Metals Exploration: Interim Results

Metals Exploration

30/09/2026 07:00

METALS EXPLORATION PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026
Metals Exploration plc (AIM: MTL) (“Metals Exploration”, the “Company” or, together with its subsidiaries, the “Group”), a gold production, exploration and development company with assets in the Philippines and Nicaragua, announces its unaudited interim results for the six months ended 30 June 2026 (“H1 2026” or the “Period”). The results will be made available on the Company’s website at www.metalsexploration.com.
Highlights

H1 2026 positive free cash flow of US$54.7 million (H1 2025: US$70.7 million) from operations - funding development at the La India gold project (the “Project”);
H1 2026 earnings before tax, interest, depreciation, amortisation, impairment and share-based charges of US$55.9 million (H1 2025: US$72.3 million);
H1 2026 gold production of 21,451 ounces (“oz”) (H1 2025: 40,985 oz);
H1 2026 gold recoveries of 80.7% (H1 2025: 91.4%); and
Construction and development of the Project in Nicaragua 56% complete as at 30 June 2026, and 74.4% complete as at the day of this report, with first gold pour on track for December 2026.

Production Summary



Runruno Project
 










Production Summary




Actual
Actual
Actual




Units


6 Months to

30 June 2026
6 Months to

30 June 2025
12 Months to

31 December 2025


Mining
 


 
 
 


Ore Mined
Tonnes


566,049
1,028,333
2,142,187


Waste Mined
Tonnes


5,303,507
4,889,310
8,557,364


Total Mined
Tonnes


5,869,556
5,917,643
10,699,551


Au Grade Mined
g/tonne


1.02
1.54
1.28


Strip Ratio
 


7.26
4.65
3.92


Processing
 




 




Ore Milled
Tonnes


952,585
1,041,486
1,902,702


Gold (Au) Grade
g/tonne


0.87
1.34
1.21


Sulphur Grade
%


1.06
1.18
1.19


Au Milled (contained)
Ounces


26,591
44,841
73,844


Recovery
%


80.7
91.4
88.4


Au Poured
Ounces


21,451
40,985
65,287


Sales
 










Au Sold
Ounces


21,373
41,240
66,082


Au Price
US$/oz


4,677
2,884
3,154



Darren Bowden, CEO of Metals Exploration, commented:
“The first half of 2026 has been a period of significant progress for Metals Exploration. At Runruno, despite lower grades and recoveries as operations run-down to closure, the Company continued to generate substantial revenues, delivering free cash flow of US$54.7 million and further strengthening our balance sheet.
“At La India, construction continued to advance well, reaching 56% completion by the end of the Period. We achieved a number of key milestones, including the ongoing installation of major process plant infrastructure, the arrival of long-lead equipment and the commencement of mine fleet mobilisation. We are particularly proud that, after approximately two million hours worked, the Project remains free of lost time injuries, reflecting the successful transfer of the Group's safety culture and the dedication of our workforce and contractors in Nicaragua.
“While Project costs have been impacted by higher logistics expenses and import duties, first gold pour remains on track for December 2026. The recent US$27 million equipment financing facility further strengthens our funding position as we move towards commissioning.
“The Batong Buhay agreements represent an exciting addition to our Philippine growth pipeline. With encouraging historical drilling results, we look forward to advancing our understanding of the project's potential through a modern exploration programme.
“The Group was also pleased to release its sixth sustainability report for Runruno, covering our sustainability performance for 2025. The report outlines the significant environmental and community work that has been undertaken at Runruno, and it is our objective to mirror this in Nicaragua. Additionally, I am pleased to note that Runruno has maintained its strong safety performance, with 3.95 million hours worked without a lost time injury as at the end of the Period.
“Looking ahead, our priorities are clear: delivering La India into production safely and efficiently, maximising remaining value at Runruno as mining winds down, and advancing our exciting exploration portfolio in both Nicaragua and the Philippines. We believe these activities will continue to support the Company's growth and create long-term value for our shareholders.”
Nicaragua

La India Development

The La India gold project is approximately a two-hour drive from the Nicaraguan capital city, Managua. Construction activities progressed with overall construction on-track at 74.4% complete as at the date of this report (31 December 2025: 33% complete).
The total Project budget has marginally increased to c.US$180 million due to unforeseen logistics costs and new import duties imposed on certain imported goods. The first gold pour at La India remains on track for December 2026.
Highlights for H1 2026 and post-Period end include:

