Metro Mining Limited · ASX:MMI

Metro Mining — Investor Presentation (February 2015)

16 slides from Metro Mining's investor presentation, Feb 4, 2015

  1. Slide 1: Diversified Commodities – Deliberate Focus

    For personal use only Diversified Commodities – Deliberate Focus Metro Mining Limited | ASX : MMI

  2. Slide 2: Disclaimer

    DISCLAIMER For personal use only 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 and Cape Alumina Limited, industry growth

  3. Slide 3: Recent Merger Creates Metro Mining Limited

    RECENT MERGER CREATES METRO MINING LIMITED (ASX CODE: MMI) For personal use only MetroCoal Limited, with over 4 billion tonnes* of thermal coal resources in the Surat Basin and a substantial cash holding, merged with Cape Alumina Limited which had extensive bauxite resources in Cape York. The merger

  4. Slide 4: Strategy to Deliver Shareholder Value

    STRATEGY TO DELIVER SHAREHOLDER VALUE For personal use only  Develop the Bauxite Hills Project by Q4 2016  47 million tonne inferred resource*  Direct Shipping Ore (DSO) – simplified construction and operation  Targeting for production at 2Mtpa with over 20 years – significant project  Low Capi

  5. Slide 5: Hills Project

    BAUXITE HILLS PROJECT For personal use only A 2Mtpa Project with Low Operating and Capital Costs High quality bauxite, Shallow, free- digging, Minimal overburden, Very low strip ratios, No conflicting land use, Strong local support for development, Resource suited to DSO – no beneficiation required.

  6. Slide 6: Hills – The Next Substantial Mining Operation in the Cape York Peninsula

    BAUXITE HILLS – THE NEXT SUBSTANTIAL MINING OPERATION IN THE CAPE YORK PENINSULA For personal use only  The Right Commodity  Bauxite demand expected  Preliminary discussions underway to outstrip supply due to with MMI shareholder Xinfa Group Indonesian ban on raw regarding interest in negotiating

  7. Slide 7: Chinese Aluminium Production

    CHINESE ALUMINIUM PRODUCTION ALUMINIUM PRODUCTION DRIVES BAUXITE CONSUMPTION For personal use only ALUMINIUM PRODUCTION INCREASE OF 15 MILLION TONNES REQUIRES APPROXIMATELY 75 MILLION TONNES OF BAUXITE. Source: Bauxite and Alumina Long Term Market Outlook; July 2014, CRU Source: Bauxite and Alumina

  8. Slide 8: World Bauxite Supply & Demand

    WORLD BAUXITE SUPPLY & DEMAND MORE MINING OPERATIONS NEEDED TO BRIDGE GAP For personal use only Potential Supply Shortfall Emerging from 2015 Metro Mining Limited | February 2015 8

  9. Slide 9: Volumes Imported into China

    BAUXITE VOLUMES IMPORTED INTO CHINA INDONESIA, THE LARGEST GLOBAL BAUXITE EXPORTER IMPLEMENTED AN EXPORT For personal use only BAN ON BAUXITE. THIS PRESENTS A MAJOR OPPORTUNITY FOR BAUXITE HILLS TO REPLACE A PORTION OF THIS SUPPLY. Source: ABX Quarterly Report June 2014 Metro Mining Limited | Februa

  10. Slide 10: Prices for Imported Bauxite Increasing

    PRICES FOR IMPORTED BAUXITE INCREASING For personal use only BASED ON GROWING DEMAND FROM CHINA AND LIMITED SUPPLY OPPORTUNITIES CHINESE IMPORTED BAUXITE PRICES HAVE GROWN DRAMATICALLY OVER THE PAST FIVE YEARS. Source: ABX Quarterly Report June 2014 Metro Mining Limited | February 2015 10

  11. Slide 11: Hills – The Next Substantial Mining Operation in Cape York

    BAUXITE HILLS – THE NEXT SUBSTANTIAL MINING OPERATION IN CAPE YORK For personal use only  The Right Location  Western Cape York has high- quality, export-grade bauxite with a high alumina content when compared to other Australian bauxite provinces.  China has imported over 10Mtpa of bauxite from

  12. Slide 12: Cape York Bauxite Has a Freight Advantage

    CAPE YORK BAUXITE HAS A FREIGHT ADVANTAGE  Bauxite is available from West Africa & South America however ocean For personal use only freight costs are high.  Ocean freight rates from Cape York to China are much lower. Source: Bauxite and Alumina Long Term Market Outlook; July 2014, CRU Metro Minin

  13. Slide 13: Hills Resource

    BAUXITE HILLS RESOURCE For personal use only DSO Bauxite Qualities Resource Dry In-situ DSO2 Area Category Tonnes (Mt)1 Total SiO2 (%) Total Al2O3 (%) THA3 (%) RxSi4 (%) BH1 Inferred 24.9 9 51.7 40.7 5.9 BH6 Inferred 22.1 12.2 51.2 39.3 6.7 TOTAL 47 10.5 51.5 40 6.3  1 For BH1 and BH6 the tonnages

  14. Slide 14: Mining is Shallow Open Cut

    MINING IS SHALLOW OPEN CUT TRADITIONAL EARTH MOVING EQUIPMENT For personal use only  Average bauxite thickness at Schematic Bauxite Profile at BH6 BH6 is 1.7m and the average overburden thickness is 0.5m  Average bauxite thickness at BH1 is 2.4m and the average overburden thickness is 0.4m Metro M

  15. Slide 15: Hills Proposed Development Path

    BAUXITE HILLS PROPOSED DEVELOPMENT PATH For personal use only  Environmental Approvals on-track to meet the planned schedule  Right to Negotiate Process underway with Traditional Owners  Pre-Feasibility due February 2015 (Draft – Subject to Board approvals and further development) Metro Mining Li

  16. Slide 16: The Metro Mining Investment Opportunity

    THE METRO MINING INVESTMENT OPPORTUNITY For personal use only AN OPPORTUNITY TO INVEST IN EARLY STAGE DEVELOPMENT OF A BAUXITE PROJECT  Right Commodity  Right Project  Global growth in Aluminium  Near term Production consumption  Simple DSO Project  Increased demand for Bauxite in China  Long

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