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MAGONTEC LIMITED AGM Information 2015

May 6, 2015

65327_rns_2015-05-06_c86e166f-db3c-4486-b271-3c3106d7cb0c.pdf

AGM Information

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The Manager Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street NSW 2000

7 May 2015

Magontec Limited - Executive Chairman’s Address to 2015 Annual General Meeting

Attached (below) is the content of the Executive Chairman’s address to the Company’s 2015 AGM to be held on Friday 8 May 2015.

The slides referred to in the body of the Executive Chairman’s address appear after the address.

Yours Sincerely

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John Talbot Company Secretary

Magontec Limited, Suite 1.03, 46a Maclaey St Potts Point NSW 2011 AUSTRALIA

EXECUTIVE CHAIRMAN’S ADDRESS to

2015 ANNUAL GENERAL MEETING of MAGONTEC LIMITED

Ladies'&'Gentlemen'

Before'we'move'to'the'formal'business'of'the'Annual'General'Meeting'I'would' like'to'make'a'short'presentation.''

The'slides'that'I'will'show'and'the'text'of'my'speech'are'now'available'on'the' Magontec'and'ASX'websites.'

I' don’t' plan' to' go' into' any' great' detail' on' the' financial' results' for' the' year' ended'31'December'2014'as'this'was'covered'in'an'extensive'summary'in'the' Annual'Report'and'updated'again'in'a'report'published'on'20[th] 'April.''

Today'I'will''

  • Give'an'overview'of'the'company'and'its'activities,''

  • Offer'a'snapshot'of'the'Group’s'financial'progress'in'the'three'months'to'31' March'2015,''

  • Provide'an'update'on'the'progress'made'to'date'at'our'Qinghai'Cast'House' Project'and''

  • Discuss'some'of'the'research'and'development'projects'that'are'in'train.'

Refer Slide 3 attached at foot of address

I thought I might commence my address with a short overview of the Magontec business. It is important that shareholders and the wider investment community understand how the Company is structured and the nature of the business that we are engaged in.

Magontec is a magnesium processing company. We buy pure magnesium and manufacture magnesium alloy ingots and other downstream magnesium products.

The Company manufactures two principal products, magnesium alloy ingots, which we supply to diecasting companies, and magnesium anodes, which we supply to water heater companies.

Magnesium diecasting companies often return scrap produced in their manufacturing processes to Magontec plants in Europe and China for recycling.

Our biggest customers are in the automotive industry, where magnesium is used to manufacture applications such as steering wheels and car-door frames, and manufacturers of water heaters, who use magnesium anodes to protect steel and enamel water tanks from the effects of corrosion.

Refer Slide 4 attached at foot of address

I have shown this slide before and I think it gives an excellent overview of our business.

Magontec operates in four countries with manufacturing operations in China, Germany and Romania and its head office in Australia.

It is among the largest producers of magnesium alloys in the World and by some margin the largest and most successful magnesium alloy recycler in Europe.

We are also a global supplier of magnesium anodes with manufacturing and sales operations in China and Europe.

Our Chinese primary magnesium alloy production, currently centred on a facility in Shanxi Province, is very much the focus of our attentions.

In 2015 we will construct and partially commission a new 56,000 metric tonne per annum cast house facility at Golmud in Qinghai Province.

This facility is expected to transform the operating economics of our primary magnesium alloy business and allow Magontec to compete in global magnesium alloy markets with a very competitive product.

Refer Slide 5 attached at foot of address

The magnesium industry is currently dominated by many small operators and uses a manufacturing process that is environmentally extremely toxic.

The opportunity for Magontec has been to transform itself, to become an environmental champion and a price leader in a niche industry that is the process of change.

In the four years since the Magontec assets were acquired the underlying business has been transformed.

  • We have negotiated and executed a long term agreement with the

Qinghai Salt Lake Co Ltd that will deliver a consistent flow of raw material at a competitive price;

  • We have raised over A$17 million to enable us to construct the cast house in Qinghai and

  • We have undertaken a wholesale renewal of the downstream assets of the business in magnesium recycling and magnesium anode manufacturing.

Refer Slide 6 attached at foot of address

The first and most important leg of our strategy was to identify and secure a raw material source that would address the environmental shortcomings of our industry.

Our agreements with the Qinghai Salt Lake Co Ltd will comprehensively deliver this objective.

