Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (January 2017)
25 slides from Metro Mining's investor presentation, Jan 31, 2017
Slide 1: Investor Presentation
For personal use only Investor Presentation 31 January 2017
Slide 2: Metro Highlights
Metro Highlights Simple project, attractive fundamentals, proven team, near term For personal use only production and compelling economics 1 Transformational acquisition of project neighbour Gulf completed December 2016 2 Bauxite fundamentals & price outlook remain strong driven by growing China s
Slide 3: Gulf Acquisition Completed
Gulf Acquisition Completed For personal use only Logical consolidation creating globally significant reserve base Project Locations JORC Reserves (Mt)* 48 97 48 Metro Gulf Combined Bauxite Hills Project Skardon River Project Bauxite Hills Mine THA 38.4% 40.4% 39.4% RxSi 6.4% 6.3% 6.3% 3 *For further
Slide 4: Transformational Combination Benefits
Transformational Combination Benefits For personal use only Combined project has significant synergies Key Project Attributes Metro Gulf Combined Bauxite Hills Project Skardon River Project Bauxite Hills Mine Native Title & Land Access Existing Infrastructure - Environmental Approval Pendi
Slide 5: Valuable Infrastructure Secured
Valuable Infrastructure Secured For personal use only New access to existing infrastructure provides valuable advantages Port & Load Out Area Airstrip Camp Site Airstrip 5
Slide 6: Enhanced Operational Simplicity
Enhanced Operational Simplicity Operations have been further simplified with flexibility gained – no For personal use only tenement offset mining boundaries and single mine fleet Mining clear vegetation & remove overburden return overburden & replace topsoil - then revegetate strip mine bauxite Over
Slide 7: Excellent Economics
Excellent Economics Excellent economics previously confirmed by robust PFS for For personal use only standalone Metro project PFS Highlights* Key Results* Completed by MEC Mining in January 2016 Steady State Production 4Mtpa Based on DFS for 2Mtpa completed in November 2015 LOM Production 49.1Mt
Slide 8: Pending BFS to Confirm Synergies
Pending BFS to Confirm Synergies Enhanced scale & infrastructure benefits expected in pending BFS to For personal use only be finalised by March 2017 Previous Metro Production Scenario (PFS)* Potential Change Mine 49.1Mt ~100% Inventory Annual Production 4Mtpa ~50% (Steady State) Construction 5 mont
Slide 9: Corporate Snapshot
Corporate Snapshot Capital Structure Shareholders For personal use only Greenstone 20% Share Price (30-Jan-17) $0.165 Shares on Issue 584.7m Other Balanced 46% Property Market Cap $96.5m 12% Options 7.5m Dadi Cash (31-Dec-16) $11.5m 11% Xinfa Joyday Unsecured Debt (31-Dec-16)1 $48.9m 4% 8% Broker Co
Slide 10: Proven Team to Deliver
Proven Team to Deliver Metro’s board & management team have successfully developed For personal use only and operated over 30 mines globally Key Team Simon Finnis MD & CEO Joined Metro as CEO in early 2015 Mining executive with +30 years experience Former CEO of Grande Côte Minerals Sands oper
Slide 11: Strong China Demand Fundamentals
Strong China Demand Fundamentals Seaborne bauxite is a growing component in China’s aluminium For personal use only production due to declining domestic reserves (<10 years) and growth in coastal refining & smelting China Aluminium Demand by Bauxite Source* 50 Domestic Bauxite Imported Bauxite & Alu
Slide 12: Bauxite Price Outlook Remains Attractive
Bauxite Price Outlook Remains Attractive Bauxite price outlook remains positive with Metro’s proximity to China For personal use only a key competitive advantage Bauxite Price CIF China (US$/t, ViU unadjusted) 80 70 60 50 40 30 Relaxation of Indonesia 2014 Export Ban? “Recent feedback regarding the
Slide 13: Xinfa Off-take
Xinfa Off-take Off-take secured with China’s second largest bauxite importer with For personal use only attractive market linked pricing Xinfa Overview Key Off-take Terms History Founded in 1972 Term 4 years Company Total Private, integrated aluminium company 7Mt Type Tonnage Operating Refining & sm
Slide 14: Near Term Production Pathway
Near Term Production Pathway Well established pathway - no red flags - significant interest from debt For personal use only financiers - 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 JORC Resource Upgrade JORC R
Slide 15: Summary
Summary For personal use only Metro is set for significant value realisation 1 Gulf acquisition transformational 2 Development plan being accelerated and optimised 3 BFS to reflect scale and infrastructure benefits and should be finalised end of February 4 Clear pathway to production 5 Con
Slide 16: Additional Slides
For personal use only Additional Slides
Slide 17: Board of Directors
Board of Directors For personal use only Stephen Everett Chemical engineer with over 40 years experience in the resources and construction industries both in Australia and overseas Chairman Formerly Chairman of BeMaX, Australian Solomons Gold, JMS Civil & Mining and Iron Ridge Resources Simon Fi
Slide 18: Alumina Index Pricing
Alumina Index Pricing Alumina price has been relatively stable with Xinfa off-take pricing For personal use only providing Metro attractive margins and upside Asianmetal 98.5% Alumina Index China RMB/t (March 2007 to Present) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Mar-07 Mar-08
Slide 19: Transhipment Overview
Transhipment Overview Barging and transhipment is well understood and is to be provided by For personal use only a proven operator in TSA Barge Loading Facility (BLF) Suitable water at low tide at Skardon River Port Tugs & ‘Dumb’ Barges Barge capacity of 2,500t - 3,800t depending on tide Key Points
Slide 20: Metro Standalone PFS – Key Outcomes
Metro Standalone PFS – Key Outcomes For personal use only Key Assumptions* Key Results* Annual Production Rate NPV (10% DR, Real, after tax) A$582m 4.0Mt* (Steady State) LOM Production 49.1Mt* NPV (15% DR, Real, after tax) A$440m IRR 156% Mine Life 13 years* Payback Period 1.2 years* Bauxite Price (
Slide 21: Metro Standalone PFS – CAPEX & OPEX
Metro Standalone PFS – CAPEX & OPEX For personal use only Capex* Opex* Haul roads and site Mining, haulage and operation A$3.03m A$6.27/t establishment of BLF Navigational aids and cyclone A$1.15m Transhipment activities A$8.40/t moorings Site Infrastructure including BLF A$27.63m Site and administr
Slide 22: Reserves & Resources
Reserves & Resources For personal use only Bauxite Hills DSO Bauxite Reserves & Resources* (Metro) DSO2 DSO Bauxite Qualities (Dry Basis) 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
Slide 23: Overview of Loan Agreements
Overview of Loan Agreements For personal use only Bafflebox Loan Facility In September 2016, the Bafflebox Mining Trust, an entity associated with Balanced Property, agreed to loan Metro $8.5 million to fund the acquisition by Metro of Gulf Shares and to use any additional funds not used for that pu
Slide 24: Disclaimer
Disclaimer For personal use only Forward Looking Statement: Statements and material contained in this ASX Release, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of Metro Mining Limited, industry growth
Slide 25: For personal use only
METRO MINING LIMITED .