METALS EXPLORATION
PLC
QUARTERLY UPDATE TO 31
December 2024
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 Q4 2024 (the "Quarter").
Corporate
· Announcement of recommended offer to acquire 100% of Condor
Gold plc ("Condor Gold") which was completed post period end on 15
January 2025.
· Appointments of David Cather and Rob Marshall as Non-Executive
Directors in November 2024.
Finance
· Record
FY2024 positive free cash flow of US$96.7 million (FY2023: US$72.3
million).
· Record
FY2024 gold revenue of US$191.1 million (FY2023: US$145.8
million).
· Q4
2024 positive free cash flow of US$22.5 million (Q3 2024: US$27.9
million).
· Q4
2024 gold revenue of US$47.5 million (Q3 2024: US$52.6
million).
· Q4
2024 gold sales of 19,144 ounces sold at an average realised gold
price of US$2,481 per ounce (Q3 2024: 21,943 ounces at an average
US$2,396 per ounce).
Mining Operations
· No
lost time injuries occurred during the period - over 25 million hours worked without a lost time
injury.
· Q4
2024 mining production of ore and waste was 2.70 million tonnes
("Mt") (Q3 2024: 2.63Mt), with a total of 284 thousand tonnes
("Kt") of ore mined in Q4 2024 (Q3 2024: 599Kt).
Processing Operations
· Q4
2024 gold production of 18,829 ounces (Q3 2024: 22,533 ounces)
recovered from 530Kt at a head grade of 1.17 grammes per tonne
("g/t") (Q3 2024: 521Kt at a head grade of 1.51 g/t).
· Q4
2024 gold recovery of 94.5% (Q3 2024: 89.0%).
FY2024/FY2025 Production Guidance
· FY2024
gold production of 83,897 ounces exceeded the FY2024 upper guidance
forecast of 82,500 ounces at an AISC of US$1,135 per ounce which
was slightly above the improved FY2024 lower guidance forecast of
US$1,125 per ounce and significantly below the upper guidance
forecast of US$1,275.
· FY2025
gold production forecast: 70,000 - 75,000 ounces.
· FY2025
AISC forecast: US$1,225 - US$1,325 per ounce.
Exploration
· Interpretation of geophysics at the Abra project
completed.
· Government approval to commence exploration drilling approval
received.
Darren Bowden, CEO of Metals Exploration,
commented:
"This has been another strong quarter and a transformative
period for the Company. We are delighted to have delivered record
FY2024 free cash flow of US$96.7 million alongside record gold
revenue of US$191.1 million, both of which were underpinned by
robust operational performance at Runruno and sustained high gold
prices. The Quarter also marked a significant strategic milestone -
the announcement of our recommended offer to acquire Condor Gold -
which brings a highly prospective asset portfolio in Nicaragua into
our fold.
"At Runruno, our focus on operational efficiency continues to
deliver results, with gold recovery rates reaching 94.5% for the
Quarter, alongside maintaining our exceptional safety record of
over 25 million hours worked without a reportable
injury.
"This Quarter has also seen further progress being made on the
initial geophysics and geochemical work at our Abra Project, ahead
of an initial drilling programme, which is expected to begin during
Q1 of this year.
"Looking ahead, the acquisition of Condor Gold opens exciting
new growth opportunities, starting with the La India gold project
in Nicaragua. We are rapidly advancing plans to build an
experienced in-country team, re-estimate the current resource base,
and commence the design of a gold resource extension and
verification drill programme. This positions us to unlock
significant value from these assets whilst aiming to replicate the
operational success we have demonstrated at
Runruno.
"The Company enters 2025 with a strong balance sheet, record
free cash flow, and exciting exploration prospects, which gives us
confidence in our ability to deliver sustainable value to all our
stakeholders. We look forward to providing further updates as we
progress through this transformational year."
Production and Finance Summary
Runruno Project Report
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Quarter
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Quarter
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FY 2024
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FY 2023
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FY
2024
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Actual
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Actual
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Actual
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Actual
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PHYSICALS
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Units
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Q4 2024
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Q4 2023
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12 Months
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12 Months
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Mining
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|
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|
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Ore Mined
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Tonnes
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283,862
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533,815
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2,055,871
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1,949,654
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Waste Mined
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Tonnes
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2,418,510
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2,295,472
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9,293,694
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10,412,735
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Total Mined
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Tonnes
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2,702,372
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2,829,287
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11,349,565
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12,362,398
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Au Grade Mined
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g/tonne
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|
1.50
|
1.27
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1.46
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1.47
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Strip Ratio
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|
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8.50
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3.99
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4.40
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5.03
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Processing
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|
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|
|
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Ore Milled
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Tonnes
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529,791
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533,074
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2,150,429
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2,104,207
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Au Grade
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g/tonne
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1.17
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1.15
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1.34
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1.42
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S2 Grade
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%
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1.30
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1.18
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1.35
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1.36
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Au Milled (contained)
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Ounces
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19,934
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20,517
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92,752
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96,068
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Recovery
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%
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94.5
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85.9
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90.5
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88.7
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Au Recovered/Poured
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Ounces
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18,829
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17,626
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83,897
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85,194
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Sales
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|
|
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|
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Au Sold
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Ounces
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19,144
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17,514
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82,676
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85,744
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Au Price
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US$/oz
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2,481
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1,980
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2,312
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1,944
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FINANCIALS (Unaudited)
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Revenue
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Gold Sales
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(US$000's)
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47,490
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34,684
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191,150
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166,683
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Operating Costs - Summary
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|
|
|
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Mining
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(US$000's)
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4,868
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5,172
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18,879
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20,919
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Processing
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(US$000's)
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8,139
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8,591
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34,919
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34,725
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G&A
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(US$000's)
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2,569
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2,992
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11,649
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11,709
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Total Operating Costs
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(US$000's)
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15,576
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16,755
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65,447
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67,354
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Excise Duty
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(US$000's)
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1,913
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1,392
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7,668
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6,710
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UK/Philippine G&A
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(US$000's)
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5,244
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2,384
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13,768
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9,225
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Total Direct Production Costs
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(US$000's)
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22,733
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20,531
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86,882
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83,289
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Net
Cash Income
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(US$000's)
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24,757
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14,153
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104,267
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83,394
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Total Capital Costs
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(US$000's)
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2,263
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2,695
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7,518
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11,051
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Total non-cash costs
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(US$000's)
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13,110
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5,468
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69,794
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27,172
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Free
Cashflow
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(US$000's)
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22,494
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11,457
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96,749
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72,343
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Cash
Cost / oz Sold - C1
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US$/oz
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|
797
|
890
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|
785
|
812
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Cash
Cost / oz Sold - AISC
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US$/oz
|
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1,289
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1,260
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1,135
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1,126
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Note: AISC includes all UK Corporate costs.
