REG - Metals Exploration - Quarterly Update to 31 December 2025

Metals ExplorationAnnouncement

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RNS Number : 6129Q  Metals Exploration PLC  28 January 2026

METALS EXPLORATION PLC

 

Quarterly Update to 31 December 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 Q4 2025 (the "Quarter").

 

Finance

·      Record FY2025 positive free cash flow of US$115.3 million
(FY2024: US$96.7 million).

·      Record FY2025 gold revenue of US$208.4 million (FY2024: US$191.1
million).

·      Q4 2025 positive pre-tax free cash flow of US$40 million (Q3
2025: US$4.5 million).

·      Q4 2025 gold revenue of US$63.9 million (Q3 2025: US$25.5
million).

·      Q4 2025 gold sales of 16,009 ounces ("oz") sold at an average
realised gold price of US$3,995 per ounce ("/oz") (Q3 2025: 8,833 oz at an
average US$2,889 /oz).

 

Runruno - Mining Operations

·      Q4 2025 mining production of ore and waste was 2.79 million
tonnes ("Mt") (Q3 2025: 1.99 Mt), with a total of 710 thousand tonnes ("Kt")
of ore mined in Q4 2025 (Q3 2025: 404 Kt).

 

Runruno - Processing Operations

·      Q4 2025 gold production of 15,156 oz (Q3 2025: 9,145 oz)
recovered from 538 Kt at a head grade of 1.04 grammes per tonne ("g/t") (Q3
2025: 324 Kt at a head grade of 1.06 g/t).

·      Q4 2025 all-in-sustaining-cost ("AISC") of US$1,584 /oz (Q3 2025:
US$1,923 /oz).

·      Q4 2025 gold recovery of 84.1% (Q3 2025: 83.3%).

 

FY2025/FY2026 Production Guidance

·      FY2025 gold production of 65,287 ounces was at the lower end of
the revised FY2025 lower guidance forecast at an AISC of US$1,368 /oz, which
was above the upper FY2025 guidance forecast range of US$1,275 /oz due to the
lower ounces sold.

·      FY2026 gold production from Runruno forecast: 50,000 - 60,000
ounces.

·      FY2026 AISC forecast for Runruno gold production: US$1,400 -
US$1,650 /oz.

·      No guidance is provided for the La India gold project which
remains on track to commence gold production in Q4 2026.

Development - La India, Nicaragua

·      Overall construction continues to be within the revised budget
and ahead of schedule at 33% complete.

·      Process plant foundations, general infrastructure and bulk
earthworks are all progressing ahead of schedule.

·      Stockpiling of ore has begun.

Exploration - Dupax, Philippines

·      Drill programme continuing - limited drilling conducted during
the Quarter with no near term production opportunity discovered to date.

Darren Bowden, CEO of Metals Exploration, commented:

 

"I am pleased to report a strong end to FY2025, culminating in record gold
revenue for the year of US$208.4 million and record free cash flow of US$115.3
million. This record-breaking year was supported by the continued robust
operational performance at Runruno, as well as the favourable gold price
environment.

 

"In Nicaragua, we have seen excellent momentum in the development of the La
India Gold Project towards production, which remains on track for first gold
in Q4 2026. Overall construction is ahead of schedule at 33%, and I look
forward to providing further updates on progress throughout 2026. With an
annual production target of 145,000 oz of gold, La India will serve to replace
cash flow from Runruno as mining operations cease there.

 

"At Runruno, we achieved FY2025 gold production of 65,287 oz, within the
revised FY2025 lower guidance forecast of 65,000 oz. This revision came as a
result of production delays due to the Q3 2025 BIOX cyanide contamination
issue, which was subsequently resolved, and the impact of Super-typhoon Uwan
in Q4 2025, where mains power was restored earlier than forecasted. Our
production guidance for FY2026 at Runruno is 50,000 - 60,000 oz due to the
mine approaching the end of its life with the mine plan scheduling lower grade
material with slightly lower recovery performance, with AISC forecasted at
US$1,400 - US$1,650 /oz, and we look forward to continuing to capitalise on
the supportive gold price environment.

