Investor Insight

Metro Mining is uniquely positioned as one of the few pure-play upstream bauxite companies globally listed on any stock exchange. As a direct exposure to the growing aluminum sector, Metro offers investors a unique opportunity to capitalize on the rising global demand driven by traditional industrial applications and emerging sectors such as electrification, battery technologies, and lightweight transportation solutions.

Overview

Metro Mining (ASX:MMI) is a low-cost, high-grade Australian bauxite producer, uniquely positioned as a pure upstream investment in the aluminum supply chain. Metro's flagship asset, the Bauxite Hills Mine in Skardon River, is strategically located 95 km north of Weipa, Queensland, and encompasses a total tenement package of approximately 1,900 square kilometers. As of 31 December 2023, the project boasts an impressive total bauxite resource of 118.7 million tons (Mt) including 83.2 Mt of reserves, featuring high-quality direct shipping ore (DSO) that requires no upgrading.

Following a significant capacity expansion completed in 2024, production at Bauxite Hills Mine is ramping up to achieve sustained throughput exceeding 7 Mt per annum, reinforcing the company’s position as one of the lowest-cost bauxite producers globally. With a further planned capacity increase set for 2025, Metro Mining is well-positioned to exploit continued price strength and robust demand from key Asian markets, particularly China.

The aluminum sector has seen annual growth rates rise from approximately 2 to 3 percent to around 3 to 4 percent due to expanding use in electric vehicles, renewable energy infrastructure, battery manufacturing, and the "lightweighting" of transportation. Recent geopolitical developments, such as reduced bauxite exports from Indonesia, have created supply constraints, driving up bauxite prices significantly. Australian bauxite spot prices reached approximately US$90/DMT in early 2025, up 89 percent from early 2023, which further enhances Metro's revenue potential.

Metro Mining significantly improved its financial position in 2024 by fully repaying junior debt, restructuring senior debt on more favorable terms, and successfully negotiating long-term freight contracts that substantially reduced shipping costs.

Ending 2024 with approximately AU$42 million in cash and trade receivables, the company is positioned for robust financial flexibility and strength. With a simplified and deleveraged balance sheet, Metro is well-equipped to execute its growth strategy and enhance shareholder value.

Metro Mining is led by a seasoned management team with deep expertise in bulk commodities, operational optimization, and corporate strategy, emphasizing sustainable growth and shareholder value creation.

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.

Key Project

Bauxite Hills Mine (Queensland, Australia)

Metro’s flagship asset, the Bauxite Hills Mine, is a low-cost, high-quality DSO operation with total resources of 118.7 Mt, including proven and probable resources of 83.2 Mt. The mine benefits from minimal overburden of just 0.5 meters, short average haul distances of 9 km, and no requirement for blasting, contributing to exceptionally low production costs. Production capacity is set to expand from current levels to approximately 7 million wet metric tonnes (WMT) annually by 2025.

The mine has achieved sustained daily production rates of approximately 30,000 WMT, supported by efficient marine logistics utilizing Capesize vessels and specialized tug and barge systems. Robust off-take agreements are in place with major industry players, including Chalco, EGA, Xinfa Aluminium and Lubei Chemical.

Kaolin Deposit (part of Bauxite Hills)

Metro’s Bauxite Hills property also contains a significant kaolin deposit beneath its bauxite resources. The company is advancing a definitive feasibility study for kaolin extraction, evaluating potential market entry strategies, mine planning and product market testing.

This project represents a potential new revenue stream, with applications spanning ceramics, paper manufacturing, paint and other industrial uses.

Management Team

Simon Wensley – CEO and Managing Director

Simon Wensley is a proven industry leader with extensive experience in mining operations and strategic growth. He spent 20 years at Rio Tinto in various operational, project and leadership roles across commodities, including iron ore, industrial minerals, bauxite, alumina, coal and uranium.

Douglas Ritchie – Non-Executive Chair

Douglas Ritchie brings more than 40 years' experience in resources, previously holding senior leadership roles at Rio Tinto, including CEO of Rio Tinto Coal Australia, chief executive of the Energy Product Group, and group executive of strategy.

Nathan Quinlin – CFO

Nathan Quinlin is experienced in financial strategy and cost optimization, previously serving as finance and commercial manager at Glencore’s CSA mine, managing finance, risk management and life-of-mine planning.

Gary Battensby – General Manager and Site Senior Executive

Gary Battensby has extensive experience in managing large-scale metalliferous mining operations, budget control and regulatory compliance. He previously oversaw teams of up to 350 staff and operations with substantial CAPEX and operational responsibilities.