Corporate
Condor Gold plc
Acquisition
On 15 January 2025, the Company
completed the acquisition of 100% of Condor Gold which is the 100%
owner of an extensive highly prospective tenement package in
Nicaragua, including the La India gold resource. Refer to
previous announcements in relation to the Condor
Gold takeover, which can be found on the Company's
website.
Planned activities in Q1 2025 in
relation to the Nicaraguan assets are to:
· Complete the recruitment of key Spanish speaking executives to
join the Nicaraguan in-country management team;
· Review, and re-estimate, the current gold reserve and resource
statements;
· Design
a gold resource extension and verification drill programme;
and
· Commence the detailed design and construction phase for the La
India project.
Non-Executive Director
Appointments
On 1 November 2024, Rob Marshall was
appointed to the Board as a Non-Executive Director as the
representative of the Company's second largest shareholder, Drachs
Investments No3 Limited. Also, on 1 November 2024, David Cather
rejoined the parent company board as a Non-Executive Director. Mr
Cather remains Chairman of the Group's Singaporean holding
company.
Runruno Operations
During Q4 2024, operations at
Runruno produced another set of strong results for the Company with
gold sales of US$47.5 million (Q3 2024: US$46.7 million), at an
average realised gold price of US$2,481 per ounce (Q3 2024: average
gold price of US$2,320 per ounce); producing a positive free cash
flow of US$22.5 million (Q3 2024: US$24.8 million).
Finance
The Company's cash holdings at 31
December 2024 were US$32.0 million (30 September 2024: US$10.9
million). This cash position included US$27.8 million reserved to
be applied to satisfy the maximum cash component portion of the
Condor Gold takeover. The cash consideration will be paid to Condor
Gold shareholders during January 2025.
As at 31 December 2024, the Company
had a short-term bridging loan of US$6.9 million. This loan is due
to repaid on or before 31 January 2025.
Mining
Operations
Mining production of ore and waste
for Q4 2024 was slightly below management's forecast at 2.70Mt (Q3
2024: 2.71Mt), mainly due to persistent heavy rain in the latter
half of the quarter which lead to poor road conditions. Also,
equipment was diverted to clean-up activities in and around the
mine site to repair company and community infrastructure following
typhoon Pepito, which passed directly over the mine site as a
category 5 typhoon. During Q4 2024, only a total of 284Kt of ore
was mined (Q3 2024: 516kt) as substantial waste was removed during
Stage 5 development operations.
Process
Plant
During Q4 2024 most aspects of the
process plant performed adequately producing a quarter record
average recovery rate of 94.5% (Q3 2024: 89.1%).
Gold produced during Q4 2024 was
18,829 ounces (Q3 2024: 19,529 ounces) from ore milled in Q4 2024
of 530Kt (Q3 2024: 518Kt).
Planned downtime included scheduled
maintenance to the semi-autogenous grinding ("SAG") mill girth
gear. The main source of unplanned downtime resulted from power
interruptions due to typhoons and inclement weather events. Other
unplanned downtime included installation of new flotation stator
blades, and repairs to the return discharge line ("RDL"), conveyor
belts, rollers and trommel panel screens.
Residual Storage Impoundment
("RSI")
The RSI dam-wall is at its final
height and the dam water freeboard remains
well above design minimum levels, notwithstanding the numerous wet
weather events during the Quarter. Construction of the RSI final
in-rock spillway continues.
Occupational Health &
Safety
Runruno continues to record an
exceptional safety record with over 25 million hours worked without
a lost time injury as at the date of this
announcement.
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 - Abra Project
During the Quarter, the Company
completed the review of the initial
geophysics and geochemistry activities over the key target areas of
the Abra project area as a prelude to designing an exploration
drill programme. Final government approval to undertake drilling
operations was also received during the Quarter, and it
is expected that drilling of initial targets will
commence during Q1 2025.
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
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Via BlytheRay
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+44 (0) 207 138 3204
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Nominated & Financial Adviser:
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STRAND HANSON LIMITED
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James Spinney, James Dance, Rob
Patrick
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+44 (0) 207 409 3494
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Broker:
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HANNAM & PARTNERS
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Matt Hasson, Franck
Nganou
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+44 (0) 207 907 8500
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Public Relations:
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BLYTHERAY
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Megan Ray, Said Izagaren
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+44 (0) 207 138
3204
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Web:
www.metalsexploration.com
Twitter:
@MTLexploration
LinkedIn:
Metals
Exploration
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.