REG - Metals Exploration - Quarterly Update to 30 September 2025

Metals ExplorationAnnouncement

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RNS Number : 9960C  Metals Exploration PLC  13 October 2025

METALS EXPLORATION PLC

 

Quarterly Update to 30 September 2025

 

Metals Exploration plc (AIM: MTL) ("Metals Exploration", the "Company" or the
"Group"), a gold production, development and exploration company with assets
in the Philippines and Nicaragua, is pleased to announce its unaudited
quarterly results for Q3 2025 (the "Quarter").

 

The results have been impacted by a limited pause of gold processing at
Runruno due to a cyanide contamination of the gold processing circuit. Normal
gold processing operations recommenced in September as expected and, the
Company reconfirms the FY2025 production forecast.

 

Finance

·     Q3 2025 positive pre-tax free cash flow of US$4.5 million (Q2
2025: US$47.2 million).

·     Q3 2025 gold revenue of US$25.5 million (Q2 2025: US$70.5
million).

·     Q3 2025 gold sales of 8,833 ounces ("oz") sold at an average
realised gold price of US$2,889 per ounce ("p/oz") (Q2 2025: 23,021 oz at an
average US$3,061 p/oz).

 

Runruno - Mining Operations

·    Q3 2025 mining production of ore and waste was 1.99 million tonnes
("Mt") (Q2 2025: 2.98 Mt), with a total of 404 thousand tonnes ("Kt") of ore
mined in Q3 2025 (Q2 2025: 525 Kt).

 

Runruno - Processing Operations

·    Q3 2025 gold production of 9,145 oz (Q2 2025: 19,993 oz) recovered
from 324 Kt at a head grade of 1.06 grammes per tonne ("g/t") (Q2 2025: 504 Kt
at a head grade of 1.40 g/t).

·     Q3 2025 all-in-sustaining-cost ("AISC") of US$1,923 p/oz (Q2 2025:
US$1,098 p/oz).

·     Q3 2025 gold recovery of 83.3% (Q2 2025: 92.1%).

·    Processing operations recommenced towards the end of the Quarter,
following the cyanide contamination of the gold processing circuit. Production
for FY2025 is expected to be at the lower end of guidance.

 

Development - La India, Nicaragua

·      Overall construction was ahead of schedule.

·      Rock Creek process plant delivered to La India site ready for
erection to commence later this month.

·      Bulk earthworks completed for the process plant and technical
services areas.

Exploration - Dupax, Philippines

·     Exploration tenement awarded, covering approximately 3,100
hectares approximately 20 kilometres southwest of the Company's existing
Runruno ore processing facility in Runruno

·     Induced Polarisation survey completed and drill programme
underway.

Darren Bowden, CEO of Metals Exploration, commented:

 

"This has been a challenging Quarter at Runruno due to the pause in gold
processing operations, but I am pleased with the work of our operational team
to quickly identify the cause of the issue and implement new process
monitoring and production procedures. Processing operations have now resumed
as normal, and no change to the Company's FY2025 production guidance is
required.

 

"We are pleased to report that the development of La India is progressing
well. Construction is currently slightly ahead of schedule, and on budget. The
Rock Creek process plant arrived ahead of schedule in August 2025 and has now
been delivered to site for commencement of the plant erection. Bulk earthworks
at the process plant terrace were completed during the Quarter, with the ROM
pad and magazine platform bulk earthworks nearing completion. Access
earthworks to the tailings storage facility access is approximately 25%
complete, and construction of various buildings including offices, the mine
camp and the fuel storage facility are all progressing ahead of schedule. Our
goal to reach first production of gold at La India during Q4 2026 remains
firmly on track.

 

"Following issuance of the Dupax exploration licence in August 2025, we
conducted an IP ground geophysics survey. The results of this survey were
interpreted and resulted in the amendment of targets for the follow-up 2,500
metre drill programme which is underway. Results from this drill programme
will be announced as they become available.

 

"Now that processing operations at Runruno are back to normal, we look forward
to a more positive Q4 where we can continue to capitalise on the operational
excellence of our team amongst the backdrop of the favourable high gold price
environment. I look forward to providing further updates about La India's
development as well as results of drilling at Dupax. Thank you to our
shareholders for your perseverance during this uncharacteristically
challenging quarter."

