Metro Mining (ASX:MMI) has achieved across-the-board increases in shipments, revenue and earnings for 2024 following upgrades to the Ikamba Offshore Floating Terminal and port infrastructure.
During Q4 2024, the Bauxite Hills Mine in Queensland demonstrated its capacity to consistently operate at the expansion project target rate of 7 million wet metric tonnes per year.
As a result, 5.7 million wet metric tonnes were shipped, representing a 24% year-on-year increase.
Metro Mining, which has a market capitalisation of $327.88 million, adds that record shipments and a strong pricing environment contributed to a 30% year-on-year revenue increase to $307 million.
CEO Simon Wensley says the company turned in a combination of record results for the year, especially in the second half, as expansion ramped up.
“I expect to see further economies of scale flowing through in 2025 as we lift production by a further 20%, with continued strong traded bauxite demand flowing through to improved margins,” Wensley says.
Further, site earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins were $13.8 per wet metric tonne and $17.4 per wet metric tonne in Q3 and Q4 2024, respectively, resulting in a 100% increase in underlying group earnings (EBITDA) to $37 million.
The company says 100% of the junior debt of $39 million was also paid down, resulting in a 35% reduction in net debt to $44 million, including $31 million cash at hand, as of 31 December 2024.
Metro notes the $36 million expansion is complete with the full flowsheet in place including new haulage fleet, upgraded loading capacity at pit and port, new wobbler screening circuit, two additional tugs, and the offshore floating terminal.
The company expects to resume operations in the second half of March with shipment guidance of 6.5 to 7 million wet metric tonnes for 2025.
The Bauxite Hills Mine is located 95km north of Weipa on Western Cape York, where Metro holds a total tenement package covering 1,900km2.
Bauxite is the ore used to make aluminium, a critical and strong growth metal in the energy transition.
Metro Mining is focused on producing high alumina bauxite, shipping direct to customers in very large ore carriers.
Write to Aaliyah Rogan at Mining.com.au
Images: Metro Mining