The second leg of our strategy was to ensure that our downstream recycling and anode manufacturing businesses were able to cope with the new volume of primary metal and to be profitable in their own right.

We are well on the way to achieving this goal having expanded capacity and reduced conversion costs in Germany and Romania in the last 12 months.

Both these plants are now operating profitably and have the capacity to grow further in the years ahead as opportunities present.

Refer Slide 7 attached at foot of address

I now want to move on to the results for the 2014 financial year and for the first quarter of 2015.

Refer Slide 8 attached at foot of address

In each of the last three years Magontec has enjoyed modest revenue growth.

While top line growth is not an end in itself it emphasises two things

  • That we have maintained our market share, even as conditions in the Chinese domestic markets have deteriorated, and

  • That the Magontec magnesium alloy business is well positioned to take advantage of the opportunities that our new facility in Qinghai will offer.

Refer Slide 9 attached at foot of address

Our underlying operating results are often obscured by fluctuations in rates of foreign exchange. In this chart we show Earnings Before Interest and Tax (EBIT) in the 2014 financial year compared with 2013.

  • The Romanian recycling business made a full year contribution and while lower anode volumes saw the European business fall short of it budget it experienced a much improved result in 2014

  • In China the impact of the closure of the Suzhou facility had a cumulative A$1m negative impact on earnings significantly reducing profitability.

Other trends emerged in 2014 that will likely continue into 2015. Falling demand from the electronics sector will reduce Chinese domestic demand for magnesium alloys while improved competitiveness in all of our businesses makes the company more resilient and potentially more profitable.

Refer Slide 10 attached at foot of address

One area where we have made great strides in the last 18 months has been in the European recycling business. Magontec is emerging as an important partner for European die casting companies.

We are the only European recycler building new capacity and offering increasingly competitive prices. In 2015 capacity in Romania will rise to nearly

10,000 mt per annum, from 3,500 mtpa in 2013, while in Germany capacity will be only modestly higher but much more competitive.

Our success in European recycling stems from strategic initiatives adopted in 2012 to invest in automation and manufacturing processes to raising barriers to entry.

Magontec operates in a small industry where the competition generally comprises small and capital constrained businesses or larger diversified businesses.

Our competitive advantage is that we are focussed on the magnesium industry exclusively and offer increasingly competitive prices and access to higher volumes across the product range.

Refer Slide 11 attached at foot of address

Here is a snapshot of our first quarter result showing a modest Net Profit After Tax of $251 thousand dollars from our existing operations in the three months to 31 March 2015.

I do not extrapolate this for the full year, as we are a seasonal business in some sectors, and nor do I claim that that we have overcome our many challenges.

However this result does emphasise that

  • Our European recycling business is now on a strong upward trajectory and

  • We have begun to address underlying competitiveness issues in our other businesses.

Refer Slide 12 attached at foot of address

So, in summary for 2015 we see

  • Scope for further improvement in our recycling businesses in Europe

  • Potential for volume gains in the anodes business which will have a positive impact on profitability in those activities

  • Steady to growing demand from regional Asian magnesium alloy customers, particularly in Japan, and

  • A flat to negative outlook for Chinese domestic magnesium alloy and recycling demand.

Refer Slide 13 attached at foot of address

I want to turn now to the Qinghai project as this is the focus of so much of our attention at this time and will become the company’s largest and most important asset when it commences production.

Refer Slide 14 attached at foot of address

Just to re-cap on this project.

In May 2014 we signed three agreements that

  • Established the current and future basis for working with Qinghai Salt Lake Co

  • Established the price at which liquid pure magnesium would be delivered by Qinghai Salt Lake Co to Magontec, and

  • Established the basis upon which Magontec would lease space in the Qinghai cast house building for the installation of its four casting lines.

These are the foundation documents for the future prosperity of Magontec and provide the company with exclusive access to this raw material source.

Refer Slide 15 attached at foot of address

As most shareholders will know already, the Qinghai project exploits a magnesium-rich liquid tailings resource adjacent to a 100,000 metric tonne per annum electrolytic magnesium production plant that is being constructed by Qinghai Salt Lake Magnesium Co.

Magontec will invest A$11 million in four magnesium alloy casting lines to process the pure magnesium produced by this plant, the first electrolytic plant built in China and one of the largest ever constructed.

