FNN Investor Event 17 October 2017 1
Investment Highlights 1 Proven Board and Management team focused on shareholder value 2 Fully financed to first production – Construction well progressed 3 Simple DSO project well located in Cape York with significant competitive advantage 4 Compelling economics, high margin, long life mine 5 Transformational growth in China’s seaborne bauxite demand driven by fundamentals 6 ~60% of production for first 4 years subject to firm Offtake Agreement or Letter of Intent (LOI) 7 Near-term production - set to be a leading independent Cape York bauxite producer 2 | ASX : MMI | Investor Presentation | October 2017
Corporate Snapshot Share Price Capital Structure (Post-Equity Raising) $0.23 Share Price (13-Oct-17) $0.205 $0.21 Shares on Issue 1,285.5M $0.19 Market Cap $263M $0.17 $0.15 Options Unlisted 11.7M $0.13 Cash (30-June-2017 Post Equity) $51.4M BUY (Jul-17) $0.11 Target Price: $0.44 Debt Facility (drawn & undrawn) $39.4M $0.09 $0.07 BUY (Aug-17) Enterprise Value $251M Target Price: $0.42 $0.05 Board of Directors Chairman Stephen Everett Share Register (Post-Equity Raising) Managing Director & CEO Simon Finnis Non-Executive Director Philip Hennessy Other Shareholders Greenstone Non-Executive Director George Lloyd 32% 20% Non-Executive Director Lindsay Ward 6% DADI Non-Executive Director Mark Sawyer 26% 16% Non-Executive Director Dongping Wang Institutions Balanced Non-Executive Director Jijun Liu Property 3 | ASX : MMI | Investor Presentation | October 2017
Proven Management Team ▪ Metro’s Board & management have collectively been involved in the development and operation of over 30 mines globally ▪ Significant bauxite knowledge and expertise, focused on Cape York bauxite operations and product marketing into China ▪ Strategy is to develop and operate mines Simon Finnis | Managing Director & CEO Joined Metro as CEO in early 2015 Mining executive with +30 years experience Former CEO of Grande Côte Minerals Sands operations in Senegal and responsible for $650m greenfield project development Operational Commercial Charles Easton | GM, Bauxite Hills Mine Scott Waddell | CFO & Company Secretary Geologist with +40 years experience CPA with extensive experience in global bauxite & alumina Previous GM at Thiess Past senior roles with Anglo and Rio Tinto Alcan (RTA) 5 yr at Weipa managing mine planning & refinery performance Senior roles with Metro since 2010 Mike O’Brien | Project Director Duane Woodbury | Finance & Business Development Mining engineer with +40 years experience Banking & finance with +20 years experience +25 years Snr management experience Anglo American & Shell Senior roles with Macquarie & CFO of ASX listed Kingsgate Significant equity and debt capital raising experience Colleen Fish | Environmental Manager Norman Ting | GM, Marketing Manager Environmental scientist with +25 years experience +30 years bauxite industry & marketing experience Former Environmental Manager for Peabody, QLD Former Chairman Traxys China & Snr Exec of WOGEN UK, HK & China Joined Metro in 2012 Former Marketing Manager for Comalco (RTA) Bauxite 4 | ASX : MMI | Investor Presentation | August 2017
Achievements & Value Platform ▪ Metro has completed several value adding milestones in 2017 to be primed for Q2 2018 production 1 4 Binding Sales Agreement ✓ ✓ Doubled reserves Acquired Gulf – for 7Mt over 4 years & Customer Base Growing Gained infrastructure LOI for 2.5Mt over 3 years Consolidated Project Positive response from customers across China & internationally 2 5 Incorporated Gulf assets ✓ ✓ Competitive & rigorous process Staged development Project Scale Expanded Debt Finance Secured Secured flexible, low Post tax NPV 10 of $601m & cost debt facility of A$39.4M IRR of 81% 3 6 Raised $52M of equity & All environmental approvals Equity Issues ✓ ✓ Environmental Approvals received repaid $40M bridge loan Strengthened Balance Received Approval for up to Completing a $38M Sheet & Share Register 10Mtpa production share placement 5 | ASX : MMI | Investor Presentation | October 2017
