Metro Mining’s Growth Strategy Delivers Strong Performance
Metro Mining Limited (ASX:MMI) has reported its 2024 annual results, reflecting a significant increase in production, revenue, and operational efficiency. The Company has successfully ramped up its capacity following infrastructure expansions at its Bauxite Hills Mine.
The Company shipped 5.7 million wet metric tonnes (WMT) of bauxite in 2024, representing a 24% year-on-year increase. Revenue rose by 30% to $307 million, while underlying EBITDA doubled to $37 million.
Metro Mining CEO and Managing Director Simon Wensley highlighted The Company’s progress. “Metro has turned in a combination of record results for 2024, especially in the second half, as we ramped up the expansion. I expect to see further economies of scale flowing through in 2025 as we lift production by a further 20%, with continued strong traded bauxite demand flowing through to improved margins”.
Figure 1: Simon Wensley, Metro Mining CEO and Managing Director
Expansion Investments Driving Higher Production
Metro Mining completed a $36 million expansion project, which included:
- New haulage fleet to improve transportation efficiency.
- Upgraded loading capacity at pit and port.
- A new wobbler screening circuit to enhance wet weather resilience.
- Two additional tugs to support transhipment operations.
- The Ikamba Offshore Floating Terminal (OFT), increasing shipment capacity.
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Following the commissioning of the Ikamba OFT in Q2 2024, Bauxite Hills Mine consistently operated at its target rate of 7 million WMT per annum.
Debt Reduction and Financial Stability
Metro Mining achieved a 35% reduction in net debt, bringing it down to $44 million. This follows full repayment of $39 million in junior debt, strengthening The Company’s balance sheet.
Market Position and Bauxite Demand Outlook
Bauxite, the primary raw material for aluminium production, remains a high-demand resource. Metro Mining supplies bauxite to refineries in China and the United Arab Emirates under binding offtake agreements with major buyers, including:
- Xinfa Aluminium Group
- Xiamen Xiangsen Aluminum Co., Limited
- Emirates Global Aluminium Group
- Chalco Zibo International Trading Co., Ltd
- Shandong Lubei Enterprise Group General Company
Average delivered bauxite prices increased 32% year-on-year, reflecting tight supply conditions in the traded bauxite market.
Operational Efficiency and Cost Management
Metro Mining focused on improving production consistency, shipping efficiency, and cost management. The new wobbler screening circuit, commissioned in May 2024, increased screening throughput from 1,500 WMT per hour to 2,250 WMT per hour.
Transhipment operations expanded with two additional 90m barges and two new tugs, enhancing The Company’s ability to meet increasing demand. By the end of 2024, the Ikamba OFT reached an operational throughput of 2,000 WMT per hour.
2025 Production and Shipment Targets
Metro Mining projects 6.5 to 7.0 million WMT of bauxite shipments for 2025. This represents a further 20% increase from 2024, supported by:
- Increased economies of scale following expansion.
- Continued strong demand from aluminium producers.
- Operational efficiency improvements across mining and transhipment logistics.
Environmental and Social Commitments
Metro Mining continues its engagement with Indigenous communities in Cape York. The Company maintains a high percentage of Indigenous employees and contributes to local economic growth.
Rehabilitation efforts advanced in 2024, with 182 hectares of mined land prepared for seeding. The Company invested in drone technology for improved seed and fertiliser dispersal.
Financial Performance and Risk Management
Figure 2: Balance Sheet depicting financial performance for 2023 and 2024
Metro Mining reported a net loss of $22 million for 2024, compared to a $13.5 million loss in 2023. Cost of sales increased 21.9% to $271 million, primarily due to:
- Higher equipment and labour costs.
- Inflationary pressures.
- Expansion-related investments.
Debt refinancing in November 2024 secured:
- Lower interest rates on borrowed funds.
- Increased borrowing capacity.
- Deferred capital repayments until July 2025.
Future Outlook and Industry Trends
The global bauxite market remains strong, with aluminium demand driven by:
- Growing infrastructure and construction projects.
- Increased aluminium usage in electric vehicles and renewable energy.
- Supply constraints in major bauxite-producing regions.
With a strengthened balance sheet, expanded capacity, and a robust demand outlook, Metro Mining is positioned for continued growth in 2025.
