Latrobe Magnesium Appoints Robert Stein as CEO as Founder David Paterson Retires After 20 Years

David Paterson’s Two-Decade Leadership and Transition to Consultancy

David Paterson, Founder, Director, and CEO of Latrobe Magnesium, will retire on 30 September 2026 after nearly 20 years of service. The Board expressed deep appreciation for Paterson’s dedication in bringing the company’s proprietary Hydromet process—a patented, world-first magnesium extraction technology—to operational status. The Board noted that the Hydromet process’s successful production of Magnesium Oxide was achieved through Paterson’s leadership throughout development.

Following his retirement, Paterson will continue supporting Latrobe Magnesium as a consultant, a move accepted by the Board to ensure continuity and leverage his extensive knowledge of company operations and technology. This structured transition period allows for effective knowledge transfer and stability as the company advances toward full Demonstration Plant commissioning and broader commercial operations.

Robert Stein’s Expertise and Resources Industry Background

Robert Stein holds a Bachelor of Science in Chemical Engineering and an MBA from Melbourne Business School. He brings 20 years of diverse experience in technical, financial, and commercial roles within the resources sector, spanning ferrous, base, and critical minerals. Stein’s background equips him to lead Latrobe Magnesium’s focus on magnesium extraction and production, a critical mineral vital to automotive, aerospace, medical, and electronics industries. His combined engineering and commercial skills address both innovative mineral processing operations and market development.

Before joining Latrobe Magnesium, Stein held key positions at major companies. At BHP, he contributed nearly a decade to portfolio strategy and capital allocation initiatives, gaining insight into investment evaluation at large mining groups. At MMG Limited, he led group strategy, planning, and evaluation functions at a managerial level. Most recently, as Head of Macquarie Group’s Resources Research, he covered the Australian mining and metals sector, providing valuable investor perspectives on capital allocation to growth-focused resources companies. This experience is expected to aid Latrobe Magnesium’s capital allocation for its Commercial Plant and International Mega Plant projects.

Employment Terms and Incentives for Robert Stein

In accordance with ASX Listing Rule 3.16.4, Stein’s employment contract includes a fixed annual salary of $535,392 plus superannuation. The package features both short-term and long-term incentives aligned with company goals. The short-term incentive offers up to 30% of base salary annually, payable in cash or shares at Stein’s discretion, contingent on Board-agreed Key Performance Indicators.

The long-term incentive plan includes multiple components rewarding milestone achievements and sustained performance. Stein is eligible for up to 30% of base salary cumulatively through the Employee Share Incentive Scheme, with long-term KPIs to be set in FY29. Additionally, he will receive 100 million milestone-gated options issued in five tranches upon meeting agreed milestones, plus milestone-gated shares worth $250,000 in four tranches. The agreement is ongoing with a six-month notice period and includes a 12-month post-employment restraint clause.

Appointment of Peter Mizera to Lead Construction Oversight

Peter Mizera has been appointed independent Chairman of the Board’s Construction and Completions Committee, tasked with monitoring and advising on capital works delivery through construction, development, and completion stages. This role is critical as the company aims to complete its Demonstration Plant in the second half of 2026 and advance its Commercial and International Mega Plant projects. Mizera brings extensive experience delivering major resource plants on time and within budget, gained from senior roles at Newcrest Mining and MMG Limited.

His expertise positions him to effectively oversee Latrobe Magnesium’s capital projects. The appointment underscores the Board’s commitment to disciplined execution as the company moves toward commercial-scale magnesium production of 10,000 tonnes per annum in Victoria and 100,000 tonnes per annum at its planned Malaysian facility.

Progress and Commissioning Timeline for Demonstration Plant

Latrobe Magnesium is advancing magnesium production in Victoria’s Latrobe Valley using its patented Hydromet extraction process. The Demonstration Plant has completed its first half, producing sustained magnesium oxide and other saleable by-products. Full commissioning is anticipated in the second half of 2026, marking a key milestone validating the company’s technology and production at demonstration scale. This progress will support operational data collection and inform financing and development of larger commercial operations.