Refer Slide 16 attached at foot of address

Here is a schematic of the plant showing,

  • At the top the two 50,000 mtpa dehydration plants that are now close to completion

  • In the middle the reduction or electrolytic cell-house where magnesium will be extracted, and

  • At the bottom the cast house where there are seven casting lines being installed, three by Qinghai Salt Lake Co for the production of pure magnesium and four by Magontec for the production of magnesium alloys.

Refer Slide 17 attached at foot of address

The installation of the first magnesium alloy casting line is now completed and hot commissioning will take place in the next few weeks.

This first line will have a capacity of around 14,000 mtpa

Subsequent production lines will be installed through to the end of the year and will have a final capacity of 56,000 mtpa.

The critical factor in the installation process is the commissioning schedule for the considerably more complicated dehydration and reduction facilities. Qinghai Salt Lake Co has indicated that they will be in a position to start initial production in the fourth quarter of 2015.

Refer Slide 18 attached at foot of address

As we go through this very testing time it is worth reflecting on the fact that we will be producing not only a very competitively priced product but also the most environmentally sound magnesium alloy ever supplied to global markets.

This chart comes from the German Aerospace Institute of Vehicle Concepts and compares CO2 production at Magontec’s future Qinghai production with other production in China and elsewhere around the World.

When production commences at Qinghai, Magontec will have a very compelling environmental story to tell. Our customers in the automotive industry are particularly interested in this aspect of our new project.

Refer Slide 19 attached at foot of address

To close I want to touch briefly on research and development.

The history of this company has been very closely associated with new technology magnesium alloys and processes and research and development continues to be an important part of our company, but not as central to the business case as it once was.

Refer Slide 20 attached at foot of address

Today our research effort is considerably more broadly spread and much more closely linked with our customers. We do not seek to pursue a new alloy or other technology unless a commercial end use can be demonstrated.

Furthermore our R&D focus is not just on magnesium alloys but also on corrosion protection technologies. Both magnesium and electronic anodes have a place in the future of corrosion protection for water heaters and for other liquid containers where corrosion must be addressed.

Over the last 18 months we have expanded our basic corrosion protection model to include more complex electronics and to address new customer groups. These efforts are in their early days and we will discuss them in greater detail in future commentaries.

Refer Slide 21 attached at foot of address

Our big focus at the current time is the development and commercialisation of a rare earth rich magnesium alloy.

We have an on-going project funded in part by the Australian Government, by industry partners, by universities in Australia and Germany and by Magontec. The total investment will be in the order of A$1.4 million over three years.

Refer Slide 22 attached at foot of address

The objective of the project is primarily to develop alloys that will address the critical concerns of our industrial research partners Audi and Stihl.

In common with many automotive companies Audi is seeking lighter structures to improve fuel efficiency. Structural magnesium components are in their infancy in the automotive world and limited to 5[th] -door frames in high-end models. This research looks at moving the structural application forward into the cabin area, considerably raising the potential volume of magnesium usage.

Stihl, as every gardener knows, makes hand held power tools and is seeking, through this program, to find more opportunities to use lightweight magnesium in place of heavier metals such as aluminium.

Refer Slide 23 attached at foot of address

Early results have shown that the Magontec patented rare earth alloys have characteristics that make them candidate alloys in other industries.

A highly prospective application is for mobile phone towers where lightweight and high thermal conductivity are key criteria.

Refer Slide 24 attached at foot of address

As we enter the middle of 2015 Magontec looks forward to a very busy and productive schedule.

Existing businesses are experiencing improved profitability as a result of the actions taken by management over the last two years.

The Qinghai cast house installation program has commenced and our partners at Qinghai Salt Lake Co expect to be supplying liquid pure magnesium to the Magontec Qinghai cast house by the end of 2015.

Furthermore Magontec increasingly enjoys the growing confidence of its customer base as the business has stabilised and begun to grow again in recent months. We are winning new customers on a regular basis.

Perhaps most importantly Magontec employs 450 people around the World in a motivated and stable workforce.

Our employees are highly resourceful and committed to Magontec and have been fundamental to the transformation of the company over the last two years.