c. 2 million hours worked with no lost time injuries (“LTI”). The Company considers this an exceptional safety record given the start-up nature of this owner operated construction project. The successful transfer of the Company’s safety culture from the Philippines to Nicaragua is a testament to all employees and contractors in Nicaragua, who are congratulated on this ongoing achievement.
Civil foundations progressed to 90% complete, with concrete and rebar installation ongoing across the tailings area (thickener and detox tank foundations), gold room, pebble crusher and reagents areas.
Structural, mechanical, piping and electrical installation (“SMPEI”) is being delivered by Duroblock S.A., with Degbed Company Limited as specialist mill installation contractor. This has progressed across the process plant with the CIL 10 tanks ring fit-out being completed.
Mechanical erection of the SAG mill feed conveyor (CV-004), pebble crusher and grinding circuit structure continued, with Level 1 steelwork installed around the SAG mill and progressing around the ball mill.
Long lead items delivered to site included the cooling water surge tank, gold room hopper, agitators and primary crusher components.
The thickener arrived on site, with shake-out and support column installation underway. Ring installation on the first Detox Tank also commenced.
The on-site laboratory was completed and became fully functional in early August 2026.
Bulk earthworks progressed to 93% complete; cumulative material delivered to the ROM pad reached 211,000 tonnes, against the 500,000-tonne pre-commissioning target.
The first units of the Group’s initial mine fleet arrived on site. The first ten 777 Caterpillar (“CAT”) dump trucks, and two CAT 6020 excavators are on site and operational. A further five haul trucks, a third excavator, two wheel loaders, a telehandler and a second bulldozer also arrived on site during H2 2026 in-line with a ramp up of mining operations via the Company’s owner-operator mining model.
Foundation improvement for Stage 1 of the tailings storage facility (“TSF”) has been completed, and backfilling of the starter dam has commenced.
The main risk to the construction schedule remains the completion of the main-grid power transmission connection. This risk arises due the third party delivery of key infrastructure and the connection itself. However, the Company is working closely with Entrail (the government power company) in an endeavour to ensure that delivery meets Project timelines.

La India Exploration

Drilling of the La India project areas by the previous Condor management outlined a 2.2 million ounce (“Moz”) gold resource in, and around, the La India project area. Since acquiring the Project, the Company’s focus has been on initial pit in-fill grade confirmation drilling, extensional drilling from planned mining areas and the Cacao prospect. Please refer to the Company’s announcement dated 16 July 2026 for further information.
Also, during H1 2026, the Company was granted four new exploration tenements in the La Crecia area. Preliminary exploration, including a maiden drill programme is underway. Please refer to the Company’s announcement dated 10 April 2026 for further information.
Finance

Since Period end, the Company secured a US$27 million equipment loan from a Nicaraguan located bank, which was fully drawn down in August and September 2026. Please refer to the Company’s announcements dated 21 August 2026 and 25 September 2026 for further information.
Philippines
Review of Runruno Gold Mine Operations
Health and Safety

No LTI has been recorded at Runruno since 30 March 2025, finishing the reporting period with 3.95 million hours since the last reported LTI. The health and safety of all employees and contractors remains a key priority to the Company. The Company remains incredibly proud of its exceptional safety record achieved by employees and contractors in the Philippines.
Finance

Gold sales were 21,373 oz for revenues of US$100.0 million (H1 2025: 41,240 oz for revenues of US$118.9 million) at an average price of US$4,677 per oz (H1 2025: US$2,884 per oz), resulting in positive free cash flow of US$54.7 million (H1 2025: US$70.7 million).
Mining

Mining production of ore and waste was 5.9 million tonnes (“Mt”) for H1 2026 (H1 2025: 5.9Mt). Total ore mined was lower at 0.6Mt (H1 2025: 1.0Mt), and at a lower grade of 1.02 grammes per tonne (“g/t”) (H1 2025: 1.54g/t). Current forecasts confirm that mining operations at Runruno will cease in Q4 2026.
Process plant

Gold production during H1 2026 was 21,451 oz (H1 2025: 40,985 oz). Throughput for H1 2026 was 0.95Mt (H1 2025: 1.04Mt) at a head grade of 0.87g/t (H1 2025: 1.34g/t). Average overall gold recovery in H1 2026 was 80.7% (H1 2025: 91.4%).
Both head grade and average recovery are expected to improve during H2 2026 as ore from deeper levels of Stages 5 and 6 of the mine are accessed and processed.
Unplanned process plant downtime during H1 2026 did not materially interrupt production and consisted mainly of disruption to the BIOX circuit due to contaminated ore and power interruptions. Other unplanned downtime resulted from repairs to the return discharge and final tails lines, switchyard, agitator gearbox, conveyor belts, rollers and trommel panel screens.
Residual Storage Impoundment (“RSI”)

The RSI in-rock spillway is approaching completion and fully operational, designed to handle a maximum probable flood event. The Company has an ongoing RSI maintenance and monitoring obligation which lasts for 10-years following the end of processing operations at Runruno. The day-to-day performance of the RSI continues to be monitored by an independent consulting group.
Community & Government Relations

Productive relations with both the community and the Philippine government continue.
Sustainability

