Metro Mining's Bauxite Hill mine reported 2 million WMT bauxite shipment to China in 2018

Metro Mining has published its 4th Quarter Report. Bauxite production for the quarter was 743k wet metric tonnes (WMT). About 816k WMT bauxite was shipped in the quarter. The shipment volume remained same as the third quarter while production dropped slightly due to bad weather. Annualised production run-rate was about 2.5M WMT per annum for the second consecutive quarter.

Strong performance helped the Bauxite Hills achieve its 2018 production guidance, with in excess of 2M WMT shipped to customers in China. Based on strong operating performance and strong customer demand, Metro upgraded production guidance for 2019 17% from 3.0M to 3.5M WMT.

Mine EBITDA for the quarter increased to A$8.6M with more production and operational improvements.  Transhipping activities continued to perform very strongly. October remained record shipment month at 307k WMT, and record ship loading rates being achieved for the final two shipments in December.

As planned the final ship was loaded on 28 December and then the planned shut-down of operating activities for the far north Queensland wet season was successfully implemented.  Operations are scheduled to re-commence in April 2019.

An updated DFS for potential Stage 2 expansion of Bauxite Hill mine to 6.0M WMT per annum by 2021 was also commenced during the 4th quarter. The DFS is on track to be completed in Q2 2019.

Metro’s bauxite marketing and sales program continues to be successful in the 4th quarter and the whole year. All production for the quarter was shipped to a range of Chinese customers. The average gross price of bauxite sold during the quarter was A$60.7/WMT. This was higher than the previous quarter average of A$53.3/WMT.

Approximately 75% of Metro’s upgraded 2019 production of 3.5M WMT has already been sold as there is solid demand for bauxite from chinese refineries located in inland provinces, where domestic bauxite supply is dropping due to depleting reserves and environmental closures. Approximately 2.2M WMT of planned 2019 production will be sold under a long–term off-take to Xinfa where prices will be determined an RMB denominated alumina price index.