Slide 1: Capital Raising Presentation
NOT FOR DISTRIBUTION IN THE US Capital Raising Presentation Metro Mining Limited (ASX: MMI) May 2024
Slide 2: Disclosures
NOT FOR DISTRIBUTION IN THE US Disclosures IMPORTANT INFORMATION This investor presentation (Presentation) has been prepared by Metro Mining Limited (Metro or the Company) in connection with Metro’s proposed equity raising of new ordinary shares in Metro (New Shares) comprising a placement of New Sh
Slide 3: Disclosures
NOT FOR DISTRIBUTION IN THE US Disclosures DISCLAIMER To the maximum extent permitted by law, Metro, the LM and their respective affiliates, related bodies corporate, officers, employees, partners, agents and advisers make no representation or warranty (express or implied) as to the currency, accura
Slide 4: Details of the Offer
NOT FOR DISTRIBUTION IN THE US Details of the Offer
Slide 5: Capital Raising Overview
NOT FOR DISTRIBUTION IN THE US Capital Raising Overview Metro Mining is raising approximately $44 million via a Placement & SPP Capital Raising Overview Use of Funds $40 million institutional placement (“Placement”) Repay $39 million comprising junior debt and working capital facility: $4 mill
Slide 6: Terms of the Offer
NOT FOR DISTRIBUTION IN THE US Terms of the Offer Institutional placement to sophisticated, experienced or professional investors to raise approximately $40 million. Issue of approximately 975.6 million New Shares equivalent to approximately 20% of MMI’s current shares on Offer structure and siz
Slide 7: Offer timetable
NOT FOR DISTRIBUTION IN THE US Offer timetable Event Date Trading halt Tuesday, 30 April 2024 Bookbuild opens Tuesday, 30 April 2024 Bookbuild closes1 3:00pm Wednesday, 1 May 2024 SPP record date 7:00pm Wednesday, 1 May 2024 Announcement of successful transaction Thursday, 2 May 2024 Settlement of P
Slide 8: Corporate snapshot
NOT FOR DISTRIBUTION IN THE US Corporate snapshot Share Price Performance – Since Jan ‘224 Shares on Market A$ Share Price1 $0.050 Issue Capitalisation $0.046 A$0.046 4,842 million A$222.7 million $0.040 Performance Warrants2 Rights $0.030 124.6 million 116.1 million Top Shareholders3 % $0.020 Green
Slide 9: Metro Mining Limited
NOT FOR DISTRIBUTION IN THE US Metro Mining Limited Exposure to Australian Bauxite at operational inflection point
Slide 10: Unique exposure to Australian bauxite at operational inflection point
NOT FOR DISTRIBUTION IN THE US Unique exposure to Australian bauxite at operational inflection point Rare opportunity: large scale resource, simple operation, pathway to lowest cost supplier to China in 2026 1 7+ million WMT, low-cost, high-grade, Australian bauxite producer – unique to ASX 2 Global
Slide 11: 7+ million WMT capacity operational by end of Q2 2024
NOT FOR DISTRIBUTION IN THE US 7+ million WMT capacity operational by end of Q2 2024 MINING & HAULAGE SCREENING BARGE LOADING TOWAGE TRANSHIPPING 7.5 Mt/a 9 Mt/a 8 Mt/a 7.5 Mt/a 9 Mt/a OPERATIONAL NOW OPERATIONAL: MAY ‘24 OPERATIONAL NOW OPERATIONAL NOW OPERATIONAL NOW Mining HME: 9 Mt/a Screen load
Slide 12: Pathway to become lowest global delivered cash cost supplier to China by 2026
NOT FOR DISTRIBUTION IN THE US Delivery of the 7 Mt/a expansion provides pathway to become lowest global delivered cash cost supplier to China by 2026 China Seaborne Bauxite Supply and Costs 2022 and 20261 100 2022 2026 90 80 2026 2022 70 US$/DMT CIF Shandong 60 50 40 30 20 10 0 0 50 100 150 200 Sup
Slide 13: 7+ million WMT, low-cost, high-grade, Australian bauxite producer – unique to ASX
NOT FOR DISTRIBUTION IN THE US 7+ million WMT, low-cost, high-grade, Australian bauxite producer – unique to ASX Clear vegetation & Return overburden & replace remove overburden topsoil - then revegetate Large-scale, high-quality resource “Weipa” style bauxite from well-known West Cape York platea
Slide 14: Global Aluminium demand expected to rise by ~40% by 2030
NOT FOR DISTRIBUTION IN THE US Global Aluminium demand expected to rise by ~40% by 20301 Aluminium central to long-term renewable energy generation/storage, Global Aluminium demand expected to rise by ~40% by 20301 Electric Vehicles (EVs) and electrification thematics 35 2020 2030 Transitioning th
Slide 15: Robust supply / demand backdrop for bauxite price
NOT FOR DISTRIBUTION IN THE US Robust supply / demand backdrop for bauxite price Australian bauxite price around US$55/DMT+, up 39% since Jan ’221 Record bauxite imports to China in 2023, up 13% y-o-y 75 AUS HT GUINEA LT Indonesia has ceased all bauxite exports, constraining global supply 70 For
Slide 16: Track record of 6.0+ M WMT run-rate, guiding to 6.3 to 6.8 M WMT in 2024
NOT FOR DISTRIBUTION IN THE US Track record of 6.0+ M WMT run-rate1, guiding to 6.3 to 6.8 M WMT in 2024 Production Output (7 Day Rolling Average)2,3 30,000 7 Mt /a run rate 25,000 6 Mt /a run rate 20,000 5 Mt /a run rate Guidance Range Wmt / day 15,000 2024 2023 2022 10,000 5,000 0 Mar 24 Apr 24 Ma
Slide 17: Offtake underpins expanded production: 6.9 M WMT contracted in 2024
NOT FOR DISTRIBUTION IN THE US Offtake underpins expanded production: 6.9 M WMT contracted in 2024 New contracts with Lubei Chemical and a leading Aluminium producer add to existing baseload customers for 2024 offtake of 6.9 Mt Longstanding baseload customers Xinfa Contract offtake - Xinfa Group a
Slide 18: Cash generation inflection point: on-track to achieve average site EBITDA of A$15/WMT in 2024
