Should I buy Latrobe Magnesium stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Latrobe Magnesium for over three years. Every month, hundreds of thousands of users in Australia trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Latrobe Magnesium.

What is Latrobe Magnesium?

What is the Latrobe Magnesium stock price?

The price of Latrobe Magnesium stock is stable this week. Currently, the share is trading at $0.008 AUD, showing no change over the last 24 hours or the past week. Latrobe Magnesium’s market capitalisation stands at $21.01 million, with a three-month average daily volume of 3.4 million shares. As the company remains pre-revenue, the P/E ratio is not applicable and no dividend yield is paid out. The stock beta is 0.42, reflecting lower volatility compared to the broader market. Investors should note, the stock reflects both the early stage and speculative growth potential of the company.

Our Full Analysis of Latrobe Magnesium Stock

Having thoroughly examined Latrobe Magnesium’s latest financial disclosures, alongside its stock trajectory over the past three years, we leveraged both our proprietary algorithms and a multi-layered analysis—integrating technical indicators, fundamental data, and peer benchmarks. This approach allows for a unique synthesis of market sentiment, operational momentum, and comparative sector analytics. So, why might Latrobe Magnesium stock once again become a strategic entry point into the critical metals and green technology sector in 2025?

Recent performance and market context

Latrobe Magnesium (ASX:LMG) has experienced a period of pronounced volatility, yet the recent stability in its share price suggests a potential bottoming process is underway. As of July 2025, the stock trades at $0.008 AUD—steady both intraday and week-over-week—reflecting a consolidation phase near its 52-week low. This level is notable: after a challenging 12 months (-81.82%), positive structural developments have begun to shift sentiment. Notably, the company has secured $6.3 million in new funding (April 2025), with substantial insider participation, underlining leadership confidence. The impending recommissioning of the Latrobe demonstration plant, combined with a recent grant of a US tariff exemption for magnesium exports, creates compelling momentum for a turnaround. Macroeconomically, Australia’s ongoing commitment to critical minerals independence and the global trend towards energy transition substantially reinforce sector attractiveness and magnify Latrobe Magnesium’s relevance.

Technical analysis

From a technical perspective, Latrobe Magnesium displays a fascinating setup for prospective investors. The current RSI (14 days) sits at 42—signalling neutrality and headroom for renewed upside. Though the MACD remains just in negative territory, it approaches a point of bullish inflection, especially as share price action stabilises at the $0.008 AUD support. All short- and mid-term moving averages (20D, 50D, 100D, 200D) remain above the current price, reflecting an oversold posture after sustained selloff; such dynamics often precede sharp reversals when supported by improving news flow. Critically, the absence of new lows and consolidation around major support levels signal that downside risk may be contained relative to prospective upside as sentiment turns. Market structure and momentum indicators thus favour a base-building environment—a condition from which significant rallies often emerge, particularly when confirmation from catalysts is near.

Fundamental analysis

Examining Latrobe Magnesium’s fundamentals, there is a clear case for optimism. While the company is still in its pre-commercialisation phase, moving towards initial commercial output in 2025/2026, recent results show critical progress. The FY24 EBITDA was positive at $0.65 million AUD, and operational cash flow exceeded $11 million AUD—a robust signal for a so-called “pre-revenue” venture. Importantly, the $21.01 million market capitalisation appears conservative in relation to management’s projected expansion, especially as the feasibility study for a full-scale 10,000-tpa magnesium plant advances.

• Pioneering proprietary technology: Extracting magnesium from fly ash marks a major sustainability advance and addresses critical-supply concerns for major industries.
• International momentum: The planned 250MW hydro-powered plant expansion in Malaysia, supported by government partnerships, dramatically expands potential scale and diversification.
• First-mover advantage: Latrobe Magnesium is uniquely positioned as one of the only listed pure-play magnesium companies with this “waste-to-value” model.
• Innovation and ESG focus: Environmental and regulatory tailwinds consistently reward early-stage, green-extractive industrial leaders.

Despite the absence of a conventional P/E or PEG ratio due to its developmental stage, enterprise value to prospective sales (EV/S) and discounted cash flow (DCF) approaches easily justify a far higher long-term intrinsic valuation, particularly as commercial ramp-up is de-risked. The reinforcement of these fundamentals by recent insider investment further cements the view that senior leadership is aligned with shareholder upside.

Volume and liquidity

Daily volume averages 3.4 million shares, testifying to reliable liquidity that facilitates efficient trade execution and price discovery. The free float—about 78% of 2.63 billion shares outstanding—remains both broad and stable, providing room for valuation to dynamically adjust as market sentiment evolves. Such consistent liquidity, even during lower price intervals, reflects a dedicated retail base and a growing pool of speculative interest. Sustained trading activity also suggests the market is closely watching for the next inflection point, which, if positive, could drive substantial repositioning by institutional and sophisticated retail investors alike.

