Metals Exploration cuts interim loss after gold production jumps

Shares in Metals Exploration climbed on Friday after the company slashed its interim loss following a surge in gold production that bolstered revenues.

The natural resources exploration and development outfit said hat its losses before tax came in at $8.3m for the six month period ended 30 June, marking an improvement on the $14.0m loss registered the year before, as revenue increased by 28% to $40.3m.

Gold production increased by 34% to 30,774 ounces, with sales rising 24% to 30,870 ounces as price per ounce increased by 3% to $1,305.

However, recovery against model fell to 85% after Metals Exploration began mining operations in low-confidence areas, with the company stating that higher average dilution is expected to continue.

Total ore mined also jumped, coming in 34% higher at 1,022,148 tonnes even after being impacted by continuing equipment availability issues.

In the second half of the year, the AIM traded company said it will undertake a short-hole and long-hole drilling programme, while work will continue on improving and increasing flotation capacity and overall gold recovery at the process plant.

Metals Exploration shares were up 5.29% at 0.90p at 1301 BST.