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MAGONTEC LIMITED AGM Information 2026
65327_rns_2026-05-11_4462f892-fff8-40d9-b033-4ab190ef366a.pdf
AGM Information
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MAGONTEC
MAGONTEC Limited
ABN 51 010 441 666
Registered office
Suite 2.01, 139 Macquarie Street
Sydney NSW 2000
T: +612 8084 7813
12 May 2026
Company Announcements Office
Australian Securities Exchange Limited
Dear Sir/Madam,
Magontec Limited – 2026 Annual General Meeting Tuesday 12 May 2026 11:00am
Executive Chairman’s Address
Attached is the address of Mr Nicholas Andrews, Executive Chairman of Magontec Limited, to be delivered at the Company’s 2026 AGM today.
The slides referred to in the body of the address appear in this document at the foot of the Chairman’s address.
Yours sincerely,
Dean Taylor
Company Secretary
Magontec Limited
Dean Taylor, Company Secretary of Magontec Limited has authorised the release of this document to the market on 12 May 2026.
MAGONTEC
ADDRESS BY EXECUTIVE CHAIRMAN MAGONTEC LIMITED TO ANNUAL GENERAL MEETING 12 MAY 2026
EXECUTIVE CHAIRMAN'S PRESENTATION
As usual I am going to provide an overview of the financial performance of the company in the first quarter of 2026 and then talk more broadly about our strategic focus.
I'm happy to take questions at any time.
I'm pleased to report that in the first quarter of 2026 the company enjoyed markedly improved conditions in its key markets.
There was margin expansion, particularly across the European and North American businesses, as we saw improved demand from recycling customers and hot water appliance manufacturers.
The company's balance sheet remains in a strong position with net debt of $1.7 million on net assets of $46 million, supported by positive underlying operating cash flows.
In the first quarter of 2026 Gross Profit rose by 63% over the previous corresponding quarter with standard and specialist metal product sales volumes rising by 58% over the PCP and European anodes revenues rising by 16% on the prior period, largely driven by higher value products rather than volume growth.
In the three months to 31 March 2026 underlying operating cash flow, that is cash generated by operating activities before changes in working capital, interest and tax payments, was $1.3 million compared with a negative number in the first quarter of 2025. Operating cashflow was negative $808,000 reflecting rising working capital deployment to fund higher metals sales volumes.
This chart shows both the steady levels of cash on the balance sheet and a small rise in net debt.
The rise in debt is associated with investment in primary Mg alloys traded from our Chinese partner, which is running at marginally higher levels due to a delayed start of delivery for a particular customer in Q1. We expect debt levels on those volumes to reduce through the second quarter as material is called off.
MAGONTEC
The company has a net debt to net debt + equity ratio of 3.6%.
The metals business enjoyed a much-improved quarter at both manufacturing locations in Germany and Romania with margins rising to 11% at the Gross Profit level.
As shareholders will recall, this is traditionally a lower margin business where volumes are critical to profitability. The rise in specialist metals volumes is the key cause of the rise in margins over this period.
In the last 12 months the growth in primary Mg alloy trading volumes to European customers has generated higher scrap flows to our two recycling businesses, resulting in higher volumes and improved productivity.
In 2024, we did not trade any primary Mg alloy while in 2026 we expect to double our 2025 shipments to over 2,000 tonnes.
The CCP Anodes businesses in Europe and China have had varying fortunes through 1Q26. Electronic anodes have benefitted from further de-stocking of inventory and an upswing in demand in Europe and the USA - its key markets. This product was re-launched in 2025 with new electronic and presentational architecture offering enhanced functionality and application.
Its two main sales channels are to OEMs for inclusion within the original production process as an integral component, and through plumbing wholesalers as a replacement for magnesium anodes for commercial and domestic hot water systems. The new release has met with a positive response and revenues for this product up by 33% over the PCP.