On 9 April 2026, the Company released its 2025 Sustainability Report, which covers its sustainability performance in the Philippines for the year ended 31 December 2025. This report can be found on the Company’s website at: www.metalsexploration.com/esg/esg-overview/.
Philippine Exploration

Batong Buhay Project

As announced on 15 June 2026, Metals Exploration has signed a series of agreements to develop the Batong Buhay Porphyry Copper-Gold Project. Located c. 200km north of Runruno, Batong Buhay was drilled in the late 1970s via a 21-hole drilling programme. The main porphyry target, Dickson, has a historical non-JORC compliant resource of 86.9 million tonnes at 0.83% copper equivalent (“CuEq”) from surface.
Historical drill intercepts include:
Dickson:

DDH-6A, 160.93m at 0.92% copper (“Cu”) and 0.60 g/t gold (“Au”) (1.48% CuEq)
DDH-10, 182.88m at 0.73% Cu and 0.36 g/t Au (1.06% CuEq)
DDH-12, 173.74m at 0.33% Cu and 0.95 g/t Au (1.21% CuEq)

Maalinao North:

DDH-02, 198.12m at 1.15% Cu and 0.10 g/t Au (1.24% CuEq)
DDH-01, 134.36m at 0.76% Cu and 0.16 g/t Au (0.91% CuEq)

The Company has commenced pre-drilling activities that will determine the design of a drilling campaign which is expected to commence in Q4 2026.
Abra Project

The National Commission for Indigenous Peoples (“NCIP”) process to advance, and finalise, their consultation activities with the impacted local indigenous communities continues. No exploration work was undertaken during the Period.
For further information please visit or contact www.metalsexploration.com



Metals Exploration PLC




Via BlytheRay
+44 (0) 207 138 3204


Nominated & Financial Adviser:
STRAND HANSON LIMITED


James Spinney, James Dance, Rob Patrick
+44 (0) 207 409 3494


Joint Broker:
HANNAM & PARTNERS


Matt Hasson, Sam Quinn
+44 (0) 207 907 8500


Joint Broker:
PANMURE LIBERUM


Scott Mathieson, Amrit Mahbubani, Zak Wadud
+44 (0) 203 100 2000


Public Relations:
BLYTHERAY


Megan Ray, Said Izagaren
+44 (0) 207 138 3204



Competent Person's Statement
Mr Maxwell Donald Tuesley, BSc (Hons) Economic Geology, a member of the Australasian Institute of Mining and Metallurgy (No 111470 and employee of the Company, has compiled, read and approved the technical disclosure in relation to the projects in this regulatory announcement in accordance with the AIM Rules - Note for Mining and Oil & Gas Companies.
Forward Looking Statements

Certain statements relating to the estimated or expected future production, operating results, cash flows and costs and financial condition of Metals Explorations, planned work at the Company's projects and the expected results of such work contained herein are forward-looking statementswhich are based on current expectations, estimates and projections about the potential returns of the Group, industry and markets in which the Group operates in, the Directors’ beliefs and assumptions made by the Directors. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: “expects”, “plans”, “anticipates”, “forecasts”, “believes”, “intends”, “estimates”, “projects”, “assumes”, “potential” or variations of such words and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Among the factors that could cause actual results or projections to differ materially include, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfil projections/expectations and realize the perceived potential of the Company's projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company's projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties.
The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the, AIM Rules.
CONDENSED CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME for the six months ended 30 June 2026





Notes
6 month period ended 30 June 2026 (unaudited)


6 month period ended

30 June 2025 (unaudited)


Year ended

31 December 2025 (audited)






US$


US$


US$


Continuing Operations














Revenue


99,954,497


118,948,548


208,413,419


Cost of sales


(62,535,110)


(83,275,388)


(135,356,661)


















Gross profit


37,419,387


35,673,160


73,056,758


Administrative expenses


(7,254,825)


(6,529,654)


(11,495,137)


















Operating profit


30,164,562


29,143,506


61,561,621


















Impairment (loss)/gain


(829,667)


4,937,917


908,828


Other income/expenses
6/7
(1,734,714)


(18,798,365)


(22,798,678)


Provision for (loss)/gain on derivatives


(916,937)


1,535,541


5,453,412


Share of profit/(loss) of associates


47,632


(3,458)


(5,158)


Profit before tax


26,730,876


16,815,141


45,120,025


Tax expense


4,599,245


309,234


16,502,303


Profit for the period


22,131,631


16,505,907


28,617,722


Non-controlling interest


41,787


9,301


274,217


Profit for the period attributable to equity holders of the parent


22,173,418


16,515,208


28,891,939


















Other comprehensive income:














Items that may be re-classified subsequently

to profit or loss:














Exchange differences on translating foreign operations


97,874


(646,177)


(1,560,023)


Items that will not be re-classified subsequently 
to profit or loss:














Re-measurement of pension liabilities


-


-


(53,375)


Total comprehensive profit for the period attributable to equity holders of the parent


