3) @ 0.9t/t/Mg = 9t of SCM's/t Mg.
I would think that the SiO2 would be included in the SCM's, but not according to this table and not according to many announcements and presentations.
Another example is: https://www.latrobemagnesium.com/projects

So based on the table below, 100,000tpa Mg would require 900,000 tpa of ferro nickel slag?
A 300,000tpa difference in the volume of feedstock?

AGM December 2020

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Even the LMG website has an anomaly compared to the AGM Presentation - 29 November - 2022
1. Website "LMG has signed a binding MoU with Société Le Nickel (SLN), for the supply of 450,000 tonnes per annum of ferro-nickel slag over 20 years"
https://www.latrobemagnesium.com/projects
2. AGM Presentation Nov 2022, Page 13. " Supply Agreement: Binding supply agreement in place for 600,000 tpa for 20 years (12 m tonnes)

The 150,00o tpa difference in the supply agreement is not a minor thing.

Whatever the real figures are, greater attention to detail and consistency is necessary imo.

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On a final note @tropic

In regard to the testing of the ferro nickel slag in preparation for the 100,000tpa plant, I found the following:
"Extensive Testing: LMG has completed over 3 years worth of test work at ALS using its acid hydromet process"
AGM Presentation - 29 November - 2022

ALS performes testing for Metallurgy & mineral processing:
"HydrometallurgyIn 2020, ALS introduced the purpose-built world class Hydrometallurgy Centre of Excellence (HCE) at the Perth, Western Australia facilities. This facility includes state-of-the-art bench scale metallurgical and analysis equipment and unprecedented piloting capacity. This facility and service offering is well placed to meet the growing needs of the hydrometallurgy industry, both for traditional commodities and for the emerging energy metals market."
https://www.alsglobal.com/en/metallurgy-and-mineral-processing


In the Investor Webinar Sept 2021 David Paterson says,
"The acid process is able to treat very hard material, Yallourn was very hard material in the fly ash and similary with the ferro nickel slag, so we were able to use that same process for ferro nickel slag"

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I am bullish but objective.
This post is just some observations.


Ken