Slide 1: Equity Raising Investor Presentation
Equity Raising Investor Presentation 18 June 2018 1 Not for release to US wire services or distribution in the United States
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer No reliance To the maximum extent permitted by law, the information contained in this presentation is given Cautionary note regarding reserves and resources: As an Australian company with securities listed on the ASX, without any liability whatsoever being accepted by M
Slide 3: Equity Raising Overview
METRO MINING LIMITED Equity Raising Overview
Slide 4: Equity Raising Overview
Equity Raising Overview Equity Raising Overview Equity Raising Timetable ◼ Placement to raise approximately $15.0 million, with the ability Key Event Time / Date (AWST) to take oversubscriptions to raise up to an additional $2.5 million (“Placement”) Offer Structure Trading Halt, Announcement of Equ
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure Share Price Performance Jan 2015 - June 2018 Key Information Current Post Equity Raising1 $0.35 $0.30 Share Price (15 June 2018) / Issue Price A$0.21 A$0.20 $0.25 Shares on Issue 1,292M 1,367M $0.20 Market Cap A$271.3M A$273.4M $0.15 Options Unlisted 33.9M 33.9M
Slide 6: Project Update
METRO MINING LIMITED Project Update
Slide 7: Ramp-Up Overview
Ramp-Up Overview Delayed ◼ Mining commencement was delayed to mid-April 2018 due to an extended wet season and a site evacuation for Tropical Cyclone Nora Commencement ◼ Wet material caused operational and materials handling delays ◼ Screen and barge loading commissioning issues largely resolved wit
Slide 8: First Shipment Arrives in China
First Shipment Arrives in China ◼ First three Xinfa shipments have successfully arrived in China with revenue already received ◼ An additional ship is due to arrive in China shortly and a fifth is currently being loaded ◼ Increasing buying interest in Metro’s product being experienced post first shi
Slide 9: Production Guidance Update
Production Guidance Update ▪ Bauxite shipped in the June quarter is expected to reach the lower end of previously stated guidance ▪ Guidance for bauxite shipped revised upwards for the September and December quarters ▪ Although start up was delayed, the production ramp-up is continuing ▪ Guidance in
Slide 10: Ship Loading Rates Improving
Ship Loading Rates Improving ▪ Four ships successfully departed for China Average Daily Barge Loading Rates vs Total Ship Loading Days ▪ Daily average ship loading rates trending higher 10,000tpd ▪ Total days to load ships decreasing 7,968tpd ▪ The target daily loading rate at 10,000 tonnes 5,815tpd
Slide 11: Favourable Price Dynamic
Favourable Price Dynamic ▪ Alumina prices have CBIX Weighted Daily Price vs Alumina Price Indexed outperformed the CBIX Bauxite 200% Price over the past 2 years CBIX Weighted Daily Index Alumina Index ▪ Xinfa off-take pricing is linked to 180% the Alumina price index providing Metro an attractive sa
Slide 12: China Demand Outlook Remains Strong
China Demand Outlook Remains Strong Source: CM Group 12 | ASX : MMI | June 2018
Slide 13: Company Overview
METRO MINING LIMITED Company Overview
Slide 14: Investment Highlights
Investment Highlights 1 Bauxite Hills Mine now in production – 10 months after construction commenced 2 Simple DSO operation well located in Cape York with significant competitive advantages 3 Compelling economics and long life mine 4 Emerging independent Cape York bauxite producer in high growth co
Slide 15: Bauxite Hills Mine Snapshot
Bauxite Hills Mine Snapshot Key Statistics1 Ownership: Metro (100%) Location: Cape York, Qld Project Overview Commodity Bauxite Product Type Direct Shipping Ore Contained Mineral: Reserves 92.2Mt1 Resources 144.8Mt1 Mine Type Surface mining Location Status Operational First Production April 2018 Ope
Slide 16: Simple DSO Project
Simple DSO Project ◼ Operational simplicity and specialist mining and transhipment contractors means an easy to manage operation ◼ Dry season only operations mitigate the risk of weather impact ◼ Site location, geological setting and layout provides attractive margins Clear vegetation & remove overb
Slide 17: China Shipping Advantage
