Metro Mining (MMI) Q4 2025 TU earnings summary

Executive summary

• Achieved record annual shipments of 6.2 million metric tons/WMT, up over 9% year-over-year, meeting the lower end of revised guidance for 2025 despite Q4 shortfalls from weather and operational issues.

• Q4 shipments reached just under 2.1 million tons (2.06 million WMT), up 1% YoY, but below plan due to maintenance, weather, and barge loading facility breakdown.

• Ended the year with just under AUD 60 million in cash and senior debt reduced to AUD 62 million; unrestricted cash at year-end was A$57.5M.

• Legacy fixed-price contracts that negatively impacted Q3 and Q4 pricing are nearly complete, positioning for improved market pricing in 2026; only one vessel remains under this contract.

• Executive leadership restructured to enhance supply chain integration and cost efficiency.

Financial highlights

• Achieved average CIF price of $8.74 per wet ton and A$73.7/WMT, a 16% increase from Q3; legacy contracts weighed on FOB netback prices, with average FOB revenue at A$49.1/WMT.

• Maintained double-digit EBITDA margins despite cost pressures and royalty timing differences; site EBITDA for Q4 was A$12.0M, down from A$17.4M YoY.

• Site unit costs increased 11% to A$28.5/WMT due to lower shipping volumes and increased clearing/stripping activity.

• Net cash from operating activities for Q4 was A$46.4M.

• Secured debt reduced to US$41.5M after US$7.6M in repayments during the quarter.

Outlook and guidance

• Full delivery of expanded production volume targeted for 2026, with significant improvement in FOB pricing and margin as legacy contracts roll off.

• Mine operations to recommence in mid-March 2026, leveraging economies of scale for cost benefits.

• Strategic focus on meeting expansion targets and improving operational reliability through maintenance and channel upgrades.

• Board to consider dividend payment at February meeting, reflecting strong cash position and reduced debt.

• Mining lease application for Pit 5 expected in Q3 2026 to support long-term expansion.