Metro Mining generated A$ 25.2m revenue for Q2 2018 and recorded its first monthly profit in June

Metro Mining releases its June Quarterly activity Report.  The Bauxite Hills Mine was successfully commissioned during the June quarter.  The company reported a bauxite sales of 399kt generating A$25.2m of revenue for the quarter and recorded its first monthly profit in June.

Six Ocean Going Vessels (“OGVs”) were loaded and departed the Port of Skardon with a seventh partially loaded at financial year-end. The mine could achieve the daily production required for a target of 2 million tonne per annum production. The company is on track to meet its production and shipping guidance of 1.980M – 2.075 million wet metric tonne for CY 2018.

Metro’s available cash on hand and trade receivables as at 30 June 2018 was A$30.6M.

Due to an extended wet season and the site evacuation, caused by Tropical Cyclone Nora, mining activities actually commenced 17 April. In June, Bauxite Hills Mine mined 245,000 WMT of bauxite and shipped 214,000 WMT. As the Bauxite Hills Mine is now achieving budgeted operating rates, Metro’s focus for the 2018 next quarter is to continue to increase productivity and reduce unit costs of production.

As planned, the initial fleet of 3,000t barges for loading was supplemented in June with commissioning of a larger, and additional, 7,000t barge. Barge and OGV loading rates steadily trended higher in June quarter with bauxite loaded from site to ship averaging over 8,000t per day by the end of the quarter.

Based on the mining and ship-loading rates for the first half of 2018, Metro expects to achieve its targeted production of 2Mt for the 2018 Calendar Year. The June quarter reported solid results despite being a commissioning and ramp-up quarter. The company hopes to come up with a detailed operational cost analysis in future quarterly reports.