Investor Presentation July 2017 ASX:MMI 1
Executive Summary Metro is rapidly advancing its compelling Bauxite Hills Mine towards production in early 2018 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 Agreement (Xinfa) & non-binding Letter of Intent (Lubei) for ~60% of 4 years production 5 Attractive debt Financing Secured 6 All environmental approvals received. 7 Early works now underway with first production scheduled for 2018 2. | ASX : MMI | Investor Presentation | July 2017
Corporate Snapshot Share Price Capital Structure Share Price (03-July-17) $0.155 $0.18 $0.16 Shares on Issue 1,004.0m $0.14 Market Cap $155.6m $0.12 $0.10 Options Unlisted 11.7m $0.08 BUY (Jul-17) $0.06 Cash (18-April-17) $21.5m Target Price: $0.44 $0.04 Unsecured Debt (18-April-17) $15.0m $0.02 $0.00 Enterprise Value $149.1m Jan 2016 Apr 2016 Jul 2016 Oct 2016 Jan 2017 Apr 2017 Jul 2017 Share Register Board of Directors Chairman Stephen Everett Greenstone Managing Director & CEO Simon Finnis 20% Non-Executive Director Philip Hennessy Other Shareholders 41% Non-Executive Director George Lloyd Balanced Property Non-Executive Director Lindsay Ward 20% Non-Executive Director Mark Sawyer 8% Non-Executive Director Dongping Wang 11% Dadi Institutions Non-Executive Director Jijun Liu 3. | ASX : MMI | Investor Presentation | July 2017
Key Achievements Metro has completed several key milestones over the past 12 months to be primed for near term production Binding Sales Agreement 4 1 for 7Mt over 4 years & Doubled reserves LOI for 2.5Mt over 3 years Developed Acquired Gulf Gained infrastructure Customer Base Positive response from customers across China and internationally 5 2 Incorporated Gulf assets Competitive and rigorous process Staged development Expanded BFS Debt Finance Secured Secured flexible, low Post tax NPV 10 of $601m cost debt facility of A$40m and IRR of 81% 6 3 Raised $52m of equity & All environmental Received approvals received Strengthened Balance repaid $40m bridge loan Environmental Approval Sheet & Share Register Introduced several Approval for up to 10Mtpa production leading institutions to register 7 Financing from Sprott, Continued support from Greenstone & Balanced Prop Business “Partners” Xinfa Offtake Agreement 4. | ASX : MMI | Investor Presentation | July 2017
Key Achievements New Management Team and shift of focus to Bauxite Hills has delivered shareholder returns of 485% and overseen growth in Market Cap from $9M to $155.6M Debt financing + final Native Title Expanded BFS 0.18 environmental Agreement + complete approvals Expanded PFS 0.16 4 x increase in Reserves Greenstone 0.14 Financing secured 0.12 Gulf takeover 0.10 Lubei LOI Announced offtake signed 0.08 New Management Team with 0.06 Bauxite Hills focus Gulf takeover Binding offtake complete Xinfa 0.04 Xinfa MOU for 0.02 Maiden Reserve + offtake PFS complete 0.00 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 5. | ASX : MMI | Investor Presentation | July 2017
Attractive Fundamentals Attractive Project and Investment Fundamentals High Margin Low Capex Avg. LOM OPEX 1 vs. Avg. LOM Price Received (CIF) CAPEX vs. Avg. LOM EBITDA ~43% margin Payback within 1.7 years $73m $61/WMT $145m Expansion $37m $35/WMT Capital Initial Capex $36m Avg. Opex Price Capex Avg. LOM EBITDA Considerable Cashflow Significant Equity Upside Market Capitalisation vs. NPV Market Capitalisation vs. Avg. LOM EBITDA Current market capitalisation equals Significant NPV and equity upside 1 year of average LOM EBITDA $601m $145m $145m $145m Market Cap. Avg. LOM EBITDA Market Cap. NPV 1. Includes royalties and ocean freight 6. | ASX : MMI | Investor Presentation | July 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 and 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 7. | ASX : MMI | Investor Presentation | July 2017
Bauxite Hills Mine Snapshot Location Key Statistics Ownership: Metro (100%) Location: Cape York, Qld Project Overview Commodity Bauxite Product Type DSO Surface mining Mine Type Contained mineral: Reserves 92.2Mt * • Resources 144.8Mt * • Status BFS completed Construction H2 2017 First Production April 2018 Start-up Production ~2Mtpa** Operational Overview ~6Mtpa (year 4)** Steady State Production Pre Production Capex ~$35.8m Expansion Capex ~$36.7m Costs (LOM Avg) Onsite: $16.4/t • Incl Royalty: $23.0/t • Mine Life 17 years Operations Contract mining & transhipment Workforce ~185 personnel *Refer slide 26 **Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed as per Listing Rule 5.19.2 8. | ASX : MMI | Investor Presentation | July 2017
Simple DSO Project Operational simplicity and specialist mining and transhipment contractors enables easy to manage operations Proven, well known operator TSA to be transhipment contractor and will supply all vessels Existing infrastructure provides numerous development advantages Mining Clear vegetation & Return overburden & replace remove overburden topsoil - then revegetate Strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Existing Infrastructure Port & Load Out Area Camp Site Airstrip 9. MMI : ASX | Investor Presentation | July 2017
World Class Bauxite Jurisdiction Located in the world class BHM Weipa bauxite region of western Cape York, Qld Weipa Amrun 90km north of Rio’s Aurukun Weipa mine and Cairns approx 130km from Rio’s Amrun Townsville development ~10-12 Days Shipping Weipa bauxite brand well established and highly regarded in China Brisbane 10. | ASX : MMI | Investor Presentation | July 2017
Low Logistics Costs Metro’s low cost logistics are a sustainable cost advantage to China relative to competing bauxite producers 11. | ASX : MMI | Investor Presentation | July 2017
Strong Cost Curve Positioning 2 nd quartile cost curve positioning provides attractive long term competitive advantage China Seaborne Bauxite Supply Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile US$/DMT 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 12. | ASX : MMI | Investor Presentation | July 2017
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