Metro Mining – Undiscovered bauxite beauty

Metro Mining – Undiscovered bauxite beauty

CALL TO ACTION

Metro Mining ticks several boxes
for what we look for in a mining
junior;

1) exposure to positive
commodity dynamics;

2) a realistic
path to production,

3) multiples of
upside from a nominal market
value; and

4) a credible board and
management.

How to play it


We think that Metro Mining (MMI) looks cheap at an enterprise value of only A$6m versus
the potential value identified at Bauxite Hills. We anticipate the stock to re-rate via project
de-risking as permitting and project study milestones are met over the next 12 months.

Bauxite projects traditionally have high barriers to entry due to infrastructure hurdles however
Bauxite Hills looks relatively simple via its free-dig mining, handling and barging process.

Followers of the sector will have noticed the rebounding fortunes of Alumina producers such
as AWC and we take the view that it wont be long before interest in the sector filters down to
bauxite pre-development plays such as MMI.

http://www.capealumina.com.au/media/1092/ro_150224-2.pdf