Mark Roberts, Senior Editor at Traders News Source Interviews Sam Ataya CEO of Western Magnesium Corporation
Sam Ataya, CEO Western Magnesium Corp. (OTC: MLYF)
Full Interview Transcript
Thank you for giving us your time to answer some questions. Can you give our readers a brief overview of your company’s business model and revenue streams?
“Our business model is focused on producing magnesium metal for the auto industry, aerospace eco-friendly technology companies, car battery companies, and the Department of Defense. Magnesium metal is 80% lighter than steel, 60% lighter than titanium, and 33% lighter than aluminum and has significant cost savings for all those industries in making their vehicles, planes, or equipment lighter. We’re very confident with the revenue streams in selling pure magnesium to those industries and to casting companies that provide everything from door frames to chassis to airline frames. Our revenue stream will be based on the production and sale of pure magnesium metal.”
Can you give us a brief overview of the magnesium market including applications and pricing?
“Primarily there are only 1 million metric tons of magnesium metal being produced every year, 85% of all production of magnesium metal globally comes from China and it has been a very steady price range for magnesium metal over the last few years. Now the demand for magnesium metal has increased significantly because magnesium metal is needed to make aluminum and titanium for example and as supply chains break down as demand goes up, so does the price of magnesium metal, so we’re very confident in not only what was the price for magnesium metal but now we know that the price for magnesium metal is increasing and therefore we very much believe in the revenue model that we’ve created.”
What differentiates your “green” processing technology from the standard technology?
“The technology that currently produces magnesium metal around the world is outdated. There have been no new technological developments in the last 55 to 70 years with the plants that are operating globally currently. Part of the problem of why these technologies cannot be used in the United States is due to the toxicity level of producing magnesium metal. Currently with today’s technologies, for every kilogram of magnesium metal produced, there are 50 kilograms of CO2 being released into the atmosphere, making magnesium metal the most toxic metal to produce. With Western Magnesium’s technology, there are two factors as we are a “green” technology, for every 1 kg of magnesium metal being produced, less than 5 kg of CO2 is being released, but we capture that so, therefore, it’s recycled and not released into the atmosphere. Our technology is also scalable, whereas current technologies today are not, so if we build a plant, we can continue scaling it up versus current technologies around the world that cannot. We can continuously ramp up production if there is enough feed power and land, we can continue building on the current site and growing operations therefore, this is what differentiates our technology from current technologies out there. Also, our process of producing magnesium metal is a continuous one. Currently, around the world today producing magnesium metal is like baking a cake, it’s a batch process where there is a lot of labor involved, the process is a start-stop process where you’re moving materials from one canister to another until you finally get to the pure magnesium metal whereas ours is a continuous process.”
Is your unique process for processing magnesium proprietary or patented?
“Our technology is not patented. In today’s world CEOs are leaning more towards protecting IP which is what we do, we protect IP heavily, we have not patented it, we will not paten, we protect IP.”
You have advised that your pilot plant will be ready to operate in late May. Is that when you will begin producing magnesium and if not, when?
“We are on track for producing magnesium metal at the end of May at our commercialized pilot facility. The purpose of the production of magnesium metal is to not only show that we can produce on a commercial scale but also, that the plant is scalable to be a full production plant in the future in the U.S. The metal that will be produced at the pilot plant will be sent out to different industries for them to certify and then we can begin discussions about orders for magnesium metal from our future plant.”
Are there any plans to develop raw material sourcing and/or magnesium processing in the United States?
“We will only be producing and manufacturing in the United States, which is particularly exciting. We feel that we must address concerns and needs with the American industry first before we can entertain reaching out globally and selling our “green” pure magnesium to other countries. At this time, we will only be manufacturing and producing magnesium for the U.S. industry.”
President Biden has begun an initiative to develop a market for essential minerals in the US including magnesium. How do you think that will impact your company?
“Anytime that government is involved in the process of protecting an industry within the United States for U.S. industry is good for any industry, especially ours. The magnesium industry in the United States has been dormant since 1997 so the government assisting in the buildout of these plants across the United States is vital. We welcome and encourage the government to participate in protecting a much-needed resource in the United States for U.S. industry.”
How will you finance your operations, exclusive of CAPEX, through the rest of 2022?
“We are working with institutional investors at this time; however, we believe that most of the funds needed to build our plant operations in the United States will come from project financing. Once the metal is produced on a commercialized basis in our plant by the end of May, we will be able to begin discussions with different industries such as auto and aerospace as to their needs requirements and get into agreements to supply them with magnesium metal and based on this agreement we project that we will be project financing much of the plant buildout.”
Can you tell our readers when they can expect your earnings report for your Q2 ended April 30, 2022?
“Our earnings report will be filed in the coming weeks.”
Would you describe your vision of growth for your company both in the near term and long term?
“Near-term growth is based strictly on the massive demand in the United States by the U.S. industry for magnesium metal and those take form in two ways; the aluminum and titanium industries desperately need “green” magnesium to produce their products in the United States, so that is one short-term demand that we are going to be addressing. The other short-term demand is industries such as auto and aerospace are desperate to make their vehicles, trains, planes, and equipment out of lighter weight materials to meet EPA regulatory challenges that are coming, and we feel the demand is significant enough for us to focus on production for U.S. industry. Long-term plans will continue to build out the magnesium industry within the United States and when we are comfortable enough that we have addressed that demand, then we can focus on long-term global production.”
Can you tell our readers why you think an investment in your company is a good idea?
“There are several reasons why this is an exciting and unique time to invest in our corporation. It’s an investment in new technology that has never been built before and the opportunity to be part of an industrial revolution that addresses several issues; Western Magnesium is answering the call to broken supply chains and globalization around the world and we can bring back production resource and manufacturing within our borders and not be beholden to other nations. In addition, a lot of shareholders are very interested in investing in clean and “green” technology and our company will allow us to manufacture and produce magnesium metal in a “green” manner which no other magnesium company in the world can do so. So, if you’re investing and you want to invest in “green” technology, now is the time as we are a “green” company and we’re producing clean “green” magnesium. Additionally, your investment today in our company is also an investment in supporting the American workforce, you could be building and creating a renaissance in American manufacturing that will offer job security with long-term, significant high paying jobs.”
Mark Roberts: Thank you for your time Sam.
The Traders News Group
About Western Magnesium
Western Magnesium’s goal is to be a low-cost producer of green, primary magnesium metal, a strategic commodity prized for its strength and light weight. Unlike outdated, costly, and highly polluting production processes, Western Magnesium intends to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly.
Media Relations & Corporate Communications: Ashleigh Barry | abarry@westmagcorp.com | (202) 258-4453
***The owners and operators of this website have NOT been compensated in any way for conducting or distributing this interview. Furthermore, we do not hold any form of equity in the publicly traded company/companies mentioned above***
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