Metro Mining Limited · ASX:MMI
Metro Mining — Noosa Mining Conference 2015
20 slides from Metro Mining's conference presentation, Jul 16, 2015
Slide 1: Noosa Mining Conference July 2015
For personal use only Noosa Mining Conference July 2015 Diversified Commodities – Deliberate Focus ASX : MMI
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Capital Structure (ASX:MMI) Share Price & Volume Share Price (13 July 2015) 10.0c Shares on Issue (13 July 2015) 288.7m 0.14 2.5 Market Cap A$28.9m Options 10.7m 0.12 Cash (30 June 2015) A$3.1m 2.0 Debt (30 June 2015) Nil 0.10 Enterprise Value A$25.8m Share P
Slide 3: Metro Mining – Our Portfolio
METRO MINING – OUR PORTFOLIO For personal use only Commodities in the Portfolio include Bauxite & Coal DSO Bauxite Resources in Cape York – 53.6 Million tonnes1 (Measured Indicated & Inferred) Thermal Coal Resources in Surat Basin – 4.5 Billion tonnes2 MMI is also currently reviewing green and brown
Slide 4: MMI Current Flagship Project
For personal use only MMI Current Flagship Project Page 4 | ASX : MMI | Noosa Mining Conference| July 2015
Slide 5: 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 Clea
Slide 6: 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 7: Deliberate Focus – Bauxite
Deliberate Focus – Bauxite 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 2Mtpa** Dir
Slide 8: 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$197m Strip Ratio (waste to ore) 1:10 IRR (100% Equity) 88% Mine Life 27 year
Slide 9: Pre-Feasibility Study – CAPEX & OPEX
Pre-Feasibility Study – CAPEX & OPEX For personal use only Low CAPEX & Competitive OPEX* Capital Expenditure (A$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 10: 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 11: Price Outlook
Price Outlook For personal use only Global growth in aluminium consumption led by China is forecasted to drive bauxite prices Metro Mining’s bauxite price forecasts are based on independent research by CM Group Forecast Bauxite Prices – Real Terms 2015 80.00 Key CBIX Price – Base Case 70.00 –– C
Slide 12: Favourable Location
Favourable 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 to China A
Slide 13: Permitting
Permitting For personal use only Clear Permitting Pathway Previous mining region Outside any environmental exclusion zone Positive local community engagement and support Preferred Right to Negotiate process with Native Title owners underway and set to conclude Q3 2015 Up to 2Mtpa* project
Slide 14: Development Schedule
Right Schedule For personal use only Completed Resource Estimate: 47Mt Completed PFS Feb 2015 and Resource increased to 61.5 Mt Lodge Documents Draft EA Approval First Shipment DFS Results Fully Funded Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Definitive Feasibility Study (DFS) Environmental Approvals Financing Right
Slide 15: 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 16: 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 17: 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 18: For personal use only
For personal use only Page 18 | ASX : MMI | Noosa Mining Conference| July 2015
Slide 19: Corporate & Contact Details
CORPORATE & CONTACT DETAILS For personal use only ISSUED CAPITAL (13 July 2015) EXECUTIVE MANAGEMENT TEAM Shares issued | 2887 million Mr Simon Finnis | Chief Executive Officer Unlisted employee and Mr Scott Waddell | CFO & Company Sec Directors’ Options | 10.7 million Mr Mike O’Brien | Project Dire
Slide 20: 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