Slide 1: Equity Raising Investor Presentation
For personal use only Equity Raising Investor Presentation 24 February 2017
Slide 2: Important Information
Important Information No reliance Competent Person Statement For personal use only To the maximum extent permitted by law, the information contained in this presentation is given without any The information in this presentation that relates to Gulf ’s Ore Reserves is based on information compiled by
Slide 3: Executive Summary
Executive Summary For personal use only Metro is undertaking an equity raising of up to approximately $52 million Institutional placement to raise up to $15.9 million Underwritten 1 for 2 pro-rata non-renounceable entitlement offer to raise approximately $36.5 million Proceeds from equity rais
Slide 4: Equity Raising Overview
Equity Raising Overview For personal use only Equity Raising to raise approximately $52.4 million, comprising: Institutional Placement to raise between $12.8 million and $15.9 million1 (Institutional Placement); and Offer Structure & Size 1:2 non-renounceable entitlements offer to raise approx
Slide 5: Timetable
Timetable For personal use only Event Time/Date1 Trading Halt and Announcement of Equity Raising Pre-open, Friday, 24 February 2017 Institutional Placement Opens 10 am, Friday, 24 February 2017 Institutional Placement Closes 6.00pm, Friday, 24 February 2017 Announcement of Institutional Placement Ou
Slide 6: Sources & Uses to Decision to Mine
Sources & Uses to Decision to Mine For personal use only The equity raising, combined with existing cash and new loan facility will enable Metro to maintain its development momentum through to a decision to mine and enable repayment of bridge facilities related to Gulf acquisition Sources1 Amount Us
Slide 7: Market Metrics & Balance Sheet
Market Metrics & Balance Sheet For personal use only Metro balance sheet will be significantly strengthened with ~$19 million in cash post equity raising Key Information Pre Equity Raising Post Equity Raising3 Share Price (23-Feb-17) $0.155 n/a Shares outstanding 584.7m 1,004.0m4 Unquoted options 7.
Slide 8: Metro Overview
For personal use only Metro Overview
Slide 9: 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 10: 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% 10 *For furthe
Slide 11: 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 12: 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 12
Slide 13: 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 14: 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 15: 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 in March 2017 Previous Metro Production Scenario (PFS)* Potential Change Mine 49.1Mt ~100% Inventory Annual Production 4Mtpa ~50% (Steady State) Construction 5 mont
Slide 16: Corporate Snapshot
Corporate Snapshot Capital Structure (Pre Equity Raising) Shareholders (Pre Equity Raising) For personal use only Greenstone Share Price (23-Feb-17) $0.155 20% Shares on Issue 584.7m Other Balanced 46% Property Market Cap $90.6m 12% Options 7.5m Dadi Cash (22-Feb-17) $7.2m 11% Xinfa Joyday Unsecured
Slide 17: Proven Team to Deliver
Proven Team to Deliver Metro’s board & management team have been involved in For personal use only successfully developing and operating over 30 mines globally Key Team Simon Finnis MD & CEO Joined Metro as CEO in early 2015 Mining executive with +30 years experience Former CEO of Grande Côte
Slide 18: Strong China Demand Fundamentals
Strong China Demand Fundamentals Seaborne bauxite is a growing component in China’s aluminium For personal use only production due to declining domestic reserves (<10 years) and growth in coastal refining & smelting China Aluminium Demand by Bauxite Source1 50 Domestic Bauxite Seaborne Bauxite Impor
Slide 19: Bauxite Price Outlook Remains Attractive
Bauxite Price Outlook Remains Attractive Bauxite price outlook remains positive with Metro’s proximity to China For personal use only a key competitive advantage Bauxite Price CIF China (US$/t, ViU unadjusted) 80 70 60 50 40 30 Relaxation of Indonesia 2014 Export Ban? “Recent feedback regarding the
Slide 20: 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 21: 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 22: 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 23: Background information on Metro
For personal use only Background information on Metro
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: Material agreements
Material agreements For personal use only Underwriting agreement Argonaut Capital Limited is the Lead Manager and Underwriter to the Entitlement Offer and has underwritten the full amount of the Entitlement Offer on the terms set out in the Underwriting Agreement. Customary with these types of arran
Slide 31: Material agreements (continued)
Material agreements (continued) Greenstone Loan Facility For personal use only In December 2016, Greenstone provided Metro a bridging facility to fund the acquisition by Metro of Gulf shares, together with repayment of outstanding Gulf loans and other costs associated with the acquisition of Gulf (G
Slide 32: Material agreements (continued)
Material agreements (continued) Royalty Agreement For personal use only On 20 May 2014, Gulf entered into a minerals royalty deed with RSI (QLD Bauxite) Pty Ltd (RSI) (which was arranged by Royalty Stream Investments Pty Ltd (Arranger)) whereby Gulf committed to pay a royalty on bauxite and other pr
Slide 33: Risks
Risks SPECIFIC RISKS Dependence upon key personnel For personal use only Metro has a core team of executives and senior personnel, whose loss (and Metro’s failure to secure and retain additional key personnel) could influence Metro’s progress in pursuing its mine Funding development plans within the
Slide 34: Risks
Risks For personal use only Environmental regulations All phases of Metro’s operations are subject to environmental laws, regulations and approvals. GENERAL RISKS Delays in the receipt of requisite approvals, or failure to receive requisite approvals, may delay the project or adversely impact the ab
Slide 35: Foreign selling restrictions
Foreign selling restrictions For personal use only This document does not constitute an offer of new ordinary shares (New Shares) of Metro in Hong Kong any jurisdiction in which it would be unlawful. In particular, this document may not be WARNING: This document has not been, and will not be, regist
Slide 36: Foreign selling restrictions
Foreign selling restrictions For personal use only United Kingdom Kenya Neither the information in this document nor any other document relating to the offer has The offer of New Shares will not be marketed as a public offer to the general public in Kenya been delivered for approval to the Financial
Slide 37: Metro Mining Limited
METRO MINING LIMITED .