Metro Mining (ASX: MMI) has announced a significant turnaround in performance, reporting a record profit after tax of AUD 142.3 million for FY2025, driven by record shipments and strong EBITDA growth.
Metro Mining’s calendar year 2025 saw record shipments reach 6.2 million wet metric tonnes (WMT), representing a 9% increase year-on-year and a key factor in the company’s strong financial performance.
Underlying EBITDA from ordinary activities surged by 96% year-on-year to a record AUD 72.9 million, while revenue from ordinary activities also rose by 23.11% to 378,362k.
Profitability was further bolstered by an impairment reversal of AUD 47.7 million, which had been previously recognised in HY2021.
Shareholder Returns and Capital Management
In a move signalling confidence and a focus on shareholder returns, Metro Mining has proposed an on-market share buy-back.
This initiative could see the company repurchase up to 5% of its issued shares, or approximately 305.54 million shares.
Foreign exchange hedging gains contributed AUD 35.4 million to the company's results, with a full-year USD/AUD hedged rate of 0.64.
Metro Mining also has substantial carry forward tax losses of AUD 183.9 million available for utilisation, with AUD 160.0 million recognised on the balance sheet to be used over the next five years.
No dividends were declared or paid during the financial year.
Balance Sheet Strengthened
Metro Mining ended 2025 with a healthy cash position of AUD 57.5 million.
Senior debt stood at AUD 58.9 million, reflecting a well-managed balance sheet.
The company proactively repaid AUD 23.3 million in principal debt during 2025, demonstrating its commitment to debt reduction.
Furthermore, the maturity of its senior debt has been extended by 9 months to 31 December 2027, providing increased financial flexibility.
Net tangible assets per security showed a marked improvement, rising to 0.026 at 31 December 2025 from 0.006 at 31 December 2024, indicating a stronger equity base.
Outlook and Guidance
Looking ahead, Metro Mining has provided a robust shipment guidance for CY2026, projecting volumes between 6.6–7.1 million WMT.
Previous quarterly reports highlighted strong operational momentum and cost discipline, with Q3 2025 seeing record quarterly shipped volumes of 2,246 thousand WMT.
Site costs declined, supporting unit margins, while a proportion of Q3 volumes were still under legacy contracts.
The company expects full exposure to market pricing in 2026 as these contracts roll off.
Investor Risks and Outlook
Metro Mining's strong FY2025 results, underpinned by record operational performance and improved financial metrics, position it positively.
However, investor sentiment will be influenced by the company's ability to manage commodity price cycles, execution risks on expansion projects, and ongoing funding requirements, as well as the success of its proposed share buy-back.
The cyclicality of bauxite pricing and external foreign exchange exposure remain key sensitivities.
Additionally, reliance on non-IFRS adjustments for underlying gains, operational risks like past disruptions at the barge loading facility, and the absence of a dividend are factors for investors to consider.
