Metro Mining (MMI) has achieved a successful restart of its Bauxite Hills Project following the annual wet season shutdown. Land based activities commenced in early April and there is currently ~150kt of bauxite stacked on the ROM. Three vessels have been loaded to date and the Company has guided 0.9-1.1Mt shipping for the current quarter. Most importantly, MMI has successfully emplaced measures to mitigate the risks of COVID19. Argonaut regards this as a key positive, given the projects elevated risk due to its proximity to Aboriginal communities. Bauxite prices are currently under downward pressure due to lower cost supply from Guinea, driven by cheaper freight rates (stemming from lower oil prices), and from subdued demand out of China. MMI finished the quarter with A$11.7m cash and A$35m debt. All debt was recently converted to from USD to AUD.
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