Metro Mining (MMI) provided an update for the June Q, with a minor downgrade to production. Atypical weather conditions and a delay in the delivery of new haulage equipment has resulted in a 3% reduction of FY19 guidance to 3.3-3.5Mwmt (previously 3.4-3.6Mwmt). Despite this downgrade, operations at Bauxite Hills are expected to ramp up rapidly to a +3.5Mwmt pa run rate benefiting from expansion initiatives emplaced this year. The macro environment remains positive for seaborn bauxite supply into China. We believe the net impact of Alumina refinery closures in inland provinces of China will be positive for MMI. Meanwhile, the CBIX bauxite index remains steady at US$52.20/dmt.

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