Metro Mining (ASX:MMI) says the mobilisation and commissioning of the offshore floating terminal (OFT) Ikamba has helped the company to achieve record Q2 results.
Mining, screening, barge loading, and transhipping demonstrated rates of 7.5 million tonnes per year during July.
To date, Ikamba has ramped up and shown an average barge unloading rate of 1,700 tonnes per hour, about 85% of target capacity. The wobbler screening circuit has also ramped up, with throughputs now at 100% of target rates of 1,500 tonnes per hour.
Metro Mining, which has a market capitalisation of $279.16 million, says the project is 100% mechanically complete, with cost at completion remaining within the approved budget of $36.1 million.
The company says further optimisation, additional mobile and marine equipment and integrated planning together with seasonal improvement in ore moisture, tides, and weather is expected to extend the recent “positive” trends.
Metro adds that it is confident the system is capable of the revised volume guidance to deliver the target $15 per wet metric tonne earnings before interest, taxes, depreciation, and amortisation site margin for the balance of the year.
CEO Simon Wensley says the second quarter of 2024 has been a huge quarter for the company.
“In this context, it was very pleasing to have record Q2 shipments and prices up significantly,” Wensley says.
“Negotiated pricing is up again this quarter, and management’s full focus is on ensuring the ramp up beyond seven million tonnes per year occurs on a sustained basis.”
The company adds that the expansion was timed perfectly as the traded bauxite market grows, with Chinese imports up 7.4% year on year.
Metro’s cost, insurance, and freight prices are up 19% year on year, and 13% over the fourth quarter of last year. Free on board prices are also up 13% on the fourth quarter of last year and a further 8% under negotiation for the third quarter of this year.
Further, during the second quarter, Metro continued removing waste associated with the historical kaolin operations from this site, as part of its environment, social, and governance (ESG) strategy.
Metro anticipates having removed the remaining kaolin mining related waste from the site during this year.
As of 30 June 2024, the company had $13.377 million cash and cash equivalents at hand, according to its latest quarterly report.
Metro Mining is an Australian mining and exploration company focused on bauxite. The company is based in Brisbane, Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: Metro Mining
