Metro Mining Limited
Bauxite Miner
MC $207.5m
SOI 1,383.4M
SP 15c
As per ASX announcement on 28 October 2019
▪ Total production for the Sept Quarter was 1,420k Wet Metric Tonnes (“WMT” with 1,415K WMT shipped;
▪ September Quarter shipments exceeded budget by 13%;
▪ Metro remains on track to meet its 2019 production and shipping guidance of 3.3-3.5M WMT;
▪ Sales Revenue (net) of A$79.5M and site EBITDA of A$22.3M was generated;
▪ Average price received of A$56.22/WMT with an average margin of A$15.77/WMT;
▪ Continued improvement in onsite operating costs were achieved during the Quarter;
▪ Metro’s available cash on hand and receivables as at 30 Sept 2019 was A$43.5M (June Qtr A$29.5M);
▪ Scheduled amortisation of the Sprott debt facility commenced in July with US$3.2M (A$4.7M) repaid during the Quarter;
▪ Subsequent to Quarter end, Metro announced results from the Definitive Feasibility Study (DFS) for Stage 2 expansion confirming the significant economic benefits of expanding to an annualised rate of 6.0M WMT by 2021.
CASH POSITION
Metro’s cash on hand and trade receivables increased during the Quarter and at 30 September 2019 was A$43.5M compared to $29.5M at the end of the June 2019 Quarter. In addition, Metro holds A$7.1M of restricted cash, comprising financial assurance bonds and other security deposits.
As per ASX announcement on 13 November 2019
Investment Rationale
Strongly Growing Market
Long Life Mine
Enduring Geographical and jurisdictional Competitive Advantage
Generating Cash
Revenue Earning
Simple Project – Low CAPEX & OPEX
Stage 2 DFS Expansion
6.0M WMT pa
Significant economic benefits confirmed
LOM unit operating costs forecast to reduce by ~18% delivered to China –margins increased
Positions Bauxite Hills in lowest quartile of global cash cost curve for bauxite producers
Significant reduction in unit operating costs delivered via Floating Terminal loading larger Ocean-Going Vessels
with 1,415K WMT shipped;
