Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (November 2018)
19 slides from Metro Mining's investor presentation, Nov 9, 2018
Slide 1: Investor Presentation
For personal use only Investor Presentation
Slide 2: Highlights
Highlights For personal use only 1 Bauxite Hills Mine in production 10 months after construction commenced – as planned 2 Production Ramping Up – 25 Vessels and >1.6 million tonnes shipped to date 3 Upgrade strategy announced – 2019 forecast production of 3.5M Wet Metric Tonnes (WMT) 4 Long life min
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Share Price Performance June 2016 – November 2018 Capital Structure $0.35 Share Price (7 November 2018) A$0.155 $0.30 Shares on Issue 1,383M $0.25 Market Cap A$214.4M $0.20 Options Unlisted 31M $0.15 Cash and Receivables (30-Sept-2018) A$38.2M $0.10 Debt Faci
Slide 4: 2019 Expansion & Upgrade
2019 Expansion & Upgrade 350 For personal use only 300 Monthly Mining Production Monthly Mining (k wmt) 250 ▪ Strong customer demand drives improvement and upgrade strategy – 2019 forecast production now 3.5M (WMT). 200 150 ▪ Much of existing infrastructure designed for higher operating 100 levels m
Slide 5: Metro Mining Q3 2018 Results
Metro Mining Q3 2018 Results For personal use only Bauxite Mined Bauxite Shipped 859,000 tonnes 822,000 tonnes Cash & Revenue Receivables $43.8 Million $38.2Million 26 Ships for year and Counting Bauxite Hills Production Results Period July August September Sept Quarter June Qtr YTD Bauxite Mined (W
Slide 6: Metro Mining Q3 2018 Unit Costs
Metro Mining Q3 2018 Unit Costs For personal use only Costs Average Month on Month A$46 / WMT Reductions Lower A$ Higher Volumes will Impacted Freight have a positive impact Opportunities Identified to Reduce Costs in 2019 Unit Operating Costs Costs July Aug Sept Sept Qtr Site Cost A$/WMT 24.51 24.2
Slide 7: 2018 Production Guidance Update
2018 Production Guidance Update For personal use only ▪ Ramp-up on schedule. BH1 Mining Area ▪ Bauxite has been shipped to 5 different Chinese Customers. ▪ During the Quarter, production was consistently achieving budgeted operating rates on a daily basis. ▪ Transhipment activities are performing in
Slide 8: Increasing Production Profile
Increasing Production Profile For personal use only Tonnes Per Annum Stage 1 Stage 2 7,000,000 ▪ Subject to Board Approval ▪ Ramp up over 4 years reflects ▪ Estimated Capital costs of $37M1 development of the customer 6,000,000 base. Production in excess of existing off-take will include spot 5,000,
Slide 9: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot use only Key Statistics 1 Ownership: Metro (100%) Commodity Bauxite Project Overview Location: Cape York, Qld Product Type Direct Shipping Ore For personal Contained Mineral: Reserves 92.2Mt1 Resources 144.8Mt1 Location Mine Type Surface mining Status Operational First Pr
Slide 10: Simple DSO Project
Simple DSO Project ◼ Operational simplicity and specialist mining and transhipment contractors means an easy to manage operation Mininguse only ◼ Dry season only operations negate the risk of weather impact ◼ Site location, geological setting and layout provides low operating costs Clear vegetation
Slide 11: 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 12: China vs ROW Primary Aluminium Capacity 2000–2017
China vs ROW Primary Aluminium Capacity 2000–2017 (Mtpy) For personal use only 100% ROW Al Capacity(MT) World Total Al Capacity(MT) China's Al Capacity(MT) 90% Percentage of China Al Capacity in World Total 86% 84% 80% 81% 76% 74% 72% 79.4 70.4 75.3 70% 69% 67.0 62.6 56.5 63% 62% 60% 60% 59% 60% 56%
Slide 13: Map of China's Major Alumina & Primary Aluminium Bases
Map of China’s Major Alumina & Primary Aluminium Bases Source: CM Group For personal use only China’s Main Bauxite Concentration China’s major China’s top 11 primary Al alumina producing production provinces provinces: 1. Shandong 1. Shandong 2. Xinjiang 2. Shanxi 3. Inner Mongolia 3. Henan, 4. Hena
Slide 14: China Demand Outlook Remains Strong
China Demand Outlook Remains Strong For personal use only Source: CM Group 14 | ASX : MMI | November 2018
Slide 15: China's 2017 Bauxite Imports
China’s 2017 Bauxite Imports For personal use only ▪ Guinea now largest supplier to China driven by exports from the Chinese-controlled SMB-WAP ▪ Australia's supply is steadily growing, up 4.2Mt (20%) in 2017 to 25.5Mt ▪ Indonesia and Malaysia now less relevant ▪ Ocean freight on an upward trend ▪ H
Slide 16: Favourable Price Dynamic
Favourable Price Dynamic For personal use only CBIX Weighted Daily Price VS Alumina Price Index 72.0 4000 68.0 CBIX Daily Weighted Bauxite Index (US$/DMT) Aladinny China Alumina Index (RMB/t) CBIX Aladdiny 3500 64.0 60.0 3000 56.0 52.0 2500 48.0 44.0 2000 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Ja
Slide 17: Positive Community Relationships
Positive Community Relationships For personal use only Ankamuthi Elders George Williams and Richard Woosup and Metro’s Environmental heritage Support Officer Barunah “Bruno” Sagiba A “Welcome to Country Ceremony” has been held at Bauxite Hills Mine. Major Ankamuthi family groups plus Metro’s Cha
Slide 18: Summary – A Compelling Opportunity
Summary – A Compelling Opportunity For personal use only 1 Metro has moved from Developer to Operator 2 Production has ramped-up according to plan 3 Long-life mine supplying bauxite from a stable jurisdiction 4 Strong seaborne bauxite market to China driving positive price and demand 5 Growing expor
Slide 19: Disclaimer
Disclaimer For personal use only FORWARD LOOKING STATEMENT Statements and material contained in this ASX Announcement, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of Metro Mining Limited, industry gr