Can Metro Mining Sustain Momentum After $156.8M Profit Turnaround?
Metro Mining has delivered a striking half-year turnaround with a $119.8 million net profit, driven by record shipments, strong pricing, and significant foreign currency hedging gains.
- Net profit after tax of $119.8 million, a $156.8 million year-on-year turnaround
- Record first-half shipments of 1.9 million Wet Metric Tonnes (WMT)
- Underlying EBITDA of $23 million, a 248% increase from prior period loss
- Foreign currency hedging gains of $33.2 million
- Impairment reversal of $47.7 million and recognition of $201.5 million gross tax losses
A Remarkable Financial Rebound
Metro Mining Limited (ASX – MMI) has announced an impressive half-year financial performance for the period ending 30 June 2025, posting a net profit after tax of $119.8 million. This figure marks a dramatic $156.8 million turnaround compared to the same period last year, underscoring the company’s successful operational and strategic initiatives.
The turnaround is anchored by the completion of the Bauxite Hills mine expansion, which has enabled record shipments of 1.9 million Wet Metric Tonnes (WMT) in the first half of the year. This volume, combined with a robust pricing environment reflected in a record FOB net revenue of $72 per WMT, has propelled Metro Mining’s underlying EBITDA to $23 million; a 248% increase from a prior period loss of $15.5 million.
Strategic Currency Hedging and Impairment Reversal
Beyond operational gains, Metro Mining has benefited significantly from financial risk management. The company restructured its foreign currency hedging strategy, securing a full-year AUD/USD hedged position at 0.63. This move generated a half-year currency gain of $33.2 million, cushioning the company against exchange rate volatility and enhancing profitability.
Additionally, Metro Mining reversed a $47.7 million impairment previously recorded in 2021, reflecting renewed confidence in the mine’s value and future earnings potential. The balance sheet also now recognises gross tax losses of $201.5 million, which could provide future tax benefits as the company continues to generate profits.
Outlook and Market Positioning
CEO and Managing Director Simon Wensley highlighted the strong momentum heading into the second half of the year, traditionally the company’s most productive period. He credited the results to the dedication of the Metro team and contractors, emphasizing that the expansion and operational improvements have laid a solid foundation for sustained growth.
Metro Mining’s focus on producing high alumina bauxite, a critical input for aluminium production and the energy transition, positions it well amid growing demand for sustainable materials. Its operations on the Weipa bauxite plateau in Far North Queensland also underscore its commitment to local communities and indigenous employment, factors that may enhance its social license to operate.
While the company has not provided explicit forward price guidance, the combination of operational scale, pricing strength, and hedging strategy suggests Metro Mining is well placed to navigate commodity price fluctuations and currency risks in the near term.
Bottom Line?
Metro Mining’s half-year surge sets a high bar, but sustaining momentum will be key as global bauxite markets evolve.
Questions in the middle?
- How will Metro Mining manage potential volatility in bauxite prices beyond current hedging?
- What are the company’s plans for utilising the recognised tax losses in future periods?
- Can Metro maintain or grow shipment volumes as global demand for aluminium intensifies?
