Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (June 2021)
37 slides from Metro Mining's investor presentation, Jun 25, 2021
Slide 1: Equity Raising Investor Presentation
Explore | Define | Mine Equity Raising Investor Presentation 25 June 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important Notices & Disclaimer
Important Notices & Disclaimer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES This presentation has been prepared by Metro Mining Limited (ACN 117 763 443) (Metro) in relation to an equity No offer to acquire New Shares: The information in this presentation is not an offer or recommendation to
Slide 3: Important Notices & Disclaimer
Important Notices & Disclaimer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Financial information (cont…): Therefore, the non-IFRS financial information / non-GAAP financial measures are not To the maximum extent permitted by law, Metro and the Relevant Parties disclaim any responsibility fo
Slide 4: Company Update
Company Update Macro headwinds persist, requiring recapitalisation ahead of Stage 2 Expansion FID targeted by September / October 2021 Metro has incurred significant operating losses both during the wet season shut down and since production re-commenced in April 2021, with site EBITDA for H1 antic
Slide 5: Company Update
Company Update Board and management revitalisation underway with incoming appointments to provide significant expertise and relationships in bauxite and the broader resources industry with interim equity raising to strengthen balance sheet Board and management team being revitalised with deep indu
Slide 6: Positive Off-Take Progress
Positive Off-Take Progress Metro continues to progress off-take negotiations having secured two new contracts with Xinfa and is in advanced negotiations on two additional contracts with other customers, one of which would provide strong coverage for Stage 2 Expansion 7Mt Existing Contracts Stage 2 E
Slide 7: Successful Debt Restructure
Successful Debt Restructure Metro’s supportive senior secured lenders have agreed to defer debt repayments by up to 21 months until 2023 / 2024 Existing Senior Secured Debt Repayment Profile Previous Debt Repayment Profile Restructured Debt Repayment Profile $11.7m $11.7m $9.2m $9.2m $9.2m $6.7m $5.
Slide 8: Clear Strategy & Opportunity
Clear Strategy & Opportunity Metro’s strategy is to secure off-take for CY 2021 and beyond to support Stage 2 Expansion which will mitigate the key factors currently affecting Metro’s operating margins, including ocean freight rates Operational Improvement Progress Off-take & Sales Stage 2 Expansion
Slide 9: Stage 2 Expansion - Rationale & Status
Stage 2 Expansion - Rationale & Status Stage 2 Expansion has strong rationale and attractive funding solution via NAIF Compelling Rationale Funding & Development Status Significant economic benefits expected Total capital cost A$51.4 million (incl 10% contingency) LOM unit operating costs expe
Slide 10: Transformational Stage 2 Economics
Transformational Stage 2 Economics Stage 2 Expansion delivers a transformational step change in Metro’s economics and provides enhanced protection against any future unforeseen macro headwinds Price Received Indicative Stage 2 A$57.7/t A$56.1/t Expansion A$51.3/t A$49.5/t Royalties A$3.7/t A$5.8/t A
Slide 11: Q1 Cash Cost Positioning Post Stage 2
Q1 Cash Cost Positioning Post Stage 2 Post Stage 2 Expansion Metro will be attractively positioned as a Q1 cost-curve producer China Seaborne Bauxite Supply Cash Cost Curve 20231 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 100 90 80 Cash Cost CIF China, US$/dmt 70 60 50 40 30 20 10 0 0Mt 20M
Slide 12: Revitalised & Well Credentialed Board
Revitalised & Well Credentialed Board Metro has revitalised its board to provide further credentials to deliver Stage 2 Expansion and future shareholder value Douglas Ritchie Simon Wensley Stephen Everett Simon Finnis Fiona Murdoch Mark Sawyer Incoming Incoming Outgoing Outgoing Non-Executive Direct
Slide 13: Equity Raising
a EquityRaisng Raising MET
Slide 14: Equity Raising Summary
Equity Raising Summary Placement and pro-rata accelerated non-renounceable entitlement offer Equity raising to raise up to A$25.5 million, comprising: an institutional placement to raise up to A$3.3 million (Placement); and a 1 for 1 pro-rata accelerated non-renounceable entitlement offer to r
Slide 15: Equity Raising Summary
Equity Raising Summary Placement and pro-rata accelerated non-renounceable entitlement offer No underwriting The Equity Raising is not underwritten (and is subject to a minimum raise of A$10 million) 1 Metro’s largest shareholder, Greenstone (19.67% interest) has committed to take up its proport
Slide 16: Funding & Pro-Forma Capital Structure
Funding & Pro-Forma Capital Structure Post equity raising Metro expects to be funded through to targeted Stage 2 Expansion FID in September / October 2021 Sources & Uses Pro-Forma Capital Structure Sources of Funds Post Equity Raising Current Key Information 24-May-21 (min) (max) Existing Cash Posit
Slide 17: Equity Raising Timetable
