Brisbane-based bauxite producer Metro Mining (ASX:MMI) has delivered a net profit of $119.8 million for its half-year ending 30 June, marking a $156.8 million turnaround from a year earlier as record shipments and strong prices lifted earnings.
The company reported underlying EBITDA of $23 million, compared with a $15.5 million loss in the prior period. Record first-half shipments of 1.9 million wet tonnes, higher realised revenue of $72 per tonne and foreign currency gains of $33.2 million drove the result.
Metro CEO Simon Wensley said the result showed the benefits of the Bauxite Hills expansion and stronger market conditions.
“This is an outstanding set of half-year results off the back of delivering our expansion last year and then record first-half shipments,” Wensley said.
“It’s a tribute to the hard work of the Metro team and our contractors and provides excellent momentum into the second half of the year which is our most productive.”
The company also highlighted the strategic importance of bauxite in the energy transition, noting its high-alumina ore is shipped directly to customers from Cape York.
Analysts caution that while Metro has benefited from favourable currency movements and robust demand, the outlook remains sensitive to fluctuations in aluminium markets and global economic conditions.
Metro said it enters the second half with a full-year foreign exchange hedge at AUD/USD 0.63, positioning the business to manage volatility in currency markets.
Write to Dan Petrie at Mining.com.au
Images: Metro Mining
