LMG - Latrobe Magnesium

[Jess9]

These guys may have something interesting and moving shortly...

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The project involves extraction and production of magnesium metal from the fly ash produced in the generation of power from brown coal deposits in the Latrobe Valley. Latrobe Valley brown coal ash is unique in having significant magnesium content.

Ash currently being produced would be combined with ash contained in the tailings dams. A feasibility study will evaluate the potential to commission a plant having a capacity to produce up to 100,000 tonnes of magnesium metal per annum.

Previous test work has established the concept of dissolving the magnesium from the ash. It is believed that the current ash production in the Latrobe Valley, combined with the existing ash tailings, has the potential to support a 100,000 tonnes per annum magnesium metal project for a minimum life of 20 years
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Pre feas study scheduled for completion 31 March 2010.

discl: hold

[Jess9]

One to watch still IMO. At support levels now. Still in up trend (3-4 month after break out).

A very interesting magnesium / waste extraction from power station waste technology about to bear fruit (fingers x'd). Sounds like a nice environmental solution to continuing use of their local power station waste (burnt coal) and $ to be made from this by this coy. Also new project coming (see last announcements). Per HC earnings could be 3-5c per share and project could add further spec value...15c per share plus if you listen there.

Discl hold and will re-assess if breaks (down) from current up trend or alternatively hits 10c too fast.

[Jess9]

Currently 3c after running up from 1.5c level 4-5 months back.

[sheepy]

I did see your post on HC. I am watching patiently as well, I got in a month ago. I did read that they need to get there sulphur iron and silica levels down in the ash. If they can acheive this they reckon that a plant will take about a year to build. They will then aim to produce 5000 tonnes of magnesium and try to boost that up to 10000 later, at the current 3000 dollars a tonne there is plenty of upside. Just need the green light and it will be off. Are you still in this one Colin.

[COLIN]

Are you still in this one Colin.

Afraid not, Sheepy. I didn't like the look of the way that the technicals were pointing, e.g. Slow Stochastic, RSI, DMI, OBV, Williams%R, Momentum. "Lower highs" recently, and I think I even detected a bearish divergence. A pity, as I do like to have variety in my diet!

[Jess9]

TA looking better now and buy depth building. This one is about to move again (forward ; ) IMO.

[Jess9]

Keep an eye on this one over the next few weeks, something may be coming together, but DYOR!!!