Metro Mining Limited · ASX:MMI
Metro Mining — QEC Investor Forum May 2016
22 slides from Metro Mining's conference presentation, May 31, 2016
Slide 1: Bauxite Hills Project
For personal use only Bauxite Hills Project ASX : MMI | QEC Investor Forum| May 2016
Slide 2: Compelling Proposition
Compelling Proposition For personal use only Metro is a Rare, High Margin Investment in a Growth Sector Positive fundamentals for bauxite Simple DSO project, well located in Cape York’s world class bauxite province Low CAPEX, high margins and excellent economics Native title finalised and permitting
Slide 3: Bauxite is the Primary Ore of Aluminium
Bauxite is the Primary Ore of Aluminium For personal use only Key Ingredient for Manufacturing Aluminium 4-6 tonnes 2 tonnes 1 tonne bauxite = alumina = aluminium Key Bauxite Value Drivers Metro Mining Ltd Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Alumina 50-54 % Si
Slide 4: Location Provides Brand & Value Driver
Location Provides Brand & Value Driver For personal use only Located 95km North of Weipa with ready access via the Skardon River Weipa is a world renowned and high quality bauxite province Adjacent to historic kaolin mining operation Skardon River is an approved Queensland port Advantageous
Slide 5: China Export Advantage
China Export Advantage For personal use only Cape York Enjoys Strong Freight Advantage to China 47.3% Al2O3 2.79% Silica 46.1% Al2O3 47.6% Al2O3 3.13% Silica 2.87% Silica 48.4% Al2O3 6.51% Silica 51.5% Al2O3 / 5.45% Silica ASX : MMI | QEC Investor Forum| May 2016
Slide 6: Operational Simplicity
Operational Simplicity For personal use only Conventional Mining and Transportation Techniques clear vegetation & remove overburden return overburden & replace topsoil - then revegetate Mining strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Haul ore 5-10km t
Slide 7: Barging & Transhipment
Barging & Transhipment For personal use only Barging and transhipment well understood New barge loading facility on western side of Skardon River Adequate water at low tide & accessible from Metro’s Tow Passage & transhipment Location tenements ~10km upstream from river mouth ~2km upstream f
Slide 8: Increased Production Scenario
Increased Production Scenario For personal use only Significant Scale Benefits Confirmed by Recent PFS* Detailed PFS Completed by MEC Mining +13 Year Mine Life** • Based on DFS for 2Mtpa** 5 Month Construction Period Announced to ASX 5 November 2015 4Mtpa steady state Low CAPEX and Highly
Slide 9: Pre-Feasibility Study – Key Outcomes
Pre-Feasibility Study – Key Outcomes** For personal use only Key Assumptions Key Results Annual Production Rate (Steady State) 4.0Mt* IRR 156% LOM Production 49.1Mt* NPV (10% DR, Real, after tax) A$582m Payback Period 1.2 years* Mine Life 13 years* Total LOM Revenue A$2.9b Bauxite Price (FOB) 38.60-
Slide 10: Pre-Feasibility Study – CAPEX & OPEX
Pre-Feasibility Study – CAPEX & OPEX* For personal use only CAPEX 4Mtpa OPEX 4Mtpa Haul roads and site establishment A$3.03m Mining, haulage and operation of BLF A$6.27/t Navigational aids and cyclone moorings A$1.15m Transhipment activities A$8.40/t Site Infrastructure including BLF and Site and ad
Slide 11: Proven Team
Proven Team For personal use only Metro’s Board & Management Team have Successfully Developed and Operated over 30 Projects Globally Key Team Members Stephen Everett Chemical engineer with over 40 years experience in resources and construction Chairman Formerly Chairman of BeMaX Resources Over
Slide 12: Native Title & Land Access Finalised
Native Title & Land Access Finalised For personal use only Positive & Supportive Relationships Established with Local Community Recent Native Title & Land Access Agreement reached Key Features of the Agreement include: jointly with: Cultural Heritage Management Plan Ankamuthi People, the traditi
Slide 13: Off-Take Progress
Off-Take Progress For personal use only Product Quality Confirmed by Potential Customers with Initial Off-take MOU Secured & Discussions with other Possible Partners Progressing Off-take MOU secured with Xinfa Xinfa is one of the largest integrated aluminium companies in China MOU secured in A
Slide 14: Upcoming Milestones
Upcoming Milestones For personal use only DFS Underway and EIS Permitting Expected to be Completed Q4 2016 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EIS Approval Process Native Title & Land Access 4-5Mtpa PFS Off-Take Agreement 4-5Mtpa DFS Financing Mining Lease Grant Mine Construction Mine Producti
Slide 15: Gulf Merger Opportunity
Gulf Merger Opportunity* For personal use only Adjacent and Similar Scale Projects Provides Compelling Logic Metro & Gulf Skardon River Positioning Merger Rationale Creates leading independent Cape York bauxite company with enhanced bauxite market relevance Effectively doubled reserve base of ~9
Slide 16: Offer for Gulf
Offer for Gulf For personal use only Metro’s Offer Opened 24 December 2015 and is Progressing in Parallel with Metro Rapidly Advancing its own Project Offer Ratio Improved Conditional Offer - 3.9 Metro shares for every 1 Gulf share Ownership Outcome Under 51.9% Metro / 48.1% Gulf Offer Key Condi
Slide 17: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Capital Structure (ASX:MMI) Shareholders Share Price (26 May 2016) 7.1c Shares on Issue (13 July 2015) 420.6m Other 48% Market Cap A$29.9M Options 14.3m Cash (31 March 2016) A$4.2M Joyday 10% Debt (31 March 2016) Nil DADI 15% Enterprise Value A$25.8m Private
Slide 18: Background Slides
For personal use only Background Slides ASX : MMI | QEC Investor Forum| May 2016
Slide 19: Cape York DSO Bauxite Reserves & Resources
Cape York DSO Bauxite Reserves & Resources* For personal use only DSO Bauxite Qualities (Dry Basis) DSO2 Area Category Tonnes Total Al2O3 THA3 Total SiO2 RxSi4 (%) Mt1 % % % % Reserves (ROM @ 10% Moisture) BH1 & BH6 Proved 5 41.8 50.7 38.6 10.9 6.3 BH1 & BH6 Probable 6 6.4 49.3 36.8 13.4 6.9 Total 4
Slide 20: Board of Directors
Board of Directors For personal use only Chemical engineer with over 40 years experience in the resources and construction industries both in Stephen Everett Australia and overseas Chairman Formerly Chairman of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining and IronRidge Resources
Slide 21: Management Team
Management Team For personal use only Simon Finnis 28+ years resources industry experience working throughout Australia in underground & open cut mining operations. CEO Holds Masters in Business & Technology from University of New South Wales Joined Metro Jan 2015 having previously served as CEO
Slide 22: Disclaimer
For personal use only 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 projection