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Metro Mining Limited Reports Strong Q2 Performance and Expansion Progress Metro Mining Limited

Metro Mining Limited Reports Strong Q2 Performance and Expansion Progress

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Brisbane-based mining company Metro Mining Limited (ASX: MMI), also known as Metro, has released its Quarterly Activities Report for the period of April to June 2023. The report highlights the company's exceptional performance during Q2 and significant progress made in its expansion plans.

Record Shipments and Financial Growth

Metro Mining achieved record-breaking shipments in Q2, surpassing expectations and demonstrating its operational efficiency. The company shipped 1. 3 million Wet Metric Tonnes (WMT), exceeding the budget by 27% and reflecting a notable 49% increase compared to the previous year. This accomplishment further solidifies Metro Mining's position as a leading player in the industry.

The company also generated strong site EBITDA of $11.

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4 million during the second quarter, with an operating margin of $9/WMT. This financial success is attributed to economies of scale and improved productivity across the supply chain, although above-budget fuel costs had a slight impact.

Rising Bauxite Prices

Metro Mining has benefited from the upward trend in bauxite prices. As hydro-powered aluminum smelters in China came back online, alumina production remained strong, resulting in slight price increases. Moreover, traded bauxite market conditions remained firm, leading to rising prices as contracts rolled over for shorter-term periods.

The company's freight contracts provided stable shipping rates, allowing the increase in bauxite prices to flow through to Free on Board (FOB) prices. Metro Mining experienced a significant year-on-year increase of 61% in bauxite FOB prices and a 16% increase compared to Q4 2022.

Progress in Expansion Plans

Metro Mining's expansion project continues to progress as scheduled. The commissioning of a new mobile fleet is underway and expected to be fully operational in August. This additional fleet will complement the expanded fixed plant throughput, enabling the loading of an extra 200 WMT per month through geared vessels.

The company remains focused on its target of achieving sales of 4. 5 to 5. 0 million metric tons in 2023. To support this growth, Metro Mining successfully achieved the Final Investment Decision (FID) and secured full funding for its expansion to 7. 0 million WMT per annum. This achievement positions the company for long-term success and sets the stage for further growth.

Commitment to Expansion Equipment

Metro Mining has demonstrated a firm commitment to its expansion equipment. The offshore floating terminal, after thorough assessment, is now on its way to a shipyard in China for dry-docking and servicing. The terminal's delivery is expected to take place in Q4 2023, aligning with the company's schedule.

Additionally, Metro Mining has committed to the contract for the apron and wobbler feeder, with final detailed engineering nearing completion for installation in Q1 2024. These ongoing investments underline Metro Mining's dedication to meeting its expansion objectives and ensuring future operational efficiency.

In conclusion, Metro Mining's Q2 activities report showcases the company's remarkable performance, marked by record shipments, financial growth, and progress in its expansion plans. With rising bauxite prices and a strong commitment to expanding its capabilities, Metro Mining is well-positioned for continued success in the mining industry.

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