Metals Exploration turns in solid third quarter performance

Philippines-focussed gold producer Metals Exploration sold 19,197 ounces of gold in its third quarter, it said on Monday, at an average realised price of $1,782 per ounce.

The AIM-traded firm said that was up from 16,429 ounces sold in the second quarter, although the price was down marginally from the $1,807 it achieved per ounce in that period.

Total gold sales for the period came in at $34.2m, up from $29.7m, with the company reporting positive free cash flow of $11.2m, rising from $5.5m in the second quarter.

Senior debt repaid during the third quarter totalled $7.3m, compared to $8.3m quarter-on-quarter, while net debt narrowed to $106.2m from $111m.

On the operational front at its mines, Metals Exploration reported no lost time injuries during the period, although ore and waste mined came in were below forecast at 2.64 million tonnes, down from 2.66 million tonnes.

Of that, total ore mined came in at 546,000 tonnes, compared to 288,000 tonnes in the second quarter of 2021.

During the quarter, the resettlement of illegal miners and their infrastructure away from stages three and four of the firm’s mine was “significantly” advanced.

The board said access development to mine plan stages three and four was still restricted in some important areas, although stage three development was proceeding.

Looking at its processing, Metals Exploration poured 19,456 ounces of gold in the third quarter, rising from 16,591 ounces in the second quarter, while gold recovery improved to 84.4% from 80% over the same period.

Metals Exploration said that although the number of Covid-19 cases recorded among its personnel at the project increased during the quarter, operations were “largely unaffected”.

All infected personnel and their traced close contacts were isolated, and the directors said “typical” mining and processing operations were continuing notwithstanding the pandemic impacts.

A vaccine programme for all staff had now been launched, the company added.

“This quarter has continued to produce strong results despite some challenges,” said chief executive officer Darren Bowden.

“We are delighted to have completed mining in stage one, and to finally have meaningful access to stages three and four, with preliminary development work in those stages advancing satisfactorily.

“We are also delighted that the design modifications implemented to the flotation circuit are positively impacting with an increase in the consistency of higher gold recovery in this circuit now evident.”

At 0909 BST, shares in Metals Exploration were up 5.8% at 1.35p.