REG - Metals Exploration - Quarterly Update to 30 June 2025

Metals ExplorationAnnouncement

Tue 07:00

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RNS Number : 9308R  Metals Exploration PLC  22 July 2025

METALS EXPLORATION PLC

 

Quarterly Update to 30 June 2025

 

Metals Exploration plc (AIM: MTL) ("Metals Exploration", the "Company" or the
"Group"), a gold production, exploration, and development company with assets
in the Philippines and Nicaragua, is pleased to announce its unaudited
quarterly results for Q2 2025 (the "Quarter").

 

Finance

·      Q2 2025 record positive pre-tax free cash flow of US$47.2 million
(Q1 2025: US$23.5 million).

·      Q2 2025 record gold revenue of US$70.5 million (Q1 2025: US$48.4
million).

·      Q2 2025 gold sales of 23,021 ounces ("oz") sold at an average
realised gold price of US$3,061 per ounce ("p/oz") (Q1 2025: 18,219 oz at an
average US$2,661 p/oz).

 

Runruno - Mining Operations

·      Q2 2025 mining production of ore and waste was 2.98 million
tonnes ("Mt") (Q1 2025: 2.90Mt), with a total of 525 thousand tonnes ("Kt") of
ore mined in Q2 2025 (Q1 2025: 503Kt).

 

Runruno - Processing Operations

·      Q2 2025 gold production of 19,993 oz (Q1 2025: 20,992 oz)
recovered from 504Kt at a head grade of 1.40 grammes per tonne ("g/t") (Q1
2025: 537Kt at a head grade of 1.34 g/t).

·      Q2 2025 all-in-sustaining-cost ("AISC") of US$1,098 p/oz (Q1
2025: US$1,303 p/oz).

·      Q2 2025 gold recovery of 92.1% (Q1 2025: 90.7%).

 

Development - La India, Nicaragua

·      Ground-breaking ceremony held in May 2025.

·      Rock Creek process plant being loaded onto ocean transport from
Alaska with sailing to occur before the end of July 2025.

·      Bulk earthworks are 30% complete.

·      Drill rig was mobilised to site on 23 April 2025.

·      Key major contracts awarded or issued for tender.

 

Exploration - Philippines

·      Access negotiations are ongoing with indigenous communities in
the Abra project area. Drilling is not expected to commence until Q1 2026.

Darren Bowden, CEO of Metals Exploration, commented:

 

"This has been a record-breaking quarter for the Company which has seen us
take a significant step forward in our strategy to deliver sustainable value
from both our producing and development assets. We are pleased to report our
record pre-tax cash flow of US$47.2 million and record quarterly gold revenue
of US$70.5 million, underpinned by strong, consistent operational performance
at Runruno.

 

"At Runruno, we continue to demonstrate our operational discipline, achieving
a gold recovery rate of 92.1% and reducing our AISC to US$1,098 p/oz.
Importantly, the site recorded no lost time injuries during the Quarter,
reaffirming our commitment to maintaining a strong safety culture.

 

"In Nicaragua, we are excited by the progress at La India, where construction
activities are well underway. Following the successful ground-breaking
ceremony in May, bulk earthworks are advancing well, and the construction of
key site infrastructure is progressing on schedule. We are pleased with the
strong support we continue to receive from the Nicaraguan government and local
communities, which has been critical to maintaining project development
momentum. We expect to commence a resource extension drill programme in Q3
2025, which will support the next phase of value creation at this highly
prospective asset.

 

"We look forward to building on this momentum and updating stakeholders as we
execute on our strategy in the second half of the year."

 

Runruno Production and Finance Summary

 

 Runruno Project Report                       Quarter                              Quarter                              FY 2025                              FY 2024
 FY 2025                                      Actual                               Actual                               Actual                               Actual
 PHYSICALS                      Units         Q2 2025                              Q2 2024                              6 Months                             6 Months
 Mining
 Ore Mined                      Tonnes        524,870                              516,094                              1,028,333                            1,172,930
 Waste Mined                    Tonnes        2,456,963                            2,197,984                            4,889,310                            4,849,036
 Total Mined                    Tonnes        2,981,833                            2,714,078                            5,917,643                            6,021,966
 Au Grade Mined                 g/tonne       1.40                                 1.39                                 1.54                                 1.37
 Strip Ratio                                  4.52                                 4.18                                 4.65                                 4.07
 Processing
 Ore Milled                     Tonnes        504,253                              518,440                              1,041,486                            1,099,159
 Au Grade                       g/tonne       1.34                                 1.31                                 1.34                                 1.34
 S(2) Grade                     %             1.21                                 1.28                                 1.18                                 1.35
 Au Milled (contained)          Ounces        21,702                               21,915                               44,841                               47,489
 Recovery                       %                             92.1                                89.1                                  91.4                                89.6
 Au Recovered/Poured            Ounces        19,993                               19,529                               40,985                               42,535
 Sales
 Au Sold                        Ounces        23,021                               20,124                               41.240                               41,589
 Au Price                       US$/oz        3,061                                2,320                                2,884                                2,190
 FINANCIALS (Unaudited)
 Revenue
 Gold Sales                     (US$000's)    70,473                               46,684                               118,949                              91,085
 Operating Costs - Summary
 Mining                         (US$000's)    5,470                                4,449                                10,260                               9,609
 Processing                     (US$000's)    8,672                                8,413                                17,134                               17,549
 G&A                            (US$000's)    2,531                                2,699                                6,413                                5,649
 Total Operating Costs          (US$000's)    16,673                               15,561                               33,807                               32,807
 Excise Duty                    (US$000's)    2,827                                1,872                                4,779                                3,646
 UK/Philippine G&A              (US$000's)    2,124                                3,100                                6,096                                4,771
 Total Direct Production Costs  (US$000's)    21,624                               20,533                               44,682                               41,225
 Net Cash Income                (US$000's)    48,849                               26,151                               74,267                               49,861
 Total Capital Costs            (US$000's)    1,641                                1,363                                3,523                                3,506
 Total non-cash costs           (US$000's)    28,167                               13,183                               44,400                               27,417
 Pre-tax Free Cashflow          (US$000's)    47,208                               24,787                               70,744                               46,355
 Cash Cost / oz Sold - C1       US$/oz        811                                  768                                  839                                  780
 Cash Cost / oz Sold - AISC(1)  US$/oz        1,098                                1,083                                1,189                                1,066

