Metro Mining Limited · ASX:MMI
Metro Mining — Mining 2015 Resources Convention
20 slides from Metro Mining's conference presentation, Nov 11, 2015
Slide 1: Mining 2015 Resources Convention
Mining 2015 Resources Convention November 2015 Bauxite Hills | Delivering Value
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT Heading Metro Mining Shareholders Share Price (A$) NetWealth 0.140 Body copy Investments 5% DADI 16% Mr Gregory 0.120 Other Willims 47% 6% 0.100 Balanced Property 0.080 XINFA Group 19% 6% 0.060 Capital Structure 10 November 2015 0.040 Share Price 7cents Shares on Issue 358.5m 0.02
Slide 3: Bauxite Hills Overview
BauxiteHeading Hills Overview Located 95km North of Weipa on Western Cape York Area regarded internationally as a leading Bauxite Province Area world-renowned for its deposits of high-quality, export-grade bauxite Consists of two bauxite plateaus situated next to the Skardon River with Reserve
Slide 4: Bauxite Hills – High Margin Development Opportunity
Bauxite Hills – High Margin Development Opportunity Heading Simple Construction and operation Low CAPEX and OPEX DFS demonstrates robust economics with post-tax NPV 15% of A$235 M and 148% IRR* 25+ years** mine life following recent Reserve increase 1.95Mtpa** Direct Shipping Ore (DSO) ope
Slide 5: Definitive Feasibility Study
Definitive Feasibility Study* Completed for 2 million tonnes per annum Key Financial Result Output Key Financial Assumptions Input NPV 15% (Real, after tax) A$235M Annual Production Rate (Steady State) 1.95Mt** IRR 148% LOM Production 49.1Mt Payback Period 1.1 years Mine Life 25.2 years Total LOM Re
Slide 6: Bauxite Costs: CAPEX and OPEX
Bauxite Costs CAPEX OPEX Item Amount (incl contingency) Item Amount Haul roads and site establishment A$3.17M Mining, haulage and operation of BLF A$7.09/t Navigational aids and cyclone moorings A$1.05M Transhipment activities A$9.17/t Site Infrastructure including BLF and accommodation A$24.28M Sit
Slide 7: Bauxite Hills Site
Bauxite Hills Site Metro will maximise opportunities provided by an Environmental Impact Study. The 1.95Mtpa* DFS identified the project has excellent potential and a resource base that could support a larger annual production rate. Potential benefits identified included: Realising economies o
Slide 8: Simple Mining Operation
Simple Mining Operation Heading Clear vegetation & return overburden & replace Mining remove overburden topsoil - then revegetate strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Haul ore 5-10km to stockpile & barge loading Barge ore 10km down Skardon River T
Slide 9: Location
Location| Location | Location 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 Located close to international shipping routes with low relative freight costs to China 47.3% Al2O3 2
Slide 10: CBIX & Bauxite Hills Price Range
CBIX & Bauxite Hills Price Range Despite concern over China’s economy, aluminium demand is forecast to remain strong with much of the industry forecasting 5 -8 % growth over next decade. Imported bauxite demand is expected to stay strong due to a number of factors: Depleting reserves and grades
Slide 11: Bauxite Market Historical Overview
Bauxite Market Historical Overview Over past decade there’s been change in the global 3rd party bauxite market due to Chinese alumina refineries processing imported bauxite Since Indonesia ban on raw material export, Chinese refineries developing new global bauxite sources in Fiji, Australia, Gu
Slide 12: Forecast of China Bauxite Imports
Forecast of China Bauxite Imports China imported 120.0 22.7 Mt of bauxite in first half of 2015. 100.0 Approx 75% of Shanxi imports are low temp 80.0 Inner Mongolia bauxite Million Tonne Henan 60.0 Guizhou Indonesian bauxite Chongqing ban still in place 40.0 Shandong Malaysia could export up t
Slide 13: Native Title Agreement Pathway
Native Title Agreement Pathway Facilitation of further community and stakeholder engagement. Continued positive local community engagement and support Preferred Right to Negotiate process with Native Title owners progressing well On schedule to conclude Q4 2015 Page 13 | ASX : MMI | Mining 2
Slide 14: Product Quality & Marketing
Product Quality & Marketing Heading Off-take Discussions and Marketing Strategy Progressing Well Marketability studies undertaken by industry consultants CM Group Bauxite Hills is product suitable for low temperature refining process used in over 80% of China’s current refining capacity – confir
Slide 15: Opportunity for Upside
Opportunity for Upside Definitive Feasibility Study for 2Mtpa mine It is anticipated that a Scoping Study will: completed & released to market 5 Nov 2015 Delineate a higher annual mining rate Development plan is to commence mining at Improved Capital Intensity 2Mtpa and expand to a 4 or 5 Mt
Slide 16: Bauxite Hills Project Pathway
Bauxite Hills Project Pathway 2015 2016 2017 Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1.95Mtpa DFS Completed Native Title Agreements EIS Approvals 4-5Mtpa Scoping Study 4-5Mtpa DFS Financing Mining Lease Grant Mine Construction .... Mine Production* First Shipment *Production date is subject to EIS Appro
Slide 17: Future Opportunities
Future Opportunities Heading Bauxite Tenements in Cape York 1,300sq kilometres of exploration permits in a region well Body copy known for its high-quality, export grade bauxite. Reconnaissance Exploration programme undertaken in 2015 Opportunity to Increase production by replicating the Bauxite Hil
Slide 18: Summary
Summary Heading 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 c
Slide 19: Corporate & Contact Details
CORPORATE & CONTACT DETAILS EXECUTIVE MANAGEMENT TEAM Mr Simon Finnis | Chief Executive Officer Mr Scott Waddell | CFO & Company Sec Mr Mike O’Brien | Project Director REGISTERED OFFICE AND HEAD OFFICE Level 8, 300 Adelaide St, Brisbane Q 4000 PO Box 10955, Adelaide St, Brisbane Q 4000 Tel: +61 (0)
Slide 20: Disclaimer
DISCLAIMER 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 Mining Limited, industry growth or other trend projections are, or may be, forw