Operational Outage Forces Metro Mining to Cut 2025 Production Forecast

Record Shipments Amid Operational Challenges

Metro Mining Limited (ASX, MMI) has reported a standout quarter at its Bauxite Hills Mine in Cape York, Queensland, with shipments reaching a record 2.25 million wet metric tonnes (WMT). This marks a 6% increase year-on-year and a substantial 33% jump from the previous quarter, pushing year-to-date shipments to 4.1 million WMT. The company credits recent logistics optimisations, including improvements in barge loading throughput and tug cycle times, for these gains.

However, the quarter was not without setbacks. An unexpected four-day outage at the barge loading facility in early October, coupled with navigational challenges due to reduced river depth, led Metro to revise its 2025 production guidance downward to between 6.2 and 6.6 million WMT, slightly below earlier expectations.

Financial Performance and Cost Efficiencies

Despite softer market prices and a significant portion of shipments under legacy contracts priced in 2022, Metro maintained a robust financial profile. The company reported a blended FOB revenue of A$48.6 per WMT and successfully reduced site costs by 17% quarter-on-quarter to A$25.7 per WMT. This translated into a healthy site EBITDA margin of A$16.1 per WMT and generated A$31 million in cash flow for the quarter. Scheduled debt repayments commenced as planned, reducing the US$ secured debt facility to US$49.2 million.

Strategic and Operational Advances

Metro’s operational enhancements extended beyond logistics. The completion of the Pit 5 haul road and mine development facilitated better blending and haulage efficiency. The commissioning of new equipment and automation systems, including a Vorne automated plant monitoring system and upgrades to supervisory control systems, contributed to improved productivity. The company also advanced its marine operations with AI-driven scheduling and flexible trans-shipping strategies to better manage grade variations and customer requirements.

On the regulatory front, Metro achieved Project of Regional Significance status from the Queensland Government, positioning it to apply for water entitlements critical for future beneficiation activities. Environmental authority clarifications were also secured, enabling an extended operating season.

Market Context and Outlook

The global bauxite market remains robust, particularly with Chinese imports up 31% year-on-year despite some supply disruptions in Guinea due to government interventions and weather. While bauxite prices softened slightly during the quarter, demand fundamentals remain strong. Metro’s product, noted for its high alumina content and favourable mineralogy, continues to attract high-quality customers. The company expects to complete shipments under all legacy contracts by year-end, which should allow full exposure to current market pricing in 2026.

Exploration and expansion efforts continue, with drilling programs planned and approvals underway for mining lease applications and pit expansions that could add approximately 1 million WMT of bauxite resources.