Metro Mining Limited · ASX:MMI
Metro Mining — Mines & Money Asia 2017
24 slides from Metro Mining's conference presentation, Apr 5, 2017
Slide 1: Mines & Money Asia
For personal use only Mines & Money Asia April 2017 ASX:MMI
Slide 2: Executive Summary
Executive Summary 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 seab
Slide 3: BFS Highlights
BFS Highlights For personal use only After-Tax NPV10 After-Tax IRR Initial CAPEX A$601Million 81% A$35.8Million Average Annual LOM EBITDA EBITDA A$2.5Billion A$145Million Initial LOM LOM Average on- site costs 17 years A$16.42/t ASX : MMI | Mines & Money Asia| April 2017
Slide 4: Corporate Snapshot
Corporate Snapshot For personal use only Share Register Capital Structure Share Price (31-Mar-17) $0.145 Greenstone 20% Shares on Issue 1,004.0m Other Market Cap $145.6m Shareholders 49% Options Unlisted 7.5m 20% Balanced Property Cash $18.9m 8% 2% Unsecured Debt $7.0m Dadi Xinfa Enterprise Value $1
Slide 5: Proven High Quality Management Team
Proven High Quality Management Team For personal use only Since 2015 Metro’s Key Management Team has Successfully Raised Over $150m Of Equity and Debt Finance for Metro Metro’s board and management team have collectively been involved in the development and operation of over 30 mines globally Si
Slide 6: Project Well Located in World Class Bauxite Jurisdiction
Project Well Located in World Class Bauxite Jurisdiction For personal use only Excellent Geographical Setting Located in the world class Weipa bauxite region of western Cape York, Qld 90km north of Rio’s Weipa mine and approx 130km from Rio’s Amrun development BHM Weipa bauxite brand well esta
Slide 7: Valuable Infrastructure Available
Valuable Infrastructure Available For personal use only Port & Load Out Area Camp Site Airstrip
Slide 8: Simple DSO Project
Simple DSO Project Operational Simplicity & Specialist Mining & Transhipment Contractor de-risk Operations For personal use only Clear vegetation & Return overburden & replace remove overburden topsoil - then revegetate Mining Strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironst
Slide 9: BFS Completed
BFS Completed For personal use only BFS Highlights Completed by MEC Mining in March 2017 8 months per year dry season operation (April to November) Greenfield development Low CAPEX & competitive 2nd quartile cash costs based on bauxite imports into China Contract mining and transhipment
Slide 10: Native Title & Land Access Finalised
Native Title & Land Access Finalised For personal use only Positive & Supportive Relationships Established with Local Community Native Title & Land Access Agreement reached jointly with: Key Features of the Agreement include: Ankamuthi People, the traditional owners; and Cultural Heritage Manage
Slide 11: Near Term Production Pathway
Near Term Production Pathway Well Established Pathway - No Red Flags - Significant Interest from Debt Financiers - Production On For personal use only 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: China Aluminium Demand by Bauxite Source
China Aluminium Demand by Bauxite Source Seaborne bauxite is a growing component in China’s aluminium production due For personal use only to declining domestic reserves (<10 years) and growth in coastal refining & smelting 50 Domestic Bauxite Seaborne Bauxite Imported Alumina as Bauxite Demand 45 F
Slide 13: Bauxite Price Outlook Remains Attractive
Bauxite Price Outlook Remains Attractive For personal use only CBIX Index Bauxite Price from June 2012 – March 2017 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Source: CM Group ASX : MMI | Mines & Money Asia| April 2017
Slide 14: Xinfa Off-Take
Xinfa Off-Take For personal use only Off-take Secured with China’s 2nd Largest Bauxite Importer with Attractive Market Linked Pricing Xinfa Overview Key Offtake Terms History Founded in 1972 Term 4 years Company Type Private, integrated aluminium company Total Tonnage 7Mt Refining & smelting operati
Slide 15: Summary
Summary Metro is set for Significant Re-rating For personal use only 1 All bauxite tenements now consolidated by Metro 2 Development plan has been accelerated and optimised 3 BFS reflects scale and infrastructure benefits of asset consolidation 4 Clear pathway to production 5 Construction on track t
Slide 16: Background Slides
For personal use only Background Slides ASX : MMI | Mines & Money Asia| April 2017
Slide 17: Board of Directors
Board of Directors For personal use only Stephen Everett Chemical engineer with 40+ years experience in the resources and construction industries both in Australia and overseas Chairman Formerly Chair of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining & IronRidge Resources Philip He
Slide 18: Capital Cost Estimates
Capital Cost Estimates For personal use only Capital Cost Item Amount Capital Cost Item Amount Initial Capital Expansion Capital (in years 2 and 3) Integrated Truck dump and Site establishment and haul A$3.1M screens and upgraded haul A$13.9M roads roads Key infrastructure including BLF A$25.8M Tran
Slide 19: Operating Cost Estimates
Operating Cost Estimates For personal use only Operating Cost Item BFS LOM Average Mining, haulage and operation of BLF A$7.07/t Transhipment activities A$6.71/t Site and administrative costs A$2.65/t Total Operating Costs (ex-royalties and A$16.42/t ocean freight) Royalties A$6.57/t Ocean Freight A
Slide 20: Alumina Index Pricing
Alumina Index Pricing For personal use only Alumina price has been relatively stable with Xinfa off-take pricing providing Metro attractive margins and upside Asianmetal 98.5% Alumina Index China RMB/t (March 2007 to Present) 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Mar-07 Mar-08 Mar-09 Ma
Slide 21: Transhipment Overview
Transhipment Overview For personal use only Barging & Transhipment is well Understood and will be Provided by Proven Operator 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 Geared Ship Loading
Slide 22: Reserves & Resources
Reserves & Resources For personal use only Bauxite Hills – DSO Mineral Resource &Ore Reserve Estimates DSO Bauxite Qualities (Dry Basis) Area Category DSO2 Tonnes (Mt)1 Total Al2O3 (%) Total SiO2 BH1 & BH6 Measured Resource 54.7 50.0 11.9 BH1, BH2 & BH6 Indicated Resource 66.4 49.2 14.5 BH1 & BH6 In
Slide 23: Disclaimer
For personal use only Disclaimer 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, industry gr
Slide 24: For Further Information
For personal use only For Further Information Contact: Simon Finnis, Chief Executive Officer & Managing Director | Duane Woodbury, Finance & Business Development Ph: +61 (0) 7 3009 8000 | Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 | GPO Box 10955, Brisbane Q 4000