Metro Mining posts record Q2 bauxite shipments and positive outlook

Metro Mining delivered record bauxite shipments in Q2 2026, lifted productivity, and kept shipment guidance steady despite higher costs.

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The Metro Mining Ltd (ASX: MMI) share price is in focus after the company delivered record bauxite shipments of 1.8 million wet metric tonnes (WMT) in the June 2026 quarter, up 7% on the prior year, despite cyclone impacts and operational disruptions. Cash at quarter-end rose to $23.8 million, with secured debt reduced to US$31.5 million.

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22

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What did Metro Mining report?

  • Record Q2 bauxite shipments of 1.8 million WMT, a 7% increase from Q2 2025
  • June shipped volumes hit 779,000 WMT – a monthly record
  • Site EBITDA for the quarter was $4.4/WMT, impacted by costs and softer pricing
  • Closing cash and equivalents of $23.8 million; secured debt reduced by US$5 million to US$31.5 million
  • Q2 average CIF pricing was $63.2/WMT, down 14% from the final quarter of 2025
  • 2026 shipment guidance maintained at 6.6 to 7.1 million WMT

What else do investors need to know?

Metro delivered strong operational performance in the face of significant challenges, including Tropical Cyclone Narelle and the temporary dry-docking of the Ikamba offshore terminal. The introduction of a new integrated planning and operating system improved productivity and reliability, leading to record volumes and efficient grade control. This allowed trial cargos to be agreed with two new customers.

The company completed a port stockpile extension, increasing storage by 170,000 WMT, and made substantial progress in vegetation clearing and overburden removal, positioning the mine well for the remainder of the year. While market conditions were soft early in the quarter with lower realised prices, Metro has already negotiated a 9% price uplift for Q3 2026 shipments, offsetting some prior headwinds.

Metro's cost base was impacted by higher diesel prices and accelerated stripping, but these measures were taken to support expected higher production in the second half. Most of Metro's ocean freight costs are fixed, providing a buffer against recent volatility in freight markets.

What did Metro Mining management say?

CEO & Managing Director Simon Wensley said:

Achievement of record Q2 output was pleasing given the post cyclone recovery and the absence of our primary transhipper, Ikamba for its 5 year dry dock service, for a portion of the quarter. In June, we demonstrated proof of concept of our new integrated planning and operating system and aligned management structure, thanks to focussed efforts from Metro and contractor teams. I expect our focus on production reliability, grade control and planning to coincide with excellent mining and shipping conditions to deliver over 5 million tonnes in the second half of 2026. As most of our freight is fixed, this will deliver lower operating costs straight to the bottom line in likely strengthening market conditions, as Guinea producers seek to cover freight and diesel cost rises.

What's next for Metro Mining?

Metro Mining is aiming for strong production in the second half of 2026, expecting to take advantage of both higher production capacity and a 9% price uplift for Q3. The company also plans to commence its previously announced on-market share buy-back in the third quarter, delayed earlier due to market volatility.

Metro is well positioned operationally and financially, with continued focus on grade control, cost management, and expanding customer relationships. Further stability in freight and commodity markets could support improved profitability as shipment volumes increase over the remainder of the year.

Metro Mining share price snapshot

Over the past 12 months, Metro Mining shares have declined 5%, trailing the All Ordinaries Index (ASX: XAO), which has risen 3% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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