Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (July 2022)
18 slides from Metro Mining's investor presentation, Jul 21, 2022
Slide 1: Metro Investor Presentation Expansion Highlights
Metro Investor Presentation Expansion Highlights 21 July 2022
Slide 2: Competent Person's Statement / Important Information
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: Simple High-Quality Bauxite Operation
Simple High-Quality Bauxite Operation Metro second significant exporter of “Weipa” bauxite Clear vegetation & Return overburden & replace remove overburden topsoil - then revegetate 1963 COMALCO starts commercial production in Weipa 2008 First long term contracts from Weipa to China Overburden (
Slide 4: Approved expansion transforms Metro's margins
Approved expansion transforms Metro’s margins Low capex, low risk, brownfield 75% expansion delivering payback in less than 2 years MMI Board has approved expansion of Bauxite Hills mine from 4 to 7 Mt/a capacity by 2024 Procure a 2nd floating crane barge & upgrade fixed & mobile plant Expansion
Slide 5: Well Credentialed Board & Management
Well Credentialed Board & Management Revitalised Board & Management to deliver Stage 2 Expansion and future shareholder value Highly Experienced Resources Board Capable Management Team Simon Wensley CEO & Managing Director 20 years with Rio Tinto bulk commodities including CCO Energy & leading the
Slide 6: Resilience established at current scale in 2022
Resilience established at current scale in 2022 De-risked 4 Million WMT/annum scale, delivery in 2022 New Board & Management: Strong bauxite/bulk commodity project expertise: Sales, operations, finance, logistics, contracts Ex: Rio Tinto, Queensland Alumina, Glencore, McMahon Contracting, KPMG
Slide 7: Bauxite Market Recovering, very strong future
Bauxite Market Recovering, very strong future Expansion perfectly timed into growing market as China domestic & Indonesia supply withdrawn Forecast Sources of Bauxite Consumption China (2021-2032) 70% forecast growth to China import (10 yrs): 8.5 M WMT per year! Record bauxite imports to China Y
Slide 8: Sales locked in to underpin expansion
Sales locked in to underpin expansion Low risk counterparties, transition to Metro Blend over time 2022 sales firm: at 3.6 to 4.0 M WMT 8 Xinfa Expanded: Foundation customer has expanded its baseload 2.2 M WMT 7 Mine & Trans-ship Capacity per year contract with an additional 1.1 M WMT in 2022 an
Slide 9: 2nd Floating Crane Barge is core capital
2 nd Floating Crane Barge is core capital Use current floating crane to pivot to rapid, lower capex, lower risk expansion option 3 to 4 Mt/a scale 7+ Mt/a scale Q3 2021 Current 2022 2023 Self Loading geared 1 x Floating Crane 2 x Floating Crane Ultraclass Vessel (60 kt) Capesize Vessel (180 kt) Cape
Slide 10: Site Expansion Upgrade- low capex
Site Expansion Upgrade- low capex - Existing screen / belt upgrade x 2 - Conveyor speed increase - Oversize crush automation - 3rd screen & conveyors
Slide 11: Site Expansion Upgrade- Staged, low capex
Site Expansion Upgrade- Staged, low capex Area Amount Description / Methodology Additional (3rd) $1,800,000 Based on pricing for existing screening plant screen plant Allowance for additional transfer conveyor from screening plant and modifications (materials and Conveyor $500,000 labour) to modify
Slide 12: Expansion Economics are Compelling
Expansion Economics are Compelling 4 Mt/a now a resilient scale for Metro. Outsized returns available at 6 Mt/a scale Costs (10 yr Avg) (A$/WMT) Land Activities 5.3 Transhipment 8.6 Site Services 2.5 Ocean Freight 12.1 Royalties 5.2 Total Operating 33.7 Costs Notes Annual site EBITDA/tonne figures,
Slide 13: Expansion Economics are Compelling
Expansion Economics are Compelling DFS indicated that outsized returns available at 6 Mt/a scale Project Capital Payback 40 35 30 28 25 AUD m 20 15 10 5 0 Feb-24 Feb-23 May-24 Sep-22 May-23 Sep-23 Oct-23 Jan-24 Oct-22 Jan-23 Mar-24 Nov-22 Mar-23 Nov-23 Dec-23 Dec-22 Apr-24 Apr-23 Jun-24 Jun-23 Aug-2
Slide 14: Lowest Global Delivered Cash Cost Positioning
Lowest Global Delivered Cash Cost Positioning 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 2022 2026 14
Slide 15: Metro significant contributor to Cape York
Metro significant contributor to Cape York 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 partners and
Slide 16: Other Organic Growth Projects
Other Organic Growth Projects Wet Beneficiation Scoping study has been completed on a 3.3 M WMT wash plant and overland conveyor on the BHM site Wet beneficiation removes kaolinite fines inherent in the bauxite ore and has significant benefits: Enables 12 month per year operation through much
Slide 17: Metro Investment Thesis
Metro Investment Thesis High quality operating mine with post COVID recovery underway and pathway to growth 16-year life bauxite mine: 93 Mt reserve; World class Weipa bauxite province. Current capacity ~4 Mt pa 75% expansion to ~7 Mt/a including additional offtake locked in, projected costs low
Slide 18: Explore | Define | Mine
Explore | Define | Mine For Further Information Contact: Simon Wensley CEO & MD | Mitchell Petrie Co.Sec Ph: +61 (0) 7 3009 8000 | L2, 247 Adelaide St, Brisbane Postal Address: GPO Box 10955, Brisbane Q 4000