Updated Investor Presentation Noosa Mining Conference November 2019 July 2019
Investment Rationale Revenue Earning Long Life Mine Generating Cash Strongly Growing Market Enduring Geographical Simple Project – and jurisdictional Low CAPEX & OPEX Competitive Advantage 2 | ASX : MMI | November 2019
Metro’s Road to Production! Financed and constructed Gained control of July 2019 – 18.8% A$47.5M Loan all in 2017 – CAPEX A$37M Bauxite Hills early 2015 Dec 2018 – 3.5Mt Expansion increase in Reserve Facility from NAIF Takeover of Gulf – doubled April 2018 – 1st Production July 2019 – 3Mt Mined Oct 2019 – Completion of Stage 2 DFS Resource & Reserve – Dec 2016 3 | ASX : MMI | November 2019
2019 Achievements Production Increase Operational Performance Reducing Operating Revenue/EBITDA Growth Cost Stage 2 DFS Expansion 4 | ASX : MMI | November 2019
Production Increase 7.0 6.0 5.0 Million tonne 4.0 3.0 6.0 2.0 4.0 3.5 1.0 2.0 0.0 2018 Actual 2019 2020 2021 Stage 2 Subject to Board Approval 5 | ASX : MMI | November 2019
Operational Performance 3000 2019 YTD Production and Shipped Bauxite 479 2500 504 October 501 2000 497 September K WMT 476 455 1500 2779 2755 August 443 463 1000 July 427 374 500 June 311 329 Mined Shipped 151 124 May 0 April YTD 6 | ASX : MMI | November 2019
Reducing Operating Cost 70 2019 Qtr Operating Costs & Realised Prices 57.26 56.51 56.22 60 50 40 A$/WMT * Note: Non-Site Costs refers to ocean freight 22.94 and royalties 22.23 30 21.82 20 23.47 10 20.4 18.62 0 June Qtr Sept Qtr YTD Site Costs Non-Site Costs Average Sales Price Received 7 | ASX : MMI | November 2019
Revenue/EBITDA Growth Revenue Site EBITDA 140 35 120 30 100 25 * Note: Non-Site Costs refers to ocean freight 80 20 and royalties A$M A$M 31.4 127.9 60 15 22.3 40 10 79.5 48.4 20 5 9.1 0 0 Jun Qtr Sep Qtr YTD Jun Qtr Sep Qtr YTD 8 | ASX : MMI | November 2019
Stage 2 DFS Expansion Outcomes 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 $47.5M facility Positions Bauxite Hills in lowest quartile of global cash cost curve for bauxite producers Final decision to proceed after finalisation and completion of detailed engineering & design Significant reduction in unit operating costs delivered via Floating Terminal loading larger Ocean-Going Vessels 9 | ASX : MMI | November 2019
Stage 2 – Capital Cost Estimates Source: IAI, CM Analysis Capital Cost Estimates* Floating Terminal – Capital Cost Estimates Category Cost (A$M) Category Cost (US$M) *Cost (A$M) 12.5 17.9 Floating Terminal Total Component Parts 38.0 8.7 12.4 Direct Cost Shipyard Costs 2.0 1.9 2.7 EPCM Contract Other Services 3.9 Contingency (10%) 23.1 33.0 Costs ex Shipyard 2.6 3.7 Cost of Floating Terminal 43.9 Mobilisation to Skardon River 1.0 0.9 1.3 Camp Modifications & Expansion Start-up and Commissioning 4.8 Upgrade Port & Barge Loading Facility 26.6 38.0 Total Direct Costs 1.0 1.4 2.0 Mobilisation Costs EPCM Costs 0.7 2.7 3.9 Other Contingency (10%) Contingency Total Estimated Cost 51.4 30.7 43.9 Total Estimated Costs (US$M) *Assumed exchange rate of A$/US$0.70 *A$/US $0.70 Exchange Rate 10 | ASX : MMI | November 2019
Stage 2 Expansion – Floating Terminal Source: IAI, CM Analysis Floating Terminal by Rocktree for indicative purposes only
Bauxite Hills Mine Snapshot Key Statistics Ownership: Metro (100%) Project Overview Commodity Bauxite Location: Cape York, Qld Product Type Direct Shipping Ore Contained Mineral: Reserves 109.5Mt 1 Resources 138.2Mt 1 Location Status Mining Mine Type Surface mining Operational Commenced Mining April 2018 Operational Overview 2018 Production ~2.04M WMT 2019 Production ~3.4M WMT Future Production 2 ~6M WMT pa (from 2021) Mine Life 2037 Operations Mining & transhipment Workforce ~240 personnel 1.ASX Release 14 October 2019 2. Subject to Board Approval of Expansion to Stage 2 12 | ASX : MMI | November 2019
