Funding from the placement will increase balance sheet strength and flexibility, ensuring a strong working capital position during production ramp up and product sale negotiations.
Earlier this month, Metro received its first payment from off-take partner Xinfa Group as its first two shipments of bauxite have successfully arrived in China.
Xinfa is one of China’s largest integrated aluminium companies, with significant refining and smelting operations across multiple provinces.
With the successful first shipments all being delivered to Xinfa as planned, Metro is experiencing increasing buying interest for bauxite from its Bauxite Hills Mine in north Queensland.
CY2018 production guidance maintained
Although start-up was delayed due to weather, the production ramp-up is continuing.
Positively, bauxite shipped in the June quarter is expected to still reach the lower end of previously stated guidance.
Furthermore, guidance for bauxite shipped during the upcoming September and December quarters has been revised upwards.
Notably, recruitment of site-based staff is now largely complete with indigenous employees comprising about 34% of the workforce.
$10 million of placement pre-committed
The share placement aims to raise about $15.0 million, with the ability to take oversubscriptions to raise up to an additional $2.5 million.
The lead manager has received pre-commitments exceeding $10 million.