Metro Mining Limited · ASX:MMI
Metro Mining — Shareholder Meeting (May 2022)
14 slides from Metro Mining's shareholder meeting presentation, May 31, 2022
Slide 1: AGM Presentation
AGM Presentation Simon Wensley 31 May 2022
Slide 2: Competent Person's Statement
COMPETENT PERSON’S STATEMENT Any information in this report that relates to the Bauxite Hills Mine Mineral Resource is based on information compiled by Ed Radley who is a consultant to Metro Mining and a Member of the Australian Institute of Mining and Metallurgy (MAusIMM). Mr Ed Radley has sufficie
Slide 3: Metro Mining: Recovery to Resilience
Metro Mining: Recovery to Resilience STRATEGY: Execute urgent recovery building blocks in 2021 ❖ 2021 Strong headwinds: Poor financial outcomes Floating ❖ COVID-19 driven market weakness Crane ❖ Bulk freight rates rise dramatically ✓ New Floating Crane: Rapid execution of Capesize trans-shipping int
Slide 4: Metro Mining: Recovery to Resilience
Metro Mining: Recovery to Resilience STRATEGY: De-risk 4 Million WMT/annum scale and then deliver in 2022 ✓ New Board & Management: Strong bauxite/bulk commodity expertise: Sales, operations, finance, logistics, contracts ✓ ex- Rio Tinto, Glencore, McMahon Contracting, Armour Energy, Cokal ✓ Floatin
Slide 5: Market Update- Tight Bauxite Market, Sales Firm
Market Update- Tight Bauxite Market, Sales Firm STRATEGY: Balance sales security with contract structure and tenor to optimize risk and price ✓ Record bauxite imports: March (11.7 Mt), April (11.1 Mt) ✓ New Chinese refineries commissioned ✓ Domestic bauxite & transport impacted by COVID ✓ Indonesia
Slide 6: Crane Update: TSA Skardon at target capacity
Crane Update: TSA Skardon at target capacity STRATEGY: transform 4 Mt delivered cost base; exploit geographical advantage over West Africa ✓ Low risk design: Damen (NL) barge with Liebherr 35t Crane option studied in 2019 expansion BFS- rapidly procured and commissioned October 2021 ✓ Perfect for cu
Slide 7: Operational Update: Recovering from slow start
Operational Update: Recovering from slow start STRATEGY: Address maintenance debt, drive productivity, increase reliability ✓ Operations ramping up: After “Late Wet” season in North Queensland ❖ Pit access and product handling impacted by wet ore ✓ All pits now open and rates improving to plan in Ma
Slide 8: Expansion DFS refresh completes June 2022
Expansion DFS refresh completes June 2022 STRATEGY: Use current floating crane to pivot to rapid, lower capex, lower risk expansion option 3 to 4 Mt/a scale 2 options 4 to 6+ Mt/a scale Both studied to DFS level 2023 2 x Floating Crane Capesize Vessel (180 kt) Capex ~A$ 25 M* Q3 2021 Current 2022 Se
Slide 9: Site Expansion Upgrade- Staged, low capex
Site Expansion Upgrade- Staged, low capex Phase 1: 5 Mt/a - Screen / belt realignment x 2 - Conveyor speed up x 4 - Oversize crush automation Phase 2: 6+ Mt/a - Additional screen & conveyors
Slide 10: Expansion Economics are Compelling
Expansion Economics are Compelling STRATEGY: 4 Mt/a now a resilient scale for Metro. Outsized returns available at 6 Mt/a scale 2.8Mt 4.0Mt 5.0Mt 6.0Mt Site Unit Costs FY 2021 FY 2022 FY 2023 FY 2024 Revenue Range 1 AUD/wmt 4 Royalties1 AUD/wmt 30 5 6 15 6 2 Ocean Freight AUD/wmt 13 12 26 22 18 16 S
Slide 11: Lowest Global Delivered Cash Cost Positioning
Lowest Global Delivered Cash Cost Positioning STRATEGY: Become worlds lowest cost global quality bauxite supplier into China Independent consultant, CM Group, places Metro, at 6 Mt/a scale, as No 1 on the 2026 delivered China seaborne cost curve 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 20
Slide 12: Metro significant contributor to Cape York
Metro significant contributor to Cape York STRATEGY: A respectful, sustainable and valued member of the Cape York Community ✓ Prioritize and Grow Indigenous Engagement and benefits ✓ 30% of Metro’s workforce are of Indigenous heritage from Far North QLD region ✓ $2.9 M2 in benefits to indigenous par
Slide 13: Metro Investment Thesis
Metro Investment Thesis High quality operating mine with post COVID recovery underway and pathway to growth ✓ 100 Mt reserve, 17-year life bauxite mine. World class Weipa bauxite province. Current capacity ~4 Mt pa ✓ Expansion to ~6 Mt/a when additional offtake locked in, projected costs to market l
Slide 14: Explore | Define | Mine
Explore | Define | Mine For Further Information Contact: Simon Wensley CEO & MD | Peter Harding-Smith Co.Sec Ph: +61 (0) 7 3009 8000 | L2, 247 Adelaide St, Brisbane Postal Address: GPO Box 10955, Brisbane Q 4000