How Did Metro Mining Achieve a $120M Profit Amid Operational Hurdles?

Strong Operational Momentum

Metro Mining Limited has reported an impressive first half for 2025, marked by record shipments of 1.9 million wet metric tonnes (WMT) of bauxite from its flagship Bauxite Hills Mine in Queensland. This represents a 27% increase compared to the same period last year, underscoring the company’s operational strength despite a temporary 5% shipment shortfall caused by depth restrictions in the Skardon River, which have since been resolved through extensive dredging efforts.

The company’s ability to maintain and even grow shipments amid logistical challenges highlights robust operational management and resilience in a competitive market.

Financial Turnaround and Profitability

Metro Mining’s financial results reveal a striking turnaround, with revenue soaring 78% to $145 million, driven by a significant increase in the average Free on Board (FOB) net revenue price to $72 per WMT, up 60% year-on-year. This pricing strength reflects sustained demand and favourable market conditions for bauxite, particularly from Chinese refineries, which accounted for 100% of sales during the period.

The company reported a net profit after tax (NPAT) of $119.8 million, a dramatic swing from a $37 million loss in the prior corresponding period. This profit surge was supported by a 248% increase in underlying EBITDA and the reversal of a $47.7 million impairment previously recognised on the Bauxite Hills Mine assets, reflecting improved asset valuations and confidence in future cash flows.

Capital Management and Debt Position

Metro Mining strengthened its balance sheet by drawing down the remaining $5.2 million tranche of its Nebari debt facility and restructuring its foreign exchange hedging to secure an average AUD/USD rate of 0.63 for the fiscal year. The company ended the period with $28.7 million in cash and cash equivalents, and while net current liabilities remain due to debt repayment schedules, management’s cash flow forecasts support ongoing operational profitability and debt servicing capability.

The company has committed to monthly capital repayments starting July 2025, with full debt maturity expected by March 2027.

Sustainability and Community Engagement

Beyond financial metrics, Metro Mining continues to prioritise Indigenous employment, with Indigenous peoples holding approximately 31% of positions at Bauxite Hills, aligning with company targets. The firm also advanced its Environmental, Social, and Governance (ESG) initiatives, including the implementation of its Reflect Reconciliation Action Plan and preparation for Australian Sustainability Reporting Standards compliance.

Safety remains a core value, with the company reporting a manageable number of maritime and workplace incidents, reflecting ongoing commitment to a proactive safety culture.

Looking Ahead

While no dividends were declared during the period, Metro Mining’s strong half-year performance positions it well for the remainder of 2025. The company’s ability to navigate operational challenges, capitalize on market conditions, and improve its financial footing suggests a promising outlook, though investors will watch closely for sustained shipment volumes and commodity price trends.