Metro Mining (MMI) Q4 2024 TU earnings summary

Executive summary

• Achieved record Q4 shipments of just under 2.1 million wet metric tons, up 22% year-over-year, and full-year shipments of 5.7 million tons, up 24% year-over-year.

• Production ramp-up reached and at times exceeded 30,000 tons per day, with Bauxite Hills Mine operating at a 7 million WMT per annum target rate despite adverse weather.

• Operational improvements included debottlenecking in tug, barging, and transshipment, with focus shifting to barge loading facility upgrades.

• Strong customer portfolio expanded with new multi-cargo offtake contracts from major industry players, including Chalco, EGA, and Lubei, enhancing market position.

• Senior debt and royalty restructured, junior debt fully repaid, and A$42 million in cash and receivables at quarter-end, improving financial flexibility.

Financial highlights

• Q4 pricing improved 16% sequentially from Q3, with margins rising to just over $17 per ton and site EBITDA margin reaching A$17.4/WMT in Q4.

• Net cash flow from operations was A$33.7 million for Q4 and A$43.4 million for the year.

• Cash and cash equivalents at quarter-end were A$31.2 million, with trade receivables of A$10.8 million.

• Q4 CIF pricing was A$72.7/WMT, up from A$65.3/WMT in Q3 and A$56.5/WMT in Q4 2023.

• Repayment of A$11.7 million in junior debt and reduction in financing costs by A$4 million expected in 2025.

Outlook and guidance

• Targeting 6.5 to 7 million tons of production and sales for 2025, with 5.5 to 6 million tons as open volume.

• Freight contracts renegotiated, expected to reduce costs by about $3 per ton and lower penalties.

• Quarterly contract prices expected to increase further in Q2 2025, supported by a high-quality customer portfolio.

• Maintenance shutdown during wet season expected to cost around AUD 20 million, positioning assets for 2025.

• No Q1 2025 price negotiation due to wet season pause; market re-entry planned for February for Q2 2025 volume.