Metro Mining Limited · ASX:MMI
Metro Mining — Mines & Money Asia 2016
25 slides from Metro Mining's conference presentation, Apr 7, 2016
Slide 1: Mines & Money Asia April 2016
For personal use only Mines & Money Asia April 2016 ASX : MMI | Mines & Money Asia| April 2016
Slide 2: Compelling Proposition
Compelling Proposition Metro is a Rare, High Margin Investment in a Growth Sector For personal use only Positive fundamentals for bauxite Simple DSO project, well located in Cape York’s world class bauxite province Low capex, high margins and excellent economics Native title finalised and permitting
Slide 3: Rapidly Growing Chinese Bauxite Demand
Rapidly Growing Chinese Bauxite Demand Heading For personal use only China represents around 70% of the 3rd party global traded bauxite market, with import growth driven by increased aluminium production & declining reserves (<10yrs) 120 Forecast 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011
Slide 4: Proven Team
Proven Team Metro’s Board & Management Team have Successfully Developed For personal use only and Operated over 30 Projects Globally Key Team Members Stephen Everett Chemical engineer with over 40 years experience in resources and construction Chairman Formerly Chairman of BeMaX Resources Simon
Slide 5: Location Provides Brand & Value Driver
Location Provides Brand & Value Driver For personal use only Located 95km North of Weipa with ready access via the Skardon River Weipa is a world renowned and high quality bauxite province Adjacent to historic kaolin mining operation Skardon River is an approved Queensland port Advantageous
Slide 6: Operational Simplicity
Operational HeadingSimplicity Conventional Mining and Transportation Techniques For personal use only Clear vegetation & remove overburden Return overburden & replace topsoil - then revegetate Mining Strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Haul ore 5
Slide 7: Increased Production Scenario
Increased Production Scenario For personal use only Significant Scale Benefits Confirmed by Recent PFS* **4Mtpa PFS Key Results1* Detailed PFS completed by MEC Mining Steady State Production 4Mtpa • Based on DFS for 2Mtpa** announced to ASX 5 November 2015 LOM Production 49.1Mt 4Mtpa steady stat
Slide 8: Native Title & Land Access Finalised
Native Title & Land Access Finalised For personal use only Positive & Supportive Relationships Established with Local Community Recent Native Title & Land Access Agreement reached Key Features of the Agreement include: jointly with: Cultural Heritage Management Plan Ankamuthi People, the traditi
Slide 9: Upcoming Milestones
Upcoming Milestones For personal use only DFS Underway and EIS Permitting Expected to be Completed Q4 2016 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EIS Approval Process Native Title & Land Access 4-5Mtpa PFS Off-Take Agreement 4-5Mtpa DFS Financing Mining Lease Grant Mine Construction Mine Producti
Slide 10: Gulf Merger Opportunity
Gulf Merger Opportunity* Adjacent and Similar Scale Projects Provides Compelling Logic For personal use only Metro & Gulf Skardon River Positioning Merger Rationale Creates leading independent Cape York bauxite company with enhanced bauxite market relevance Effectively doubled reserve base of ~9
Slide 11: Offer for Gulf
Offer for Gulf Heading Metro’s Offer Opened 24 December 2015 and is Progressing in Parallel with For personal use only Metro Rapidly Advancing its own Project Intention to improve Offer to: 3.5 Metro shares for every 1 Gulf share (subject to conditions Offer Ratio below (Improved Offer) Ownership
Slide 12: Background Slides
For personal use only Background Slides
Slide 13: Capital Structure & Shareholders
Capital Structure & Shareholders For personal use only Capital Share Structure Shareholders Share Price (29 March 2016) .06c Balanced Property Shares on Issue 366.8m 19.6% Other Market Cap A$22.0m 46.8% DADI Options 13.8m 17.0% Cash (31 Dec 2015) A$5.3m Xinfa Debt (31 Dec 2015) Nil 6.2% Bondline Gre
