Metro Mining (ASX:MMI) is anticipating a “significant increase” in bauxite margins for 2025 from expanded production and as it heads towards its “best seasonal performance opportunity” in H2 2025.
The company is targeting 6.5 to 7 million wet tonnes after implementing its expansion to double capacity.
Metro shipped 589,000 wet tonnes from its Bauxite Hills Operation in Queensland in June.
While shipments were 84,000 wet tonnes less than May due to continued constraints caused by a significant tropical low-pressure event in April, the cargo was 16% bigger than June 2024 and marked a record for the month.
Shipments for H1 2025 reached 1.9 million wet tonnes, including 1.7 million for the full June quarter.
Speaking to Mining.com.au ahead of the Noosa Mining Investor Conference, being held at the Peppers Noosa Resort from 23-25 July, CEO Simon Wensley says Metro has also paid down all of its $39 million in junior debt over the past year.
“We have gained significant interest from ever larger institutional investors and funds looking to participate in the growth of the company,” he says.
“We are a de-risked operator generating cash flow but still have very significant market capitalisation growth ahead of us as our scale economies are realised and our debt is paid down quickly.”
Wensley says Metro sees economies of scale reducing its costs to less than US$30 ($46) a dry tonne delivered to China.
For the first time, Metro outlined a dividend policy at its May annual general meeting that will pay at least 20% of free cash flow, net of debt servicing, from 2026.
Shaw and Partners estimates Metro could be paying dividends of $0.01 per share by Q3, which is when the investment firm sees the company reaching its target of zero net debt.
Wensley will address attendees on day two of the Noosa Mining Investor Conference, which features a line-up of 70 junior and mid-tier explorers and producers.
Mining.com.au is an official media partner of this year’s event. To register click here.
Write to Angela East at Mining.com.au
Images: Metro Mining