NOT FOR DISTRIBUTION IN THE US Cash generation inflection point: on-track to achieve average site EBITDA of A$15/WMT in 2024 Economies of scale & evolution of freight book drives forecast margin potential up $70 $68 $60 Current Spot Cargo Price $57 $5 2023 2H Average Pricing $53 $50 DFS Pricing $6 $
Slide 19: Strong, simplified, flexible balance sheet: senior debt repayments due from Mar '25
NOT FOR DISTRIBUTION IN THE US Strong, simplified, flexible balance sheet: senior debt repayments due from Mar ’25 Capital raising significantly strengthens balance sheet Net Junior Debt Accelerated debt repayments Mar ‘24 Warrants Proceeds of Pro Forma Repayment Offer $25m repayment of junior deb
Slide 20: Highly experienced team with strong culture of safety, community and sustainability
NOT FOR DISTRIBUTION IN THE US Highly experienced team with strong culture of safety, community and sustainability Executive Leadership Team Board of Directors Diverse Broader Team Simon Wensley, CEO & Managing Director Douglas Ritchie, Independent Non-Executive 34 years experience Chair 40 year
Slide 21: This debt reduction raise frees up cash flow & resources to pursue potential value-creation opportunities earlier
NOT FOR DISTRIBUTION IN THE US This debt reduction raise frees up cash flow & resources to pursue potential value-creation opportunities earlier Strategic Target Mining assets, new OFT Ikamba and wobbler screening circuit have significant latent capacity 0.5 M WMT/a Latent capacity in key areas of
Slide 22: Appendix
NOT FOR DISTRIBUTION IN THE US Appendix
Slide 23: Appendix A – Material Assumptions for 2024 and 2025 Forecast Unit Costs
NOT FOR DISTRIBUTION IN THE US Appendix A – Material Assumptions for 2024 and 2025 Forecast Unit Costs Forecast Assumption Forecast Basis The additional port infrastructure and transshipping equipment required to increase production capacity to 7 million tonnes per Production annum has been assessed
Slide 24: Offer Jurisdictions
NOT FOR DISTRIBUTION IN THE US Offer Jurisdictions Australia This Presentation and the Offer of New Shares are only made available in Australia to persons to whom an offer of securities can be made without disclosure in accordance with applicable exemptions in section 708(8) of the Corporations Act
Slide 25: Offer Jurisdictions
NOT FOR DISTRIBUTION IN THE US Offer Jurisdictions In the event that you are not an investor falling within any of the categories set out above, please return this Presentation immediately. You may not forward or circulate this Presentation to any other person in Singapore. Any Offer is not made to
Slide 26: Offer Jurisdictions
NOT FOR DISTRIBUTION IN THE US Offer Jurisdictions In the United Kingdom, this Presentation is being distributed only to, and is directed at, persons: who have professional experience in matters relating to investments falling within Article 19(5) ("investment professionals") of the Financial Serv
Slide 27: Risk Factors
NOT FOR DISTRIBUTION IN THE US Risk Factors You should be aware that an investment in New Shares involves various risks. This section sets out some of the key risks associated with an investment in New Shares. A number of risks and uncertainties, which are both specific to Metro, and of a more gener
Slide 28: Risk Factors
NOT FOR DISTRIBUTION IN THE US Risk Factors In July 2021, the Company secured a floating crane. This strategic initiative enabled the loading of Capesize vessels, which significantly mitigated the risk. Ocean freight exposure has been further reduced with the execution of 'Contracts of Affreightment
Slide 29: Risk Factors
NOT FOR DISTRIBUTION IN THE US Risk Factors Production and cost estimates The Company prepares estimates of future production, site costs and capital costs of production for its operations. No assurance can be given that such estimates will be achieved. Failure to achieve production or cost estimate
Slide 30: Risk Factors
NOT FOR DISTRIBUTION IN THE US Risk Factors Going concern Going concern remains a material risk for the Company. The Company's financial performance has in recent history been impacted by the following operational and seasonal factors: poor weather resulting in an early cessation of the operating
Slide 31: Risk Factors
NOT FOR DISTRIBUTION IN THE US Risk Factors Supply shortages and inflationary pressure There has been and continues to be high demand for appropriate equipment and willing contractors providing services to the resources and construction industries. Current economic conditions, global and domestic, a
Slide 32: Risk Factors
NOT FOR DISTRIBUTION IN THE US Risk Factors Liquidity risk (as it applies to the Company) Liquidity risk (as it applies to the Company) is the risk the Company will encounter difficulties in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidi
Slide 33: Risk Factors
NOT FOR DISTRIBUTION IN THE US Risk Factors Foreign exchange risk Foreign exchange risk is the risk that a change in foreign exchange rates may negatively impact the Company’s cash flow or profitability because the Company has an exposure to a foreign currency or has foreign currency denominated obl
Slide 34: For Further Information Contact
NOT FOR DISTRIBUTION IN THE US For Further Information Contact: Investor Relations: Peter Taylor Peter@nwrcommunications.com.au Ph: +61 (0) 4120 3631 Company Secretary: Robin Bates info@metromining.com.au Ph: +61 (0) 7 3009 8000 Postal Address: GPO Box 10955, Brisbane QLD 4000