2

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Presentation to Magontec shareholders 2015 Annual General Meeting

Magontec Limited (MGL) 8 May 2015

DISCLAIMER

This Presentation has been prepared by Magontec Limited (ABN 30 147 131 977) (Magontec or the Company). This Presentation contains summary information about Magontec and its activities current as at the date of this Presentation. The information in this Presentation is of a general background nature and does not purport to be complete or to comprise all the information that a shareholder or potential investor in Magontec may require in order to determine whether to deal in Magontec shares. It should be read in conjunction with Magontec’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au. This document is not a prospectus or a product disclosure statement under the Corporations Act (Cth) 2001 (Corporations Act) and has not been lodged with the Australian Securities and Investments Commission (ASIC).

Not investment or financial product advice

This Presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire Magontec shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek financial, legal and taxation advice appropriate to their jurisdiction. Magontec is not licensed to provide financial product advice in respect of Magontec shares. Cooling off rights do not apply to the acquisition of Magontec shares. Financial data

All dollar values are in Australian dollars (A$) unless stated otherwise and financial data is presented within the financial year end of 31 December 2014 unless stated otherwise. Any pro forma historical financial information included in this Presentation does not purport to be in compliance with Article 11 of Regulation S-X of the rules and regulations of the US Securities and Exchange Commission.

Past performance

Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance

This Presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “will, “predict”, “plan”, “scenario”, “forecasts”, “anticipates”, “outlook” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements, and there are risks associated with the Company and the industry (including those set out below) which may affect the accuracy of the forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to any forward looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Investment Risk and other risks

Investment in Magontec shares is subject to investment and other known and unknown risks, some of which are beyond the control of Magontec Limited, including risk factors associated with the industry in which Magontec operates and risks specific to Magontec, such as: construction, development and operational risk associated with the Golmud Plant, fluctuations in magnesium alloy prices and exchange rates, risks associated with operating in China, financing risks, market price and demand risk and other risks generally relating to security investments.

Not an offer

This document may not be released or distributed in the United States. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. Securities in the Company have not been, and will not be, registered under the U.S. Securities Act of 1933 or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States unless the securities are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, registration.

To the maximum extent permitted by law, Magontec and its respective advisers and affiliates, directors, officers and employees:

  • make no representation or warranty, express or implied, as to the accuracy, reliability or completeness of information in the Presentation; and

  • exclude and disclaim all liability, for any expenses, losses, damages or costs incurred by you as a result of your participation in the proposed offering and the information in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence of otherwise.

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1

Content

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  1. Introduction

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  1. 2014 Review

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  1. Magontec Qinghai

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  1. Research & Development

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2

Introduction

Introduction to Magontec - A magnesium processing company

Magontec buy’s pure magnesium for processing into downstream products

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Principle activities

  • Manufacture and recycle magnesium alloys

! Key customers: automotive, power tool, electronics ! Recycling rates 40-to-70%

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  • Manufacture of magnesium anodes

  • ! Key customer: water heater manufacturers

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3

Introduction

Locations and capacities

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Shanxi, PRC (MAY)
Bottrop, Germany (MAB)
Bottrop (MAB)
Santana, Romania (MAR) Toronto Xian, PRC (MAX)
Golmud (MAQ)
Santana (MAR)
Shanxi (MAY)
Suzhou (MAS)
Xian (MAX)
Head Office
Suzhou, PRC (MAS)
Production Sydney
Sales Office Melbourne
Technology Centre
Cast House Project
Alloy/Recycling Capacity Golmud Bottrop Santana Xi‘an Suzhou Shanxi
Anode Capacity 56 kt 15 kt 6 kt 1 kt 5 kt 1 kt 8 kt 30 kt
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4

Introduction

Five years of transformation

2015

  • Magontec Qinghai installation and early production

  • Further automation investment in magnesium anodes

2014

  • Off-take Price and Operating Agreements concluded with Qinghai Salt Lake Magnesium

  • EU recycling capital investment program A$2 million

2013

  • Commencement of greenfield Romanian recycling plant

  • • Capital raising, QSLM becomes major shareholder

2012

  • Co-operation Agreement signed with Qinghai Salt Lake magnesium

  • Transfer of magnesium anode assets to Romania

2011

  • Magontec acquired by Advanced Magnesium Limited

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5

Introduction

Corporate Strategy

The efforts of the company have been directed at executing its key corporate objectives:

