According to its latest half yearly results, Metro Mining (ASX:MMI) achieved record shipments of 1.5 million wet metric tonnes during the first half of 2024, representing an 18% increase year-on-year.
Metro Mining, which has a market capitalisation of $231.64 million, also achieved a 30% increase in revenue, delivering $19 million during the second quarter of 2024.
In the first half of this year, Metro Mining was focused on completing and commissioning the remaining elements of its expansion to 7 million wet metric tonnes per year.
This was achieved with the mobilisation and commissioning of the Offshore Floating Terminal (OFT) Ikamba in April, and the commissioning of the new wobbler screening circuit in May 2024.
All elements of the expansion are in place and ramping up towards target capacity. The new wobbler screening circuit and barge loading facility is operating reliably above the target of 1,500 tonnes per hour.
The Metro expansion is considered perfectly timed as the traded bauxite market continues to grow with Chinese imports up 7.4% year-on-year, and the first half of 2024, Australian bauxite prices benchmark is up 22% on the first half of 2023.
CEO Simon Wensley says the turnaround in Metro continues with “outstanding achievement” in the first half of 2024, following the wet season shutdown.
“We are now entering the target capacity zone with strong demand for Metro product and a very robust price environment, so I’m looking forward to a strong second half result,” Wensley says.
In 2023, bauxite imports to China were 142 million tonnes, a record and 13% more than the previous year. In the first half of 2024, China imports continue being strong at 77.3 million tonnes, which is a 7.4% increase from the same period in 2023.
Metro Mining reports on the supply side, Guinea is experiencing a wet season, with imports trending about one third lower in recent weeks.
The most recent market pricing suggests a continued firming price for Guinea bauxite at US$77 per metric tonne, a 38% increase since January 2022.
Metro Mining is an Australian bauxite explorer and mining company based in Brisbane, Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: Metro Mining
