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Latrobe Magnesium (ASX:LMG) maybe should have been a more obvious pick for traders who spent last week (and Monday) scouring for rare earths and critical minerals stocks; but for all intents and purposes, it’s emerged on Tuesday as an unexpected winner from the Trump-Albo meeting, given it too has received a letter of interest from the US Export Import Bank (EXIM).
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Magnesium, for what it’s worth, was flagged as one of the USA’s critical minerals for supply chain capacity quite a while ago by this point; Latrobe stands as Australia’s primary producer of the stuff.
So that, perhaps, isn’t too surprising – but given the market paying attention to this meeting was looking at ‘rare earths’ and not the broader basket of ‘critical minerals,’ maybe Latrobe’s exclusion from the minds of many isn’t too surprising. After all, it’s not like there’s only a small number of ASX-listed companies boasting critical mineral riches, or the potential thereof.
So what of Latrobe’s letter from EXIM? The good – which has punters excited on Tuesday – is that EXIM is willing to provide up to A$200M in funding over 15 years for Latrode to draw down, all cards in order, as it ramps up its magnesium production efforts.
The bad news is that at this point it’s only a Letter of Interest (LOI), which you could also just call a non-binding memorandum of understanding (MOU). They’ve both got the same energy.
Still, in Trumpland, things change quickly. But long-term, they tend to stick to a theme.
“We thank EXIM for supporting our project and our ability to supply magnesium to the States within the short term… we also thank the Australian Government and its Washington Embassy for the support provided during the recent Critical Minerals Delegation,” LMG MD David Paterson said.
LMG last traded at 3cps today.
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