Metro Mining Limited · ASX:MMI
Metro Mining — Noosa Mining & Exploration Conference 2016
28 slides from Metro Mining's conference presentation, Jul 21, 2016
Slide 1: Bauxite Hills Project
For personal use only Bauxite Hills Project ASX : MMI | Noosa Mining & Exploration Conference| July 2016
Slide 2: Compelling Investment Proposition
Compelling Investment Proposition For personal use only Metro Provides a Compelling Investment Opportunity Positive fundamentals for bauxite Simple DSO project, well located in Cape York’s world class bauxite province Production expected Q3 2017 Low CAPEX (~A$40m), high margins, excellent economics
Slide 3: Achievements Over Past 12 Months
Achievements Over Past 12 Months For personal use only Metro has been Rapidly Advancing Bauxite Hills 8 Greenstone Financing 7 Strategic Stake in Gulf Secured 6 Native Title & Land Access Agreement Signing – January 2016 EIS Submitted 5 PFS for 4Mtpa Lead Consultant for EIS Submission – Apri
Slide 4: Strategic Financing with Greenstone Resources
Strategic Financing with Greenstone Resources For personal use only Cornerstone Equity Investment at Significant Premium to Market Specialist metals & mining private equity fund Established by former senior JP Morgan and Xstrata executives in 2013 About Significant in-house technical expertise
Slide 5: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure (Post Greenstone) Shareholders (Post Greenstone) Share Price (20 July 2016) $0.086 Greenstone 19.98% Shares on Issue 525.6m Market Cap A$45.2m Other Balanced Options 14.3m 41.1% Property 13.7% Cash (pro-forma as at 31 August 2016) A$10.0m Jo
Slide 6: Proven Team
Proven Team For personal use only Metro’s Board & Management Team save 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 7: Bauxite is the Primary Ore of Aluminium
Bauxite is the Primary Ore of Aluminium Key Ingredient for Manufacturing Aluminium For personal use only 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 8: China Seaborne Market Driving Demand
China Seaborne Market Driving Demand For personal use only Structural Change due to Coastal Refining and Declining Reserves (<10 Years) Driving Strong Chinese Demand for Imported Bauxite China Bauxite Demand (by 2015 Capacity Mtpa) China Bauxite Imports (Mt) ~7% CAGR for next 15 years 147 Inner Mong
Slide 9: Favourable Supply Dynamic
Favourable Supply Dynamic For personal use only Australia Ideally Placed To Meet Increased Chinese Demand With Proven, Well Accepted Product And Key Freight Advantage China Bauxite Imports by Country, Volume & Price Last 4 Years Indonesia Australia Jamaica India Malaysia Fiji Guyana Brazil Guinea Do
Slide 10: 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 Compact site, undemanding terrain, easy access to ocean for
Slide 11: 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 12: Transhipment Solution
Transhipment Solution For personal use only Barging and Transhipment Solution to be Provided by Proven Operator Barge Loading Facility (BLF) Adequate water at low tide & accessible from tenements Tugs & ‘Dumb’ Barges Barge capacity of 2,500t - 3,800t depending on tide Key Points TSA previously pro
Slide 13: Increased Production Scenario
Increased Production Scenario For personal use only Significant Scale Benefits Confirmed by Recent PFS Key Results** Detailed PFS completed by MEC Mining Steady State Production 4Mtpa Based on DFS for 2Mtpa* completed Nov 2015 LOM Production 49.1Mt 4Mtpa* steady state 2Mtpa* for years 1 and
Slide 14: 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 15: Strategic Stake in Gulf
Strategic Stake in Gulf For personal use only 22% Stake In Neighbour Provides Multiple Benefits Key Points Off-market takeover offer closed in June Metro now Gulf’s largest shareholder with 22% stake Gulf has similar reserves & resources to Metro and access to some legacy infrastructure associ
Slide 16: Upcoming Milestones
Upcoming Milestones For personal use only DFS and Offtake Expected Shortly with Production On Track For Q3 2017 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EIS Approval Process Native Title & Land Access 4-5Mtpa PFS EIS Submitted Off-Take 4-5Mtpa DFS Financing Mining Lease Grant Mine Construction Mine
Slide 17: Metro Share Price
Metro Share Price For personal use only Current Share Price Provides Ground-floor Entry with Significant Upside Near Term share Price Targets: $0.14 $0.26 $5.6m Equity Raising at $0.08/share $0.20 $0.12 $0.10 $8.9m Strategic Financing with Greenstone at $0.085/share Initial PFS (2Mtpa) $0.08 $0.06 M
Slide 18: Corporate & Contact Details
CORPORATE & CONTACT DETAILS For personal use only Attractive Fundamentals, High Quality Project with Proven Team focused on Delivering Shareholder Value KEY CONTACT DETAILS Simon Finnis Chief Executive Officer Metro Mining Limited Email: sfinnis@metromining.com.au Tel: +61 7 3009 8005 Mob: +61 418 6
Slide 19: Background Slides
For personal use only Background Slides ASX : MMI | Noosa Mining Conference| 21 July 2016
Slide 20: 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 Chairman Australia and overseas 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 Over 30 years experience in resources industry having working throughout Australia in underground and open cut mining operations. Holds Masters in Business & Technology from University of New South Wales Chief Executive Officer Joined Metro in J
Slide 22: Reserves & Resources
Reserves & Resources For personal use only Cape York DSO Bauxite Reserves & Resources 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 6 6.4 49.3 3
Slide 23: 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* NPV (10% DR, Real, after tax) A$582m NPV (15% DR, Real, after tax) A$440m LOM Production 49.1Mt* IRR 156% Mine Life 13 years* Payback Period 1.2 years* Bauxite Price
Slide 24: 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 25: 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 26: 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 27: China Export Advantage
China Export Advantage For personal use only Cape York Enjoys Strong Freight Advantage to China Compared to other Bauxite Regions Average Freight Rates to China ASX : MMI | Noosa Mining Conference| 21 July 2016
Slide 28: 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
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