Noosa Mining Virtual 16 July 2020
A Sustainable Company Revenue Earning Long Life Mine Generating Cash Strongly Growing Market Enduring Geographical Simple Project – and jurisdictional Low CAPEX & OPEX Competitive Advantage 2 | ASX : MMI | July 2020
Achievements Production Increase Operational Performance Reduced Unit Costs Revenue/EBITDA Growth Stage 2 DFS Expansion 3 | ASX : MMI | July 2020
Update Regarding COVID Protocols Very Successful Impacts of COVID ❑ Social distancing practiced onsite and to and from ❑ Lower alumina price causing lower bauxite pricing site via staggered meal times and other actions generally ❑ Pre-flight medical checks and surveys instigated, ❑ Market dislocation given very low freight rates PPE worn on flights Guinea to China ❑ After liaison with Traditional Owners regular flights ❑ Customer uncertainty and caution to remote indigenous communities are in hiatus until conditions improve ❑ Difficulty in securing additional sales contracts - challenges remain ❑ No cases detected for any Metro employees or contractors and no disruption to operations 4 | ASX : MMI | July 2020
Metro Delivers 2019 March October November December December: Infrastructure expansion Stage 2 DFS A$47.5M Restructured out of Upper end of revised to 3.5Mt complete Complete NAIF Loan Facility US$ debt facility guidance achieved 2020 March April: April April June Site Upgrade Delivery of additional 3 x 210 Qld Govt Endorses Implementation of COVID RECORD SHIPPING MONTH completed tonne trailer sets – fleet total 6 A$47.5M NAIF Loan protocols allow start of mining June Qtr Shipping 1.251Mt
2018-2020 Shipping Performance June Qtr Full Year 3,500 3,000 2,500 (WMT) (‘000) 2,000 1,500 1,000 500 0 2018 2019 2020 6 | ASX : MMI | July 2020
June Quarter Shipping Comparison 2018-2020 April May June 600,000 500,000 400,000 300,000 200,000 100,000 0 2018 2019 2020 7 | ASX : MMI | July 2020
Stage 2 Expansion Source: IAI, CM Analysis 6.0M WMT pa Funding ✓ ✓ Significant economic benefits confirmed A$51.4 M Capital Costs (incl 10% contingency) ✓ ✓ LOM unit operating costs forecast to reduce by ~18% Project Payback <18 months delivered to China – margins increased ✓ Approval from NAIF received for $47.5M facility. ✓ Positions Bauxite Hills in lowest quartile of global cash Qld Government sign off in March 2020 cost curve for bauxite producers ✓ Detailed engineering & design is complete. ✓ Significant reduction in unit operating costs delivered via Floating Terminal loading larger Ocean-Going Vessels ✓ Construction Contracts negotiated and agreed. Uncertainties in world markets due to COVID 19 have delayed the final decision . 8 | ASX : MMI | July 2020
Stage 2 Expansion – Floating Terminal Source: IAI, CM Analysis Floating Terminal by Rocktree for indicative purposes only
China Demand Outlook Remains Strong 200 Forecast 180 China's Annual Bauxite Imports (Mln DMT) 160 140 120 100 2020 Q2 Forecast 2019 Q2 Forecast 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: CMGroup 10 | ASX : MMI | July 2020 Source: CM Group
Bauxite Market & Price Outlook ▪ China bauxite imports continue to increase - 2019 imports were just over 100Mt, 18Mt increase Source: CM GROUP from 2018. ▪ Official Q1 2020 data, China imported 28.5Mt, Q2 2020 estimate of 30.0 Mt – on target for post-COVID adjusted forecast of approx. 110Mt ▪ Major growth driver remains domestic ore depletion, not primary Al demand ▪ All bauxite prices softened in first half of 2020 due to COVID-19 concerns: • Primary aluminium prices in China have now recovered and surpassed pre-COVID levels • Alumina very volatile with a range of RMB3,200/t to RMB2,075/t. Currently at around RMB2,500/t • Reagent prices, particularly caustic soda, dropped significantly but are recovering • Domestic bauxite prices fell during Q2, but have since rebounded, with Henan and Shanxi refiners still reporting domestic ore shortages • Ocean freight fell considerably but has also recovered – Guinea to Shandong Capesize routes now in excess of pre-COVID levels • A$ weakened in 2020 but bounced strongly from February lows and is now stubbornly strong • The RMB weakened against the US$ in H1 but has strengthened more recently ▪ China’s market is recovering and returning to normal as COVID uncertainty reduces – concerns about ROW end markets persist.
China Alumina Prices Jan 2019 – Jul 2020 Source: CM GROUP 15,000 4,000 14,000 3,500 China Changjian Al Price (RMB/T INCL. VAT) China Alumina Price (RMB/T INCL. VAT) 13,000 3,000 CBIX Bauxite Index – Last 12 Months 12,000 2,500 11,000 10,000 2,000 9,000 1,500 8,000 1,000 7,000 Aluminium 2019 Alumina 500 6,000 5,000 0 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 12 | ASX : MMI | July 2020 Source: CM Group
Freight – Guinea (US$/WMT) Source: CM GROUP $35.00 $30.00 CBIX Bauxite Index – Last 12 Months $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 13 | ASX : MMI | July 2020
Good Community Relationships ◼ Relationship continues to grow and flourish ◼ Metro becoming a key participant in the Northern Cape York Community ◼ COVID Management protocols in place after liaison with Traditional Owners ◼ Local employment levels a key achievement 14 | ASX : MMI | February 2020
Share Price & Corporate Structure Share Price Performance Share & Market Cap Current Capital Structure Share Price Performance $0.20 Range 01/2019-07/2020 Price ($) Volume (m) Share Price (14 July 2020) A$0.11 0.08 0.17 $0.15 Shares on Issue 1,383.4M 1,383.4M 1,383.4M Market Capitalisation A$152M $110.67M $235.2M $0.10 Options Unlisted 30.1M Cash & Receivables (31 Mar 2020) A$11.7M $0.05 Debt Facilities A$35M Enterprise Value A$175.3M $0.00 Share Register Greenstone Board of Directors 19.8% Balanced Property Independent Chairman Stephen Everett BlackRock Managing Director & CEO Simon Finnis 42.2% DADI Non-Executive Director Mark Sawyer 16.2% Other Institutions Independent Non-Executive Director Philip Hennessy Other Shareholders 10.2% Independent Non-Executive Director Fiona Murdoch 6.0% 5.6% 15 | ASX : MMI | July 2020
Summary and Close Source: CM GROUP ✓ Metro has largely weathered the COVID storm with excellent results on site & support from our offtake partner Xinfa ✓ China bauxite imports continue to increase, although 2020 will be slightly down on pre-COVID forecasts ✓ Chinese bauxite imports continue to grow, although 2020 will be lower than pre-COVID forecasts. The major CBIX Bauxite Index – Last 12 Months growth driver remains domestic ore depletion, not primary Aluminium demand ✓ Macro economic factors in bauxite/alumina/aluminium space are improving: Aluminium now back to pre-COVID levels in China ✓ Alumina rebounding strongly – above RMB2,400/t for first time since March 2020 ✓ Ocean freight rebounding – freight from Guinea above US$20/WMT again ✓ Domestic bauxite prices creeping upwards, along with reagent costs ✓ ✓ Downward pressure on bauxite pricing is easing, but revenue may be offset by strong AUD ✓ Negotiations with target customers well advanced but not complete. 16 | ASX : MMI | July 2020
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