Metro Mining Limited · ASX:MMI
Metro Mining — Diggers & Dealers Mining Forum 2019
19 slides from Metro Mining's conference presentation, August 2019
Slide 1: Diggers & Dealers Mining Forum August 2019
Diggers & Dealers Mining Forum August 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 | August 2019
Slide 3: Share Price & Corporate Structure
Share Price & Corporate Structure $0.35 Share Price Performance Share Price Performance Capital Structure Price ($) Volume (m) $0.30 Share Price (31 July 2019) A$0.135 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-June-2019)
Slide 4: Bauxite is the Primary Ore of Aluminium
Bauxite is the Primary Ore of Aluminium Key Ingredient for Manufacturing Aluminium 4-6 tonnes bauxite = 2 tonnes alumina = 1 tonne aluminium Key Bauxite Value Drivers Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Location Proximity to buyer, supply reliability and sover
Slide 5: 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% Percentage of China Al Capacity in World Total 86% 84% 80% 81% 76% 74% 72% 79.4 70% 69% 70.4 75.3 62.6 67.0 63% 62% 56
Slide 6: China Demand Outlook Remains Strong
China Demand Outlook Remains Strong Source: CM Group Source: CM Group 6 | ASX : MMI | August 2019
Slide 7: 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 8: 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 9: 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 10: Bauxite Hills Project
Bauxite Hills Project ◼ DSO - virtually no overburden, no blasting, no ◼ To ensure quality there are sophisticated processes engineering or pit design required, no processing around mine planning and quality control. Clear vegetation & Return overburden & replace Haul ore 5 – 22km to stockpile remov
Slide 11: Metro's Road to Production!
Metro’s Road to Production! Gained control of Financed and constructed July 2019 – 18.8% increase Bauxite Hills early 2015 all in 2017 – CAPEX A$37M Dec 2018 – 3.5Mt Expansion in Reserve Takeover of Gulf – doubled April 2018 – 1st Production July 2019 – 3Mt Mined Resource & Reserve – Dec 2016 11 | A
Slide 12: 2018 2H Results
2018 2H Results 2018 2H Operating Costs & Realised Prices $60.7 (Price Received/Operating Cost $57.0 $53.3 $52.3 $49.7 $48.1 $46.4 $40.0 A$/WMT) $22.7 $25.0 $23.8 Revenue $15.7 $93.2M $23.7 $24.7 $24.2 $24.3 Sept Qtr Dec Qtr 6-months BFS Estimate to Dec-18 (Year 1) Site Costs Non-Site Costs Avg. Pri
Slide 13: 2019 Expansion to 3.5Mt
2019 Expansion to 3.5Mt Capital Cost $6.8M Summary of Key Improvements ✓ Add Jaw Crusher to treat oversized material ✓ Increase the screening capacity at the Port ✓ Increase the current haulage fleet ✓ Supplement the marine fleet and infrastructure 2019 Production Expansion Bauxite Tonnes (WMT) 500
Slide 14: 2019 June Qtr Results
2019 June Qtr Results 2019 June Qtr Operating Costs & Realised Prices $70.00 $60.21 $58.12 $57.26 $60.00 $54.86 $58.56 $50.00 $46.41 $23.05 $44.70 $42.90 A$/WMT $40.00 $22.76 $22.94 $23.03 Revenue $30.00 $20.00 $35.51 $10.00 $21.94 $19.87 $23.47 $48.4M $- April May June June Qtr Site Costs Non-Site
Slide 15: 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 16: 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 39% (target 20%) ◼ Business opportunities for indigenous groups being assessed with one already in place 16 | ASX : MMI | August 2019
Slide 17: Investment Rationale
Investment Rationale Revenue Earning Long Life Mine Generating Cash Strongly Growing Market Enduring Geographical & Simple Project – jurisdictional competitive Low CAPEX & OPEX advantage 17 | ASX : MMI | August 2019
Slide 18: Disclaimer
COMPETENT PERSON’S STATEMENT The information in this report that relates to the Bauxite Hills Mine Mineral Resource is based on Disclaimer 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
Slide 19: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Key Statistics Ownership: Metro (100%) Project Overview Commodity 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