Slide 14: Metro Share Price
Metro Share Price For personal use only Current Share Price Provides Ground-floor Entry with Significant Upside $0.14 $5.6m Equity Raising Near Term Share Price Targets at $0.08/share Argonaut $0.20 $0.12 GMP $0.18 Morgans $0.18 $0.10 $0.08 Initial PFS (2Mtpa) $0.06 Metro gains control of Bauxite Hi
Slide 15: Board of Directors
Board of Directors For personal use only Chemical engineer with over 40 years experience in the resources and construction industries both in Stephen Everett Australia and overseas Chairman Formerly Chairman of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining and IronRidge Resources
Slide 16: Management Team
Management Team For personal use only Simon Finnis 28+ years resources industry experience working throughout Australia in underground & open cut mining operations. CEO Holds Masters in Business & Technology from University of New South Wales Joined Metro Jan 2015 having previously served as CEO
Slide 17: Cape York DSO Bauxite Reserves & Resources
Cape York DSO Bauxite Reserves & Resources* For personal use only DSO2 DSO Bauxite Qualities (Dry Basis) Area Category Tonnes Total Al2O3 THA3 Total SiO2 RxSi4 (%) Mt1 % % % % Reserves (ROM @ 10% Moisture) BH1 & BH6 Proved 5 41.8 50.7 38.6 10.9 6.3 BH1 & BH6 Probable 6 6.4 49.3 36.8 13.4 6.9 Total 4
Slide 18: Pre-Feasibility Study – Key Outcomes
Pre-Feasibility Study – Key Outcomes** For personal use only Key Assumptions Key Results Annual Production Rate (Steady State) 4.0Mt* NPV (10% DR, Real, after tax) A$582m LOM Production 49.1Mt* NPV (15% DR, Real, after tax) A$440m IRR 156% Mine Life 13 years* Payback Period 1.2 years* Bauxite Price
Slide 19: Pre-Feasibility Study – CAPEX & OPEX
Pre-Feasibility Heading Study – CAPEX & OPEX* For personal use only CAPEX OPEX Haul roads and site establishment A$3.03m Mining, haulage and operation of BLF A$6.27/t Navigational aids and cyclone moorings A$1.15m Transhipment activities A$8.40/t Site Infrastructure including BLF and Site and admini
Slide 20: Barging & Transhipment
Barging & Transhipment Barging and transhipment well understood For personal use only New barge loading facility on western side of Skardon River Tow Passage & transhipment Location Adequate water at low tide and accessible from Metro’s tenements ~10km upstream from river mouth ~2km upstream
Slide 21: China Export Advantage
China Export Advantage For personal use only Cape York Enjoys Strong Freight Advantage to China 47.3% Al2O3 2.79% Silica 46.1% Al2O3 47.6% Al2O3 3.13% Silica 2.87% Silica 48.4% Al2O3 6.51% Silica 51.5% Al2O3 / 5.45% Silica ASX : MMI | Mines & Money Asia| April 2016
Slide 22: Off-Take Progress
Off-Take Progress Heading Product Quality Confirmed by Potential Customers with Initial Off-take MOU Secured For personal use only and Discussions with other Possible Partners Progressing Off-take MOU secured with Xinfa MOU secured in August 2015 based on previous 2Mtpa* plan with following key
Slide 23: Bauxite Introduction
Bauxite Introduction For personal use only Key Ingredient for Manufacturing Aluminium 4-6 tonnes bauxite = 2 tonnes alumina = 1 tonne aluminium Key Bauxite Value Drivers Metro Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Alumina ~50%, Silica ~6% Type High temp (diaspor
Slide 24: Tightening Supply Dynamic
Tightening Supply Dynamic Indonesian Export Ban & Recent Ban by “gap” Producer Malaysia (<2yrs reserves) set to Increase Demand for reliable Australian Supply For personal use only China Bauxite Imports by Supply Region over last 3 Years (Mt) 9 8 7 Indonesia Australia Malaysia Other 6 5 4 3 2 1 0 De
Slide 25: Disclaimer
Disclaimer For personal use only 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 projection