Metro Mining Ltd (ASX:MMI) shareholders re-elected chairman Stephen Everett and his fellow director Mark Sawyer to the company board at today’s annual general meeting (AGM).
Investors in the company also voted to ratify and approve the company’s issue of shares to sophisticated and institutional investors and adopted its remuneration report.
Metro Mining will lift bauxite production to meet strong demand from customers
Outgoing director, DADI Engineering Development Group representative Xiaoming (Aaron) Yuan, withdrew his nomination for re-election at the meeting.
Substantial shareholder DADI is a Metro investor of eight years, it is also China’s largest coal industry engineering group.
Metro’s chairman Everett said, “I would like to acknowledge Mr Yuan’s and DADI’s contribution to the board of Metro Mining over the past eight years.
“I value the long association Metro has had with Mr Yuan and look forward to his continued assistance with our coal subsidiary.”
Yuan will become a director of a Metro subsidiary that holds its parent company’s coal assets.
Metro is undertaking a review of opportunities for the assets, including divesting them or forming a joint venture.
Metro published its chairman’s address to the market this morning, with Everett saying he congratulated the company’s team for its recent commissioning of Bauxite Hills Mine.
Everett told shareholders in the address: “Our 27th vessel has almost completed loading, and Metro is on track to deliver market guidance production and shipping tonnes of 2 million tonnes for 2018.
“Your company has confirmed contracts in place for all 2018 production to five different Chinese customers, and 69% of the expanded forecast 2019 production.
“We are steadfastly focussed and determined to further increase the value of your company and your investment in the years ahead.”
Metro Mining doubles ore shipment from Bauxite Hills as Chinese domestic supply tightens
The company has shipped more than 1.7 million tonnes of bauxite since its November 22, 2017 AGM.
Metro finalised its 2018 sales in September by signing a new binding contract with China’s state-owned State Power Investment Corporation Aluminium and Electric Power Investment Co. Ltd (SPIC), considered a key step towards a finalised offtake agreement.
Metro Mining powers ahead with Bauxite Hills output continuing to set records
Brisbane-based Metro’s annual output from the Bauxite Hills operation is expected to be increased to 3.5 million wet metric tonnes
The effort designed to meet customer demands is tipped to start in the March 2019 quarter.
Everett said, “This year your company has transitioned smoothly from a developer to a producer with a significant growth outlook and continues to look for ways to improve and take advantage of market forces.
“It must be said that we faced some early challenges but as our results are showing these have been addressed.
“Having said that, I acknowledge the shareholder barometer, the share price, has of late been disappointing – I guess we can take some solace in the fact that this has been the case across the broader resource industry.
“I firmly believe the current share price does not reflect the underlying success or value of your business.”
Metro is planning to increase investment community understanding of the potential of Australian bauxite and its “very real potential to offer an excellent investment platform”.
The company is also planning to update a stage II scenario from its definitive feasibility study (DFS) in the second half of 2019 to incorporate a production expansion to 6 million tonnes and then present an investment option to Metro’s board.