22,271,292


15,869,031


27,278,541


















Earnings per voting share:
9












Basic cents per voting share

Diluted cents per voting share


0.75

0.70


0.64

0.60


1.05

0.97




































CONDENSED CONSOLIDATED INTERIM BALANCE SHEET

as at 30 June 2026























Notes
30 June 2026 (Unaudited)


30 June 2025 (Unaudited)


31 December 2025 (Audited)








US$


US$


US$




Non-current assets
















Property, plant and equipment


264,067,519


85,674,859


218,147,243




Other assets


13,830,000


92,969,213


13,830,000




Investment in associate companies


175,885


129,953


128,253




Trade and other receivables


13,429,354


17,288,365


15,622,039








291,502,758


196,062,390


247,727,535




Current assets
















Inventories


18,041,722


17,348,922


17,206,016




Trade and other receivables
8
24,061,974


13,346,673


17,047,585




Cash and cash equivalents


9,001,213


45,916,669


41,171,536




Provision for gain on derivatives


-


265,503


-








51,104,909


76,877,767


75,425,137




Non-current liabilities
















Trade and other payables


(15,161,184)


(14,470,850)


(15,155,336)




Retirement benefits obligations


-


(3,154,594)


(164,470)




Provision for loss on derivatives


(1,356,570)


-


-




Deferred tax liabilities


(14,591,783)


(557,047)


(14,530,453)




Provision for mine rehabilitation


(8,846,061)


(4,302,525)


(8,253,228)








(39,955,598)


(22,485,016)


(38,103,487)




Current liabilities
















Trade and other payables


(20,889,529)


(9,654,958)


(28,483,299)




Provision for loss on derivatives


(992,425)


(5,610,776)


(1,429,405)




Retirement benefits obligations


(2,096,923)


-


(2,350,444)








(23,978,877)


(15,265,734)


(32,263,148)






















Net assets


278,673,192


235,189,407


252,786,037






















Equity
















Share capital
11
393,235


384,048


387,136




Share premium account
11
83,158,113


76,524,105


79,260,654




Capital redemption reserve


38,266


38,266


38,266




Treasury shares


(19,278,326)


(19,278,326)


(19,278,326)




Translation reserve


7,934,465


8,750,437


7,836,591




Re-measurement reserve


(624,007)


(570,632)


(624,007)




Other reserves


2,484,136


(938,558)


2,737,779




Profit and loss account


204,486,410


169,892,464


182,305,257




Non-controlling interests


80,900


387,603


122,687






















Equity attributable to equity holders of the parent






278,673,192






235,189,407






252,786,037





CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June 2026





Share capital
Share premium
Capital redemption reserve
Treasury shares
Translation reserve
Re-measurement reserve




Other reserves




Non-controlling interests
Profit and loss account
Total equity




US$
US$
US$
US$
US$
US$
US$
US$
US$
US$






Balance at 1 January 2026
387,136
79,260,654
38,266
(19,278,326)
7,836,591
(624,007)
2,737,779
122,687
182,305,257
252,786,037


























Exchange differences on translating foreign operations
-
-
-
-
97,874
-
-
-
-
97,874


Profit for the period
-
-
-
-


-
-
(41,787)
22,173,418
22,131,631


























Total comprehensive income for the period
-
-
-
-
97,874
-


(41,787)
22,173,418
22,229,505


Share based payment
-
1,546,512
-
-
-
-
(253,643)
-
7,735
1,300,604


Equity issues
6,099
2,350,947
-
-
-
-
-
-
-
2,357,046






























Balance at 30 June 2026
393,235
83,158,113
38,266
(19,278,326)
7,934,465
(624,007)
2,484,136
80,900
204,486,410
278,673,192



Equity is the aggregate of the following:

Share capital; being the nominal value of shares issued.
Share premium; being the excess received over the nominal value of shares issued less direct issue costs.
Capital redemption reserve being the share capital of ordinary shares held in Treasury.
Treasury shares; being Company shares acquired and placed in Treasury in 2024 via an off-market share buy-back.
Translation reserve; being the foreign exchange differences on the translation of foreign subsidiaries.
Re-measurement reserve; being the cumulative actuarial gains and losses, return on plan assets and changes in the effect of the asset ceiling (excluding net interest on defined benefit liability) recognised in the statement of total comprehensive income.
Other reserves; include amounts recognised on acquiring additional equity in a controlled subsidiary and the cumulative share-based payments expense.
Non-controlling interest; being the share of equity owned by minority parties.
Profit and loss account; being the cumulative profit attributable to equity shareholders.


