2142 GMT - With Metro Mining's balance sheet concerns now gone, Shaw & Partners expects the stock to soar. Metro Mining has successfully restructured its Nebari debt and royalty facilities. Nebari agreed to convert the royalty into a senior debt tranche, reduce the interest rate by 2% and extend the first amortization date to July 2025. Analyst Andrew Hines says this removes near-term funding pressure and eliminates the expensive royalty. At the same time, bauxite prices are hitting record highs due to supply constraints from Guinea and China. "Although the stock is up 150% this year, we are surprised that Metro hasn't been even stronger given the bauxite/alumina price moves," Shaw says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
November 28, 2024 16:42 ET (21:42 GMT)
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