Investor Presentation May 2017 ASX:MMI 1
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 Compelling economics confirmed by 2017 BFS 4 Off-take with Xinfa China’ s second largest bauxite importer for ~50% of production for first 4 years 5 Early works now underway Strong financing capability with 2 supportive cornerstone shareholders, an increasing institutional 6 investor base and strong interest from debt financiers Excellent investment opportunity with first production scheduled for April 2018 7 2 ASX : MMI | Investor Presentation | May 2017
Corporate Snapshot Share Register Capital Structure Share Price (04-May -17) $0.13 Greenstone Shares on Issue 1,004.0m 20% Other Shareholders Market Cap $130M 41% Options Unlisted 7.5m Balanced Property 20% Cash (18-April-17) $21.5M Unsecured Debt (18-April-17) $15.0M 8% 11% Dadi Enterprise Value $124M Australian Institutions Share Price & Volume - LTM Board of Directors $0.18 6.0m Chairman Stephen Everett $0.16 Managing Director & CEO Simon Finnis 5.0m $0.14 Non-Executive Director Philip Hennessy 4.0m $0.12 Non-Executive Director George Lloyd 3.0m $0.10 Non-Executive Director Lindsay Ward 2.0m $0.08 Non-Executive Director Mark Sawyer 1.0m $0.06 Non-Executive Director Dongping Wang $0.04 0.0m Non-Executive Director Jijun Liu Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 3 ASX : MMI | Investor Presentation | May 2017
Bauxite Hills Mine Snapshot Location Key Statistics Ownership: Metro (100%) Location: Cape York, Qld Project Overview Commodity Bauxite Product Type DSO Mine Type Surface mining Contained mineral: Reserves 92.2Mt* • Resources 144.8Mt* • Status BFS completed Construction H2 2017 First Production April 2018 Start-up Production ~2Mtpa** Operational Overview Steady State Production ~6Mtpa (year 4)** Pre Production Capex ~$35.8m Expansion Capex ~$36.7m Costs (LOM Avg) Onsite: $16.4/t • Incl Royalty: $23.0/t • Mine Life 17 years Operations Contract mining & transhipment Workforce ~185 personnel **Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed as per Listing Rule 5.19.2 4 ASX : MMI | Investor Presentation | May 2017 | *Refer slide 25 of this Presentation
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 Mining Clear vegetation & Return overburden & replace remove overburden topsoil - then revegetate Strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Transportation Haul ore 5-22km to stockpile & barge loading Barge ore down the Skardon River Tranship to bulk carrier, for export 5 ASX : MMI | Investor Presentation | May 2017
World Class Bauxite Jurisdiction Located in the world class Weipa bauxite region of western Cape York, Qld 90km north of Rio’s Weipa mine and approx 130km from Rio’s Amrun development Weipa bauxite brand well established and highly regarded in China BHM Weipa Amrun Aurukun Cairns Townsville ~10-12 Days Shipping Brisbane 6 ASX : MMI | Investor Presentation | May 2017
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 | May 2017
Existing Infrastructure Benefit Existing infrastructure provides numerous development advantages Port & Load Out Area Camp Site Airstrip 8 ASX : MMI | Investor Presentation | May 2017
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 Result Assumption Result Annual Production rate (Steady NPV (10% DR, Real, after tax) A$601M 6.0Mt** State) IRR 81% LOM Production 92.2Mt Payback Period of Initial Capital 1.7 years Mine Life 17 years LOM Revenue A$5.6B Bauxite Price (CIF) Range` US$36.36-53.88/t LOM EBITDA A$2.5B Exchange Rate (AUD/USD) 0.75 LOM Average Annual EBITDA A$145M Discount Rate 10% LOM on-site Average OPEX A$16.42/t Initial Capital Expenditure A$35.8M LOM Average OPEX including Royalty A$23.00/t LOM Average Operating Margin A$26.69/t *Refer ASX Announcement 15 March 2017 | **Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed as per Listing Rule 5.19.2 9 ASX : MMI | Investor Presentation | May 2017
Strong Cost Curve Positioning 2 nd quartile cost curve positioning provides attractive long term competitive advantage China Seaborne Bauxite Supply Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile 70.0 60.0 50.0 40.0 US$/DMT 30.0 20.0 10.0 0.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 Mt Source: CM Group 10 ASX : MMI | Investor Presentation | May 2017
Near Term Production Pathway Early works now underway Well Established Pathway Production On Track For H1 2018 No Red Flags 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 Agreement Metro Native Title Agreement Transhipment Solution Environmental Approval Gulf Gulf Acquisition JORC Resource Upgrade JORC Reserve Upgrade BFS for Bauxite Hills Mine Wet Financing Season Project Construction Mine Production 11 ASX : MMI | Investor Presentation | May 2017
Off-take Secured & Attractive* Foundation off- take secured with Xinfa, China’s second largest private bauxite importer Xinfa off-take covers ~50% of production for first 4 years and has attractive market linked pricing Strong off-take interest from traders and end users, within and outside of China. Detailed discussions underway Overview of Key China End Users & Port Locations – Shandong Provence Summary of Xinfa Off-take Term 4 years Total Wudi Zhanhua 7Mt Tonnage Binzhou 1Mt for year 1 | 2Mt for Tonnage years 2 to 4 Yantai Port Zouping Weihai Port Pricing CIF basis Reference Liaocheng Established alumina index Price Longkou Payment Irrevocable Letter of Credit Qingdao Port for each shipment Terms Wudi Defined parameters with Product bonus / penalty Spec arrangements Zibo Shandong Provence ‘Take or Rizhao Port Yes ~ 97% of Chinese Bauxite Imports Pay’ Agreed annually in Shipping advance *Refer ASX Announcement 13 October 2016 12 ASX : MMI | Investor Presentation | May 2017
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 mines Simon Finnis | MD & CEO Joined Metro as CEO in early 2015 Mining executive with +30 years experience Former CEO of Grande Côte Minerals Sands operations in Senegal and responsible for $650m greenfield project development Operational Commercial Charles Easton | GM, Bauxite Hills Mine Scott Waddell | CFO & Company Secretary Geologist with +40 years experience CPA with extensive experience in global bauxite & alumina Previous GM at Thiess Past senior roles with Anglo and Rio Tinto Alcan (RTA) 5 yr at Weipa managing mine planning & refinery performance Senior roles with Metro since 2010 Duane Woodbury | Finance & Bus Dev Mike O’Brien | Project Director Mining engineer with +40 years experience Banking & finance with +20 years experience Senior roles with Macquarie & CFO of ASX listed Kingsgate +25 years Snr management experience with Anglo American & Shell Significant equity and debt capital raising experience Colleen Fish | Environmental Manager Norman Ting | GM, Marketing Environmental scientist with +25 years experience +30 years bauxite industry & marketing experience Former Environmental Manager for Peabody, QLD Former Chairman Traxys China & Snr Exec of WOGEN UK, HK & China Joined Metro in 2012 Former Marketing Manager for Comalco (RTA) Bauxite 13 ASX : MMI | Investor Presentation | May 2017
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