MAGONTEC LIMITED — Interim / Quarterly Report 2013

Jul 30, 2013

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Limited

Office No.10 Level 8 139 Macquarie St Sydney NSW 2000 Australia Ph:+ 61 2 8231 7085 FAX: +61 2 9252 8960

31 July 2013

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney, NSW, 2000

Dear Sirs,

Appendix 4C – Quarter Ended 30 June 2013

The above quarterly cash flow statement is attached.

Yours Sincerely

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John Talbot Company Secretary. Magontec Limited

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Limited

QUARTERLY CASHFLOW - APPENDIX 4C

for the Period Ended 30 June 2013

Magontec Limited

ABN: 51 010 441 666 Registered & Principal Office: Office 10, Level 8, 139 Macquarie Street, Sydney, NSW 2000 Australia

Tel: +61 2 8231 7085 Fax: +61 2 9252 8960 Website: www.magontec.com Email: Corporate@magontec.com

Non-Executive Directors (as at 30 June 2013)

Zhongjun Li

Issued Capital (as at 30 June 2013)

Ordinary Shares (ASX Code MGL) 652,486,669 fully paid Ordinary shares on issue

Options

Options	Number	Grant Date	Expiry Date	Exercise Price $
Unlisted Employee Share Options	1,300,000	16 Aug 2010	16 Aug 2013	$0.10
Unlisted Options in Convertible Note	61,237,218	4 July 2011	1 July 2014	$0.055
Unlisted Options in Convertible Note	70,418,833	29 November 2012	29 November 2015	$0.050
Listed options	440,232,652	4 Jan 2013	3 Jan 2014	$0.02

Guenter Franke

Substantial Shareholders

Kangmin Xie

Independent Director (as at 30 June 2013)

Robert Shaw

Management Team

Nicholas Andrews Executive Chairman

John Talbot Chief Financial Officer

Company Secretary John Talbot

Major Shareholders	No. of shares	Percent
Qinghai Salt Lake Magnesium Industry Limited	180,535,784	27.669
KWE(HK)Investment Development Co Limited	55,797,298	8.551
Citicorp Nominees Pty Limited	43,206,715	6.653
Straits Mine Management Pty Limited	40,499,167	6.207

Share Registry Services

Boardroom Pty Limited Level 7, 207 Kent St Sydney NSW 2000

Postal:

GPO Box 3993 Sydney NSW 2001

Tel: 1300 737 760 or International: +61 2 9290 9600 Fax: 1300 653 459 Website: http://www.boardroomlimited.com.au

The current share price can be obtained from the ASX Website

Appendix 4C Magontec Limited 31 March 2013 Quarterly Report Rule 4.7B + See chapter 19 for defined terms

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Appendix 4C

Quarterly Report

Introduced 31/3/2000. Amended 30/9/2001.

Name of entity

Magontec Limited

ABN

51 010 441 666

Quarter ended (“current quarter”)

30 June 2013

• 1.1 Cash flows from operating activities a Receipts from customers b Payments to suppliers and employees c Interest received d Interest expense e Taxation f Net cash (used)/generated in operating activities

Quarter Ended 30 June 2013 $A	Year to date (6 months) $A
$20,197,446 ($19,852,614) $88,543 ($192,908) $118,794	$62,679,097 ($61,442,338) $219,445 ($474,771) ($98,976)
$359,261	$882,457

1.2		Cash flows from investing activities
	a	Movement in security deposits
	b	Payment for property, plant & equipment
	c	Group Information Technology software
	d	Other
	e	Net cash provided by/(used in) investing activities

($28,008) $99,111 ($9,344) $0	$106,417 ($341,683) ($9,344) $0
$61,759	($244,610)

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Appendix 4C Magontec Limited 31 March 2013 Quarterly Report Rule 4.7B + See chapter 19 for defined terms

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1.3

Cash flows from financing activities a Loans from/ (repayments to) related parties b Principal reduction on debt owing to Straits Mine Management Pty Ltd c Bank Loans d Net capital raised from issue of the Company's shares e Net cash provided by financing activities	Quarter Ended 30 June 2013 $A ($1,000) $0 ($2,098,164) $7,683	Year to date (6 months) $A ($49,184) ($2,000,000) ($5,885,684) $15,694
	($2,091,480)	($7,919,173)

Net increase (decrease) in cash held 1.4 Cash at beginning of quarter /year to date 1.5 Cash at end of quarter /year to date	($1,660,460) $7,919,030	($7,281,326) $13,539,897
	$6,258,570	$6,258,571

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.6 (a) (b)	Aggregate amount of payments to the relevant parties (aggregate fees paid to directors)	Quarter Ended 30 June 2013 $A
		$5,908
1.7	Aggregate amount of loans to the relevantparties	Nil
1.8	Explanation necessary for an understanding of the transactions
	Whilst sales have declined in the 3 months to 30 June 2013 (see table below) the annualised sales of $156m for the 3 months to 31 March 2013 was extraordinarily high. Annualisation of the half-year sales to 30 June 2013 is about in line with the Company’s 2012 annual actual sales. The Company’s forward sales book remains strong and gross profit margin for the quarter to June 2013 has basically remained intact. To 31 March 2013 To 30 June 2013 3 Months to 30 June 2013 $'000 $'000 $'000 Sale as per financial accounting 38,926 61,100 22,174 Cost of Goods Sold as per financial accounting (36,214) (55,722) (19,508) Grossprofit 2,712 5,378 2,666

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Appendix 4C Magontec Limited 31 March 2013 Quarterly Report Rule 4.7B + See chapter 19 for defined terms

Compliance statement

1

This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act 2001 (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

2 This statement does give a true and fair view of the matters disclosed.

Sign here:

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Date: 31 July 2013 Executive Chairman Magontec Limited

Print

name: Mr Nicholas Andrews

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The definitions in, and provisions of, AASB 107: Cash Flow Statements apply to this report except for the paragraphs of the Standard set out below.

• Aus20.1 - reconciliation of cash flows arising from operating activities to operating profit or loss

• • 39 - 42 - itemised disclosure relating to acquisitions and disposals • 48 - 52 - disclosure of restrictions on use of cash

3

Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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