Quay Magnesium (QMG)

Shares / Stock Code

QMG

Stock Exchange / Sharemarket

ax

Quay Magnesium (QMG) has a first-class magnesium refinery in China. The plant works well, is de-bottlenecked and produces high-grade automotive alloys. Built for less than $30M, the initial capacity with one casting line was 15,000tpa. Capacity is now 25,000tpa for a total capital cost of around $50M. QMG has received quality approval from Chrysler LLC. QMG has a Heads of Agreement to acquire 49% of two Chinese Mg plants.

QMG has built a state-of-the-art Mg alloy facility, expanded from 15,000tpa to 25,000tpa. Plans are being implemented for vertical integration. These plans may involve accessing the primary magnesium plants associated with equity (both current and potential) investors of QMG. These recent equity investments have helped with working capital requirements. Company listed on Australian Stockmarket (ASX) on 29 September, 2004.

Quay Magnesium's Nanjing facility utilises technology unique to China. The technology produces consistently homogenous high-quality alloys that automotive customers require and approval has been received from automotive heavyweights like VW and Chrysler. This, combined with ISO/TS-16949 approval achieved in November 2007, has Quay fully qualified for the automotive supply chain.

Quay Magnesium's target market is consumers of high-grade magnesium alloys for automotive, electronics and aerospace die-cast applications. QMG pursues sales to customers in Europe, China, the rest of Asia and elsewhere. QMG has few western world competitors but there are many Chinese competitors. The Chinese magnesium industry is growing apace. The Company’s subsidiaries include Quay Magnesium Marketing Limited and Quay Magnesium Holdings Limited.