Metro Mining Limited · ASX:MMI
Metro Mining — Investor Presentation (June 2017)
26 slides from Metro Mining's investor presentation, June 2017
Slide 1: Investor Presentation
Investor Presentation June 2017 1
Slide 2: Executive Summary
Executive Summary Positive Fundamentals, Simple & Compelling Project, Proven Team, Near Term Production & Excellent Investment 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 3 Comp
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure Share Register Share Price (15 -June-17) $0.13 Greenstone Shares on Issue 1,004.0m 20% Other Shareholders Market Cap $130M 41% Options Unlisted 11.7m 20% Balanced Property Cash (18-April-17) $21.5M 11% 8% Unsecured Debt (18-April-17) $15.0M Australian Institution
Slide 4: Operational Overview: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Key Statistics Ownership: Metro (100%) Construction H2 2017 First Production April 2018 Location: Cape York, Qld Start-up ~2Mtpa** Production Commodity Bauxite Steady State Operational Overview ~6Mtpa (year 4)** Product Type DSO Production Project Overview Pre Production
Slide 5: Simple DSO Project
Simple DSO Project Operational simplicity and specialist mining and transhipment contractors enables easy to manage operations Proven, well known operator TSA to be transhipment contractor and will supply all vessels Clear vegetation & remove overburden Return overburden & replace topsoil - then
Slide 6: World Class Bauxite Jurisdiction
World Class Bauxite Jurisdiction BHM Located in the world class Weipa bauxite region of Weipa western Cape York, Qld Amrun Aurukun 90km north of Rio’s Weipa Cairns mine and approx 130km Townsville from Rio’s Amrun development ~10-12 Days Shipping Weipa bauxite brand well established and highly
Slide 7: Low Logistics Costs
Low Logistics Costs Metro’s low cost logistics are a sustainable cost advantage to China relative to competing bauxite producers 7 | ASX : MMI | Investor Presentation | June 2017
Slide 8: Existing Infrastructure Benefit
Existing Infrastructure Benefit Existing infrastructure provides numerous development advantages Port & Load Out Area Camp Site Airstrip 8 | ASX : MMI | Investor Presentation | June 2017
Slide 9: BFS Summary
BFS Summary Bankable Feasibility Study Highlights* 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 November) 5 month construction period Key Results and Assumptions Description Resu
Slide 10: Strong Cost Curve Positioning
Strong Cost Curve Positioning 2nd quartile cost curve positioning provides attractive long term competitive advantage China Seaborne Bauxite Supply Full Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile US$/DMT Source: CM Group 0.0 5.0 10.0 1
Slide 11: Near Term Production Pathway
Near Term Production Pathway 1. Well Established 2. No Red Flags 3. Early works now 4. Production On Track Pathway underway 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 DFS for 2Mtpa Off-Take Native Title Agreement Metro Tra
Slide 12: Off-take Secured & Attractive
Off-take Secured & Attractive* Foundation off-take secured (Xinfa), China’s 2nd largest private bauxite importer. Summary of Xinfa Off-take Agreement covers ~50% of first 4 years production with market linked pricing. Term 4 years Lubei LOI (non-binding) for 0.5-1.0mt pa for a minimum three year
Slide 13: Proven Management Team
Proven Management Team Metro’s Board & management have collectively been involved in the development and operation of over 30 mines globally Significant bauxite knowledge and expertise, focused on Cape York bauxite operations and product marketing into China Strategy is to develop and operate
Slide 14: Significant Progress Since BFS
Significant Progress Since BFS Project Early Works Now Underway Contracts placed for fabrication of piles and associated steel works, and camp Detailed engineering and design contracts awarded for conveyor and barge load out facility Firm bids received for electrical and marine installation Costs to
Slide 15: Native Title & Land Access
Native Title & Land Access Positive & Supportive Relationships 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 Management Plan Old Mapoon Aboriginal Corporatio
Slide 16: Key Structural Change in China
Key Structural Change in China China’s seaborne bauxite imports are forecast to grow from ~50mtpa in 2015 to ~150mtpa by 2030 Chinese Aluminium Production & Growing Seaborne Bauxite Demand Declining Chinese Bauxite Quality 9.0 Alumina/Silica ratio 8.0 Forecast Imported ImportedAlumina Bauxite as a
Slide 17: Regional Exploration
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 Bauxite Hills – organic gro
Slide 18: Project Financial Metrics
Project Financial Metrics After-Tax NPV10 After-Tax IRR Initial CAPEX A$601Million 81% A$35.8Million Average Annual EBITDA A$145Million Initial LOM LOM EBITDA LOM Average on-site costs 17 Year A$2.5Billion A$16.42/t Metro Market Cap = A$130 Million 18 | ASX : MMI | Investor Presentation | June 2017
Slide 19: Summary
Summary Metro is Well Positioned & Compelling 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 Financing strategy well advanced & early works now
Slide 20: Background Slides
Heading Background Slides 20 | ASX : MMI | Investor Presentation | June 2017
Slide 21: Board of Directors
Board of Directors 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 Simon Finnis Mining executive
Slide 22: BFS Capital Cost Estimates
BFS Capital Cost Estimates* Capital Cost Item Amount Capital Cost Item Amount Initial Capital Expansion Capital (in years 2 & 3) Integrated Truck dump and screens Site establishment and haul roads A$3.1M A$13.9M and upgraded haul roads Key infrastructure including BLF and A$25.8M Transhipment upgrad
Slide 23: BFS Operating Cost Estimates
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 Freight A$11.71/t Total Op
Slide 24: Reserves & Resources
Reserves & Resources* 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 Inferred Resource 23.7
Slide 25: Disclaimer
Heading 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 growth or other
Slide 26: For Further Information
For Further Information Contact: Simon Finnis – Chief Executive Officer & Managing Director Finance & Business Development – Duane Woodbury 26 Ph: +61 (0) 7 3009 8000 Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 GPO Box 10955, Brisbane Q 4000