Bauxite Hills Mine Snapshot Location Key Statistics 1 Ownership: Metro (100%) Project Overview Location: Cape York, Qld Commodity Bauxite Product Type Direct Shipping Ore Mine Type Surface mining Contained mineral: Reserves 92.2Mt 1 Resources 144.8Mt 1 EA Granted, MLs Granted Status Construction H2 2017 First Production April 2018 Operational Overview Start-up Production ~2Mtpa 2 Steady State Production ~6Mtpa (year 4) 2 Pre Production Capex ~$35.8m 3 Expansion Capex ~$36.7m Costs (LOM Avg) Onsite $16.4/t Incl Royalty $23.0/t 17 years Mine Life Operations Contract mining & transhipment Workforce ~185 personnel 1.ASX Release 15 Mar 2017 | 2. Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed 3. Note this Capex & analysis excludes the purchase of Haul Trucks 6 | ASX : MMI | Investor Presentation | October 2017
Simple DSO Project Operational simplicity and specialist mining and transhipment contractors enables easy to manage operations Dry season only operating negates risk of weather impact Site location, geological setting and layout provides low Q2 operating costs Clear vegetation & Return overburden & replace remove overburden topsoil - then revegetate Mining Strip mine bauxite Overburden (~0.5m) DSO Bauxite Horizon (~1.75m) Ironstone Mottled Zone Logistics Airstrip Camp Site
Competitive Advantage ▪ Location, Location, Location ▪ Metro’s low cost shipping is a sustainable cost advantage to China relative to competing bauxite producers ▪ Cape York Bauxite is well known in, and well received by the Chinese market ▪ Minimal working capital requirements provided by speed to market ▪ As ocean freight increases, cost advantage also increases 8 | ASX : MMI | Investor Presentation | October 2017
Compelling Economics * High Margin Low Capex Avg. LOM OPEX 1,2 vs. Avg. LOM Price Received (CIF) CAPEX vs. Avg. LOM EBITDA ~43% margin Payback within 1.7 years $61/WMT $73m $145m Expansion $37m $35/WMT Capital $36m Initial Capex 3 Capex Avg. LOM EBITDA Avg. Opex Price *ASX Release 15 Mar 2017 | Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed | 1. Includes royalties and ocean freight | 2. Purchase of truck & haulage equipment has the potential to reduce operating costs by up to $1/WMT | 3. Note this Capex & analysis excludes the purchase of Haul Trucks 9 | ASX : MMI | Investor Presentation | October 2017
Strong Cost Curve Positioning 2nd quartile cost curve positioning provides attractive long term competitive advantage China Seaborne Bauxite Supply Cost Curve 2019 – Value-in-use Adjusted US$/Dmt (CFR) 1St Quartile 2nd Quartile 3rd Quartile 4th Quartile US$/DMT Source: CM Group Mt 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 10 | ASX : MMI | Investor Presentation | October 2017
Pathway to Production 6 months to Production Early works underway with first 2017 2018 production scheduled April 2018 May June July Aug Sept Oct Nov Dec Jan Feb Mar April Financing Piles & Steel Fabrication Camp Refurbishment Tug & Barge Mobilisation Civil Works ▪ Barge Loading Facility ▪ Haul Roads Barge Loading Facility ▪ Marine Installation ▪ Conveyor ▪ Electricals Material Offloading Facility Office & Workshop Refurbishment Grade Control Drilling & Analysis New Camp Installation Commissioning Care & Maintenance (Wet Season) Mining Fleet Mobilisation Mine Production 11 | ASX : MMI | Investor Presentation | October 2017
Bauxite is the Primary Ore of Aluminium Key Ingredient for Manufacturing Aluminium = = 4-6 tonnes bauxite 2 tonnes alumina 1 tonne aluminium Key Bauxite Value Drivers Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Location Proximity to buyer, supply reliability and sovereign risk 12 | ASX : MMI | Investor Presentation | October 2017
Structural Change in China Declining Chinese Bauxite Reserve Life Years China’s seaborne bauxite imports are forecast to grow from 60 ~50mtpa in 2015 to ~150mtpa by 2030 53 50 Chinese Aluminium Production & Growing Seaborne Bauxite Demand 40 50.0 30 Imported Alumina as Bauxite Imported Bauxite Years 18 45.0 20 10 40.0 0 35.0 Aluminium Demand, Mt 2009 2014 Declining Chinese Bauxite Quality 30.0 China’s Growing Seaborne Bauxite Need 9.0 25.0 Shanxi Henan 8.0 Alumina/Silica ratio 20.0 7.0 Forecast 15.0 6.0 Source: CM Group 5.0 10.0 4.0 5.0 3.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 2025 2015 2017 2019 2021 2023 2025 2027 2029 13 | ASX : MMI | Investor Presentation | October 2017
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