Metro Mining (MMI) H2 2025 earnings summary

Executive summary

• Achieved record underlying EBITDA of AUD 73 million, with margins over AUD 30/ton in H1, reflecting robust market conditions and successful expansion.

• Nearly doubled EBITDA year-over-year, with net profit supported by strong operational performance and a clean audit report.

• Approached net cash position, ending with AUD 57.5 million cash and AUD 58.9 million debt after repaying over AUD 23 million.

Financial highlights

• EBITDA reached AUD 73 million, almost 100% higher than the prior year, driven by economies of scale at 6.2 million tonnes output.

• Free cash flow generation was strong, with improved foreign currency results compared to last year.

• Carry forward tax losses of AUD 184 million provide a significant tax shield, likely deferring tax payments until H2 2027.

• Dry docking costs for Acamba are included in current results and will not impact margins.

Outlook and guidance

• Targeting 7+ million tonnes production in 2026, with cost structure aimed at the bottom of the industry cost curve.

• Confident in achieving 2026 guidance, with operational bottlenecks addressed and new management systems in place.

• Expecting to utilize tax losses through 2026, with no tax payments anticipated until late 2027.

• Buyback program to retire 5% of shares over 12 months, with further capital returns or growth investments considered.