Over the coming months, we will continue to review the optimal configuration for the nutritional
powders investment to deliver both MG’s and our customers product specifications and demand
forecasts. It is now likely that a configuration of two 45,000 tonnes per annum dryers is the optimal
solution to provide the required operational flexibility and higher specification dryers while still
delivering the same economic return of the originally planned single 63,000 tonne per annum dryer.
This approach will see the nutritional powders investment being delivered in two stages, with the initial
installation of a 45,000 tonnes per annum dryer that will be increased to up to 90,000 tonnes per
annum as market demand increases. The final capital expenditure for the first stage will now be
refined, but is expected to be within the range of $260 - $300 million, with savings to be delivered from
installing a more flexible network of smaller dryers. The final configuration and capital expenditure will
be confirmed, following finalisation of the detailed design. Subject to obtaining the necessary
approvals, including final Board approval, MG expects the first phase of the plant to be operational in
early 2019
MGC Price at posting:
$2.16 Sentiment: None Disclosure: Held
