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Brisbane, Nov 30, 2016 AEST (ABN Newswire) - China Magnesium Corporation Ltd (ASX:CMC) is pleased to provide the company's AGM Presentation.

Key Developments Since 2015 AGM

- CMC procures 2 tenements at Greenbushes, WA. Exploration permit already approved for 1 tenement.

- CMC identifies and secures key investor to provide sufficient funding for exploration

- Framework Agreement with SMH - lithium/tantalum exploration project - SMH inject RMB 5.25M ($1M) for 60% interest - CMC inject 2 tenements for 40% interest

- Issue of 80M shares under 1 : 2.4378 rights at $0.025 to raise $2M (November 2016) over-subscribed

- Adaptation of all coal-to-gas units into the operational semi-coke crackers completed

- Sustained improvement in Magnesium prices has triggered work to commence at the site with production targeted to commence late 2016 / early 2017

- Improved market conditions for magnesium expected to continue

- Co-operation agreement for FMW commenced February 2015 terminated June 2016 with Fengyan. Fengyan acquire CMC share of losses (RMB44M) under agreement.

- Growing commodities trading desk - now includes fertiliser and chemicals.

Future Expansion Capabilities Already Secured

- Key environmental permits in place to expand production to 105,000tpa magnesium

- Water rights secured to enable expansion to 105,000tpa magnesium

- 90mu (~60,000m2) of land secured, earmarked for either next expansion phase or to capitalise on other horizontal or vertical synergies such as downstream processing of our products

- Additional 29mu (~20,000m2) of land just secured next to CMC's original 5,000tpa nameplate capacity plant will also free up land within the existing plant for expansion.

- Expansion of semi coke, tar oil, calcium metal and brick production occurring concurrently with magnesium expansion

Growing International Trading Desk

- Initially established to assist international brand-building and presence for CMC's magnesium production

- Successfully trading low ash metallurgical coke.

- Targeting future expansion and vertical integration into other value-adding opportunities such as carbon black, coal, and other industrial products

- Developing additional profitable trading in markets including fertiliser and chemical

Summary - Well Placed for Growth

- CMC well placed for growth with flexible and efficient production capacity

- Improved market conditions for magnesium expected to continue

- Greenbushes lithium/tantalum exploration project progressing quickly

- Over-subscribed rights issue providing working capital flexibility

- Trading desk continuing to expand range of activities

- Company-transforming developments and achievements since last AGM

- Semi-coke, tar oil and magnesium production re-commenced late 2016/early 2017

- FY2016/7 expected to be both a challenging and rewarding year for CMC

- CMC remains focussed to become a large, low cost, integrated producer of magnesium, semi coke, tar oil and other industrial products

Magnesium -21st Century Structural Metal

- Stronger and lighter structural metal

- 33% lighter than aluminium and 75% lighter than steel

- Used in Mg alloy die casting (auto/aircraft & electronics) for its light weight

- Also used for producing aluminium alloys,steel and titanium

- Roskill estimates global magnesium consumption of just under 1.1Mt in 2012

- World production of primary magnesium is estimated by Roskil lto have increased at an compound annual growth rate (CAGR) of 6.1% from 2002-2012, despite a massive drop in 2008 and 2009 after the global financial crisis

- Strong growth expected in the automotive sector

- Chinese government's 12th 5 year plan targets magnesium as a key metal

To view the presentation, please visit:
http://abnnewswire.net/lnk/2Q12O38I


About China Magnesium Corporation Ltd

China Magnesium Corporation Limited ASX CMCChina Magnesium Corporation Limited (ASX:CMC) owns a 91.25% interest in CMC China which owns a 100% interest in a magnesium ingot production operation.

The operations are licensed to expand output to 105,000tpa, which would make it one of the world''s largest magnesium producers. Studies have been completed which indicate a positive environment for CMC to conduct a major expansion of its magnesium operations.

CMC has converted its existing coal to gas plants to 5 semi-coke crackers (total semi-coke capacity 200,000 tpa) at the site of its existing 20,000 tpa capacity magnesium plant. Waste gas from semi-coke production is now used to provide the energy source required to produce magnesium. Consequently the combined semi-coke and magnesium plants are expected to significantly lower production costs than for magnesium-only production using the coal-to-gas facilities as originally envisaged when the magnesium plant was built.

 


Contact

China Magnesium Corporation Ltd
T: +61-7-5531-1808
F: +61-7-5597-1096
E: info@chinamagnesiumcorporation.com
WWW: www.chinamagnesiumcorporation.com



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