Metro Mining’s Q2 Shipments Surge 19% with EBITDA Margins Up 500%

Record Growth Amid Market Strength

Metro Mining Limited (ASX – MMI) has delivered a standout quarterly performance for Q2 2025, reporting record shipments of 1.7 million wet metric tonnes (WMT) of bauxite from its Bauxite Hills Mine in Cape York. This represents a 19% increase compared to the same period last year, underscoring the successful implementation of its expansion flow sheet completed in late 2024. The timing could not be better, as the global bauxite market remains resilient despite some softness in alumina prices.

The company’s site EBITDA margins have soared to A$32 per WMT, a remarkable 500% increase year-on-year and an 83% improvement from Q4 2024. This margin expansion reflects both higher pricing and operational efficiencies, with FOB net revenue climbing to $72 per WMT, up 41% from the previous quarter.

Navigating Operational Challenges

Despite the strong results, Metro faced a significant operational hurdle during the quarter. A severe tropical storm over the Easter period damaged the Skardon River barging channel, prompting the Harbour Master to reduce the controlling depth and limiting barge loading capacity for approximately six weeks. This disruption constrained shipments below planned levels and increased unit costs temporarily.

Metro responded swiftly with a comprehensive bed-levelling program and channel adjustments, restoring full operational capacity by mid-July. The company also advanced a planned maintenance shutdown in June, positioning the operation for smoother throughput in the second half of the year.

Exploration and Expansion on the Horizon

Looking ahead, Metro is accelerating exploration efforts north of the Skardon River and west of Aurukun, including a recent farm-in agreement with Prophet Resources on EPM 26982. The company is also progressing environmental studies to convert MDL 423 into a mining lease and has received approval to expand mining pits BH1 east and BH1 west, potentially unlocking an additional 1 million WMT of bauxite.

With a strong financial position; holding A$28.7 million in cash and a US$56.6 million secured debt facility; Metro is well placed to fund its growth initiatives. The company plans to ship between 6.5 and 7.0 million WMT for the full calendar year 2025, capitalizing on economies of scale and a favourable market backdrop.

Market Dynamics and Strategic Positioning

The bauxite market remains robust, supported by a 33% year-on-year increase in Chinese imports during H1 2025, despite uncertainties stemming from supply restrictions in Guinea. Metro’s high-quality bauxite, characterized by its alumina content and mineralogy, continues to attract premium customers under long-term contracts. The company’s restructured currency hedge at an average AUD/USD rate of 0.63 for 2025 further stabilizes its revenue outlook.

Operational resilience was also demonstrated by Metro’s marine transshipment assets, which maintained strong discharge rates despite adverse weather and channel restrictions. The company is actively pursuing long-term dredging solutions and larger barge feasibility studies to mitigate future disruptions.

Sustainability and Community Engagement

Metro Mining continues to prioritize environmental, social, and governance (ESG) initiatives, reporting no environmental incidents during the quarter. Rehabilitation efforts are ramping up with a target of 220 hectares for 2025, including innovative drone seeding technology. Community programs, such as the JT Believe initiative with the Jonathan Thurston Academy, highlight Metro’s commitment to local Indigenous engagement and social development.