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June 2025





Share capital
Share premium
Capital redemption reserve
Treasury shares
Translation reserve
Re-measurement reserve




Other reserves




Non-controlling interests
Profit and loss account
Total equity




US$
US$
US$
US$
US$
US$
US$
US$
US$
US$


Balance at 1 January 2025
235,366
313,458




50,401




(25,345,845)
9,396,614
(570,632)
(4,289,234)




396,904
153,363,118
133,550,150




Exchange differences on translating foreign operations
-
-
-
-
(646,177)
-
-
-
-
(646,177)




Profit for the period
-
-
-
-
-
-
-
(9,301)
16,515,208
16,505,907




Total comprehensive income for the period
-
-
-
-
(646,177)
-
-
(9,301)
16,515,208
15,859,730




Share based payment
-
-
-
-
-
-
18,178,937
-
-
18,178,937




Equity issues
136,547
74,997,143
-
-
-
-
(14,814,123)
-
-
60,319,567




Transfer of other reserve re options lapsing
-
-
-
-
-
-
(14,138)
-
14,138
-




Shares issued from Treasury
12,135
1,213,504
(12,135)
6,067,519
-
-
-
-
-
7,281,023








Balance at 30 June 2025
384,048
76,524,105




38,266




(19,278,326)
8,750,437
(570,632)
(938,558)
387,603
169,892,464
235,189,407





Equity is the aggregate of the following:

Share capital; being the nominal value of shares issued.
Share premium; being the excess received over the nominal value of shares issued less direct issue costs.
Capital redemption reserve being the share capital of ordinary shares held in Treasury.
Treasury shares; being Company shares acquired and placed in Treasury in 2024 via an off-market share buy-back.
Translation reserve; being the foreign exchange differences on the translation of foreign subsidiaries.
Re-measurement reserve; being the cumulative actuarial gains and losses, return on plan assets and changes in the effect of the asset ceiling (excluding net interest on defined benefit liability) recognised in the statement of total comprehensive income.
Other reserves; include amounts recognised on acquiring additional equity in a controlled subsidiary and the cumulative share-based payments expense.
Non-controlling interest; being the share of equity owned by minority parties.
Profit and loss account; being the cumulative profit attributable to equity shareholders.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2025





Share capital
Share premium account
Capital redemption reserve
Treasury shares
Translation reserve
Re-measurement reserve




Other reserves




Non-controlling interests
Profit and loss account
Total equity




US$
US$
US$
US$
US$
US$
US$
US$
US$
US$


Balance at 1 January 2025
235,366
313,458




50,401




(25,345,845)
9,396,614
(570,632)
(4,289,234)




396,904
153,363,118
133,550,150


Exchange differences on translating foreign operations
-
-
-
-
(1,560,023)
-
-
-
-
(1,560,023)


Change in pension liability
-
-
-
-
-
(53,375)
-
-
-
(53,375)


Profit for the year
-
-
-
-
-
-
-
(274,217)
28,891,939
28,617,722


Total comprehensive income for the year
-
-
-
-
(1,560,023)
(53,375)


(274,217)
28,891,939
27,004,324












-
-










Share-based payment
-
-
-
-
-
-
7,027,013
-
50,200
7,077,213


Share issue
151,770
78,947,196
(12,135)
6,067,519
-
-
-
-
-
85,154,350


























Balance at 31 December 2025
387,136
79,260,654
38,266
(19,278,326)
7,836,591
(624,007)
2,737,779
122,687
182,305,257
252,786,037





Equity is the aggregate of the following:

Share capital; being the nominal value of shares issued.
Share premium account; being the excess received over the nominal value of shares issued less direct issue costs.
Capital redemption reserve; being the share capital of ordinary shares held in Treasury.
Treasury shares; being Company shares acquired and placed in Treasury in 2024 via an off-market share buy-back.
Translation reserve; being the foreign exchange differences on the translation of foreign subsidiaries.
Re-measurement reserve; being the cumulative actuarial gains and losses, return on plan assets and changes in the effect of the asset ceiling (excluding net interest on defined benefit liability) recognised in the statement of total comprehensive income.
Other reserves being amounts recognised on acquiring additional equity in a controlled subsidiary and cumulative share-based payments expense.
Non-controlling interest; being the share of equity owned by minority parties.
Profit and loss account; being the cumulative profit attributable to equity shareholders.

CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT for the six months ended 30 June 2026







6 month period ended

30 June 2026 (unaudited)


6 month period ended

30 June 2025 (unaudited)


Year ended

31 December 2025 (audited)




Note
US$


US$


US$






















Net cash arising from operating activities




10




37,954,423






59,572,252


107,868,980


















Investing activities














Purchase of subsidiaries, net cash acquired


-


(23,141,452)


(21,599,629)


Interest income


190,797


381,487


925,471


Purchase of mineral properties and exploration expenses






(143,459)






(2,900,967)


-


Purchase of property, plant and equipment


(72,331,377)


(19,965,398)


(79,620,087)


















Net cash used in investing activities


(72,284,039)


(45,626,330)


(100,294,245)


















