australian resources conference noosa mining conference ...€¦ · noosa mining conference. july...

Noosa Mining ConferenceJuly 2019

Australian Resources ConferenceZurich February 2020

Investment Rationale

2 | ASX : MMI | February 2020

Strongly Growing Market

Long Life Mine

Enduring Geographical and jurisdictional Competitive Advantage

Generating Cash

Revenue Earning

Simple Project –Low CAPEX & OPEX

2019 Achievements


Stage 2 DFS Expansion

Operational Performance

Reduced Unit Costs

Production Increase

Revenue/EBITDA Growth

19.8%

16.2%

10.2%5.6%6.0%

42.2%


Share Register

Greenstone

Balanced Property

BlackRock

DADI

Other Institutions

Other Shareholders

Share Price (17 February 2020) A$0.14

Shares on Issue 1,383.4M

Market Capitalisation A$193.9M

Options Unlisted 30.1M

Cash and Receivables (31-Dec-2019) A$39.9M

Debt Facilities A$35.0M

Enterprise Value A$189.0M

Capital Structure Share Price PerformancePrice ($) Volume (m)

Board of Directors

Independent Chairman Stephen Everett

Managing Director & CEO Simon Finnis

Non-Executive Director Mark Sawyer

Independent Non-Executive Director Philip Hennessy

Independent Non-Executive Director Lucas Dow

Independent Non-Executive Director Fiona Murdoch

Share Price & Corporate Structure

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35 Share Price Performance


Metro’s Road to Production!

Gained control of Bauxite Hills early 2015

Financed and constructed all in 2017 – CAPEX A$37M

Takeover of Gulf – doubled Resource & Reserve – Dec 2016

July 2019 – 3Mt Mined

Dec 2018 – 3.5Mt Expansion

April 2018 – 1st Production

July 2019 – 18.8% increase in Reserve

Oct 2019 – Completion of Stage 2 DFS

A$47.5M Loan Facility from NAIF


Production Increase

2.0

3.54.0

6.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2018 Actual 2019 2020 2021

Stage 2 Subject to Board Approval

Mill

ion

tonn

e


Operational PerformanceMetro Bauxite Mined & Shipped ShippedMined

880 836

1420 1415

1204 1253

3504 3504

2047 2037

0

500

1000

1500

2000

2500

3000

3500

4000

K W

MT

Quarter 2

Quarter 3

Quarter 4

2019 2018


* Note: Non-Site Costs refers to ocean freight and royalties

Reducing Operating Cost*2019 Operating Costs & Realised Prices

23.4718.62 21.19 20.68

22.9421.82

24.04 22.89

57.26 56.22 55.27 56.13

0

10

20

30

40

50

60

70

June Qtr Sept Qtr Dec Qtr 2019

A$/

WM

T

Site Costs Non-Site Costs Average Sales Price Received

*See ASX Release dated 23 Jan 2020 | Figures are unaudited as at 21 Feb 2020


* Note: Non-Site Costs refers to ocean freight and royalties

Revenue/EBITDA Growth

31.4

22.3

9.1

0

50

100

150

200

250


A$M

Revenue

0

5

10

15

20

25

30

35

40

45

50


A$M

Site EBITDA


Source: IAI, CM AnalysisStage 2 DFS Expansion Outcomes

6.0M WMT pa

Significant economic benefits confirmed

LOM unit operating costs forecast to reduce by ~18% delivered to China – margins increased

Positions Bauxite Hills in lowest quartile of global cash cost curve for bauxite producers

Significant reduction in unit operating costs delivered via Floating Terminal loading larger Ocean-Going Vessels

Funding

A$51.4 M Capital Costs (incl 10% contingency)

Project Payback <18 months

Approval from NAIF received for $47.5M facility

Final decision to proceed after finalisation and completion of detailed engineering & design

Source: IAI, CM AnalysisStage 2 Expansion – Floating Terminal

Floating Terminal by Rocktree for indicative purposes only


Future Growth

* Subject to Board Approval

Extended Mine Life

Strong Stage 2 Production Expansion

Steady State Production Post Stage 2 Expansion Based on Current Mine LifeStage 1 Stage 2*

Baux

ite To

nnes

Mill

ion

(WM

T)

0

1

2

3

4

5

6

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

2019Expanded Production

Resource down 6.4Mt (4.6%) to 138.2Mt (dry)

Reserve up 17.3Mt (18.8%) to 109.5Mt (wet)

Stage 2 Expansion DFS update

Depletion by mining Conversion of existing resources Moisture assumption adjustment based on operational experience

Stage 2 Definitive Feasibility Study complete – compelling financial metrics Detailed design on the floating Terminal underway NAIF facility to fund majority of capital costs

Depletion by mining Adjustment to dry bulk density Measured category up 42.8%

Bauxite Hills Mine Snapshot


Key Statistics

Proj

ect O

verv

iew

Ownership: Metro (100%)

Commodity Bauxite

Location: Cape York, Qld

Product Type Direct Shipping Ore

Contained Mineral: Reserves 109.5Mt1 Resources 138.2Mt1

Mining Mine Type Surface mining Status Operational

Ope

ratio

nal O

verv

iew

Commenced Mining April 2018

2018 Production ~2.04M WMT

2019 Production ~3.4M WMT

Future Production2 ~6M WMT pa (from 2021)

Mine Life To 2037

Operations Mining & transhipment

Workforce ~240 personnel

1.ASX Release 14 October 2019 2. Subject to Board Approval of Expansion to Stage 2