The company utilizes industrial ash, a waste product from brown coal power generation in the Latrobe Valley, as feedstock. This sustainable approach recycles power plant waste, reduces landfill disposal, and supports a circular economy. The plant’s location benefits from proximity to feedstock, infrastructure, and skilled labor, offering operational and cost advantages for commercial-scale production.

Commercial Plant Plans and Market Distribution Strategy

Following the Demonstration Plant, Latrobe Magnesium plans a Commercial Plant in Victoria with a 10,000 tonnes per annum magnesium metal capacity. The company’s market strategy includes long-term sales agreements with U.S.-based distributors, establishing defined channels for refined magnesium metal. Magnesium’s superior strength-to-weight ratio drives growing demand in automotive, aerospace, medical, and electronics sectors, supporting sustained product demand.

The Commercial Plant’s siting within the Latrobe Valley coal power precinct leverages feedstock availability and operational efficiencies. This location capitalizes on existing infrastructure, workforce skills, and continuous feedstock supply from brown coal power generation. Targeting U.S. markets aligns with major magnesium end-users and established distribution networks serving automotive, aerospace, and defense industries requiring certified magnesium supplies.

International Expansion via Malaysian Mega Plant

Latrobe Magnesium is developing an International Mega Plant in Sarawak, Malaysia, through its wholly owned subsidiary Latrobe Magnesium Sarawak Sdn Bhd. This facility aims to produce 100,000 tonnes per annum of magnesium metal, significantly larger than the Victorian Commercial Plant. The Malaysian project reflects the company’s strategy to scale production to meet global magnesium demand across automotive, aerospace, medical, and electronics sectors. The location offers access to alternative feedstock sources, with the first phase of a pre-feasibility study (PFS-A) completed using Ferronickel Slag feedstock.

This geographic diversification complements Victorian operations and addresses varied regional markets and feedstock inputs. Stein’s expertise in capital allocation and investment assessment is expected to support advancing the Malaysian project through pre-feasibility and feasibility stages toward financing and development decisions.

Environmental and Sustainability Focus in Magnesium Production

Latrobe Magnesium prioritizes Environmental, Social, and Governance (ESG) best practices by recycling power plant waste tailings that would otherwise be landfilled, promoting circular economy principles. Its low carbon dioxide emission process addresses environmental concerns relevant to global supply chains focused on decarbonization. These ESG strengths enhance the company’s appeal to automotive, aerospace, and defense customers with stringent environmental and sustainability standards.

The circular economy model converts power generation waste into refined magnesium products, improving resource efficiency and environmental stewardship. As automotive manufacturers increase magnesium use to reduce vehicle weight and improve fuel efficiency, alongside growing aerospace and defense demand for lightweight materials, Latrobe Magnesium’s ESG positioning offers competitive advantages. Its low-carbon production aligns with multinational manufacturers’ supply chain decarbonization goals, supporting long-term supply contract opportunities.

Strategic Leadership Transition and Investor Implications

The transition from David Paterson to Robert Stein, along with Peter Mizera’s appointment to oversee construction, marks a strategic evolution as Latrobe Magnesium moves from development to commercial production. Paterson’s 20-year tenure established the Hydromet technology and operational validation through Demonstration Plant production. Stein’s experience with capital-intensive resource companies and investment analysis equips him to lead scaling efforts and capital market engagement.

The timing aligns with the Demonstration Plant’s full commissioning in late 2026. Stein’s October start follows Paterson’s retirement, positioning him to guide Demonstration Plant operations, Commercial Plant development, and Malaysian Mega Plant progression. Mizera’s role ensures accountability for capital works delivery across multiple projects. Investors will likely monitor the effectiveness of this leadership transition in driving the company’s growth strategy execution.