general discussion, page-748

Hey ladies and lads…
Ive had a few, but just wanted to say that the prospects of LMG has me rather excited.

From my research and correct me if I’m wrong, but the lithium boom is not the only commodity that that the EV market is reliant on.

Magnesium is one of the lightest metals used for the production of titanium, aluminium and most importantly EV bodies.

China controls something like 87% of the magnesium market, producing around 1,000,000! Tonnes per annum.

LMG are looking to produce 100,000 tonnes per annum a year (10% of Chinas total production)
and from the waste product of coal!

From my research the biggest cost of producing magnesium is the power to do so.

China who control the majority of the market have recently had major power cost increases mainly from the restrictions of quality Australian coal in an effort to teach Australia a harsh lesson of international economics (which has strongly failed)

And in turn, and in short lol.
China has had massive power failures as Australian coal was used in tandem with lower quality Coals such as Indonesias to produce a decent quality coal.

Indonesia have just used up their reserves to feed China and have announced they will no longer be supplying China for the rest of Jan as their domestic supply comes first.

IMHO China have shot themselves in the foot here.

The Price of magnesium will increase as the price of power, to power the production of magnesium (primarily coal) will increase.

LMG as far as I know are one of the next Magnesium producers (and in Australia)
which imo is comparable to CXO or LKE in the lithium space.
CXO being the next Australian producer of lithium (over $1 billion MC)
and LKE having their own potential patent (same as LMG) and at a 1.25 billion MC! It’s a matter of time until LMG follows suit imo.

All and all, the demand is there, market sentiment is there (for obvious reasons), the commodity price is constantly increasing, LMG Will no doubt have their own patented process and they will control 10% of Chinas total market eventually….

LMG have recently stated that with their 10,000 tpa plant alone, they will be upwards of producing $1,500,000 per annum!
Imagine when they are producing 10 fold of that in a matter of years!

anyway that’s my rant, but IMHO, LMG is waaaay undervalued.
hold tight all, SP will go up over time.

Pensive.