Slide 1: Metro Mining - Bauxite "Good as Gold"
Kes Bide a raf Bae ZA ~ Sor ere RCV wt te AH AREAL NING RERD b A A EE VA | \ IG : www LIMITED| Explore | Define | Mine ! Bauxite! “Good as Gold” For personal us Be
Slide 2: Disclaimer
For personal use only Disclaimer FORWARD LOOKING STATEMENTS: 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, industry growth or other tre
Slide 3: Investment Highlights
Investment Highlights For personal use only 1 Proven Board & management team focused on shareholder value 2 Fully financed to first production following completion of $38M equity raising 3 Simple DSO project well located in Cape York with significant competitive advantage 4 Compelling economics, hig
Slide 4: Corporate Snapshot
Corporate Snapshot Share Price For personal use only Capital Structure (Post-Equity Raising) $0.20 Share Price (24-July-17) $0.17 $0.18 Shares on Issue 1,285.5M $0.16 Market Cap $218.5M $0.14 $0.12 Options Unlisted 11.7M $0.10 Cash (30-June-2017 Post Equity) $51.4M $0.08 BUY (Jul-17) Debt Facility (
Slide 5: Recent Achievements & Value Platform
Recent Achievements & Value Platform For personal use only ▪ Metro has completed several value adding milestones in 2017 to be primed for near term production 1 4 Binding Sales Agreement ✓ ✓ Doubled reserves for 7Mt over 4 years & Developed LOI for 2.5Mt over 3 years Acquired Gulf Gained infra
Slide 6: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Location Key Statistics 1 For personal use only Ownership: Metro (100%) Project Overview Location: Cape York, Qld Commodity Bauxite Product Type Direct Shipping Ore Mine Type Surface mining Contained mineral: Reserves 92.2Mt1 Resources 144.8Mt1 Status EA Granted, ML Pendi
Slide 7: Simple DSO Project
Simple DSO Project Operational simplicity and specialist mining and transhipment contractors enables easy to manage operations Mininguse only Proven, well known operator TSA to be transhipment contractor and will supply all vessels Existing infrastructure provides numerous development advantag
Slide 8: Low Logistics Costs
Low Logistics Costs Metro’s low cost shipping is a sustainable cost advantage to China For personal use only relative to competing bauxite producers 8 | ASX : MMI | Investor Presentation | August 2017
Slide 9: Compelling Economics
Compelling Economics * For personal use only High Margin Low Capex Avg. LOM OPEX1,2 vs. Avg. LOM Price Received (CIF) CAPEX vs. Avg. LOM EBITDA ~43% margin Payback within 1.7 years $61/WMT $73m $145m Expansion $35/WMT $37m Capital Initial Capex 3 $36m Avg. Opex Price Capex Avg. LOM EBITDA *ASX R
Slide 10: Strong Cost Curve Positioning
Strong Cost Curve Positioning For personal use only 2nd quartile cost curve positioning provides attractive long term competitive advantage China Seaborne Bauxite Supply Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile US$/DMT Source: CM Gro
Slide 11: Early Construction Underway
Early Construction Underway For personal use only Bauxite Hills Village Barge Load-Out Facility Civil Works Mining Works New camp under TSA appointed marine SAB Mining awarded SAB Mining preferred construction infrastructure manager contract including contractor haul roads Installation pla
Slide 12: Rapid Pathway to Production
Rapid Pathway to Production For personal use only 9 months to Production (estimate) Early works underway with first 2017 2018 production scheduled April 2018 May June July Aug Sept Oct Nov Dec Jan Feb Mar April Financing Piles & Steel Fabrication Camp Refurbishment Tug & Barge Mobilisation Civil Wor
Slide 13: Bauxite is the Primary Ore of Aluminium
Bauxite is the Primary Ore of Aluminium Key Ingredient for Manufacturing Aluminium For personal use only 4-6 tonnes bauxite = 2 tonnes alumina = 1 tonne aluminium Key Bauxite Value Drivers Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Location Proximity to buyer, supply
Slide 14: Structural Change in China
Structural Change in China For personal use only China’s seaborne bauxite imports are forecast to grow from Declining Chinese Bauxite Reserve Life Years 60 ~50mtpa in 2015 to ~150mtpa by 2030 53 50 Chinese Aluminium Production & Growing Seaborne Bauxite Demand 40 50.0 Imported Alumina as Bauxite Imp
Slide 15: Positive Bauxite Price Outlook
Positive Bauxite Price Outlook Bauxite has experienced relatively steady and positive price growth since the GFC For personal use only with growing Chinese demand to support longer term price growth CM Group historic CBIX price & forecast USD$/DMT CFR 80.0 CM Group CBIX BFS Group CM Assumption CBIX
Slide 16: Key Market End Users & Off-take
