Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (June 2015)
20 slides from Metro Mining's investor presentation, Jun 10, 2015
Slide 1: Investor Update June 2015
METRO MINING LIMITED Investor Update June 2015
Slide 2: Investment Highlights
Investment Highlights Simple, Low CAPEX & High Margin Development Opportunity Clear focus on Bauxite Hills project located in Cape York in Queensland, Australia Simple up to 2Mtpa* Direct Shipping Ore (DSO) operation targeting Q4 2016 production Recent PFS demonstrates robust economics with po
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure (ASX:MMI) Share Price & Volume - LTM Share Price (5 June 2015) 9.3c 0.12 2.5 Shares on Issue 288.7m Market Cap A$26.9m 0.10 Options 12.7m 2.0 Cash (31 March 2015) A$4.6m Debt (31 March 2015) Nil Share Price (A$) 0.08 Enterprise Value A$22.3m Volume (m) 1.5 Shareh
Slide 4: Board of Directors
Board of Directors Stephen Everett Chemical engineer with over 40 years experience in the resources and construction Independent Non-Executive industries both in Australia and overseas Chairman Formerly Chairman of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining and IronRidge Resour
Slide 5: Management & Technical Team
Management & Technical Team Simon Finnis Over 28 years experience in resources industry having working throughout Australia in underground and Chief Executive Officer open cut mining operations. Holds Masters in Business & Technology from University of New South Wales Joined Metro January 2015 h
Slide 6: Bauxite Hills Overview
Bauxite Hills Overview Well Located in Leading Bauxite Province of Cape York, in Queensland, Australia Reserves of 48.2Mt* 50.2% total Al2O3 38.4% THA 6.4% RxSi Product quality comparable to Weipa Nearby existing infrastructure Positive community engagement Clear permitting pathway *
Slide 7: Pre-Feasibility Study – Key Outcomes
Pre-Feasibility Study – Key Outcomes Completed in February 2015 – Simple Operation & Robust Economics Operational Metrics Financial Metrics** (Real) Production Rate Up 2 Mtpa* DSO NPV (15%) after tax A$197m Strip Ratio (waste to ore) 1:10 IRR (100% Equity) 88% Product Grade 50.2% Al2O3, 6.4% RxSiO2
Slide 8: Pre-Feasibility Study – CAPEX & OPEX
Pre-Feasibility Study – CAPEX & OPEX Low CAPEX & Competitive OPEX Capital Expenditure (A$m) Operational Expenditure (A$/t) Mine Access (Haul Road) 2.8 Mining Cost to ROM stockpile 3.0 Mine & Barge Loading Infrastructure 10.6 Crush, Load and Barge costs 10.5 Mine Camp & Airport 5.0 Off Mine costs (in
Slide 9: Product Quality & Marketing
Product Quality & Marketing Off-take Discussions and Marketing Strategy Progressing Well Marketability study undertaken by industry consultants CM Group Bauxite Hills’ product suitable for low temperature refining process used in over 80% of China’s current refining capacity Off-take discussio
Slide 10: Simple Operation
Simple Operation Mining clear vegetation & remove overburden return overburden & replace topsoil - then revegetate strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Transportation Haul ore 5-10km to stockpile & barge loading Barge ore 10km down Skardon River T
Slide 11: Favourable Location & Known Product
Favourable Location & Known Product Located close to international shipping routes with low relative freight costs to China Cape York’s high quality export grade bauxite with high alumina content and its characteristics are well known to Chinese and other international alumina refineries Average
Slide 12: Permitting
Permitting Clear Permitting Pathway Previous mining region Outside any environmental exclusion zone Positive local community engagement and support Preferred Right to Negotiate process with Native Title owners underway and set to conclude Q3 2015 Up to 2Mtpa* project scale enables a more s
Slide 13: Demand Driven Price Growth
Demand Driven Price Growth Bauxite has experienced strong price growth in the past decade, growing at ~8% pa Price growth has been further supported by the Indonesian ban on raw material export in early 2014, resulting in demand outstripping supply $70 Average price of Chinese bauxite imports US
Slide 14: Price Outlook
Price Outlook Global growth in aluminium consumption led by China is forecasted to drive bauxite prices Metro Mining’s bauxite price forecasts are based on independent research by CM Group Forecast Bauxite Prices – Real Terms 2015 80.00 Key CBIX Price – Base Case 70.00 –– CFR Shandong CBIX Price
Slide 15: Indicative Timeline
Indicative Timeline Q2 CY 15 Q3 CY 15 Q4 CY 15 Q1 CY 16 Q2 CY 16 Q3 CY 16 Q4 CY 16 Definitive Feasibility Study Native Title Agreements Environmental Approvals Off-Take Agreements Financing Construction & Pre-Strip Production 15
Slide 16: Summary
Summary Attractive Fundamentals Global growth in aluminium consumption Increasing demand for bauxite in China Strong price growth forecasted Focus on DSO quality bauxite Favourable Location Western Cape York is known for high-quality export grade bauxite Proposed mine located close to
Slide 17: Contact Details
Contact Details KEY CONTACTS Simon Finnis Chief Executive Officer Metro Mining sfinnis@metromining.com.au Tel: +61 7 3009 8005 Mob: +61 418 695 138 Office Metro Mining ASX:MMI Level 8, 300 Adelaide St, Brisbane Queensland 4000 Tel: +61 7 3009 8000 Fax: +61 7 3221 4811 www.metromining.com.au 17
Slide 18: Appendices
METRO MINING LIMITED
Slide 19: Reserves & Resources
Reserves & Resources Bauxite Hills JORC Reserves & Resources* (June 2015) DSO2 DSO Bauxite Qualities (Dry Basis) Area Category Tonnes Total Al2O3 THA3 Total SiO2 RxSi4 (%) Mt1 % % % % BH1 & BH6 Measured Resource (Dry In-situ) 41.8 51 39.2 11 6.1 BH1 & BH6 Indicated Resource (Dry In-situ) 8.3 49.3 37
Slide 20: Disclaimer Corporate & Contact Details
DISCLAIMER Corporate & Contact Details 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, indus