Metro Mining: Pure-Play Low-cost Producer of High-grade Australian Bauxite

Metro Mining (ASX:MMI) is a low-cost, high-grade Australian bauxite producer, offering a unique pure-play investment in the aluminum supply chain. The flagship Bauxite Hills Mine on the Skardon River is strategically situated 95 km north of Weipa, Queensland, covering a tenement area of approximately 1,900 square kilometers. As of 31 December 2023, the project holds a substantial total bauxite resource of 118.7 million tons (Mt), including 83.2 Mt of reserves, consisting of high-quality direct shipping ore (DSO) that requires no processing.

Production at Bauxite Hills Mine is ramping up to a sustained throughput of over 7 Mt per annum, solidifying Metro Mining’s position as one of the world’s lowest-cost bauxite producers. With an additional capacity increase planned for 2025, the company is well-positioned to capitalize on strong bauxite prices and growing demand from key Asian markets, particularly China.

The Bauxite Hills Mine leverages its close proximity to Asian markets, short-haul distances, and a highly scalable, cost-efficient marine transport system, enabling industry-leading operating margins.

Company Highlights

• Metro Mining stands out as one of the world's only publicly listed, pure-play producers of high-quality direct shipping bauxite ore, crucial for aluminum production.
• Metro Mining’s flagship asset, the Bauxite Hills mine, benefits from proximity to Asian markets, short haul distances, and a highly scalable, low-cost marine transportation system, ensuring industry-leading operating margins.
• Metro’s production capacity nearly doubled from approximately 3.5 Mt in 2020 to just under 6 Mt in 2024, a 24 percent increase year-over-year. Metro plans further capacity expansion to between 6.5 and 7 Mt by the end of 2025.
• Targeting a delivered bauxite cost below US$30 per dry ton CIF China, leveraging low strip ratios, minimal overburden (0.5m), no blasting requirement, and highly efficient marine logistics, positioning the company firmly within the lowest quartile of global producers.
• The company ended 2024 with a strong financial position by repaying AU$39 million in junior debt, restructuring senior debt to more favorable terms, and securing long-term freight contracts, reducing shipping costs by approximately US$3/WMT. Metro ended 2024 with around AU$42 million in cash and trade receivables, enhancing financial flexibility for future growth.
• Metro Mining maintains robust environmental and social governance, evidenced by receiving the Association of Mining and Exploration Companies’ 2024 Environment Award.

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