Loca

tion


86%84%

81%

76%74% 72%

69%

63% 62%

56% 55% 52%

47% 44% 42% 41% 40% 40%

25.827.2

28.6

31.233.5 35.3

37.541.8

44.2

45.9 49.751.6

56.562.6 67.0

70.4 75.3 79.4

14%3.5

16%4.2

19%5.4

24%7.4

26%8.8

28%9.7

31%11.7

37%15.4

38%16.8

44%20.0

45%22.4

48%24.6

53%30.1

56%35.3

58%38.7

59%41.7

60%44.9

60%47.9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f Chi

na A

l Cap

acity

in W

orld

Tot

al

ROW Al Capacity(MT) World Total Al Capacity(MT) China's Al Capacity(MT)

Source: IAI, CM Analysis

China vs ROW Primary Aluminium Capacity 2000 – 2018 (Mtpa)

Source: CM Group

15 | ASX : MMI | February 2020 Source: China Customs, CM

China’s 2019 Bauxite Imports

100.7Mt0.3% India

0.7%Malaysia

1.2% Solomon Is

Australia

Indonesia

0.3% Turkey

14%

0.4% Montenegro

1.9% Brazil`

36%

44%Guinea

0.1% Vietnam

0.3% Ghana

0.4% Jamaica

0.05% SierraLeone

China imported, a record breaking, 100.7Mt (dry) of bauxite in 2019

Guinea, despite an abnormally difficult wet season, averaged 3.7Mt per month into China.

Australia achieved steady growth in 2019 and, with Bauxite Hills & Amrun ramping up, averaged 3Mt per month into China.


Source: CM Group

China Demand Outlook Remains Strong

Source: CM Group

73 80 8297

110121 128

145159

177

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Actuals

2019 Forecast

2018 Forecast

ForecastActual bauxite Imports (Mt)


Source: CM Group

Alumina Producers China

Source: CM Group

Source: CM Group

Top 11 primary Al production provinces1. Shandong

2. Xinjiang

3. Inner Mongolia

4. Henan

5. Gansu

6. Qinghai

7. Yunnan

8. Ningxia

9. Guizhou

10.Shanxi

11.Guangxi

Main Bauxite ConcentrationMajor alumina producing provinces: 1. Shandong

2. Shanxi

3. Henan,

4. Guangxi

5. Guizhou

6. Inner Mongolia

Aa Capacity >1,000 KYPY

Aa Capacity <1,000 KYPY

Al Capacity >500 KYPY

Al Capacity <500 KYPY

China imports continue to increase with total 2019 imports likely to be 95Mt

Bauxite prices in an upward trend with CBIX bauxite index currently US$51.0 DMT (dry metric tonne)

Strong demand for Metro’s bauxite from Chinese inland Refineries as domestic bauxite supply has been hindered by resource depletion, recent mine closures and environmental audits


Source: CM GROUP

CBIX Bauxite Index – Last 12 Months

Bauxite Market & Price Outlook

Source: CM Group

China Bauxite Consumption

0

50

100

150

200

250

2015A 2016A 2017A 2018A 2019F 2020F 2021F 2022F 2023F 2024F 2025F

Chi

na B

aux

ite C

onsu

mp

tion

(MT) Domestic Source Imported Source

CBI

XPr

ice

US$/

DM

T

2000

2200

2400

2600

2800

3000

3200

3400

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

Jan-

18

Feb

-18

Ma

r-18

Ap

r-18

Ma

y-18

Jun-

18Ju

l-18

Aug

-18

Sep

-18

Oct

-18

Nov

-18

Dec

-18

Jan-

19

Feb

-19

Ma

r-19

Ap

r-19

Ma

y-19

Jun-

19Ju

l-19

Aug

-19

Sep

-19

Oct

-19

Nov

-19

Dec

-19

Jan-

20

Chi

na A

lum

ina

Pric

e RM

B/t

CBIX Aladdiny Alumina

CBIX Weighted Daily Price VS Alumina Price Index


Relationship continues to grow and flourish

Metro a key part of Northern Cape York Community

Current Indigenous employment is well above target

Business opportunities for indigenous groups being assessed with one already in place

Positive Community Relationships

Investment Rationale


Strongly Growing Market

Long Life Mine

Enduring Geographical & jurisdictional competitive advantage

Generating Cash

Revenue Earning

Simple Project –Low CAPEX & OPEX

For Further Information:Contact: Simon Finnis – Chief Executive Officer & Managing Director | Chief Financial Officer – Duane Woodbury Ph: +61 (0) 7 3009 8000 | Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 | GPO Box 10955, Brisbane Q 4000This ASX Presentation has been authorised by Metro Mining Director, Simon Finnis


Disclaimer

FORWARD LOOKING STATEMENT Statements and material contained in this ASX 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 projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Graphs used in this ASX Presentation (including data used in the graphs) are sourced from third parties and Metro Mining has not independently verified the information. Although reasonable care has been taken to ensure that the facts stated in this ASX Presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors. Nothing in this ASX Presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

COMPETENT PERSON’S STATEMENT

The information in this report that relates to the Bauxite Hills Mine Mineral Resource is based on information compiled by Ed Radley who is a consultant to Metro Mining and a Member of the Australian Institute of Mining and Metallurgy (MAusIMM)). Mr Ed Radley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Ed Radley has consented in writing for inclusion in this Report the matters based on the information in the form and context it appears.


The information in this report to that relates to the “Metro Mining – Bauxite Hills” Reserves is based on information compiled by MEC Mining and reviewed by Edward Bolton, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Edward Bolton is a full-time employee of MEC Mining Pty Ltd. Edward Bolton has sufficient experience that is relevant to the style of mineralization, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Edward Bolton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Competent Person Statement:


The information in this report that relates to Exploration Results is based on information compiled by Neil McLean who is a consultant to Metro Mining and a Fellow of the Australian Institute of Mining and Metallurgy (F.Ausimm). Mr McLean has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr McLean consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

australian resources conference noosa mining conference ...€¦ · noosa mining conference. july...

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