LMG Development Pathway, page-93

Last week I emailed David Paterson enquiring about the by-products (SCM'c etc). David sent an email in response, saying he was in Malaysia and would respond this week. Davids timing in Malaysia obviously lines up with the videos that @PThomas posted this morning.

I have harped on long enough about SCM’s and will leave the topic for now.

David provided the following response:

"As I mentioned in my email last week, pricing and quantities of our by-products is commercial in confidence. We have identified, in negotiation or secured deals with customers for all products. The by-product % of revenue for the 10,000tpa plant is around 25%. The 100,000tpa plant is in the order of 35%. Remember financials percentages can change depending upon feed stock and also the markets where we sell our Magnesium."

I was pleased with Davids response but also surprised at the amendment of forecast percentages of by-products compared to past forecasts. The 35% of revenue generated by by-products from the 100,000tpa plant is still a significant swath. There is plenty of time to hear about the details (Prices, logistics,MoU's, etc) over the next few years for the 100,000tpa plant.

For the 10,000tpa+ plant, I am more content to hear that the percentage of revenue is down to 25%.

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Lastly, I refer to the recent QUARTERLY ACTIVITIES REPORT 30 June 2023 and the encouraging news snippits regarding:

1. "LMG is actively engaged indiscussions with various international investors regarding potential joint venture participation in the Stage 3 project. LMG anticipates signing non-binding Memorandumof Understanding (MoUs) with potential equity partners within the next quarter."

2. "LMG has now registered a Malaysian company, Latrobe Magnesium Sarawak Sdn Bhd. This new entity enables the submission of the respective land
and project applications with local authorities in due course."

3. "The project team are confident that the plant willstill be commissioned in Q4 2023 and will provide an updated first magnesium date in a future project update."

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It sure is good to see the significant improvement in the way LMG is editing and including more detail in their announcements.

Great prospects ahead of us!