Metro Mining has delivered a remarkable turnaround in 2025, posting record shipments and profits, while announcing a strategic share buy-back and debt extension to underpin future growth.
- Record shipments of 6.2 million Wet Metric Tonnes, up 9% year-on-year
- Net profit after tax of $142.3 million, reversing prior year loss
- Underlying EBITDA nearly doubled to $72.9 million
- On-market share buy-back of up to 5% announced to enhance shareholder value
- Senior debt maturity extended by 9 months to December 2027
A Year of Transformation
Metro Mining Limited has unveiled its 2025 financial results, showcasing a dramatic turnaround from the previous year’s loss to a robust net profit of $142.3 million. This leap was driven by a 9% increase in shipments to a record 6.2 million Wet Metric Tonnes (WMT) and a near doubling of underlying EBITDA to $72.9 million. The company’s operational momentum reflects the successful execution of its expansion strategy, which reached a Final Investment Decision in 2023.
Financial Strength and Strategic Moves
Metro’s balance sheet also strengthened, ending the year with $57.5 million in cash and reducing senior debt by $23.3 million to $58.9 million. A notable $47.7 million impairment reversal, originally recognised in mid-2021, further bolstered the financial position. The company’s foreign currency hedging strategy yielded $35.4 million in gains, with a hedged USD/AUD rate of 0.64 for the full year, insulating Metro from currency volatility.
Share Buy-Back Signals Confidence
Reflecting confidence in its valuation and future prospects, Metro announced an on-market share buy-back program targeting up to 5% of its issued shares over the next 12 months. The Board believes the current share price undervalues the company’s assets and growth potential. This buy-back, conducted within regulatory limits, aims to enhance shareholder returns by reducing the number of shares on issue.
Debt Restructuring and Forward Guidance
In tandem with the buy-back, Metro has restructured its senior debt with Nebari and Partners LLC, extending the maturity by nine months to December 2027 without altering other loan terms. This extension provides additional financial flexibility as Metro targets shipments between 6.6 and 7.1 million WMT in 2026, aligning with its expansion plans.
Looking Ahead
CEO Simon Wensley praised the team and partners for delivering these record results safely and expressed optimism about the company’s trajectory. With strong operational performance, disciplined capital management, and a clear growth path, Metro Mining is positioning itself to capitalise on the rising demand for bauxite, a critical metal in the global energy transition.
Bottom Line?
Metro’s robust 2025 performance and strategic capital moves set the stage for a potentially rewarding 2026, but execution risks and market conditions remain key watchpoints.
Questions in the middle?
- How will Metro’s expansion strategy impact production costs and margins in 2026?
- What market factors could influence the effectiveness of the foreign currency hedging gains?
- How might the share buy-back affect liquidity and investor sentiment in the near term?