Metro Mining Limited · ASX:MMI
Metro Mining — Proactive Investors CEO Series April 2019
18 slides from Metro Mining's conference presentation, April 2019
Slide 1: Proactive Investors CEO Series
Proactive Investors CEO Series April 2019
Slide 2: Investment Highlights
Investment Highlights 1 2018 Bauxite Production of 2.04M Wet Metric Tonnes (WMT) – Guidance met 2 Bauxite Hills Profitable – Mine EBITDA of A$8.6M in December Quarter 2018 3 Expansion nearing completion – 2019 Production Guidance of 3.5M WMT 4 Mining has recommenced – first ship booked and on schedu
Slide 3: 2018 – Year of Delivery!
2018 – Year of Delivery! Forecast: Pre - Production Delivered Production – 2018 2.0Mt 2.037Mt Production – 2019 3.0Mt 3.5Mt Sales 50% Pre-sold 2018 76% Pre-sold 2019 Customers 1 5 Chinese Bauxite Imports 82Mt 2018 ~90Mt 2019 Mine Site Cost - 2018 A$24.30/WMT A$24.30/WMT Delivering on our Promises Bu
Slide 4: Share Price & Corporate Structure
Share Price & Corporate Structure Share Price Performance Capital Structure Price ($) Volume (m) Share Price (05 April 2019) A$0.14 $0.35 Shares on Issue 1,383.4M $0.30 Market Capitalisation A$193.6M $0.25 Options Unlisted 30.1M $0.20 Cash and Receivables (31-Dec-2018) A$40.5M $0.15 Debt Facilities
Slide 5: Simple DSO Project
Simple DSO Project ◼ Operational simplicity and specialist transhipment contractor means an easy to manage operation ◼ Dry season only operations to ameliorate the risk of weather impact ◼ Site location, geological setting and layout provides low operating costs Clear vegetation & remove overburden
Slide 6: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Key Statistics Ownership: Metro (100%) Project Overview Commodity Bauxite Location: Cape York, Qld Product Type Direct Shipping Ore Contained Mineral: Reserves 92.2Mt1 Resources 144.8Mt1 Location Mining Mine Type Surface mining Status Operational Commenced Mining April 20
Slide 7: Production & Shipping Results
Production & Shipping Results ◼ 2018 Production Guidance of 2M WMT Achieved ◼ Annualised run-rate of 2.5M WMT achieved in second half 2018 ◼ Mining for 2019 has commenced – 40kt currently stockpiled at port Mined & Shipped Bauxite Mined Shipped 2018 Production Guidance Achieved ✓ 743 816 Bauxite Ton
Slide 8: Shiploading Performance
Shiploading Performance ◼ Transhipping activities performed strongly in 2018 ◼ Record monthly shipping and daily loading rates achieved in December 2018 ◼ First ship booked for 2019 – arrival 11th April Shiploading Rates NB: Average monthly rate excludes days lost due to bad weather 11,700 Average D
Slide 9: Operating Costs & Realised Prices
Operating Costs & Realised Prices ◼ Solid ramp-up margins, despite weather disruptions and lower AUD/higher bunker fuel prices that increased freight costs ◼ Site operating costs and realised prices compare favourably to BFS completed in March 2017 for same ramp-up period ◼ Significant cost reductio
Slide 10: 2019 Production Upgrade
2019 Production Upgrade ◼ 2019 production guidance upgraded from 3.0M WMT to 3.5M WMT, an increase of approximately 17% ◼ Driven by strong customer demand, with 75% of 2019 expanded production already sold ◼ Low capital cost improvements initiated to support expansion (A$6.8M in total & fully funded
Slide 11: Stage 2 Expansion Opportunity
Stage 2 Expansion Opportunity ◼ 2019 production expansion brings forward improvements and upgrades included in Stage 2 Expansion ◼ DFS for Stage 2 Expansion (6.0M WMT pa by 2021) being refreshed and on track for completion 2Q 2019 ◼ Step-changes in scale deliver opportunity to lower unit costs and g
Slide 12: Bauxite is the Primary Ore of Aluminium
Bauxite is the Primary Ore of Aluminium Key Ingredient for Manufacturing Aluminium 4-6 tonnes bauxite = 2 tonnes alumina = 1 tonne aluminium Key Bauxite Value Drivers Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Location Proximity to buyer, supply reliability and sover
Slide 13: Percentage of China Al Capacity in World Total
China vs ROW Primary Aluminium Capacity 2000–2017 (Mtpa) Source: IAI, CM Analysis 100% ROW Al Capacity(MT) World Total Al Capacity(MT) China's Al Capacity(MT) 90% 86% Percentage of China Al Capacity in World Total 84% 80% 81% 76% 74% 72% 79.4 70% 69% 70.4 75.3 62.6 67.0 63% 62% 56.5 60% 60% 59% 60%
Slide 14: Bauxite Market & Price Outlook
Bauxite Market & Price Outlook Source: CM GROUP ◼ China imports continue to increase with total 2018 imports exceeding 82M WMT ◼ Bauxite prices in an upward trend with CBIX bauxite index currently US$51 DMT (dry metric tonne) ◼ Strong demand for Metro’s bauxite from refineries located in inland Chin
Slide 15: China Demand Outlook Remains Strong
China Demand Outlook Remains Strong Source: CM Group 15 | ASX : MMI | April 2019
Slide 16: Positive Community Relationships
Positive Community Relationships ◼ Infrastructure Deed finalised and executed with Traditional Owners ◼ Relationship continues to flourish ◼ Current Indigenous employment is 37% (target 20%) 16 | ASX : MMI | April 2019
Slide 17: 2018 Delivers Strong Platform
2018 Delivers Strong Platform Metro Successfully Delivered its First Year of Production in 2018 & More is to Come ✓ Mine successfully commissioned ✓ 2018 production guidance achieved ✓ Safe and productive ✓ Strong and growing customer base ✓ 2019 production year has commenced - first ship booked for
Slide 18: 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
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