Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (May 2017)
27 slides from Metro Mining's investor presentation, May 10, 2017
Slide 1: Investor Presentation
Investor Presentation May 2017 1 ASX:MMI
Slide 2: Executive Summary
Executive Summary Positive Fundamentals, Simple & Compelling Project, Proven Team, Near Term Production & Excellent Investment 1 Bauxite fundamentals & strong price outlook given rising China seaborne demand 2 Simple DSO project well located in Cape York with low operating and logistics costs 3 Comp
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure Share Register Share Price (04-May -17) $0.13 Shares on Issue 1,004.0m Greenstone 20% Market Cap $130M Other Shareholders 41% Options Unlisted 7.5m Balanced Property 20% Cash (18-April-17) $21.5M Unsecured Debt (18-April-17) $15.0M 11% 8% Enterprise Value $124M A
Slide 4: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Location Key Statistics Ownership: Metro (100%) Location: Cape York, Qld Project Overview Commodity Bauxite Product Type DSO Mine Type Surface mining Contained mineral: • Reserves 92.2Mt* • Resources 144.8Mt* Status BFS completed Construction H2 2017 First Production Apri
Slide 5: Simple DSO Project
Simple DSO Project Operational simplicity and specialist mining and transhipment contractors enables easy to manage operations Proven, well known operator TSA to be transhipment contractor and will supply all vessels Mining Clear vegetation & remove overburden Return overburden & replace topsoil
Slide 6: World Class Bauxite Jurisdiction
World Class Bauxite Jurisdiction Located in the world class Weipa bauxite region of western Cape York, Qld 90km north of Rio’s Weipa mine and approx 130km from Rio’s Amrun development Weipa bauxite brand well established and highly regarded in China BHM Weipa Amrun Aurukun Cairns Townsville ~1
Slide 7: Low Logistics Costs
Low Logistics Costs Metro’s low cost logistics are a sustainable cost advantage to China relative to competing bauxite producers 7 ASX : MMI | Investor Presentation | May 2017
Slide 8: Existing Infrastructure Benefit
Existing Infrastructure Benefit Existing infrastructure provides numerous development advantages Port & Load Out Area Camp Site Airstrip 8 ASX : MMI | Investor Presentation | May 2017
Slide 9: BFS Summary
BFS Summary Bankable Feasibility Study Highlights* Completed by MEC Mining in March 2017 6Mtpa steady state (initial 2Mtpa)** Contract mining and transhipment 8 months per year dry season operation (April to November) 5 month construction period Key Results and Assumptions Description Resu
Slide 10: Strong Cost Curve Positioning
Strong Cost Curve Positioning 2nd quartile cost curve positioning provides attractive long term competitive advantage China Seaborne Bauxite Supply Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile 70.0 60.0 50.0 40.0 US$/DMT 30.0 20.0 10.0 0
Slide 11: Near Term Production Pathway
Near Term Production Pathway Well Established Pathway Early works now underway No Red Flags Production On Track For H1 2018 2014 2015 2016 2017 2018 Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Project Acquisition DFS for 2Mtpa Off-Take Agreement Native Title Agreement Metro Transhi
Slide 12: Off-take Secured & Attractive
Off-take Secured & Attractive* Foundation off-take secured with Xinfa, China’s second largest private bauxite importer Xinfa off-take covers ~50% of production for first 4 years and has attractive market linked pricing Strong off-take interest from traders and end users, within and outside of
Slide 13: Proven Management Team
Proven Management Team Metro’s Board & management have collectively been involved in the development and operation of over 30 mines globally Significant bauxite knowledge and expertise, focused on Cape York bauxite operations and product marketing into China Strategy is to develop and operate
Slide 14: Significant Progress Since BFS
