Metro Mining owns and operates the Bauxite Hills bauxite mine in Cape York, Queensland.
They have been mining for around 12 months and production has been ramping up with 2019 production expected to be ~3.5 million wet metric tonnes. From 2021 production is expected to level out at ~6 million wet metric tonnes. Mine life is estimated at 17 years.
Ramp-up margins have been solid despite weather disruptions and lower AUD/higher bunker fuel prices that have increased freight costs. Significant cost reductions have been identified and are expected to be realised in 2019 and beyond.
The MMI share price has halved in the last 12 months but a solid base looks to have formed at 13c. Volume has been increasing each day for the last three days and today has seen the share price tick up from 13.5c to 15c.
So is the bottom in? Hard to say for sure, but the worst does seem to be over and with production ramping up and the bauxite price currently at US$51 DMT (up from US$45 12 months ago), things are certainly looking a bit brighter for MMI.
Just a brief overview for those interested.