Slide 1: Investor Presentation July 2017
For personal use only Investor Presentation July 2017 1 ASX:MMI
Slide 2: Executive Summary
Executive Summary Metro is rapidly advancing its compelling Bauxite Hills Mine For personal use only towards production in early 2018 1 Bauxite fundamentals & strong price outlook given rising China seaborne demand 2 Simple DSO project well located in Cape York with low operating and logistics costs
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure Share Price For personal use only Share Price (03-July-17) $0.155 $0.18 $0.16 Shares on Issue 1,004.0m $0.14 Market Cap $155.6m $0.12 $0.10 Options Unlisted 11.7m $0.08 BUY (Jul-17) Cash (18-April-17) $21.5m $0.06 Target Price: $0.44 $0.04 Unsecured Debt (18-Apri
Slide 4: Key Achievements
Key Achievements Metro has completed several key milestones over the past 12 months to be primed for near term production For personal use only Binding Sales Agreement 1 4 for 7Mt over 4 years & Doubled reserves LOI for 2.5Mt over 3 years Developed Acquired Gulf Gained infrastructure Cus
Slide 5: Key Achievements
Key Achievements New Management Team and shift of focus to Bauxite Hills has delivered shareholder returns of 485% and For personal use only overseen growth in Market Cap from $9M to $155.6M Debt financing + final 0.18 Native Title Expanded BFS environmental Agreement + complete approvals Expanded
Slide 6: Attractive Fundamentals
Attractive Fundamentals Attractive Project and Investment Fundamentals For personal use only High Margin Low Capex Avg. LOM OPEX1 vs. Avg. LOM Price Received (CIF) CAPEX vs. Avg. LOM EBITDA ~43% margin Payback within 1.7 years $73m $61/WMT $145m Expansion $37m $35/WMT Capital Initial Capex $36
Slide 7: Proven Management Team
Proven Management Team Metro’s Board & management have collectively been involved in the development and operation of over 30 mines globally For personal use only Significant bauxite knowledge and expertise, focused on Cape York bauxite operations and product marketing into China Strategy is t
Slide 8: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Location Key Statistics For personal use only Ownership: Metro (100%) Location: Cape York, Qld Project Overview Commodity Bauxite Product Type DSO Mine Type Surface mining Contained mineral: • Reserves 92.2Mt * • Resources 144.8Mt * Status BFS completed Construction H2 20
Slide 9: Simple DSO Project
Simple DSO Project Operational simplicity and specialist mining and transhipment contractors enables easy to manage operations For personal use only Proven, well known operator TSA to be transhipment contractor and will supply all vessels Existing infrastructure provides numerous development a
Slide 10: World Class Bauxite Jurisdiction
World Class Bauxite Jurisdiction For personal use only Located in the world class BHM Weipa bauxite region of western Cape York, Qld Weipa Amrun 90km north of Rio’s Aurukun Weipa mine and Cairns approx 130km from Rio’s Amrun Townsville development ~10-12 Days Shipping Weipa bauxite brand well
Slide 11: Low Logistics Costs
Low Logistics Costs Metro’s low cost logistics are a sustainable cost advantage to China relative to competing bauxite producers For personal use only 11. | ASX : MMI | Investor Presentation | July 2017
Slide 12: Strong Cost Curve Positioning
Strong Cost Curve Positioning 2nd quartile cost curve positioning provides attractive long term competitive advantage For personal use only China Seaborne Bauxite Supply Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile US$/DMT 0.0 5.0 10.0 1
Slide 13: Off-take Secured & Attractive
Off-take Secured & Attractive* Summary of Xinfa Off-take Binding off-take secured (Xinfa), China’s 2nd largest private bauxite importer. For personal use only Term 4 years Agreement covers ~50% of first 4 years production with market linked pricing. Total Tonnage 7Mt Lubei LOI (non-binding) for
Slide 14: BFS Summary
BFS Summary Bankable Feasibility Study Highlights* For personal use only Completed by MEC Mining in March 2017 6Mtpa steady state (initial 2Mtpa)** Contract mining and transhipment 8 months per year dry season operation (April to Nov) 5 month construction period Key Results and Assumptions
Slide 15: Conservative Ramp-up
Conservative Ramp-up With a 17-year initial mine life, production is expected to commence in April 2018 at For personal use only an initial rate of 2Mtpa ramping up to a steady state ~6Mtpa over the first four years 6.2Mt 4.9Mt ~6.0Mtpa for next Production Ramp-up 13-years 3.0Mt 2.0Mt Year 1 Year
Slide 16: Recent Milestones Achieved
Recent Milestones Achieved Debt Financing* Environmental Approvals For personal use only A$40M facilities provided by Sprott Resource Lending State & Federal Government approvals have now and Ingatatus AG (a related party of Balanced Property) been received Highly Competitive Terms with attrac
Slide 17: Bauxite Hills Mine Update
Bauxite Hills Mine Update Bauxite Hills Village For personal use only New camp under construction Installation planned for Nov 2017 Existing camp used during construction Barge Load-Out Facility TSA appointed as marine infrastructure manager Fabrication of piles completed and due for Augus
Slide 18: Near Term Production Pathway
Near Term Production Pathway Well Established Pathway Early works now underway For personal use only No Red Flags Production On-Track for April 2018 2016 2017 2018 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Off-Take Agreements Native Title Agreement Transhipment Solution Environmental Approval
Slide 19: Regional Exploration
For personal use only Regional Exploration Metro’s exploration exposure covers >2,500km2 of regional tenement holdings (including Bauxite Hills) All tenements are well located on the lateritic plateaus that host bauxite mineralisation Close proximity to the coast Potential to duplicate Bauxi
Slide 20: Summary
Summary Metro is a standout investment opportunity For personal use only 1 Strong bauxite fundamentals driven by structural change in China 2 Metro has significant advantages and is backed by leading investors 3 Compelling BFS metrics provides significant share price upside 4 Debt Financing secured
Slide 21: Background Slides
For personal use only Background Slides 21. ASX: MMI Investor Presentation July 2017
Slide 22: Board of Directors
Board of Directors Stephen Everett Chemical engineer with 40+ years experience in the resources and construction industries both in Australia and For personal use only overseas Chairman Formerly Chair of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining & IronRidge Resources Mining
Slide 23: Native Title & Land Access
Native Title & Land Access Positive & Supportive Relationships with For personal use only Local Community Native Title & Land Access Agreement reached jointly with: Key Features of the Agreement include: Ankamuthi People, the traditional owners; and Cultural Heritage Management Plan Old Mapoon
Slide 24: BFS Capital Cost Estimates
For personal use only BFS Capital Cost Estimates* 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
Slide 25: BFS Operating Cost Estimates
For personal use only BFS Operating Cost Estimates* 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 ocean freight) A$16.42/t Royalties A$6.57/t Ocean Frei
Slide 26: Reserves & Resources
Reserves & Resources* Bauxite Hills – DSO Mineral Resource &Ore Reserve Estimates For personal use only 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 I
Slide 27: 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 28: For Further Information
For personal use only For Further Information Contact: Simon Finnis – Chief Executive Officer & Managing Director Finance & Business Development – Duane Woodbury 28 Ph: +61 (0) 7 3009 8000 Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 GPO Box 10955, Brisbane Q 4000