Catalysts and positive outlook

• Demonstration plant activation: The scheduled restart by the end of May 2025 in the Latrobe Valley is a pivotal operational inflection point. Success would validate the commercial scalability of its groundbreaking finished magnesium process.
• Advancing to commercial scale: Ongoing feasibility for a 10,000-tonne-per-annum plant and Malaysian expansion reinforce the path to exponential revenue growth, positioning LMG as a central player in the Asia-Pacific magnesium supply chain.
• Favourable regulatory and market context: Securing US tariff exemption for magnesium exports directly improves project economics and broadens global market access.
• Potential asset monetisation: The slated sale of surplus land (worth up to $5 million AUD) introduces valuable non-dilutive funding flexibility.
• ESG and strategic relevance: With governments and major industries prioritising clean, circular resource initiatives, Latrobe Magnesium’s patent-protected waste valorisation solution resonates with both policy and market megatrends.

External demand for battery metals and light alloys continues undiminished; magnesium remains a critical input for automotive, aerospace, and renewables, further underpinned by Australia’s critical minerals policy framework and capital markets appetite for “green-tech” investment stories.

Investment strategies

• Short-term: Technical traders could capitalise on any spike following demonstration plant news or volume surges driven by sentiment reversals, targeting moves towards resistance at $0.012–$0.014 AUD.
• Medium-term: Investors seeking leveraged exposure to Australian magnesium, with a holding window of 6–18 months, may find the current risk/reward profile compelling. Upside is closely tied to project ramp-up progress and news on funding or strategic partners.
• Long-term: The profile fits those seeking frontier bets on value-added resource innovation, magnified by global green transition megatrends and possible entry of institutional capital post-commercial validation.

As the share price stabilises at technical lows, those positioning for either the technical reversal or continuing operating breakthroughs may see significant as-yet-unlocked upside over a multi-year time frame.

Is it the right time to buy Latrobe Magnesium?

Latrobe Magnesium’s unique combination of advances in “green” industrial innovation, the prospect of first revenue in the coming year, and robust strategic milestones create a compelling investment narrative. At today’s valuation and at a historical technical low, the stock offers a very attractive risk/reward asymmetry. The presence of serial catalysts—including ramp-up of the demonstration plant, international expansion, and material cost-saving regulatory wins—reinforce the argument for renewed interest. Additionally, consistent insider buying, unique ESG positioning, and strong sectoral and policy tailwinds further strengthen the bullish case.

While the journey to sustained profitability is ongoing, the convergence of technical stability, operational inflection, and supportive macro context support the view that Latrobe Magnesium may be entering a new bullish phase. For those seeking meaningful exposure to the critical metals and high-impact green technology themes, Latrobe Magnesium seems to represent an excellent opportunity at a particularly strategic moment.

In summary, the convergence of rising operational momentum, breakthrough technology, and technical market signals suggests that Latrobe Magnesium may be set for a new phase of value creation for investors who act with strategic conviction.

How to Buy Latrobe Magnesium Stock in Australia

Buying Latrobe Magnesium stock online is both simple and secure when using a regulated broker in Australia. Investors can usually choose between two main approaches: traditional spot buying of shares or trading contracts for difference (CFDs) to speculate on price movements. Each method has its own benefits, costs, and risk profile, giving flexibility to every investor. To help you find the right provider for your needs, a detailed broker comparison is available further down this page.

Spot buying

When you buy Latrobe Magnesium shares for cash, you directly own a portion of the company listed on the ASX. This method is straightforward, with typical fees being a fixed commission per order (around $5–$10, depending on the broker, in AUD).

Gain scenario

If the Latrobe Magnesium share price is $0.008 AUD, you can buy around 124,375 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Latrobe Magnesium’s price without owning the underlying shares. It uses leverage (typically up to 5x or more), requires a lower upfront capital, and is suited for more active traders. Fees include the spread (difference between buy/sell price) and overnight financing costs if holding leveraged positions past one day.

Example of a CFD position with leverage

You open a CFD position on Latrobe Magnesium shares, with 5x leverage. This gives you a market exposure of $5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, always compare brokers’ fees and trading conditions, which can vary widely between providers. Choosing between spot share ownership and CFDs depends on your investment goals, time horizon, and risk appetite—a comprehensive broker comparison awaits further down the page to help you make the right decision.

Our 7 tips for buying Latrobe Magnesium stock

The latest news about Latrobe Magnesium

Latrobe Magnesium shares have consolidated at 0.008 AUD, holding key 52-week support. This price stability signals the market’s confidence in the company’s outlook, despite recent sector volatility, and suggests a solid technical floor for local investors.

The demonstration plant restart remains on track, with commissioning expected to begin in the Latrobe Valley. This local milestone is critical for Australian stakeholders, as successful commissioning could mark Australia’s emergence as a key player in ethically produced magnesium.

Recent funding ensures operational continuity and strengthens cash reserves for upcoming local and offshore projects. The 6.3 million AUD capital raise, including significant executive participation, underscores confidence in the Victoria-based development pipeline and strengthens Latrobe Magnesium’s short-term liquidity.

Latrobe Magnesium has gained a U.S. tariff exemption, expanding export outlooks for Australian production. This exemption reduces barriers for local magnesium exports, increasing revenue potential and materially enhancing the company’s commercial opportunities abroad.

Technical indicators remain neutral, with no new lows and a market outlook that remains prudently optimistic. The RSI sits at 42, suggesting the stock is not oversold, while a stable MACD reflects patient, constructive positioning from both institutional and local retail investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.