Metro Mining Limited · ASX:MMI
Metro Mining — QEC Investor Forum (March 2017)
22 slides from Metro Mining's conference presentation, Mar 14, 2017
Slide 1: QEC Investor Forum
For personal use only QEC Investor Forum ASX : MMI| 14 March 2017
Slide 2: Metro Highlights
Metro Highlights For personal use only Simple Project, Attractive Fundamentals, Proven Team, Near Term Production & Compelling Economics 1 Transformational acquisition of project neighbour Gulf completed December 2016 2 Bauxite fundamentals & price outlook remain strong driven by growing China seabo
Slide 3: Fundraising Summary
Fundraising Summary Metro is Undertaking an Equity Raising of up to approximately $52 Million For personal use only Institutional placement has raised $15.9 million Underwritten 1 for 2 pro-rata non-renounceable entitlement offer to raise approximately $36.5 million underway Rights Issue Close
Slide 4: Market Metrics & Balance Sheet
Market Metrics & Balance Sheet For personal use only Metro balance sheet will be significantly strengthened with ~$19 million in cash post equity raising Key Information Pre Equity Raising Post Equity Raising3 Share Price (23-Feb-17) $0.155 n/a Shares outstanding 584.7m 1,004.0m4 Unquoted options 7.
Slide 5: Gulf Acquisition Completed
Gulf Acquisition Completed Project Locations For personal use only Logical Consolidation Creating Globally Significant Bauxite Company All Native Title and Land Access Agreements in place Significant increase in Resource / Reserve to support a larger project No duplication of infrastructure me
Slide 6: Enhanced Operational Simplicity
Enhanced Operational Simplicity For personal use only Operations have been further simplified with flexibility gained No Tenement Offset Mining Boundaries and Single Mine Fleet clear vegetation & remove overburden return overburden & replace topsoil - then revegetate Mining strip mine bauxite Overbu
Slide 7: 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 2 tonnes 1 tonne bauxite = alumina = aluminium Key Bauxite Value Drivers Metro Mining Ltd Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Alumina 50-54 % Si
Slide 8: Demand Driven Fundamentals
Demand Driven Fundamentals For personal use only Strongly Growing Chinese Seaborne Market for Imported Bauxite Supports Metro’s Strategy China Bauxite Demand China Bauxite Imports (Mt) (by 2015 Capacity Mtpa) ~7% CAGR for next 15 years 147 Inner Mongolia Predominantly Imported Bauxite 113 Shanxi Pre
Slide 9: Strong China Demand Fundamentals
Strong China Demand Fundamentals Seaborne bauxite is a growing component in China’s aluminium production For personal use only due to declining domestic reserves (<10 years) and growth in coastal refining & smelting China Aluminium Demand by Bauxite Source 1 50 Domestic Bauxite Seaborne Bauxite Impo
Slide 10: Bauxite Price Outlook Remains Attractive
Bauxite Price Outlook Remains Attractive Bauxite Price Outlook Remains Positive with Metro’s Proximity For personal use only to China a Key Competitive Advantage Bauxite Price CIF China (US$/t, ViU unadjusted) 80 70 60 50 40 30 Relaxation of Indonesia 2014 Export Ban? “Recent feedback regarding the
Slide 11: Near Term Production Pathway
Near Term Production Pathway Well Established Pathway – No Red Flags – Significant Interest from For personal use only Debt Financiers – Production on Track for H1 2018 2014 2015 2016 2017 2018 Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Project Acquisition JORC Resource Upgrade JORC R
Slide 12: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure (Post Equity Raise) Share Price – LTM Share Price (14 March 17) $0.135 $0.18 Shares on Issue 1,004m $0.15 $0.12 Market Cap $135.5m $0.09 Options 7.5m $0.06 Cash $18.9m $0.03 Estimate of unsecured Debt $7.0m* $0.00 Jan-16 Apr-16 Jul-16 Oct-16
Slide 13: Summary
Summary Metro is set for Significant Value Realisation For personal use only 1 Gulf acquisition transformational 2 Development plan being accelerated and optimised 3 BFS to reflect scale and infrastructure benefits and will be finalised very soon 4 Clear pathway to production 5 Construction on track
Slide 14: Appendices
For personal use only Appendices ASX : MMI | Corporate Update February 2017
Slide 15: Proven Team to Deliver
Proven Team to Deliver For personal use only Metro’s Board & Management Team have Successfully Developed & Operated over 30 Mines Globally Key Team Simon Finnis MD & CEO Joined Metro as CEO in early 2015 Mining executive with +30 years experience Former CEO of Grande Côte Minerals Sands operat
Slide 16: Board of Directors
Board of Directors For personal use only Chemical engineer with over 40 years experience in the resources and construction industries both in Stephen Everett Australia and overseas Chairman Formerly Chairman of BeMaX, Australian Solomons Gold, JMS Civil & Mining and Iron Ridge Resources Over 3
Slide 17: Valuable Infrastructure Secured
Valuable Infrastructure Secured For personal use only New Access to Existing Infrastructure Provides Valuable Advantages Port & Load Out Area Airstrip Camp Site Airstrip ASX : MMI | QEC Investor Forum March 2017
Slide 18: Xinfa Off-take
Xinfa Off-take For personal use only Off-take secured with China’s second largest bauxite importer with attractive market linked pricing Xinfa Overview Key Off-take Terms History Founded in 1972 Term 4 years Company Total Tonnage 7Mt Private, integrated aluminium company Type 1Mt for year 1 Annual T
Slide 19: Alumina Index Pricing
Alumina Index Pricing Alumina price has been relatively stable with Xinfa off-take pricing For personal use only providing Metro attractive margins and upside Asianmetal 98.5% Alumina Index China RMB/t (March 2007 to Present) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Mar-07 Mar-08
Slide 20: Transhipment Overview
Transhipment Overview Barging and transhipment is well understood and is to be provided by For personal use only a proven operator in TSA Barge Loading Facility (BLF) Suitable water at low tide at Skardon River Port Tugs & ‘Dumb’ Barges Barge capacity of 2,500t - 3,800t depending on tide Key Points
Slide 21: Corporate & Contact Details
CORPORATE & CONTACT DETAILS For personal use only Metro Remains Focused on Becoming a Near Term Bauxite Producer and Delivering Significant Value for Shareholders KEY CONTACT DETAILS Simon Finnis Managing Director Metro Mining Limited Email: sfinnis@metromining.com.au Tel: +61 7 3009 8005 Mob: +61 4
Slide 22: Disclaimer
For personal use only Disclaimer Forward Looking Statement: Statements and material contained in this ASX Release, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of Metro Mining Limited, industry growth