Equity Raising Timetable Placement and pro-rata accelerated non-renounceable entitlement offer Event Date Announcement of Equity Raising Friday, 25 June 2021 Placement and Institutional Entitlement Offer Bookbuild Friday, 25 June 2021 Announcement of results of Placement and Institutional Entitlemen
Slide 18: Summary of Risks
Summary of Risks Metro expects offer proceeds will be sufficient to fund Metro through to NAIF funding decision and FID in September / October 2021, but the risks outlined below and further described in slides 20 to 24 can materially change that position Record high ocean freight rates continue to a
Slide 19: Appendix A. Key Risk Factors
aR Appendix A. Key Risk Factors | A. Key Risk Factors MET
Slide 20: Key Risk Factors
Key Risk Factors Specific risks Bauxite sales: Approximately 2.3 million WMT of Metro's 3.7 million WMT of planned 2021 production will be There can be no guarantee that Metro will be able to source funding on commercially acceptable terms sold under the off-take agreement currently in place with Me
Slide 21: Key Risk Factors
Key Risk Factors Specific risks (cont…) Stage 2 Expansion / Northern Australia Infrastructure Facility: On 12 November 2019, Metro announced that Metro’s estimates assume levels of production above its long-term off-take arrangements and therefore NAIF had made an investment decision to offer a loan
Slide 22: Key Risk Factors
Key Risk Factors Specific risks (cont…) Financial assurances (cont…): In April 2021, the Scheme Manager completed its annual assessment of the Any such occurrences may have a material adverse impact on Metro’s profitability and the results of its two environmental authorities held by Metro in connec
Slide 23: Key Risk Factors
Key Risk Factors Specific risks (cont…) Authorisation: Interests in exploration and mining tenements are evidenced by the granting of leases or While Metro will have contractual rights in the event of the contracting party’s non-compliance, there is no licences, which are for specific terms and carr
Slide 24: Key Risk Factors
Key Risk Factors General risks Market risks: The price at which Metro's shares trade on ASX may be determined by a range of factors Litigation and dispute resolution: The nature of Metro’s business means that it may, from time to time, be including movements in local and international equity and bon
Slide 25: Appendix B. Additional Metro Information
Appendix B. Additional Metro Information
Slide 26: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Metro’s 100% Bauxite Hills mine is well located in the world-renowned Cape York bauxite province Bauxite Hills Project Overview Bauxite Hills Project Location Key Statistics Ownership Metro (100%) Commodity Bauxite Project Overview Location Cape York, Qld Product Type Dir
Slide 27: Bauxite Hills Operational Overview
Bauxite Hills Operational Overview Bauxite Hills operates a simple Direct Shipping ore (DSO) operation DSO Operation DSO Flowsheet Direct Shipping Ore (DSO) No Tranship ore down Skardon River Clear vegetation & Return overburden & replace processing, no overburden, no remove overburden topsoil - t
Slide 28: Bauxite Hills Shipping Advantage
Bauxite Hills Shipping Advantage Bauxite Hills has a valuable long-term competitive shipping advantage Key Comments Location, Location, Location Cape York Bauxite is well known in, and well received by the Chinese market Although anomalous behaviour recently, in general as ocean freight increa
Slide 29: Stage 2 Freight Rate Analysis
Stage 2 Freight Rate Analysis Stage 2 Expansion will enable shipping via larger Cape Class vessels, significantly reducing freight rates and improving margins 10 Year Average Freight Rates Ultramax (Stage 1) vs. Cape Class (Stage 2) Freight Rates1 $30/t Ultramax (Skardon River to China) Cape (Skardo
Slide 30: Appendix C. Macro Conditions Update
Appendix C. Macro Conditions Update
Slide 31: Recent Macro Headwinds
Recent Macro Headwinds Due to COVID Metro has recently experienced a low bauxite price and abnormally high freight rates Weighted Average Imported Bauxite Prices by Source Country (US$/DMT CIF China) Rising Cape & Ultramax Freight Rates US$65/t US$35/t Cape (Guinea to China) Ultramax (Skardon River
Slide 32: Strong Fundamentals & Positive Outlook
Strong Fundamentals & Positive Outlook There remains strong structural demand fundamentals and price outlook is now improving Strengthening Aluminium Price Increasing China Bauxite Imports Demand 200Mt RMB 20,000/t 2021 Forecast RMB 18,000/t 150Mt RMB 16,000/t 100Mt RMB 14,000/t 2020 Forecast 50Mt R
Slide 33: Appendix D. Foreign Selling Restrictions
Appendix D. Foreign Selling Restrictions
Slide 34: Foreign Selling Restrictions
Foreign Selling Restrictions This presentation does not constitute an offer of new fully paid ordinary shares in Metro (New Shares) in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offered or sold,
Slide 35: Foreign Selling Restrictions
Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except t
Slide 36: Foreign Selling Restrictions
Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except t
Slide 37: Explore | Define | Mine
Explore | Define | Mine 37 | ASX : MMI | June 2021