Financing activities






















-






Share issues


2,116,459


2,052,375


4,173,479


Net cash arising from/(used in) financing activities






2,116,459






2,052,375


4,173,479


















Net (decrease)/increase in cash and cash equivalents






(32,213,157)






15,998,297


11,748,214


Cash and cash equivalents at beginning of period


41,171,536


31,224,696


31,224,696


Effects of exchange rate changes on cash and cash equivalents






42,834






(1,306,324)


(1,801,374)


















Cash and cash equivalents at end of period


9,001,213


45,916,669


41,171,536



The following were material non-cash transactions during the FY2025 period:

The issue of 830,145,141 new Ordinary Shares at an issue price of £0.057 per share as part consideration for the acquisition of Condor;
the transfer from Treasury of 94,127,854 Ordinary Shares at a price of £0.06 per Ordinary Share to fully repay the Drachs bridging loan; and
the issue of options and warrants as part of the acquisition of Condor.

Notes to the condensed consolidated interim financial statements
1. General information
These condensed consolidated interim financial statements of Metals Exploration and its subsidiaries (the “Group”) were approved by the Board of Directors on 29 September 2026. Metals Exploration is the parent company of the Group. Its shares are quoted on AIM market of the London Stock Exchange plc. The registered address of Metals Exploration plc is 27-28 Eastcastle Street, London, W1W 8DH.
The condensed consolidated interim financial statements for the period 1 January 2026 to 30 June 2026 are unaudited. The group has chosen not to adopt IAS 34 “Interim Financial Statements” in preparing the interim financial information. The condensed consolidated interim financial statements incorporate unaudited comparative figures for the interim period from 1 January 2025 to 30 June 2025 and the audited financial year ended 31 December 2025.
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group’s statutory accounts for the year ended 31 December 2025, which were prepared under UK-adopted international financial accounting standards, were filed with the Registrar of Companies. The auditors reported on these accounts and their report was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006.
2. Basis of preparation
The interim financial information in this report has been prepared using accounting policies consistent with UK-adopted international accounting standards. The financial information has been prepared based on UK-adopted international accounting standards that the Board of Directors expect to be applicable as at 31 December 2026.
These condensed consolidated interim financial statements have been prepared under the historical cost convention, except for derivative financial instruments, which are measured at fair value, and in accordance with UK-adopted international accounting standards. There have been no changes in accounting policies as described in the 2025 annual financial statements.
3. Going concern
These condensed consolidated interim financial statements of the Group have been prepared on a going concern basis, which contemplates the continuity of business activities, the realisation of assets and the settlement of liabilities in the normal course of business.
The Group and its ability to operate as a going concern and to meet its commitments as and when they fall due is dependent upon the ability of the Group to operate the Runruno Project, and to bring the La India project into production, successfully to generate sufficient cash flows to enable the Group to settle its liabilities as they fall due.
The Board of Directors believes that the Runruno Project will continue to operate successfully and produce positive cash flows until at least the end of December 2026. Further, it expects to bring the La India project into commercial production from Q1 2027 generating positive cash flows from that point on until at least 12 months from the date of this interim report, being 29 September 2026. As a result, the Board of Directors considers it appropriate that the half-year financial information should be prepared on a going concern basis.
4. Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group’s medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group’s statutory accounts for the year ended 31 December 2025, a copy of which is available on the Company’s website: https://metalsexploration.com/.
5. Critical accounting estimates
The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Note 2 of the Group’s statutory accounts for the year ended 31 December 2025. The nature and amounts of such estimates have not changed significantly during the interim period.
6. Financial performance
Operations during H1 2026 produced a strong financial outcome for the Group. A reconciliation of Operating Profit to an alternate non-IFRS compliant performance measure is set out below:





6 month period ended 30 June 2026
6 month period ended 30 June 2025
Year ended 31 December 2025




(unaudited)
(unaudited)
(audited)




US$’000s
US$’000s
US$’000s












Operating profit before income tax
26,731
16,815
45,120


Add back:








Interest expenses
245
397
849


Depreciation and amortisation
26,759
42,272
59,254


EBITDA
53,735
59,484
105,223


Add back:








Impairment charges/(reversals), net
830
(4,938)
(909)


Share-based payment expense*
1,300
17,739
21,622


EBITDA, impairments and share based payment expenses




55,865




72,285
125,936



* Share-based payment expense

A significant portion of the FY2025 share-based payment expense related to the issue of the Company’s long-term incentive programme (“LTIP”) options in February 2025. The implementation of the LTIP had been delayed for several years due to various disputes with the Group’s debt providers. Following satisfaction of vesting hurdles during FY2025, approximately 70% of the LTIP options were exercised. This resulted in bringing to account the full share-based payment expense relating to the exercised options in FY2025, rather than having this expense spread over the life of the options. The H1 2026 share-based payment expense has not been impacted to the same extent by a similar event.
7. Other income and expenses





