Metro Mining Limited · ASX:MMI
Metro Mining — Resources Rising Stars September 2015
17 slides from Metro Mining's conference presentation, Sep 24, 2015
Slide 1: Resources Rising Stars - Bauxite Hills Project – Deliberate Focus
For personal use only Resources Rising Stars September 2015 Bauxite Hills Project – Deliberate Focus ASX : MMI
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Shareholders MMI Share Price (A$) NetWealth Investments DADI 5% 17% 0.140 Mr Gregory Other Willims 0.120 47% 6% 0.100 Balanced Property 0.080 XINFA Group 19% 6% 0.060 0.040 Capital Structure 9 Sept 2015 0.020 Share Price 7.9c - Shares on Issue 358.5m Market C
Slide 3: Bauxite Hills Overview
Bauxite Hills Overview For personal use only Well Located in Leading Bauxite Province of Cape York, in Queensland, Australia Reserves of 48.2Mt* 50.2% total Al2O3 38.4% THA 6.4% RxSi Product quality comparable to Weipa Nearby existing infrastructure Positive community engagement * ASX
Slide 4: Simple Operation
Simple Operation Mining For personal use only clear vegetation & remove overburden return overburden & replace topsoil - then revegetate strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Transportation Haul ore 5-10km to stockpile & barge loading Barge ore 10k
Slide 5: Bauxite Hills – Ticking all the Boxes
Bauxite Hills – Ticking all the Boxes For personal use only High Margin Development Opportunity Simple Construction and operation Low CAPEX and OPEX PFS demonstrates robust economics with post-tax NPV 15% of A$197 M and 88% IRR** 27 years* mine life following recent Reserve increase Up to
Slide 6: Pre-Feasibility Study – Key Outcomes
Pre-Feasibility Study – Key Outcomes For personal use only Completed in February 2015 – Simple Operation & Robust Economics Operational Metrics Financial Metrics** (Real) Production Rate Up 2 Mtpa* DSO NPV (15%) after tax A$197m Strip Ratio (waste to ore) 1:10 IRR (100% Equity) 88% Mine Life 27 year
Slide 7: Pre-Feasibility Study – CAPEX & OPEX
Pre-Feasibility Study – CAPEX & OPEX For personal use only Low CAPEX & Competitive OPEX* Capital Expenditure (A$m) Operational Expenditure (A$/t) Mine Access (Haul Road) 2.8 Mining Cost to ROM stockpile 3.0 Mine & Barge Loading Infrastructure 10.6 Crush, Load and Barge costs 10.5 Mine Camp & Airport
Slide 8: Demand Driven Price Growth
Demand Driven Price Growth For personal use only Bauxite has experienced strong price growth in the past decade, growing at ~8% pa Price growth has been further supported by the Indonesian ban on raw material export in early 2014, resulting in demand outstripping supply $70 Average price of Chin
Slide 9: Price Outlook
Price Outlook Global growth in aluminium consumption led by China Will be updated in Definitive Feasibility Study Latest For personal use only is forecasted to drive bauxite prices CBIX update shows pricing is increasing again Metro Mining’s bauxite price forecasts are based on independent r
Slide 10: Forecast of China Bauxite Imports
Forecast of China Bauxite Imports For personal use only 120.0 China imported 22.7 Mt of bauxite in first half of 2015. 100.0 Approx 75% of imports are low temp Shanxi bauxite 80.0 Inner Mongolia Indonesian bauxite ban still in place Million Tonne Henan 60.0 Guizhou Malaysia could export up to
Slide 11: Location | Location | Location
Location| Location | Location Cape York’s high quality export grade bauxite with high alumina content and its characteristics For personal use only are well known to Chinese and other international alumina refineries Located close to international shipping routes with low relative freight costs
Slide 12: Permitting Pathway
Permitting Pathway For personal use only Continued positive local community engagement DEHP confirmed an EIS is required. The absolute cost is and support being evaluated and a 6 month delay is anticipated. Preferred Right to Negotiate process with Native Metro will now maximise the opportun
Slide 13: Right Schedule
Right Schedule For personal use only Completed Resource Estimate: 47Mt Latest DEHP advice will cause Completed PFS Feb 2015 and Resource increased to 61.5 Mt 6 month delay Lodge Documents Draft EA Approval Fully Funded First Shipment DFS Results Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Definitive Feasibility Study (
Slide 14: Product Quality & Marketing
Product Quality & Marketing For personal use only Off-take Discussions and Marketing Strategy Progressing Well Marketability study undertaken by industry consultants CM Group Bauxite Hills is product suitable for low temperature refining process used in over 80% of China’s current refining capac
Slide 15: Future Opportunities
Future Opportunities For personal use only Bauxite Tenements in Cape York 1,300sq kilometres of exploration permits in a region well known for its high-quality, export grade bauxite. Comprehensive Exploration programme planned for H2 2015 Opportunity to Increase production by replicating the Bauxite
Slide 16: Summary
Summary For personal use only Attractive Global growth in aluminium consumption Fundamentals Increasing demand for bauxite in China Strong price growth forecasted Focus on DSO quality bauxite Favourable Western Cape York is known for high-quality export grade bauxite Location Proposed
Slide 17: Disclaimer
DISCLAIMER Statements and material contained in this Presentation, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of Metro Mining Limited, industry growth or other trend projections are, or may be, forw