 

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

Development

 

La India Gold Project

 

A 'ground-breaking' ceremony held at La India on 7 May 2025 attracted
significant media interest in Nicaragua. The commencement of construction
activities at La India has helped the Company build credibility with both
government and community leaders in Nicaragua. It has also assisted in
receiving ongoing government support for the Company's activities in
Nicaragua.

 

Activities undertaken in Q2 2025 in relation to the Nicaraguan assets
included:

·      Commencement of site construction works in May 2025, with bulk
earthworks 30% complete at quarter end.

·      Commenced construction of various buildings, including
construction office, camp and fuel storage facility.

·      Commencement of geo-technical and infill drilling following the
mobilisation of a drill rig to site on 23 April 2025.

·      Disassembly of the purchased Rock Creek process plant is well
advanced, with disassembled equipment parcels prepared for shipping and
delivered to port. Activities are ahead of schedule to have the plant loaded
for ocean transport departing Alaska before the end of July 2025.

·      Most major contracts for the construction of the La India project
have been awarded except for plant erection, and CIL tank fabrication,
 sewage treatment, and water treatment plants.

·      A gold resource extension and verification drill programme has
commenced.

 

Runruno Operations

 

During Q2 2025, operations at Runruno produced another set of strong results
for the Company with record gold sales of US$70.5 million (Q1 2025: US$48.5
million), at an average realised gold price of US$3,061 p/oz (Q1 2025: average
gold price of US$2,661 p/oz); producing a record positive free cash flow of
US$47.2 million (Q1 2025: US$23.5 million).

 

Finance

 

The Company's cash holdings at 30 June 2025 were US$43.5 million (31 March
2025: US$20.7 million). The Group has no debt.

 

Mining Operations

 

Mining production of ore and waste for Q2 2025 was slightly above management's
forecast at 2.98Mt (Q1 2025: 2.90Mt). During Q2 2025, a total of 525Kt of ore
was mined (Q1 2025: 503Kt).

 

Process Plant

 

During Q2 2025, the process plant performed well, producing a quarter average
recovery rate of 92.1% (Q1 2024: 90.7%).

 

Gold produced during Q2 2025 was 19,993 oz (Q1 2025: 20,992 oz) from ore
milled in Q2 2025 of 504Kt (Q1 2025: 537Kt), at an AISC of US$1,098 p/oz (Q1
2025: US$1,303 p/oz). Head grade was slightly higher than forecast at 1.40 g/t
(Q1 2025: 1.34 g/t).

 

Unscheduled downtime was within the Company's expectations and included
Grinding-BIOX MCC interconnection power line replacement, switchyard power
interruption, repairs to the return discharge line, the plant air-line and
gland water seals, final tails line discharge pipe, and pumps changeover.

 

During Q3 2025 the majority of ore to be processed will be oxide material from
both Stage 5 & 6 of the mine. Gold recovery from this oxide material is
expected to drop with a resultant drop in the average gold recovery in Q3 2025
from approximately 90% to approximately 85%.

 

Residual Storage Impoundment ("RSI")

 

The RSI dam-wall is at its final height and the dam water freeboard remains
well above design minimum levels. Construction of the RSI final in-rock
spillway continues. Design revisions to alter final height and increase dam
capacity are under review.

 

Occupational Health & Safety

 

Having experienced the Company's first lost time injury since December 2016 in
March 2025, the Quarter was completed without a lost time injury.

 

Environment & Compliance

 

Compliance matters continue to be successfully monitored, and the mine remains
compliant with no outstanding material issues.

 

Community & Government Relations

 

The Company continues to receive strong support from local communities and
government agencies.

 

Exploration - Philippines

 

Abra Project

 

Drill programmes remain on hold while the National Commission for Indigenous
Peoples ('NCIP') further advance their consultation activities with the
potentially impacted local communities. The Company now does not expect to
commence drilling in the Abra project area until Q1 2026.

 

Dupax Project

 

Final government approvals for the Dupax exploration licence are expected to
be received during Q3 2025. Geophysics and an initial drill programme will
commence shortly after these are received.

 

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
 Broker:                                  HANNAM & PARTNERS
 Matt Hasson, Franck Nganou               +44 (0) 207 907 8500

 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 Darren Bowden, a director of the Company, a Member of the Australasian
Institute of Mining and Metallurgy and who has been involved in the mining
industry for more than 25 years, has compiled, read and approved the technical
disclosure in relation to the Group's Philippine 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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