  • 1 Establish a competitive and reliable raw material source

  • 2 Drive costs down through investment in automation

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Agreements with Qinghai Salt Lake Magnesium Invested A$2.5 million in 2014 and on-going in 2015

  • improve competitiveness

  • raise barriers to entry

  • process engineering

  • automation equipment

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6

1. 2014 Review and 2015 Outlook

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Go beyond.
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7

2014 Review

CY 2014 Financial Results - Revenue

Magontec Group Revenue (A$m)

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$133.30
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$128.60
$125.30
FY 2012 FY 2013 FY 2014
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Revenue growth has been positive

  • ! Expansion of recycling capacity in Romania and Germany

  • ! More competitive product from China

  • ! Higher volumes in CCP

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8

2014 Review

Calendar Year 2014 Financial Results - EBIT

Underlying divisional EBIT analysis

Europe
CY 2013
CY 2014
Asia
CY 2013
CY 2014
Sales
$86,491,574
$83,345,924
EBIT
-$131,917
$1,020,450
Foreign Exchange (FX) effect
-$71,624
$162,310
$60,901,248
$59,049,008
$345,910
$50,700
-$91,700
-$218,905
EBIT excluding FX
-$60,293
$858,139
$437,609
$269,605
EBIT margin excluding FX
-0.07%
1.03%
0.72%
0.46%
Progress in reducing conversion costs,
to continue in 2015
Rising metal volumes and market share
Anode volumes and prices down
EU demand declined as economy
faltered
Forced closure of Suzhou recycling
~A$1m hit to bottom line
Demand from electronics sector
faltered
Loss of major anode contracts in
2014, subsequently regained

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9

2014 Review

Recycling in Europe - growing and becoming more profitable

  • ! Magontec is now the largest magnesium recycler in Europe by capacity & volume

  • ! Conversion costs improvement of >20% driving product to Magontec

  • ! Expect further market share and profitability gains in 2015 as full capacity impact takes effect

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2014 Magontec European Volumes 2014 European Market Shares
Recycled magnesium alloy - Europe
16000
Primary magnesium alloy from PRC
14000
12000
10000
8000
6000
4000 MGL
2000 40%
0
FY 2012 FY 2013 FY 2014
Metric tonnes
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10

2014 Review

First Quarter Financial Year 2015

3 Months to 3 Months to
31-Mar-15* 31-Mar-14 Change
'000 '000 %
Revenue $34,147
$35,488

-3.8%
Gross Profit $3,068
$2,547

20.5%
Gross Profit Margin 9.0%
7.2%
Other Income $43
$205

-79.0%
Interest Expense ($295)
($317)

-6.9%
G&A ($2,675)
($2,614)

2.3%
Foreign Exchange $196
($411)

-147.7%
Profit/(Loss) Before Tax $337
($590)

-157.1%
Tax ($86) ($29) 196.6%
Net Profit/(Loss) After Tax $251
($619)
-140.5%

*unaudited

  • ! Revenue drop due to Chinese recycling decline

! Gross Profit jump due to European recycling improvement

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11

2014 Review

2015 outlook

  • ! Further improvement in volumes and margins in the European recycling business,

  • ! A modest pickup in European and Chinese anode volumes as efficiency gains deliver more competitive products and regain market share

  • ! Steady demand from regional Asian magnesium alloy export markets

  • ! Flat to slightly negative outlook for Chinese domestic magnesium alloy sales and recycling

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12

2. Qinghai Project

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Go beyond.
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13

Qinghai project

Qinghai & Magontec have signed 3 Agreements

Magnesium Alloy Cast House Operating Agreement between Qinghai Salt Lake Magnesium and Magontec Qinghai Ltd 28 May 2014

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Build-to-suit-to-lease
Off-Take Price Agreement Agreement
between between
Qinghai Salt Lake Magnesium Qinghai Salt Lake Magnesium
and and
Magontec Qinghai Ltd Magontec Qinghai Ltd
28 May 2014 28 May 2014
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  • ! Defines working relationship

  • ! Defines pricing benchmark & formula

  • ! Foundation documents for future prosperity

  • ! 10 year + 10 year option duration

  • ! Provides absolute exclusivity

  • ! Arbitration in Hong Kong

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14

Qinghai project

Qinghai Project – manufacturing and resource location

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Golmud Situated on a substantial resource in western China An established industrial location for > 50 years Electrified rail links to domestic and export markets