China Shipping Advantage ▪ Favourable location ▪ Metro’s low cost shipping is a sustainable cost advantage to China relative to competing bauxite producers, particularly Guinea ▪ Cape York Bauxite is well known in, and well received by the Chinese market ▪ Low working capital requirements, given spe
Slide 18: Increasing Production Profile
Increasing Production Profile Tonnes Per Annum Stage 1 Stage 2 ▪ Ramp up over 4 years reflects 7,000,000 development of the customer ▪ Subject to Board Approval base. Production in excess of ▪ Estimated Capital costs of $37M1 existing off-take subject to spot 6,000,000 sales and/or new off-take 5,00
Slide 19: Strong End-User Demand & Off-take
Strong End-User Demand & Off-take Overview of Key China End Users & Port Locations – Shandong Province Summary of Xinfa Off-Take* Term 4 years Wudi Zhanhua Total Tonnage 7Mt Binzhou Tonnage 1Mt for yr1 | 2Mt for yrs 2-4 Pricing CIF basis Yantai Port Zouping Weihai Port Reference Price Established al
Slide 20: Significant Regional Exploration Upside
Significant Regional Exploration Upside ◼ Metro’s exploration exposure covers >1,800km2 of holdings (including Bauxite Hills) on Cape York ◼ All tenements are well located on the lateritic plateaus that host bauxite mineralisation ◼ Close proximity to the coast ◼ Potential to duplicate Bauxite Hills
Slide 21: Positive Local Community Relationships
Positive Local Community Relationships Ankamuthi Elders George Williams and Richard Woosup and Metro’s Environmental heritage Support Officer Barunah “Bruno” Sagiba A “Welcome to Country Ceremony” was held at Bauxite Hills Mine site in April 2018 Major Ankamuthi family groups plus Metro’s Chair
Slide 22: Summary – A Compelling Investment
Summary – A Compelling Investment 1 Metro has significant advantages and is backed by leading partners 2 Strong seaborne bauxite fundamentals in China drive positive outlook 3 Recent achievements have delivered platform for value creation 4 Exciting period ahead with production commenced in April 20
Slide 23: Risks & International Offer Restrictions
Risks & International Offer Restrictions
Slide 24: Risks
Risks SPECIFIC RISKS Funding: The purpose of this capital raising is to provide short term working capital to Metro while it is ramping up mining operations at its Bauxite Hills Mine. While the Board does not anticipate the need for further equity or debt funding in the short term, investors should
Slide 25: Risks
Risks SPECIFIC RISKS (CONTINUED) Mineral Resources and Ore Reserves: Mineral Resources and Ore Reserves are estimates of mineralisation that have reasonable prospects for eventual economical extraction in the future, as defined by the 2012 Edition of the Australasian Code for Reporting of Exploratio
Slide 26: Risks
Risks SPECIFIC RISKS (CONTINUED) Contractual: Development of Metro’s resources and subsequent sale of material will depend on a number of material contractual arrangements. In particular, Metro expects to generate its revenue from the sale of bauxite to customers under off-take and other agreements.
Slide 27: Risks
Risks GENERAL RISKS Market risks: The price at which Metro Shares trade on the ASX may be determined by a range of factors including movements in local and international equity and bond markets, general investor sentiment in those markets, inflation, interest rates, general economic conditions and o
Slide 28: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares of Metro Mining in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country excep
Slide 29: International Offer Restrictions
International Offer Restrictions The following is a summary of the statutory rights of rescission or to damages, or both, available to purchasers in Ontario. In Ontario, every purchaser of the New Shares purchased pursuant to this document (other than (a) a "Canadian financial institution" or a "Sch
Slide 30: International Offer Restrictions
International Offer Restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong
Slide 31: International Offer Restrictions
International Offer Restrictions Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosur
Slide 32: Disclaimer
Disclaimer FORWARD LOOKING STATEMENT Statements and material contained in this presentation, 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 trend projec