Key Market End Users & Off-take* Summary of Xinfa Off-take For personal use only Binding off-take secured (Xinfa), China’s 2nd largest private bauxite importer. Term 4 years Agreement covers ~50% of first 4 years production with market linked pricing. Total Tonnage 7Mt Lubei LOI (non-binding) fo
Slide 17: Regional Exploration
Regional Exploration Metro’s exploration exposure covers >2,500km2 of regional For personal use only tenement holdings (including Bauxite Hills) All tenements are well located on the lateritic plateaus that host bauxite mineralisation Close proximity to the coast Potential to duplicate Bauxi
Slide 18: Summary – A Compelling Investment
Summary – A Compelling Investment For personal use only 1 Metro has significant advantages and is backed by leading partners 2 Strong seaborne bauxite fundamentals in China drive positive outlook 3 Recent achievements have delivered platform for value creation 4 Compelling metrics provides significa
Slide 19: Metro Mining - Bauxite "Good as Gold"
Kes Bide a raf Bae ZA ~ Sor ere RCV wt te AH AREAL NING RERD b AAT ~ VA | VU LIMITED Explore | Define | Mine ! Bauxite! “Good as Gold” For personal us
Slide 20: Background Slides
For personal use only Background Slides 20 | ASX : MMI | Investor Presentation | August 2017
Slide 21: Board of Directors
Board of Directors For personal use only Stephen Everett Chemical engineer with 40+ years experience in the resources and construction industries both in Australia and overseas Chairman Formerly Chair of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining & IronRidge Resources Simon Fin
Slide 22: Proven Management Team
Proven Management Team ▪ Metro’s Board & management have collectively been involved in the development and operation of over 30 mines globally For personal use only ▪ Significant bauxite knowledge and expertise, focused on Cape York bauxite operations and product marketing into China ▪ Strategy is t
Slide 23: Construction Team
Construction Team For personal use only Brisbane / Mackay / Gladstone Queensland Feasibility & engineering Civil works Owner’s team project construction management Haul Roads Queensland Townsville Piling works Electrical engineering & design Marine installation Marine infrast
Slide 24: Supportive Partners
Supportive Partners For personal use only Metro and Bauxite Hills Mine has attractive strong support from leading product partners and financial investors Economics & Financial Returns Product Quality & Demand Leading Metro’s $40m debt facility Globally recognised natural resource lender Spe
Slide 25: BFS Summary
BFS Summary For personal use only Bankable Feasibility Study Highlights* ▪ Completed by MEC Mining in March 2017 ▪ 6Mtpa steady state (initial 2Mtpa) ▪ Contract mining and transhipment ▪ 8 months per year dry season operation (April to Nov) ▪ 5 month construction period Key Results and Assumptions 1
Slide 26: BFS Capital Cost Estimates
BFS Capital Cost Estimates1 For personal use only Capital Cost Item Amount Capital Cost Item Amount Initial Capital Expansion Capital (in years 2 and 3) Integrated Truck dump and screens and Site establishment and haul roads A$3.1M A$13.9M upgraded haul roads Key infrastructure including BLF & camp
Slide 27: BFS Operating Cost Estimates
BFS Operating Cost Estimates* For personal use only Operating Cost Item BFS LOM Average Mining, haulage and operation of BLF1 A$7.07/t Transhipment activities A$6.71/t Site and administrative costs A$2.65/t Total Operating Costs (ex-royalties and ocean freight) A$16.42/t Royalties A$6.57/t Ocean Fre
Slide 28: Reserves & Resources
Reserves & Resources* For personal use only Bauxite Hills – DSO Mineral Resource &Ore Reserve Estimates DSO Bauxite Qualities (Dry Basis) Area Category DSO2 Tonnes (Mt)1 Total Al2O3 (%) Total SiO2 BH1 & BH6 Measured Resource 54.7 50.0 11.9 BH1, BH2 & BH6 Indicated Resource 66.4 49.2 14.5 BH1 & BH6 I
Slide 29: Bauxite Market Update
Bauxite Market Update ▪ Five (5) alumina refineries planned in China with a potential stage 1 capacity of 8-10Mtpa which could For personal use only increase imported bauxite into China by 20-25Mtpa • These planned refineries support the view that new refineries will be built in coastal locations to
Slide 30: Attractive Debt Facility
Attractive Debt Facility Debt Financing Secured to Underpin Project Construction For personal use only Quantum $40m Sprott Resource Lending Providers Ingatatus AG (a related party of Balanced Property) Term ~3 years Security Yes Coupon Low Flexible drawdown schedule Repayment Schedule
Slide 31: For Further Information
For personal use only For Further Information Contact: Simon Finnis – Chief Executive Officer & Managing Director | Finance & Business Development – Duane Woodbury Ph: +61 (0) 7 3009 8000 | Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 | GPO Box 10955, Brisbane Q 4000 31