Metro Mining (ASX:MMI) have got a very simply project. Bauxite fundamentals are extremely good. There is rising Bauxite demand from China, it has risen from 5 million tonnes to 60 million tonnes in 10 years. It will double again in the next 10 years. It’s a very simple DSO project. So a direct shipment project. We don’t process it. We mine it. We screen it and we send it. So, it creates a very low capital cost, very low logistics costs.
Metro Mining has compelling economics and we have a binding off-take agreement with Xinfa for about 50 per cent of our product. And we have recently signed a non-binding letter of intent with Lubei Chemicals, so we are very well placed.
Early works are underway and we have very strong financing capability with two very strong shareholders at 20 per cent each (Greenstone and Balanced Property). Metro Mining is an excellent investment opportunity of course with first production scheduled for April 2018.
Our share price has grown very strongly since the beginning of 2016 and our market cap now sits at about $130 million, so we are poised to be a pretty serious company.