6 month period ended 30 June 2026
6 month period ended 30 June 2025
Year ended 31 December 2025




(unaudited)
(unaudited)
(audited)




US$
US$
US$






Condor Gold takeover direct costs




-




(904,212)




(913,452)


Exchange (loss)
(384,098)
(139,392)
(373,730)


Interest income
195,308
381,487
921,159


Interest expenses
(245,320)
(397,498)
(849,103)


Share based payment expense (note 6)
(1,300,604)
(17,738,751)
(21,621,805)


Sundry income
-
-
38,253






Other income and expenses
(1,734,714)
(18,798,366)
(22,798,678)



8. Current trade and other receivables





6 month period ended 30 June 2026
6 month period ended 30 June 2025
Year ended 31 December 2025




(unaudited)
(unaudited)
(audited)




US$
US$
US$












Receivables from gold sales
7,870,946
8,962,558
12,972,171


Other receivables*
14,670,471
2,928,531
3,294,374


Prepayments
1,520,557
1,455,584
781,039






Current trade and other receivables
24,061,974
13,346,673
17,047,585



* The significant increase in current other receivables at 30 June 2026 is due to advance payments to international suppliers of La India construction items including payments for new mining fleet equipment, civil and general infrastructure works, electrical and general process plant items.



9. Earnings per voting share


The earnings per voting share was calculated based on the net profit attributable to equity shareholders divided by the weighted average number of ordinary voting shares.





6 month period ended 30 June 2026
6 month period ended 30 June 2025
Year ended 31 December 2025




(unaudited)
(unaudited)
(audited)




US$
US$
US$


Earnings








Net income attributable to equity shareholders for the purpose of basic and diluted earnings per voting share






22,173,418






16,515,208
28,891,939












Number of voting shares








Weighted average number of ordinary voting shares for the purpose of basic earnings per voting share






2,971,947,964






2,593,310,149
2,759,500,878












Number of dilutive voting shares under warrant/option
197,353,761
180,224,296
209,389,388


Weighted average number of ordinary voting shares for the purpose of diluted earnings per voting share
3,169,301,725
2,773,534,445
2,968,890,266












Basic earnings cents per voting share
0.75
0.64
1.05


Diluted earnings cents per voting share
0.70
0.60
0.97



10. Reconciliation of profit after tax to net cash arising from operating activities





6 month period ended 30 June 2026
6 month period ended 30 June 2025
Year ended 31 December 2025






(unaudited)
(unaudited)
(audited)






US$
US$
US$














Profit after tax
22,131,631
16,505,907
28,617,722












Depreciation and amortisation
26,758,614
42,271,858
59,254,031


Provisions
2,518,826
(1,535,541)
(5,217,476)


Impairment charge/(reversal)
829,667
(4,937,917)
(908,828)


Share of (profits)/losses of associates
(47,632)
3,458
5,158


Share based payment expense
1,300,604
17,738,751
21,621,805


Shares issued in lieu of cash bonus
240,587
577,984
577,984


Interest income
(190,797)
(381,487)
(925,471)


Foreign exchange (gain)/loss
(42,831)
1,696,948
2,158,130


(Increase) in receivables
(6,263,957)
(1,767,449)
(5,201,695)


(Increase)/Decrease in inventories
(1,335,706)
773,472
242,849


(Decrease)/increase in payables
(7,944,583)
(11,373,732)
7,644,771












Net cash arising from operating activities




37,954,423




59,572,252
107,868,980



11. Share capital
During H1 2026 the Company made the following issues of new ordinary shares of £0.0001 each (“Ordinary Shares”):

1,182,210 new Ordinary Shares at an average issue price of £0.1543 per share in accordance with the Company’s 2025 short-term management incentive programme;
16,500,000 new Ordinary Shares at an issue price of £0.0001 per share being the exercise of options issued in accordance with the Company’s LTIP;
7,488,584 new Ordinary Shares at an issue price of £0.0829 per share being the exercise of options issued to Condor shareholders as part consideration for the acquisition of Condor;
7,236,750 new Ordinary Shares at an issue price of £0.0492 per share being the exercise of options issued to Condor shareholders as part consideration for the acquisition of Condor;
2,894,700 new Ordinary Shares at an issue price of £0.0484 per share being the exercise of options issued to Condor shareholders as part consideration for the acquisition of Condor;
7,236,750 new Ordinary Shares at an issue price of £0.0397 per share being the exercise of options issued to Condor shareholders as part consideration for the acquisition of Condor; and
2,774,026 new Ordinary Shares at an issue price of £0.0605 per share being the exercise of warrants issued in relation to the acquisition of Condor.

