Metro Mining (MMI) Q2 2026 TU earnings summary

Executive summary

• Achieved record quarterly bauxite production and shipments, with Q2 reaching 1.8 million WMT, up 7% year-over-year, despite weather disruptions and cyclone impacts, demonstrating operational resilience and rapid recovery.

• June shipments set a monthly record of 779k WMT, 29% higher than May, with 97% using OFT Ikamba.

• Successfully implemented a revised management operating system, improving productivity, reducing variability, and supporting rapid recovery from disruptions.

• Added two new customers and agreed trial cargos, enhancing customer diversity and market reach.

• Extended port stockpile capacity, supporting operational continuity during wet seasons.

Financial highlights

• Ended the quarter with AUD 23.8 million in cash and equivalents, and secured debt of US$31.5 million, indicating a strong balance sheet.

• Q2 2026 CIF pricing averaged A$63.2/WMT, down from A$73.7/WMT in Q4 2025 and A$81.3/WMT in Q2 2025.

• Site EBITDA margin was A$4.4/WMT, lower than plan due to non-recurring demurrage and higher diesel costs.

• Production costs for the quarter were AUD 47.7 million, significantly lower than AUD 73 million in the same period last year, attributed to timing differences, softer pricing, and royalty adjustments.

• Net cash from operating activities for the quarter was A$24.2 million.

Outlook and guidance

• Shipment and production guidance for 2026 remains at 6.6–7.1 million tons, aiming for the 7 million ton expansion target.

• Over 5 million tonnes expected to be shipped in the second half of 2026, leveraging improved mining and shipping conditions.

• Site and freight costs targeted at $30 per ton delivered for the second half, supported by economies of scale and long-term freight contracts.

• Q3 2026 CIF pricing agreed at ~9% higher than Q2, reflecting market recovery and anticipated strengthening price environment.