Metro Mining Posts 2.1M WMT Shipments, 24% Annual Growth, $17.4/WMT EBITDA

Record Shipments Amid Challenging Conditions

Metro Mining Limited (ASX: MMI) capped off 2024 with a strong operational performance, reporting record shipments of 2.1 million wet metric tonnes (WMT) in the fourth quarter, a 22% increase compared to the same period last year. Despite adverse weather in December that curtailed the final vessel's departure, the company achieved a total of 5.7 million WMT for the calendar year, marking a 24% year-on-year growth.

This milestone underscores the successful ramp-up of Metro's Bauxite Hills Mine expansion project, which consistently operated at the targeted 7 million WMT per annum rate during Q4. Key infrastructure upgrades, including the new wobbler screening circuit and the Ikamba Offshore Floating Terminal, have been instrumental in sustaining throughput levels of approximately 800,000 WMT per month.

Financial Strength and Debt Restructuring

Alongside operational gains, Metro Mining completed a strategic refinancing of its senior debt and private royalty with Nebari Partners LLC. The restructure converted the private royalty into a US$11.5 million tranche facility, lowered the coupon rate by 2% to SOFR +7%, and introduced an additional US$10 million standby tranche at the reduced rate. This move is expected to reduce financing costs by A$4 million in 2025 and de-risk the balance sheet by deferring principal amortisation until mid-2025.

What's more, the company repaid its remaining junior debt of A$11.7 million, strengthening its financial position. At quarter-end, Metro held A$42 million in cash and trade receivables, with net cash flow from operations robust at A$34 million.

Market Dynamics and Pricing Outlook

Metro Mining benefited from a tightening bauxite market and surging alumina prices, with benchmark bauxite prices rising sharply, Australian high temperature bauxite prices increased by 104% since January 2023. Metro's average delivered prices rose 32% year-on-year and 16% quarter-on-quarter, reflecting strong market conditions and contract negotiations.

Looking ahead, the company has secured multi-cargo offtake contracts totaling 6.9 million WMT for 2025 with major players such as Aluminium Corporation of China (Chalco), Emirates Global Aluminium (EGA), and Shandong Lubei Chemical. These agreements diversify Metro’s customer base and underpin expectations for further price increases in the second quarter of 2025.

Operational Efficiency and ESG Initiatives

Operationally, Metro is addressing bottlenecks in the barge loader and tug/barge circuits, with maintenance scheduled to enhance throughput and cost efficiency in 2025. Site EBITDA margins improved to $17.4 per WMT despite weather-related disruptions and one-off expansion costs.

On the environmental and social front, Metro reported no environmental incidents during the quarter and advanced its ESG strategy, including the introduction of electric/diesel hybrid loaders and fuel-efficient generators. The company also received the 2024 Environment Award from the Association of Mining and Exploration Companies for its kaolin rehabilitation project, highlighting its commitment to sustainable mining practices.

Outlook and Strategic Positioning

CEO Simon Wensley emphasised the company's strong positioning amid record bauxite prices and operational improvements, noting the importance of risk reduction and customer diversification. With a solid balance sheet, expanding production capacity, and a robust contract book, Metro Mining is well placed to capitalise on favourable market conditions and deliver further growth in 2025.