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Latrobe Magnesium Limited (ASX:LMG)

ALERT: Price-sensitive ASX Announcement for LMG
Current share price for LMG : $0.015 -0.005 (-25%)+
Announcement
Release
31 Mar 2026 9:30AM
Price at Release
$0.020
Full Release
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Summary
Latrobe Magnesium Limited (LMG) has strengthened its commercial relationship with U.S. distribution partner, Metal Exchange LLC (MX), through a non-dilutive prepayment of USD 2 million for future magnesium metal deliveries. This agreement is part of a long-term distribution partnership formulated in 2019. The prepayment will be recovered via a margin-sharing arrangement, and the pricing framework includes a floor price mechanism to ensure revenue certainty. LMG's initial magnesium production from both its Stage 1 Demonstration Plant and Stage 2 Commercial Plant is fully allocated to the U.S. market, currently lacking domestic primary production. This strategic entry aims to provide a reliable Western supply chain alternative, leveraging the absence of U.S. customs tariffs on Australian magnesium. Additionally, LMG is discussing potential equity investments with MX, reflecting an evolving strategic partnership.
Key Points
  • LMG receives USD 2 million prepayment from Metal Exchange LLC.
  • Prepayment supports the installation and commissioning of LMG's Demonstration Plant.
  • Structured pricing framework includes a floor price mechanism for revenue certainty.
  • All magnesium production allocated to the U.S. market.
  • No U.S. customs tariff on Australian magnesium enhances competitiveness.
  • Potential strategic alignment and equity investment discussions with MX.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.