During H1 2025 the Company made the following issues of new Ordinary Shares:

830,145,141 new Ordinary Shares at an issue price of £0.057 per share as part consideration for the acquisition of Condor;
13,563,930 new Ordinary Shares at an average issue price of £0.03439 per share in accordance with the Company’s 2022, 2023 and 2024 short-term management incentive programmes;
229,600,000 new Ordinary Shares at an issue price of £0.0001 per share being the exercise of options issued in accordance with the Company’s LTIP;
11,122,524 new Ordinary Shares at an issue price of £0.0725 per share being the exercise of options issued to Condor shareholders as part consideration for the acquisition of Condor; and
11,122,876 new Ordinary Shares at an issue price of £0.0605 per share being the exercise of warrants issued in relation to the acquisition of Condor.

Further, on 7 March 2025, the Company repaid a bridging loan, principal and interest, by the transfer from Treasury of 94,127,854 Ordinary Shares at a price of £0.06 per Ordinary Share.





June 2026
June 2025
December 2025
June 2026
June 2025
December 2025




Number of shares
Number of shares
Number of shares
US$
US$
US$


Ordinary shares of £0.0001














Opening balance
3,240,242,138
2,121,729,717
2,121,729,717
387,136
235,366
235,366


Shares issued
45,313,020
1,095,554,471
1,118,512,421
6,099
136,547
139,635


Treasury shares
(299,385,458)
(299,385,458)
(299,385,458)
-
12,135
12,135


Closing balance – voting shares
2,986,169,700
2,917,598,730
2,940,856,680
393,235
384,048
387,136






Share premium














Opening balance






79,260,654
313,458
313,458


Shares issued






3,897,459
74,997,143
77,733,692


Treasury shares






-
1,213,504
1,213,504


Closing balance






83,158,113
76,524,105
79,260,654



Shares held in Treasury do not have voting rights.
12. Share options and warrants
Movements in the period in options over Ordinary Shares were as below:



Expiry date
Exercise price

£
Opening balance
Issued during period
Exercised during the period
Lapsed during the period
Closing balance


31 May 2026*
0.0829
8,142,786
-
7,488,584
654,202
-


13 September 2027*
0.0492
16,051,104
-
7,236,750
-
8,814,354


5 July 2028*
0.0397
22,160,029
-
7,236,750
-
14,923,279


29 May 2029*
0.0484
25,444,412
-
2,894,700
-
22,549,712


27 August 2031
0.0001
38,000,000
-
16,500,000
-
21,500,000


7 February 2032
0.0001
95,000,000
-
-
-
95,000,000


25 June 2032
0.0001
10,600,000
-
-
-
10,600,000


2 February 2033**
0.0001
-
12,000,000**
-
-
12,000,000



* Issued to Condor option holders in accordance with the Scheme of Arrangement takeover of Condor.

** Issued to directors and senior management in accordance with the Company’s (“LTIP”) approved by shareholders at the 27 August 2024 general meeting.
Movements in the period in warrants over Ordinary Shares were as below:



Expiry date
Exercise price

£
Opening balance
Issued during period
Exercised during the period
Lapsed during the period
Closing balance






21 January 2028*




0.0605
18,179,174
-
2,774,026




-
15,405,148



* Issued to Condor warrant holders in accordance with the Scheme of Arrangement takeover of Condor.
13. Contingent liabilities and capital commitments
The Group has no contingent liabilities identified as at 30 June 2026 (2025: US$ nil) other than:

There is potentially up to a further US$14.4 million of deferred consideration payable as part of the acquisition of Condor on the basis of US$18 per ounce of additional contained gold JORC Mineral Resource discovered on the Condor tenement areas in excess of a total 3.158 Moz of gold, subject to a cap of 800,000oz above 3.158 Moz. This potential liability that has been treated as a contingent liability as it is not possible to predict with certainty the amount, if any, that will be payable, given it is dependent upon future exploration drilling success on the Condor tenements.; and
In June 2024, the Company entered into a Production Fee agreement with Runruno Holdings Limited (“RHL”) as part of the settlement of all debt related issues. Under this agreement the Company will pay RHL a production fee of US$164 per ounce of gold produced from mining at the Runruno FTAA contract area on any production from 1 May 2024 that exceeds 204,269 ounces (being equal to approximately 105 per cent. of the then current forecast for production from such date on the basis of the Group’s life of mine plan for the Runruno mine). The Company does not expect to make any Production Fee payment.

As at 30 June 2026 the Group had the below outstanding capital commitments:

Commitments in place for La India project capital expenditure including new mining fleet equipment, civil and general infrastructure works, electrical and general process plant items totaled US$36.5 million (H1 2025: US$nil). These commitments are all expected to be funded during FY2026.

14. Subsequent events
Other than the below, there has been no period end subsequent disclosable events.
Equity issues

74,296,422 ordinary shares have been issued at an average issue price of 0.69p following the exercise of options and warrants.
Debt finance

The Company secured a US$27 million equipment loan from a central American bank, which was fully drawn down in August and September 2026. The loan is secured against the Company’s mining fleet combined with a parent company guarantee.