 

Runruno Production and Finance Summary

 

 Runruno Project Report                       Quarter    Quarter                                FY 2025    FY 2024
 FY 2025                                      Actual     Actual                                 Actual     Actual
 PHYSICALS                      Units         Q3 2025    Q3 2024                                9 Months   9 Months
 Mining
 Ore Mined                      Tonnes        403,934    599,078                                1,432,267  1,772,008
 Waste Mined                    Tonnes        1,590,167  2,026,150                              6,479,477  6,875,186
 Total Mined                    Tonnes        1,994,101  2,625,228                              7,911,744  8,647,194
 Au Grade Mined                 g/tonne       1.07       1.62                                   1.41       1.46
 Strip Ratio                                  3.81       3.18                                   4.41       3.76
 Processing
 Ore Milled                     Tonnes        323,393    521,479                                1,364,879  1,620,638
 Au Grade                       g/tonne       1.06       1.51                                   1.27       1.40
 S(2) Grade                     %             1.22       1.39                                   1.19       1.36
 Au Milled (contained)          Ounces        10,984     25,329                                 55,825     72,818
 Recovery                       %             83.3                       89.0                   89.8                      89.4
 Au Recovered/Poured            Ounces        9,145      22,533                                 50,130     65,068
 Sales
 Au Sold                        Ounces        8,833      21,943                                 50,07      63,532
 Au Price                       US$/oz        2,889      2,396                                  2,885      2,261
 FINANCIALS (Unaudited)
 Revenue
 Gold Sales                     (US$000's)    25,516     52,574                                 144,464    143,660
 Operating Costs - Summary
 Mining                         (US$000's)    4,451      4,402                                  14,711     14,010
 Processing                     (US$000's)    7,676      9,231                                  24,810     26,780
 G&A                            (US$000's)    3,890      3,430                                  10,303     9,079
 Total Operating Costs          (US$000's)    16,017     17,063                                 49,824     49,870
 Excise Duty                    (US$000's)    1,013      2,109                                  5,792      5,755
 UK/Philippine G&A              (US$000's)    1,754      3,753                                  7,850      8,524
 Total Direct Production Costs  (US$000's)    18,784     22,925                                 63,466     64,149
 Net Cash Income                (US$000's)    6,732      29,649                                 80,998     79,510
 Total Capital Costs            (US$000's)    2,194      1,749                                  5,717      5,255
 Total non-cash costs           (US$000's)    50,893     29,267                                 98,481     56,684
 Pre-tax Free Cashflow          (US$000's)    4,538      27,900                                 75,280     74,255
 Cash Cost / oz Sold - C1       US$/oz        1,361      782                                    931        781
 Cash Cost / oz Sold - AISC(1)  US$/oz        1,923      1,129                                  1,318      1,088

 

Note 1: AISC includes all UK Corporate costs, excluding costs directly related
to the Nicaraguan assets.

 

Runruno Operations

 

During Q3 2025, the process plant suffered from a cyanide contamination of the
BIOX circuit.

 

At this point, no change to the Company's annual production guidance is
required, albeit the final production outcome is expected to be at the lower
range of the original guidance numbers of 70,000 - 75,000 oz.

 

Finance

 

During Q3 2025, operations at Runruno recorded gold sales of US$25.5 million
(Q2 2025: US$70.5 million), at an average realised gold price of US$2,889 p/oz
(Q2 2025: average gold price of US$3,061 p/oz); producing positive free cash
flow of US$4.5 million (Q2 2025: US$47.2 million).

 

Given the low level of gold sold in the Quarter, the average sales price
received for the Quarter was impacted by the maturing historical 3,900 oz gold
hedges that realised an average sales price of US$2,235 per oz. The final
historic 1,300oz US$2,234 per oz gold hedge was filled in early October 2025.
As normal operations have resumed and with the current gold prices the average
sales price the Company expects to receive in Q4 2025 should be significantly
higher than that achieved in Q3 2025.

 

The Company's cash holdings at 30 September 2025 were US$28.3 million (30 June
2025: US$43.5 million). The Group has no debt.

 

Mining Operations

 

Mining production of ore and waste for Q3 2025 was below management's forecast
at 1.99 Mt (Q2 2025: 2.98 Mt). During Q3 2025, a total of 4.04 Kt of ore was
mined (Q2 2025: 525 Kt). As noted above, the mining schedule has been amended
following the cyanide contamination investigations which resulted in a lower
than forecast grade of ore being delivered to the ROM pad stockpile during the
remainder of Q3 2025.

 

Process Plant

 

As announced on 28 August 2025, gold processing was paused during the Quarter
following a cyanide contamination which impacted the BIOX circuit. This
contamination required all BIOX tanks to be emptied and cleaned before the
tanks could be refilled with new material and return the gold in circuit
balance to normal levels.

 

The prime source of the contamination has been identified as being residual
cyanide material found in several of the illegal miners' tunnels in Stages 5
and 6 of the mine. This contamination resulted in an approximate six week
deferral of ore processing at Runruno while the cause of the contamination was
investigated, and to allow new process monitoring and production procedures to
be implemented.

