Metro Mining ships 2.1Mt of bauxite in Q3, as CIF prices rise 6.5%

Metro Mining Limited shipped 2.1 million wet metric tonnes (WMT) of bauxite in the third quarter of 2026, up 17 per cent from 1.8 million WMT in the previous quarter. However, shipments remained below the 2.25 million WMT recorded in Q3 2025.

The Australian bauxite producer reported improved market pricing during the July–September quarter, with its delivered (CIF) price rising by 6.5 per cent to AUD 60.8 (USD 42.79) per WMT from AUD 57.1 (USD 40.18) per WMT in Q2. Site EBITDA increased to AUD 7 (USD 4.93) per WMT from AUD 4.4 (USD 3.10) per WMT.

Mining and shipping operations faced maintenance work, equipment issues and channel erosion during the quarter. The company said its offshore floating terminal, Ikamba, underwent a one-week shutdown in July to replace four large hydraulic crane cylinders. Geared vessels were used to continue loading during the shutdown.

Metro's 2026 shipment guidance was revised to 6.0–6.5 million WMT on October 19.

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New bauxite contracts agreed for 2027–2029

Metro has agreed two new bauxite offtake contracts with existing customers, covering a combined 4.5 million WMT per year from 2027 to 2029. The company said the agreements reflected improved product consistency and continued demand for its bauxite.

Chief Executive Officer and Managing Director Simon Wensley said, “Q3 shipments were a solid result but below expectations as we dealt with major maintenance shut for OFT Ikamba, productivity issues from absenteeism and some premature channel erosion.” He said the company had addressed these issues and expected a stronger final quarter.

The company also entered into longer-term freight contracts to manage exposure to changes in shipping and bunker fuel costs. Around 80 per cent of its 2026 offtake had already been covered by freight contracts signed in 2025, with further agreements extending coverage through 2028.

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Costs remain above last year's levels

Metro's site costs were AUD 30.3 (USD 21.32) per WMT in Q3 compared with AUD 33.7 (USD 23.72) per WMT in Q2 and AUD 25.7 (USD 18.09) per WMT in Q3 2025. The company attributed the year-on-year increase mainly to higher diesel prices, inflation in equipment and labour costs, and increased stripping activity.

Total costs, including royalties, were AUD 36.4 (USD 25.62) per WMT while the FOB margin was AUD 43.4 (USD 30.54) per WMT, slightly below the AUD 43.9 (USD 30.89) per WMT recorded in Q2.

At the end of September, Metro held AUD 16.8 million (USD 12 million) in cash and cash equivalents. Secured debt had fallen to USD 24.8 million after USD 6.6 million in scheduled repayments during the quarter.

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Mine operations and screening programme

Metro mined 2 million WMT of bauxite during the quarter. Geological variability and operator constraints affected productivity, while the company accelerated overburden removal and expanded grade-control drilling to improve mine planning.

The Barge Load Facility continued to perform well, achieving an average loading rate of 1,790 tonnes per hour and availability above 95 per cent.

Metro also advanced its dry-screening programme, which aims to upgrade bauxite using a low-cost screening process. The programme reached final feasibility and received board approval to proceed with Phase 1 implementation. Two high-capacity mobile screens have been procured and moved to the site.

The company also continued work on converting Mining Development Licence MDL423 into a mining lease, with an application expected in the first quarter of 2027.