Magontec : MGL Investor Presentation - MST Financial Webinar

For personal use only

Suite 1.03, Level 1

46A Macleay St

Potts Point

NSW 2011

Australia

Ph: [phone]

Company Announcements Office

Australian Securities Exchange Limited

20 Bridge Street

Sydney, NSW 2000

9 June 2022

Dear Sir, Madam

Investor Presentation Notice

Please find attached a presentation to be given for investors and shareholders at the MST Financial Cash Generators Forum on Thursday 9 June 2022 at 2:40pm AEST.

To join the presentation, please click the webinar link below:

MST Financial Cash Generators Forum

https://mstfinancial-au.zoom.us/webinar/register/WN_qZxKEdM_S5mEjSYd4XusHA

Yours sincerely

Mr Nicholas Andrews

Executive Chairman

Magontec Limited

Contact details: [phone]

Nicholas Andrews, Executive Chairman Magontec Limited, has authorised the release of this document to the market on 9 June 2022

nal use only

Magontec Limited

ASX:MGL

Nicholas Andrews

Executive Chairman

• CEO June 2022

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

onlyrequire 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 i vestment 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 decisi n, prospective investors should consider the appropriateness of the inf rmation 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

useacquisition 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 2021 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.

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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 Limited

				Shareholder Structure
	ASX Code: MGL	Total	Per Share
	Ordinary shares on issue	76,729,210		Retail
	following consolidation	30.7%
only
	Market capitalisation1	$29.2 million	38.0 cents/share
	Book value of net assets	$41.5 million	54.0 cents/share
	- 31 March 2022
	Net debt - 31 March 2022	$4.9 million
use
	Enterprise value	$46.4 million		Directors &
				Associates
	EBITDA (FY 2021)3		9.5%
	$10.1 million
	Dividend (determined): Interim		0.6 cents / 3.16%2

1	Based on share price of 38c as of 7 June 2022
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2	Based on share price of 38c and annualised interim dividend of 1.2 cents	3 Financial Year to 31 December 2021

Qinghai Salt Lake

Magnesium Co Ltd

28.7%

Institutional

31.1%

Magontec Limited: ASX Code: MGL

Two businesses

nal use only

Pure Mg &

other alloying

elements

Magnesium Alloys	Anodes / CCP
Primary & recycled	Magnesium and
magnesium alloys	electronic anodes

Scrap	Electronic
returns	components

Mg alloy	Cathodic
ingots
Corrosion
Generic	Protection
Specialist	CCP

Mg alloy &

components