 

Investigation of cyanide contamination in the ROM pad material and further
testing of areas near illegal miners tunnels in Stages 5 and 6 have outlined
the areas of contamination. Ore from these areas will be stockpiled separately
for eventual production towards the end of processing operations at Runruno,
after the BIOX circuit has been decommissioned. This event has led to a change
in the proposed mining schedule for the remainder of FY2025.

 

Normal gold processing activities resumed in the second half of September
2025, however the head grade throughput processed for the balance of the
quarter was lower than had previously been forecast.

 

As a result of the above issues the Quarter average recovery rate reduced to
83.3% (Q2 2025: 92.1%).

 

Gold produced during Q3 2025 was 9,145 oz (Q2 2025: 19,993 oz) from ore milled
in Q3 2025 of 324Kt (Q2 2025: 504 Kt), at an AISC of US$1,923 p/oz (Q2 2025:
US$1,098 p/oz). Head grade was lower than forecast at 1.06 g/t (Q2 2025: 1.40
g/t).

 

Normal processing operations are expected for Q4 2025.

 

Residual Storage Impoundment ("RSI")

 

During the Quarter, the Runruno mine received higher than normal rainfall as
numerous typhoons passed close to the mine site. Notwithstanding the high
rainfall, the RSI dam water freeboard remains well above design minimum levels
and normal mining and gold processing operations at Runruno were not impacted
by the Super-typhoon Ragasa that made landfall in the Philippines, north of
the Runruno mine on 22 September

 

Additionally, during the Quarter, the bi-annual third-party review of the RSI
was completed with no issues being reported. Construction of the RSI final
in-rock spillway continues.

 

Development

 

La India Gold Project

 

Progress of construction works at the La India mine site in Nicaragua has
progressed very satisfactorily during the Quarter with overall construction
slightly ahead of schedule. The Company's ambition to produce gold during Q4
2026 remains intact. Highlights for the Quarter include:

 

·      No lost time injuries ("LTI").

·      The Rock Creek process plant arrived in port ahead of schedule in
August 2025. All equipment has cleared customs and has been delivered to the
La India site. Erection of the plant is due to commence in October 2025.

·      Bulk earthworks at the process plant terrace were 100% complete.

·      Run-of-mine ("ROM") pad and magazine platform bulk earthworks
were 81% and 95% complete at Quarter end.

·      The tailings storage facility access was approximately 25%
complete.

·      Construction of various buildings, including construction office,
camp and fuel storage facility were continuing ahead of schedule.

·      Exploration, geo-technical and infill resource extension drilling
for the Quarter totalled 1,980 metres.

 

Exploration - Philippines

 

Dupax Project

 

The Dupax exploration licence was issued in August 2025. Upon grant of the
licence, the Company immediately undertook an Induced Polarisation ("IP")
ground geophysics survey. The results of this survey have been interpreted and
the follow-up 2,500 metre drill programme has been amended according to the
targets which the survey outlined. The IP results confirmed that the first two
drill holes were drilled off the main mineralised structure.

 

Drilling results from this programme will be announced when they become
available.

 

Abra Project

 

Drill programmes remain on hold while the National Commission for Indigenous
Peoples ('NCIP') further advances its consultation activities with the
potentially impacted local communities. The Company expectation remains that
drilling in the Abra project area will commence in H1 2026.

 

ESG

 

Occupational Health & Safety

 

The Company completed the Quarter without a lost time injury ("LTI"). The
Company now has in excess of 1 million man-hours worked in the Philippines
without an LTI. The Company has recorded no LTI's at its operations in
Nicaragua.

 

 

 

 

Environment & Compliance

 

Compliance matters continue to be successfully monitored, and all operations
in both the Philippines and Nicaragua are compliant with no outstanding
material issues.

 

Community & Government Relations

 

The Company continues to receive strong support from local communities and
government agencies in both the Philippines and Nicaragua.

 

 

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

 

 

END

 

 

For further information, please contact or visit:

 

 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, Franck Nganou                   +44 (0) 207 907 8500

 Joint Broker:                                PANMURE LIBERUM
 Amrit Mahbubani, Scott Mathieson, Zak Wadud  +44 (0) 203 100 2000

 Public Relations:                            BLYTHERAY
 Megan Ray, Said Izagaren                     +44 (0) 207 138 3204

metalsexploration@blytheray.com

 

Web:                      www.metalsexploration.com
(http://www.metalsexploration.com)

X:                            @MTLexploration
(https://twitter.com/MTLexploration)

LinkedIn:               Metals Exploration
(https://www.linkedin.com/company/metals-exploration-plc)

 

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.

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