 

"Drilling at Dupax to date has indicated that the target ore zone is deeper
than predicted. As a result, we have concluded that an economic resource at
Dupax will not be able to be defined in time for Runruno's ore processing
operations to be extended via the processing of Dupax ore. Accordingly, we are
considering other options to repurpose the Runruno plant and will keep
shareholders updated with any developments.

 

"Safety is at the heart of what we do, and I am pleased to report that the
Company now has in excess of 2 million man-hours worked in the Philippines
without an LTI. In Nicaragua, we have not recorded an LTI since Metals
Exploration acquired La India.

 

"We finished FY2025 in a very strong position, with record revenue and free
cash flow. The Company is debt free, and is targeting FY2026 gold production
of 50,000 - 60,000 oz from Runruno. With La India due to start production in
Q4 2026, I am optimistic about the Company's year ahead and look forward to
updating shareholders with our progress."

 

 

 

Runruno Production and Finance Summary

 

 Runruno Project Report                       Quarter                            Quarter      FY 2025                            FY 2024
 FY 2025                                      Actual                             Actual       Actual                             Actual
 PHYSICALS                      Units         Q4 2025                            Q4 2024      12 Months                          12 Months
 Mining
 Ore Mined                      Tonnes        709,920                            283,862      2,142,187                          2,055,871
 Waste Mined                    Tonnes        2,077,887                          2,418,510    8,557,364                          9,293,694
 Total Mined                    Tonnes        2,787,807                          2,702,372    10,699,551                         11,349,565
 Au Grade Mined                 g/tonne       1.02                               1.50         1.28                               1.46
 Strip Ratio                                  2.91                               8.50         3.92                               4.40
 Processing
 Ore Milled                     Tonnes        537,824                            529,791      1,902,702                          2,150,429
 Au Grade                       g/tonne       1.04                               1.17         1.21                               1.34
 S(2) Grade                     %             1.17                               1.30         1.19                               1.35
 Au Milled (contained)          Ounces        18,019                             19,934       73,844                             92,752
 Recovery                       %                            84.1                94.5                        88.4                90.5
 Au Recovered/Poured            Ounces        15,156                             18,829       65,287                             83,897
 Sales
 Au Sold                        Ounces        16,009                             19,144       66,082                             82,676
 Au Price                       US$/oz        3,995                              2,481        3,154                              2,312
 FINANCIALS (Unaudited)
 Revenue
 Gold Sales                     (US$000's)    63,949                             47,490       208,413                            191,150
 Operating Costs - Summary
 Mining                         (US$000's)    4,794                              4,868        19,506                             18,879
 Processing                     (US$000's)    7,882                              8,139        32,692                             34,919
 G&A                            (US$000's)    2,783                              2,569        13,086                             11,649
 Total Operating Costs          (US$000's)    15,459                             15,576       65,284                             65,447
 Excise Duty                    (US$000's)    2,572                              1,913        8,365                              7,668
 UK/Philippine G&A              (US$000's)    3,254                              5,244        11,104                             13,768
 Total Direct Production Costs  (US$000's)    21,285                             22,733       84,753                             86,882
 Net Cash Income                (US$000's)    42,664                             24,757       123,661                            104,267
 Total Capital Costs            (US$000's)    2,656                              2,263        8,391                              7,518
 Total non-cash costs           (US$000's)    15,769                             13,110       111,062                            69,794
 Pre-tax Free Cashflow          (US$000's)    40,008                             22,494       115,270                            96,749
 Cash Cost / oz Sold - C1       US$/oz        1,126                              797          979                                785
 Cash Cost / oz Sold - AISC(1)  US$/oz        1,584                              1,289        1,368                              1,135

 

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

 

Runruno Operations

 

In November 2025, processing operations were impacted by the loss of mains
power to site due to damage to the National power grid caused by Super-typhoon
Uwan. Production was paused for approximately seven days while repairs to the
power grid were conducted in various parts of the Nueva Viscaya province.
Back-up generators ensured no loss of BIOX bacteria. Mining operations were
also suspended for two days. Mains power was restored to the site, with
processing operations able to recommence, earlier than forecasted.

 

Annual gold production was 65,287 oz, at the lower end of the revised guidance
of 65,000-70,000 oz, having been impacted by both production delays due to
Super-typhoon Uwan and the Q3 2025 BIOX cyanide contamination issue.