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Sponsored by Provincial and National governments

Brine content > 20% MgCl2 / Mean Mg content of 58g/litre 4 bil tonnes of MgCl2 at Golmud of which 1 bil tonnes is pure Mg

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15

Qinghai project

Electrolytic magnesium smelter complex and cast house

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Dehydration Units 1 & 2
(100,000 mt annual capacity)
Electrolytic cell-house
(68 cells)
Pure Mg
44%
(QSLM)
Mg alloys
56% (Magontec)
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16

Qinghai project

Magontec Qinghai installation program

  • ! The first production line has now been installed and will be commissioned by the end of July

  • This will provide 14,000 mtpa of capacity

  • ! Subsequent production lines will be ordered from May/June and will be installed from November 2015 Commissioning of these lines is expected to commence in January 2016

  • ! Final capacity at Magontec Qinghai will be 56,000 mtpa

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17

Qinghai project

Qinghai summary

  • ! Magontec commissioned new survey on CO2 emissions from German Aerospace Institute of Vehicle Concepts

  • ! Confirms Magontec Qinghai alloy will be lowest CO2 alloy ever produced

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45
40
35
30 incl. use incl. credits for use
of SF6 of waste gas
w/o credit for
25 CO2 uptake
incl.credits for
20 by-products
15 incl.credits for
by-products
10
5
0
Golmud 2015 Israel 2011 Norway 1997 Pidgeon process, Pidgeon process, Pidgeon process, RIMA process,
China 2011 China 2008 China 2004 Brazil 2012
electrolysis thermal reduction
Magontec Qinghai
kg CO2eq / kg Mg
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18

3. Research & Development

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Go beyond.
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19

Company

Global R & D focus

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Germany
China
Australia
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  • R&D facilities in Bottrop and Xi’an

  • External R&D activities in Australia

  • Seeking broader R&D relationships

  • Expand University/research foundation relationships

! Developing Mg alloy technologies for future applications

! Developing new corrosion protection technologies using Mg and Ti anodes

! Working with customers to optimise outcomes

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20

Research & Development

New research project to examine AE Magnesium Alloys

  • ─ Consortium of research organisations, Universities and manufacturing companies applied for research grant from Australian Government (ARC)

  • ─ Australian Research Council (ARC) awarded funds for research into Mg/Al/RE alloys under

its Linkage Program

  • ─ Total cash contribution over 3 years: A$690,000 (incl. A$510,00 from ARC)

  • ─ Total in-kind contributions over 3 years: A$730,000

  • ─ Total >A$1.4M

  • ─ Commenced 4Q 2014

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21

Research & Development

Additional funding and participation from Stihl and Audi

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  • ! Working on

  • automotive structural components

  • chain saw engine components

  • ! Funding alloy development activities through Magontec

  • ! IP to be shared with Magontec except for specific applications

  • ! Audi is seeking ductility for riveting into car bodies

  • ! Stihl is seeking high temperature strength for cylinders & pistons

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22

Research & Development

Some interesting outcomes

  • ! Early tests have shown

  • ! high conductivity of alloys

  • ! heat treatment response

  • ! higher strength than Al above 350°C

  • ! This might open up new opportunities

  • ! High thermal conductivity alloys are required for electronic components housings (heat dissipation)

    • mobile phones

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Telecom component cast in Magontec supplied alloy

  • electromagnetic filter units on cell towers

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Magontec in 2015

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  • Implementation of Qinghai project

  • A dedicated workforce of over 450 people

  • The skills and technology for industry leadership

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Thank you for your time

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MAGONTEC Group
MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd
Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road,
Suite 1.03 46a Macleay St 46240 Bottrop Xian Economic and Technological
Potts Point Sydney NSW 2011 Germany Development Zone
AUSTRALIA Xian, China, Post code: 710021
Tel +61 2 8005 4109 Tel +49 (0) 20 41 / 99 07-0 Tel. +86 29 / 86 52 68 78
Fax +61 2 9252 8960 Fax +49 (0) 20 41 / 99 07 99 Fax +86 29 / 86 52 37 22
[email protected] [email protected] [email protected]
www.magontec.com www.magontec.com www.magontec.com
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