Metro raises another big slab of funding

BAUXITE developer Metro Mining has found another A$38 million of equity backing for its Bauxite Hill project in Queensland following last month’s unveiling of $40 million in debt and $52 million raised in February that was primarily related to its takeover of Gulf Alumina.

Metro raises another big slab of funding Metro raises another big slab of funding Metro raises another big slab of funding Metro raises another big slab of funding Metro raises another big slab of funding

The funding appears to place Metro in a comfortable position from a financial perspective, given the company has routinely promoted Bauxite Hill as having pre-production capex of less than $40 million – and a payback period for that initial capital of 1.7 years.

First production from the project is slated for next April.

The company is also targeting a staged expansion over four years from an initial 2 million tonne per annum rate to 6Mtpa, with earnings at the latter rate pegged at circa-$145 million per annum (on an EBITDA basis).

Of the total $93 million now at its disposal, Metro has budgeted $4 million for its corporate office, with the company having an eight-person board.

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