QMG buys magnesium on the spot market then melts it down and mixes it with a small amount of aluminium to form a magnesium alloy which is mainly used as you mention for automobile castings.
Their initial problem was the magnesium got to expensive for them to buy as a raw material compared with the price they were selling the alloy for.
They have been trying to go in partenrship with a magnesium supplier to reduce their raw material cost.
They are not the only producer of alloy (most now are chineese producers who seem to have a lower cost structure than QMG)
QMG alloy seems to have less imperfections than other magnesioum producers and it is certified.
Its a risky stock as you will find out by reading the auditors report in the annual report.
But then it has the potential for high reward (but too risky for me)
on the move, page-5
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