Metro Mining (MMI) Q2 2025 TU earnings summary

Executive summary

• Achieved record Q2 shipments of 1.7 million WMT, up 19% year-on-year, reflecting full ramp-up to a 7 million ton annualized production rate and strong market timing.

• Benefited from robust bauxite market pricing, with significant margin expansion and strong cash generation.

• Overcame operational challenges from a late-season tropical storm, which temporarily restricted barging and impacted volumes, now resolved.

• Bauxite Hills Mine produced and shipped 1.9 million WMT in H1, with system capacity to deliver 6.5–7.0 million WMT for 2025.

• Exploration ramping up north of Skardon River and west of Aurukun, with new farm-in terms agreed.

Financial highlights

• Net FOB unit revenue rose 41% year-on-year to $72/ton, with margins up 500% from the same quarter last year and 83% over Q4 2024.

• Site costs impacted by channel restrictions but structural savings achieved; cash balance increased, supported by strong trade receivables of $25 million as of June 30.

• Cash position at quarter end was A$28.7M, with net cash from operating activities of A$25.8M for the quarter.

• All deferred royalties fully paid this quarter, totaling $9 million.

• Senior secured debt facility of US$56.6M in place, amortization starts July 2025.

Outlook and guidance

• Tracking toward the top end of production guidance, aiming for around 5 million tons in the second half and maintaining 2025 shipment guidance at 6.5–7.0 million WMT.

• Expectation for site costs to drop to mid-$25/ton in Q3 as higher production rates are achieved.

• Q3 CIF price for contracted volume negotiated at ~10% below Q2 equivalent.

• Market expected to remain volatile but generally favorable; cost structure improvements position the company well for future pricing environments.

• Full benefits of increased scale expected to lower site cost structure in coming quarters.