Magontec's European and Chinese magnesium anode volumes were flat compared to the PCP, although European output was tilted towards higher priced products and generated an improved Gross Profit, up 18% during the first quarter of 2026.
Just a few words on the outlook for our business activities.
As we foreshadowed in the Annual Report, management continue to examine ways of reducing the volatility of the metals business, which has hitherto been highly reliant in accessible scrap volumes in Europe.
MAGONTEC
Over the last 12 months we have commenced sales of primary Mg alloys in a new cooperation with a large Chinese manufacturer. We expect this to continue to grow and assist in generating new scrap volumes for our regional recyclers.
We have also continued to grow our specialist magnesium alloy volumes and will continue to expand these activities in key western markets.
Our strategic review is currently examining a wide range of options, and we will have more to say on that later in the year. Suffice to say that we think that there is a path to a more consistently profitable metals business.
The outlook for the anodes businesses is considerably clearer. We have a revitalised product in electronic anodes that is a strong competitor in all markets and a global leader in its application of electronics for the management of corrosion in hot water systems.
Through our own sales and marketing efforts and through the agencies that we use in some parts of the world, we expect revenues for these products to continue to grow. A particular advantage of the Magontec electronic anode is its application in energy saving heat pumps that, along with many other electrical devices, are enjoying rising sales in an uncertain energy world.
While sales to OEMs and wholesale networks for replacement have been the bedrock of this business, we have also commenced sales through internet channels in Germany and the USA with plans to expand that coverage in the years ahead. The advantage of the new electronic anode product, and why it lends itself to internet sales, is its simplicity: it can be retrofitted to an existing hot water system by a handyman or plumber, and no licensed electrician is required.
The magnesium anode product remains a ubiquitous application in lower priced hot water systems. Volumes for these magnesium products are relatively stable in Europe and China and are expected to remain so.
At a Group level the 1Q26 results reflect underlying improvements in the company's three operating activities.
EBITDA excluding unrealised FX gains and adjusted for significant items highlighted in the presentation, rose to $1.4 million compared with a negative result in 1Q25.
MAGONTEC
There have been stronger than normal contributions, particularly from electronic anodes in this period, and the company is unlikely to replicate this level of performance through the rest of the year.
Nonetheless, there has been a marked change in the momentum of Magontec’s operating activities and in the coming months we will outline a strategy to improve profitability, particularly in products that have experienced most earnings volatility.
Finally, I would like to take this opportunity to thank my fellow directors for their efforts and advice through the year.
That concludes my remarks and am happy to take questions from shareholders.
Mr. Nicholas Andrews
Executive Chair
2026 ANNUAL GENERAL MEETING
For the products of the future
Nicholas Andrews | Executive Chairman | SYDNEY
MAGONTEC
Disclaimer
This Presentation has been prepared by Magontec Limited (ABN 51 010 441 666) and its subsidiaries (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 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.
