Metro Mining Limited (ASX: $MMI) Q2 2024 Operational Update

Metro Mining Limited (ASX: $MMI) has reported a successful Q2 2024 operational update, marked by record Q2 shipments of 1.42 M WMT, a 12% increase year-on-year. The completion and operationalisation of the remaining elements of Metro's expansion to 7 million wet metric tonnes (WMT) per annum (pa) were the focus of the quarter, with the Offshore Floating Terminal (OFT), Ikamba, mobilisation and commissioning in April, and the commissioning of the new wobbler screening circuit in May. The traded bauxite market continues to grow strongly, with Chinese imports up 7.4% year on year (YOY), and Metro's CIF prices up 19% YOY and 13% over Q4. FOB prices are also up 13% on Q4 2023, with a further 8% under negotiation for Q3 2024.

Executive Commentary on Q2 2024 Operational Update

Simon Wensley, CEO & MD of Metro Mining, expressed satisfaction with the successful commissioning of the major elements of the expansion, resulting in record Q2 shipments and significantly increased prices. He highlighted the focus on ensuring sustained ramp up beyond 7 Mt pa and the management's commitment to achieving the target $15 /WMT EBITDA site margin for the balance of the year. Wensley also emphasized the confidence in the 'system' to deliver the revised volume guidance and the positive outlook for the company's operations.

Summary of Q2 2024 Operational Update and Outlook

Metro Mining's Q2 2024 operational update reflects the successful completion and operationalisation of the expansion project, driving record Q2 shipments and increased FOB prices. Despite the impact of the extended wet season and delays in commissioning, the company remains confident in achieving the revised shipment guidance of 6.0 to 6.4M WMT for 2024. With the recent positive trends in operational rates and the expected optimization, additional equipment, and seasonal improvements, Metro Mining anticipates improved economies of scale in operations and a reduction in unit costs towards the target in Q3. The company's focus on safety, environmental, social, and governance (ESG) activities, along with the successful equity raise, further underpin its commitment to sustainable and responsible growth.