Significant Progress Since BFS Project Early Works Now Underway Contracts placed for fabrication of piles and associated steel works, and camp Detailed engineering and design contracts awarded for conveyor and barge load out facility Firm bids received for electrical and marine installation Costs to
Slide 15: Native Title & Land Access
Native Title & Land Access Positive & Supportive Relationships with Local Community Native Title & Land Access Agreement reached jointly with: Key Features of the Agreement include: Ankamuthi People, the traditional owners; and Cultural Heritage Management Plan Old Mapoon Aboriginal Corporatio
Slide 16: Key Structural Change in China
Key Structural Change in China China’s seaborne bauxite imports are forecast to grow from ~50mtpa in 2015 to ~150mtpa by 2030 Chinese Aluminium Production & Growing Seaborne Bauxite Demand Declining Chinese Bauxite Reserve Life Years 50.0 Imported Alumina as Bauxite Imported Bauxite 60 53 Domestic
Slide 17: Positive Bauxite Price Outlook
Positive Bauxite Price Outlook Bauxite has experienced relatively steady and positive price growth since the GFC with growing Chinese demand to support longer term price growth CM Group historic CBIX price & forecast USD$/DMT CFR 80.0 CM Group CBIX CM Group CBIX Forecast 70.0 60.0 50.0 40.0 30.0 2
Slide 18: Regional Exploration
Regional Exploration Metro’s exploration exposure covers >2,500km2 of regional tenement holdings (including Bauxite Hills) All tenements are well located on the lateritic plateaus that host bauxite mineralisation Close proximity to the coast Potential to duplicate Bauxite Hills – organic gro
Slide 19: Project Financial Metrics
Project Financial Metrics After-Tax NPV10 After-Tax IRR Initial CAPEX A$601Million 81% A$35.8Million Average Annual EBITDA A$145Million Initial LOM LOM EBITDA LOM Average on-site costs 17 Year A$2.5Billion A$16.42/t Metro Market Cap = A$130 Million 19 ASX : MMI | Investor Presentation | May 2017
Slide 20: Summary
Summary Metro is Well Positioned & Compelling 1 Strong bauxite fundamentals driven by structural change in China 2 Metro has significant advantages and is backed by leading investors 3 Compelling BFS metrics provides significant share price upside 4 Financing strategy well advanced & early works now
Slide 21: Background Slides
Background Slides 21 ASX : MMI | Investor Presentation | May 2017
Slide 22: Board of Directors
Board of Directors Stephen Everett Chemical engineer with 40+ years experience in the resources and construction industries both in Australia and overseas Chairman Formerly Chair of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining & IronRidge Resources Mining executive with +30 yea
Slide 23: BFS Capital Cost Estimates
BFS Capital Cost Estimates* Capital Cost Item Amount Capital Cost Item Amount Initial Capital Expansion Capital (in years 2 and 3) Integrated Truck dump and Site establishment and haul A$3.1M screens and upgraded haul A$13.9M roads roads Key infrastructure including BLF A$25.8M Transhipment upgrades
Slide 24: BFS Operating Cost Estimates
BFS Operating Cost Estimates* Operating Cost Item BFS LOM Average Mining, haulage and operation of BLF A$7.07/t Transhipment activities A$6.71/t Site and administrative costs A$2.65/t Total Operating Costs (ex-royalties and ocean freight) A$16.42/t Royalties A$6.57/t Ocean Freight A$11.71/t Total Op
Slide 25: Reserves & Resources
Reserves & Resources* Bauxite Hills – DSO Mineral Resource &Ore Reserve Estimates DSO Bauxite Qualities (Dry Basis) Area Category DSO2 Tonnes (Mt)1 Total Al2O3 (%) Total SiO2 BH1 & BH6 Measured Resource 54.7 50.0 11.9 BH1, BH2 & BH6 Indicated Resource 66.4 49.2 14.5 BH1 & BH6 Inferred Resource 23.7
Slide 26: Disclaimer
Disclaimer FORWARD LOOKING STATEMENT Statements and material contained in this ASX Announcement, 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 pr
Slide 27: For Further Information
For Further Information Contact: Simon Finnis – Chief Executive Officer & Managing Director Finance & Business Development – Duane Woodbury 27 Ph: +61 (0) 7 3009 8000 Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 GPO Box 10955, Brisbane Q 4000