Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (November 2019)
22 slides from Metro Mining's investor presentation, Nov 13, 2019
Slide 1: Updated Investor Presentation – Noosa Mining Conference
Updated Investor Presentation Noosa Mining Conference November 2019 July 2019
Slide 2: Investment Rationale
Investment Rationale Revenue Earning Long Life Mine Generating Cash Strongly Growing Market Enduring Geographical Simple Project – and jurisdictional Low CAPEX & OPEX Competitive Advantage 2 | ASX : MMI | November 2019
Slide 3: Metro's Road to Production!
Metro’s Road to Production! Gained control of Financed and constructed July 2019 – 18.8% A$47.5M Loan Bauxite Hills early 2015 all in 2017 – CAPEX A$37M Dec 2018 – 3.5Mt Expansion increase in Reserve Facility from NAIF Takeover of Gulf – doubled April 2018 – 1st Production July 2019 – 3Mt Mined Oct
Slide 4: 2019 Achievements
2019 Achievements Production Increase Operational Performance Reducing Operating Revenue/EBITDA Growth Cost Stage 2 DFS Expansion 4 | ASX : MMI | November 2019
Slide 5: Production Increase
Production Increase 7.0 6.0 5.0 Million tonne 4.0 3.0 6.0 2.0 4.0 3.5 1.0 2.0 0.0 2018 Actual 2019 2020 2021 Stage 2 Subject to Board Approval 5 | ASX : MMI | November 2019
Slide 6: Operational Performance
Operational Performance 3000 2019 YTD Production and Shipped Bauxite 2500 479 504 October 2000 501 497 September K WMT 1500 476 455 2779 2755 August 443 463 1000 July 427 374 500 June 329 311 124 151 May Mined Shipped 0 April YTD 6 | ASX : MMI | November 2019
Slide 7: Reducing Operating Cost
Reducing Operating Cost 70 2019 Qtr Operating Costs & Realised Prices 60 57.26 56.22 56.51 50 40 A$/WMT * Note: Non-Site Costs refers to ocean freight 22.94and royalties 30 22.23 21.82 20 10 23.47 20.4 18.62 0 June Qtr Sept Qtr YTD Site Costs Non-Site Costs Average Sales Price Received 7 | ASX : MMI
Slide 8: Revenue/EBITDA Growth
Revenue/EBITDA Growth Revenue Site EBITDA 140 35 120 30 100 25 * Note: Non-Site Costs refers to ocean freight 80 and royalties 20 31.4 A$M A$M 60 127.9 15 22.3 40 79.5 10 20 48.4 5 9.1 0 0 Jun Qtr Sep Qtr YTD Jun Qtr Sep Qtr YTD 8 | ASX : MMI | November 2019
Slide 9: Stage 2 DFS Expansion Outcomes
Stage 2 DFS Expansion Outcomes Source: IAI, CM Analysis 6.0M WMT pa Funding Significant economic benefits confirmed A$51.4 M Capital Costs (incl 10% contingency) LOM unit operating costs forecast to reduce by ~18% Project Payback <18 months delivered to China – margins increased Approval f
Slide 10: Stage 2 – Capital Cost Estimates
Stage 2 – Capital Cost Estimates Source: IAI, CM Analysis Capital Cost Estimates* Floating Terminal – Capital Cost Estimates Category Cost (A$M) Category Cost (US$M) *Cost (A$M) Floating Terminal Total Component Parts 12.5 17.9 Direct Cost 38.0 Shipyard Costs 8.7 12.4 EPCM Contract 2.0 Other Service
Slide 11: Stage 2 Expansion – Floating Terminal
Stage 2 Expansion – Floating Terminal Source: IAI, CM Analysis Floating Terminal by Rocktree for indicative purposes only
Slide 12: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Key Statistics Ownership: Metro (100%) Commodity Project Overview Bauxite Location: Cape York, Qld Product Type Direct Shipping Ore Contained Mineral: Reserves 109.5Mt1 Resources 138.2Mt1 Location Mining Mine Type Surface mining Status Operational Commenced Mining April 2
Slide 13: Future Growth
Future Growth Reserve up Depletion by mining 17.3Mt (18.8%) Conversion of existing resources to 109.5Mt (wet) Moisture assumption adjustment based on operational experience Resource down Depletion by mining 6.4Mt (4.6%) to Adjustment to dry bulk density 138.2Mt (dry) Measured category up
Slide 14: China vs ROW Primary Aluminium Capacity
China vs ROW Primary Aluminium Capacity 2000 – 2018 (Mtpa) Source: IAI, CM Analysis Source: CM Group 100% ROW Al Capacity(MT) World Total Al Capacity(MT) China's Al Capacity(MT) 90% 86% Percentage of China Al Capacity in World Total 84% 80% 81% 76% 74% 72% 75.3 79.4 70% 69% 70.4 62.6 67.0 63% 62% 56
Slide 15: China Demand Outlook Remains Strong
China Demand Outlook Remains Strong Source: CM Group Source: CM Group 15 | ASX : MMI | November 2019
Slide 16: China's 2018 Bauxite Imports
China’s 2018 Bauxite Imports Guinea now largest supplier to China. But 98% of exports are from the Chinese- controlled SMB-WAP 0.5% Montenegro 0.1% Turkey Australia's supply is steadily growing, 82.6Mt up 4.1Mt (16%) in Guinea 2018 to 29.6Mt 46% 0.8% 12% Jamaica India 0.7% Vietnam Indonesia &
Slide 17: Alumina Producers China
Alumina Producers China Source: CM Group Main Bauxite Consuming Provinces 1. Shandong (65MT) 2. Shanxi (49MT) 2 3. Henan (27MT) 1 4. Guangxi (18MT) 3 5. Guizhou (10MT) Liaoning Province and Inner Mongolia 5 Emerging as major new players, with several projects planned or under construction 4 Source:
Slide 18: Bauxite Market & Price Outlook
Bauxite Market & Price Outlook Source: CM GROUP China imports continue to increase with total 2018 imports exceeding 82M WMT Bauxite prices in an upward trend with CBIX bauxite index currently US$52.60 DMT (dry metric tonne) Strong demand for Metro’s bauxite from Chinese inland Refineries as d
Slide 19: Positive Community Relationships
Positive Community Relationships Relationship continues to grow and flourish Metro a key part of Northern Cape York Community Current Indigenous employment is 36.1% (target 20%) Business opportunities for indigenous groups being assessed with one already in place 19 | ASX : MMI | November 20
Slide 20: Investment Rationale
Investment Rationale Revenue Earning Long Life Mine Generating Cash Strongly Growing Market Enduring Geographical & Simple Project – jurisdictional competitive Low CAPEX & OPEX advantage 20 | ASX : MMI | November 2019
Slide 21: Share Price & Corporate Structure
Share Price & Corporate Structure Share Price Performance Capital Structure $0.35 Share Price Performance Price ($) Volume (m) Share Price (12 November 2019) A$0.135 $0.30 Shares on Issue 1,383.4M $0.25 Market Capitalisation A$187.0M $0.20 Options Unlisted 30.1M $0.15 Cash and Receivables (30-Sept-2
Slide 22: Disclaimer
COMPETENT PERSON’S STATEMENT Disclaimer The 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