Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (June 2017)
24 slides from Metro Mining's investor presentation, Jun 20, 2017
Slide 1: Investor Presentation June 2017
For personal use only Investor Presentation June 2017 1
Slide 2: Executive Summary
Executive Summary For personal use only 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
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Share Register Share Price (15 -June-17) $0.13 Greenstone Shares on Issue 1,004.0m 20% Other Shareholders Market Cap $130M 41% Options Unlisted 11.7m 20% Balanced Property Cash (18-April-17) $21.5M 11% 8% Unsecured Debt (18-April-17) $15.0M
Slide 4: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Key Statistics For personal use only Ownership: Metro (100%) Construction H2 2017 First Production April 2018 Location: Cape York, Qld Start-up ~2Mtpa** Production Commodity Bauxite Steady State Operational Overview ~6Mtpa (year 4)** Product Type DSO Production Project Ov
Slide 5: Simple DSO Project
Simple DSO Project Operational simplicity and specialist mining and transhipment contractors enables easy to manage operations For personal use only Proven, well known operator TSA to be transhipment contractor and will supply all vessels Clear vegetation & remove overburden Return overburden &
Slide 6: World Class Bauxite Jurisdiction
World Class Bauxite Jurisdiction For personal use only BHM Located in the world class Weipa bauxite region of Weipa western Cape York, Qld Amrun Aurukun 90km north of Rio’s Weipa Cairns mine and approx 130km Townsville from Rio’s Amrun development ~10-12 Days Shipping Weipa bauxite brand well
Slide 7: Low Logistics Costs
Low Logistics Costs For personal use only Metro’s low cost logistics are a sustainable cost advantage to China relative to competing bauxite producers 7 | ASX : MMI | Investor Presentation | June 2017
Slide 8: Existing Infrastructure Benefit
Existing Infrastructure Benefit For personal use only Existing infrastructure provides numerous development advantages Port & Load Out Area Camp Site Airstrip 8 | ASX : MMI | Investor Presentation | June 2017
Slide 9: BFS Summary
BFS Summary For personal use only 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 Assump
Slide 10: Strong Cost Curve Positioning
Strong Cost Curve Positioning For personal use only 2nd quartile cost curve positioning provides attractive long term competitive advantage China Seaborne Bauxite Supply Full Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile US$/DMT Source: C
Slide 11: Near Term Production Pathway
Near Term Production Pathway For personal use only 1. Well Established 2. No Red Flags 3. Early works now 4. Production On Track Pathway underway 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 Native Title
Slide 12: Off-take Secured & Attractive
Off-take Secured & Attractive* Foundation off-take secured (Xinfa), China’s 2nd largest private bauxite importer. Summary of Xinfa Off-take For personal use only Agreement covers ~50% of first 4 years production with market linked pricing. Term 4 years Lubei LOI (non-binding) for 0.5-1.0mt pa fo
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 For personal use only Significant bauxite knowledge and expertise, focused on Cape York bauxite operations and product marketing into China Strategy is t
Slide 14: Significant Progress Since BFS
Significant Progress Since BFS For personal use only 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
Slide 15: Native Title & Land Access
Native Title & Land Access Positive & Supportive Relationships with Local Community For personal use only 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
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 For personal use only Chinese Aluminium Production & Growing Seaborne Bauxite Demand Declining Chinese Bauxite Reserve Life Years 9.0 Alumina/Silica ratio 8.0 Forecast Impo
Slide 17: Regional Exploration
Regional Exploration For personal use only 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 Bauxi
Slide 18: Project Financial Metrics
Project Financial Metrics For personal use only 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 18 | ASX : MMI | Investor Pre
Slide 19: Summary
Summary For personal use only 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 adva
Slide 20: Board of Directors
Board of Directors Stephen Everett For personal use only 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 Simon Fin
Slide 21: BFS Capital Cost Estimates
BFS Capital Cost Estimates* For personal use only Capital Cost Item Amount Capital Cost Item Amount Initial Capital Expansion Capital (in years 2 & 3) Integrated Truck dump and screens Site establishment and haul roads A$3.1M A$13.9M and upgraded haul roads Key infrastructure including BLF and A$25.
Slide 22: BFS Operating Cost Estimates
BFS Operating Cost Estimates* For personal use only 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 Frei
Slide 23: Reserves & Resources
Reserves & Resources* For personal use only 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 I
Slide 24: For Further Information
For personal use only For Further Information Contact: Simon Finnis – Chief Executive Officer & Managing Director Finance & Business Development – Duane Woodbury 26 Ph: +61 (0) 7 3009 8000 Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 GPO Box 10955, Brisbane Q 4000