Thanks Ken, according to the announced milestones, lots will be...

Thanks Ken, according to the announced milestones, lots will be happening in April

• Production of MgO
• LMG anticipates signing non-binding Memorandum of Understanding (MoU’s) with potential equity partners by April 2024 for phase 3( was to be 31st Dec-23)
• LMS has applied for an electricity allocation from the new Baleh hydro power station. The Sarawak Government will decide in April 2024 who will receive these allocations.
• LMS will proceed with a manufacturing licence application in the third quarter of 2024(to June 2024)

Let's hope this time it all goes to plan - that's at least 3 significant announcements for April.


I'm keen for an update on the finances - particularly the $26M loan facility. Interest charges began with first drawdown in June 2022 at 12%pa(with initial draw of $10M). We are now up to $22M on the loan($220k interest/month). The intention was to payback some of the loan with the tax rebate and then refinance the rest for a better interest rate. That's why the tax rebate is so inportant and every month the tax rebate is delayed it's an extra $126K /mopnth in interest charges. The residual $3M is supposed to for operating the demo plant(which is great to see that it's still there for drawdown). I guess they needed the capital raises to also pay the interest charges which have accumulated greater than expected due to delays in commissioning and delays in getting the tax rebate. 1000tonnes of Mg equates to about 1700tonnes of MgO. Not sure what we are getting for each ton of MgO - Let's hope it covers the interest charges.


Extract from announcement 17/05/2022, LMG Reaches Financial Close For Demonstration Plant
On 16 May 2022, LMG signed the finance documents with RnD Funding Pty Ltd (“RnD
Funding”) for the provision of $23M of project loan funding. Together with cash on hand and
future funding from exercise of LMG options at $0.04, LMG has sufficient funds available to
complete the construction of its demonstration plant.
The loan facility will be available to be drawn in three tranches:
(i) $10,000,000 in full, around 11 June 2022.
(ii) $10,000,000 in full, around 1 September 2022; and
(iii) standby line of $3,000,000 available to be drawn between 1 January 2023 and 30 June
2023, if there are any cost overruns.
Suite 504, 80 Clarence St, Sydney NSW 2000 | Postal Address: GPO Box 4729, Sydney NSW 2001 | 02 9279 2033 | [email protected] |
Latrobe Magnesium Limited | ABN 52 009 173 611 | www.latrobemagnesium.com
The term of the loan is five years from the date of the first drawdown and the interest rate
chargeable is 12% pa to 31 October 2023. It is LMG’s intention to repay the loan before 31
October 2023 from R&D refundable tax offsets (of circa $15M) and refinancing of the residual
amount of the facility. If not repaid, the interest rate may be reset to higher levels.