Metro notches up record half yearly production

Main image: Bauxite Hills Metro Mining is crowing. The company announced record six-monthly shipping figures in the period up to June 30. It told the ASX in the half-yearly operational update the strategies implemented during 2022 aimed at reducing unit costs and improving resilience were now being realised. “... This is reflected by a $12.7 M year-on-year improvement in our financial performance with a net loss of $16.7 M (H1 2022: $29.4 M net loss). “The H1 2023 results include a quarter in which, as expected, there were no shipments due to the annual wet season (January – March). The Company ended the period with $20.2 M in cash and equivalents. “The Final Investment Decision of the expansion to 7.0 million Wet Metric Tonnes (WMT) per annum of its Bauxite Hills Mine in North Queensland, was also made including its full funding via a new US$30 M debt facility from Nebari Partners LLC.2 Record production continues On top of shipments of 1.3 M WMT for H1 2023, production had continued strongly with 0.47 M WMT in July and 0.55 M WMT in August, a new monthly record, the company said. ‘The increase in production activities, in conjunction with the expansion project, is being achieved with the incorporation of geared ultramax vessels in addition to the floating crane barge. ‘Dual loading operations will continue for the remainder of 2023 and all of the required equipment is now on site to support an average monthly production target of 0.65 M WMT from September and annual sales of 4.5 to 5.0 M WMT. ‘ Strong bauxite market Despite economic uncertainty in China, alumina production remained strong with prices trending up as hydro-powered aluminium smelters came back online the report said. ‘Traded bauxite market conditions are firm with Australian bauxite prices increasing as contracts roll-over. ‘Metro’s freight contracts provide stable shipping rates allowing the firm pricing to flow through to Free on Board (FOB) prices.‘ Expansion project on track The expansion project is being steadily implemented through 2023 and was on track, the report said. ‘Funds have been committed by Metro and its contract partners to new heavy mobile equipment, the upgrade of the barge loading facility, additional barges and a tow tug. ‘ ‘Additionally related to the screens, there was significant investment in maintenance and specialist contractors. ‘MMI has also entered into a joint venture with Louis Dreyfus Armateurs to procure a high capacity offshore floating terminal which is in process of dry-docking and mobilization to Bauxite Hills Mine in Q4 2023. ‘The 7.0 million WMT per annum expansion works are fully funded through a combination of the equity raise completed in 20223 and the Nebari Partners LLC US$30M (A$45 million) debt facility which was agreed and fully drawn during the period.4 MMI has the 100 percent owned Bauxite Hills Mine operating on the Weipa bauxite plateau around 95km north of Weipa on the Skardon River.

Metro notches up record half yearly production

Industry Queensland

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