Metro Mining unveils its H1 2023 operational and financial results

The Australian mining and exploration company Metro Mining Limited has announced that in the six months ending 30 June 2023 (‘H1 2023’), it achieved a record in H1 shipments.

The strategies implemented during 2022 aimed at reducing unit costs and improving its resilience are now being realised by the Company, and this is reflected by a $12.7 million year-on-year improvement in the financial performance with a net loss of $16.7 million (H1 2022: $29.4 million 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 million in cash and equivalents.

The Bauxite Hills Mine in North Queensland has officially reached its final investment decision to expand its capacity to 7 million Wet Metric Tonnes (M WMT) annually. This expansion project has secured its complete funding through a newly established debt facility of US$30 million, provided by Nebari Partners LLC.

In H1 2023, the company shipped 1.3 million tonnes (WMT) of bauxite. Notably, the production has remained robust, reaching 0.47 million tonnes (WMT) in July and setting a new monthly record with 0.55 million tonnes (WMT) in August. This impressive increase in production has been made possible through the strategic integration of geared Ultramax vessels alongside the floating crane barge as part of the ongoing expansion project.

Metro Mining is committed to sustaining this momentum by continuing dual-loading operations throughout the rest of 2023. Moreover, according to the company, all necessary equipment is now stationed on-site, positioning us to achieve an average monthly production target of 0.65 million tonnes (WMT) starting in September. The annual sales projections range between 4.5 to 5.0 million tonnes (WMT).

Despite the ongoing economic uncertainties in China, alumina production continues to exhibit resilience, with prices showing an upward trend. This is primarily due to the resurgence of hydro-powered aluminium smelters returning online. Additionally, market conditions for traded bauxite remain robust, increasing Australian bauxite prices as contracts are renewed. The stability of Metro's freight contracts ensures consistent shipping rates, enabling the firm to maintain stable free-on-board (FOB) prices.