The Latrobe Magnesium Limited (ASX: LMG) share price is suffering on the ASX today despite the release of a seemingly positive update.
The company updated the market on the ongoing build of its Latrobe Valley Demonstration Plant this morning.
Unfortunately, the market is bidding the Latrobe Magnesium share price down following the company's announcement. Right now, its shares are swapping hands for 9.3 cents, 7% lower than their previous closing price.
Let's take a closer look at the news the up-and-coming magnesium producer provided the market today with.
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Latrobe Magnesium share price slumps
The Latrobe Magnesium share price is struggling today despite the company posting news of significant progress made on early stage works at its demonstration plant.
The plant is expected to use Latrobe Magnesium's patented process to extract and sell magnesium metal and cementitious material from industrial fly ash, a waste product from the Yallourn coal-fired power station.
The company plans to sell the refined magnesium to customers based in the United States and Japan.
At this point in time, more than 72 suppliers have registered their interest in the Latrobe Valley Demonstration Plant project.
In today's update, the company announced that work to repair fencing around the plant's site has finished.
The preliminary architectural drawings for the administration building refurbishment have also been finalised.
The company is now working to submit an application for a building permit. Additionally, it will be awarding a contract for the site's clean-up works to a local contractor shortly.
A contract for the electrical restoration work has already been issued. Mincore will be working alongside local contractors over the coming weeks to restore power to the site.
Finally, engineering is kicking off.
Process engineers are working to finalise the plant's flowsheet, heat, and mass balance, as well as to commence its piping and instrumentation diagrams.
Structural engineering is commencing steelwork for the briquette trolley support structure as well as bunker designs for char and silica products.
Meanwhile, mechanical engineering is undertaking plant layout planning and optimisation has begun.
Right now, the Latrobe Magnesium share price is 365% higher than it was at the start of 2021. It has also gained 86% over the last 30 days.