Future Growth Depletion by mining Reserve up 17.3Mt (18.8%) Conversion of existing resources to 109.5Mt (wet) Moisture assumption adjustment based on operational experience Resource down Depletion by mining 6.4Mt (4.6%) to Adjustment to dry bulk density 138.2Mt (dry) Measured category up 42.8% Stage 2 Stage 2 Definitive Feasibility Study complete – compelling financial metrics Expansion DFS Detailed design on the floating Terminal underway update NAIF facility to fund majority of capital costs Strong Stage 2 Production Expansion Stage 1 Stage 2* Steady State Production Post Stage 2 Expansion Based on Current Mine Life Extended Mine Life 6 Bauxite Tonnes Million (WMT) 5 2019 Expanded 4 Production 3 2 1 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 13 | ASX : MMI | November 2019 * Subject to Board Approval
China vs ROW Primary Aluminium Capacity 2000 – 2018 (Mtpa) Source: IAI, CM Analysis Source: CM Group 100% ROW Al Capacity(MT) World Total Al Capacity(MT) China's Al Capacity(MT) 90% Percentage of China Al Capacity in World Total 86% 84% 81% 80% 76% 74% 72% 79.4 70% 75.3 70.4 69% 67.0 62.6 63% 56.5 62% 60% 60% 60% 59% 58% 47.9 56% 44.9 41.7 56% 38.7 52% 53% 55% 35.3 30.1 50% 48% 44.2 45% 24.6 41.8 44% 47% 22.4 44% 42% 20.0 37.5 40% 41% 40% 38% 40% 37% 51.6 35.3 16.8 33.5 49.7 15.4 45.9 31.2 31% 30% 28% 11.7 26% 28.6 9.7 24% 27.2 8.8 25.8 7.4 20% 19% 16% 5.4 14% 4.2 3.5 10% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 14 | ASX : MMI | November 2019
China Demand Outlook Remains Strong Source: CM Group Source: CMGroup 15 | ASX : MMI | November 2019
China’s 2018 Bauxite Imports Guinea now largest supplier to China. But 98% of exports are from the Chinese- controlled SMB-WAP Australia's supply 0.5% Montenegro 0.1% Turkey is steadily growing, 82.6Mt up 4.1Mt (16%) in Guinea 2018 to 29.6Mt 46% 12% Jamaica 0.8% India 0.7% Vietnam Indonesia & Malaysia 0.7% Ghana 0.7% Malaysia now less relevant 2% Brazil` 9% 2% Solomon Is Indonesia Ocean freight cost trending upwards 36% Australia 2019 Bauxite imports estimated at 95.0Mt Source: China Customs, CM 16 | ASX : MMI | November 2019
Alumina Producers China Source: CM Group Main Bauxite Consuming Provinces 1. Shandong (65MT) 2. Shanxi (49MT) 3. Henan (27MT) 2 1 4. Guangxi (18MT) 3 5. Guizhou (10MT) Liaoning Province and Inner Mongolia 5 Emerging as major new players, with several projects planned or under construction 4 Source: CM Group 17 | ASX : MMI | November 2019
Bauxite Market & Price Outlook Source: CM GROUP China imports continue to increase with total 2018 imports exceeding 82M WMT Bauxite prices in an upward trend with CBIX bauxite index currently US$52.60 DMT (dry metric tonne) Strong demand for Metro’s bauxite from Chinese inland Refineries as domestic bauxite supply has been hindered by resource depletion, recent mine closures and environmental audits CBIX Bauxite Index – Last 12 Months China Bauxite Consumption 250 CBIX Bauxite Index – Last 15 Months 56.0 China Bauxite Consumption (MT) 200 54.0 52.0 CBIX PRICE US$/DMT 150 50.0 Source: CM Group 48.0 100 46.0 50 44.0 42.0 0 2015A 2016A 2017A 2018A 2019F 2020F 2021F 2022F 2023F 2024F 2025F Domestic Source Imported Source 18 | ASX : MMI | November 2019
Positive Community Relationships Relationship continues to grow and flourish Metro a key part of Northern Cape York Community Current Indigenous employment is 36.1% (target 20%) Business opportunities for indigenous groups being assessed with one already in place 19 | ASX : MMI | November 2019
Investment Rationale Revenue Earning Long Life Mine Generating Cash Strongly Growing Market Enduring Geographical & Simple Project – jurisdictional competitive Low CAPEX & OPEX advantage 20 | ASX : MMI | November 2019
Share Price & Corporate Structure Share Price Performance Capital Structure Share Price Performance $0.35 Share Price (12 November 2019) A$0.135 Price ($) Volume (m) $0.30 Shares on Issue 1,383.4M $0.25 Market Capitalisation A$187.0M $0.20 Options Unlisted 30.1M $0.15 Cash and Receivables (30-Sept-2019) A$43.5M Debt Facilities A$37.9M $0.10 Enterprise Value A$181.4M $0.05 Share Register Board of Directors Greenstone Independent Chairman Stephen Everett 19.8% Balanced Property Managing Director & CEO Simon Finnis 42.2% BlackRock Non-Executive Director Mark Sawyer 16.2% DADI Independent Non-Executive Director Philip Hennessy Other Institutions Independent Non-Executive Director Lucas Dow 10.2% 6.0% Other Shareholders Independent Non-Executive Director Fiona Murdoch 5.6% 21 | ASX : MMI | November 2019
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