 

Finance

 

FY2025 operations at Runruno produced record gold sales of US$208.4 million
(FY2024: US$191.1 million) resulting in a record US$115.3 million pre-tax free
cash flow (FY2024: US$96.7 million).

 

Q4 2025 recorded gold sales of US$63.9 million (Q3 2025: US$25.5 million), at
an average realised gold price of US$3,995 /oz (Q3 2025: average gold price of
US$2,889 /oz); producing positive free cash flow of US$40.0 million (Q3 2025:
US$4.5 million).

 

The Company's cash holdings at 31 December 2025 were US$41.6 million (30
September 2025: US$28.3 million). The Group has no debt.

 

Mining Operations

 

Mining production of ore and waste for Q4 2025 was slightly below management's
forecast at 2.79 Mt (Q3 2025: 1.99 Mt). During Q4 2025, a total of 710 Kt of
ore was mined (Q3 2025: 404 Kt). The Company continues to forecast that mining
operations will cease in Q3-2026 due to depletion of ore but processing will
continue as detailed below.

 

Process Plant

 

Gold produced during Q4 2025 was 15,156 oz (Q3 2025: 9,145 oz) from ore milled
in Q4 2025 of 538 Kt (Q3 2025: 324 Kt), at an AISC of US$1,584 /oz (Q3 2025:
US$1,923 /oz). Head grade was lower than forecast at 1.04 g/t (Q3 2025: 1.06
g/t).

 

Average gold recovery rate for Q4 2025 was 84.1% (Q3 2025: 83.3%). Average
recoveries for FY2026 are expected to be approximately 82% due to a lower
average head grade and continued processing of lower recovery material. Gold
processing activities are expected to cease in late-2026 or early 2027.

 

Residual Storage Impoundment ("RSI")

 

During the Quarter, the Runruno mine received higher than normal rainfall as
numerous typhoons passed over/close to the mine site. Notwithstanding the high
rainfall, the RSI dam water freeboard remains well above design minimum
levels. 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
remaining within the revised budget and slightly ahead of schedule, being 33%
complete, being fully funded to date from the Runruno gold mine cash flow. The
Company's ambition to produce gold during Q4 2026 remains intact. Highlights
for the Quarter include:

 

·      No lost time injuries ("LTI").

·      The processing plant throughput capacity design has been upgraded
to 1.8 million tonnes per annum ("mTpa") from 1.4 mTpa, in anticipation of
future growth opportunities.

·      The on-site laboratory building is nearing completion and is
scheduled to be operational from February 2026.

·      Bulk earthworks for the processing plant and technical services
area are complete. Pre-stripping of the open pit mining area is on schedule,
at approximately 19% complete.

·      The run-of-mine ("ROM") pad is complete, and the first ore has
commenced stockpiling.

·      The tailings storage facility access is complete.

·      Construction of key infrastructure is progressing ahead of
schedule; with several camp accommodation buildings completed and operational.

·      Exploration, geo-technical and infill resource extension drilling
for the Quarter totalled 4,676 metres.

 

Exploration - Philippines

 

Dupax Project

 

Limited drilling was undertaken during Q4 2025 due to the impact of
Super-typhoon Uwan combined with the Company managing local community access
issues. Drilling to date has indicated that the target ore zone is
significantly deeper than predicted, leading to the Company to conclude that
an economic resource at Dupax will not be able to be defined within a time
period such that the Runruno process plant can be converted to process Dupax
ore. As a result, other options to re-purpose the Runruno plant are being
considered.

 

Drilling results from this programme will be announced in due course.

 

Abra Project

 

Drill programmes on the Abra tenement remain on hold while the National
Commission for Indigenous Peoples ('NCIP') further advances its consultation
activities with the potentially impacted local communities. The Company's
expectation remains that drilling in the Abra project area will commence later
in FY2026.

 

ESG

 

Occupational Health & Safety

 

The Company completed the Quarter without an LTI. The Company now has in
excess of 2 million man-hours worked in the Philippines without an LTI. The
Company has recorded no LTI's at its operations in Nicaragua since commencing
operations in country.

 

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 2112

 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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