MAGONTEC
Magontec Limited: Unaudited 1Q 2026 Result
Magnesium & Metals
Hot Water Appliances & Corrosion Protection
Summary
- Strong improvement in profitability
- Margin expansion in European Mg anodes
- Rising revenues in global electronic anodes
- Improved Mg alloy recycling volumes in Europe
- Positive underlying cash flow
- Low levels of debt
MAGONTEC
Reported Gross Profit
1Q26 Gross Profit
- Gross Profit +63% on PCP
- Recovery in metals sales volumes +58% on PCP
- European CCP/Anodes revenues +16% on PCP
- Rising returns from investment in ICAS
- European Mg alloy GP returns to profitability
MAGIONTEC
Cash Flow
| A$000s | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 |
|---|---|---|---|---|---|
| Underlying Operating Cashflow* | (473) | (1,196) | 371 | (887) | 1,299 |
| - Change in working capital | (740) | (1,370) | 1,147 | (881) | (2,056) |
| - Net interest paid | (86) | (52) | (94) | (71) | (52) |
| - Income tax paid | - | 31 | 571 | 213 | - |
| Operating Cashflow | (1,299) | (2,587) | 1,995 | (1,625) | (808) |
Cash Flow & Working Capital
- Positive change in underlying operating cashflow* driven by
- Rising CCP revenues
-
Recovering Mg alloy recycling volumes
-
Rise in Working Capital driven by:
- Higher primary Mg alloy sales to drive recycling volumes
*Underlying operating cashflow = Operating cashflow excluding working capital movements, interest and tax paid
MAGIONTEC
Net cash and bank borrowings
Net Debt/(Net Cash)
As at 31 March 2026:
- Net Debt/Net Debt + Equity = 3.6%
- Net Debt = $1.7 million
- Cash on the Balance Sheet = +$7.6 million
- Bank Borrowings on Balance Sheet = -$9.3 million
MAGIONTEC
MAGONTEC
Magnesium alloy recycling – Gross Profit and Gross Profit Margin
Magnesium alloy manufacturing
- Recovery in Mg alloy volumes
- Rising Gross Profit and GP margins
- Primary Mg alloy sales of > 1,000mt over TTM
Cathodic Corrosion Protection (anodes) – Gross Profit and Gross Profit Margin
CCP/anode manufacturing
- 1Q26 Gross Profit +26% on PCP
- Higher value Mg anodes in Europe
- Roll-out of refreshed ICAS series gaining momentum
- Mg anode volumes in Europe and China flat
MAGIONTEC
Strategy & Outlook – Metals
Mg alloys & Specialist Metals
- Foreshadowed metals review in 2025
- Primary Mg alloy flows
- Standard alloys from scrap
- Specialist Mg alloys for high spec applications
MAGONTEC
Strategy & Outlook – Cathodic Corrosion Protection
AGOS EVO
TUCO ADVANCED
PERI EVO
Stainless Steel
Titanium anode
Electrical connector
1-click installation with SmartConnect
MAGONTEC
Unaudited 1Q26 Result
| 1Q 2025 V 1Q 2026 EBITDA analysis | ||
|---|---|---|
| AUD 000s | 1Q25 | 1Q26 |
| Reported EBITDA | (1,005) | 1,978 |
| - Less unrealised FX gains | 667 | (869) |
| EBITDA excluding unrealised FX | (338) | 1,109 |
| Significant Items | ||
| - Add back LTI expense (non-cash) | 112 | 146 |
| - Add back Strategic Review Costs | - | 180 |
| Adjusted EBITDA excluding unrealised FX | (226) | 1,435 |
EBITDA analysis
- Reported 1Q26 EBITDA of $2 million, +$3m on PCP
- Adjusted 1Q26 EBITDA excluding unrealised FX gains and significant items +$1.7 million on PCP
MAGONTEC
2026 ANNUAL GENERAL MEETING
MAGONTEC
For the products of the future.
QUESTIONS ?
Nicholas Andrews | Executive Chairman | SYDNEY
MAGONTEC
Market Information: 12 May 2026
Magontec Limited Market Information
| ASX CODE: MGL | TOTAL | PER SHARE |
|---|---|---|
| Ordinary shares on issue | 57,934,806 | |
| Book value of net assets^{1} | $45.9 million | 79 cents/share |
| Market capitalisation^{2} | $12.8 million | 22 cents/share |
| Net debt (cash) | $1.7 million | |
| Enterprise value | $14.5 million |
SHAREHOLDER STRUCTURE 30 APRIL 2026
1 As at 31 March 2026 (unaudited)
2 Based on share price of $0.22 as at 5 May 2026 (close)
Overview
Magontec's portfolio of activities
Metals
Primary and recycled magnesium alloys
Pure Mg and other alloying elements
Scrap returns
Mg alloy ingots
Generic + Specialist
Knowledge base
Magnesium & Metals
Corrosion & Rust
Water storage & management
Electronic components
Mg alloy and components
Consulting Services
Generic + Specialist
Catholic Corrosion Protection CCP
Overview
Magontec is a manufacturing business
