Metals Exploration gold sales down slightly in Q2

Philippines-focussed gold producer Metals Exploration reported 14,992 ounces of gold sold in its second quarter on Wednesday, at an average realised price of $1,858 per ounce.

The AIM-traded firm said both of those figures were down from 15,685 ounces at an average price of $1,898 in the first quarter, leading to total gold sales sliding to $27.8m from $29.8m.

It reported positive free cash flow of $5.4m in the three months ended 30 June, down from $8.2m quarter-on-quarter, while it repaid $5m of senior debt in the period, compared to $12m.

Senior debt outstanding as at 30 June totalled $8.1m, down from $12.9m on 31 March, with net debt standing at $92.9m at period end, narrowing from $94.2m three months earlier.

At its mining operations, Metals Exploration said there were no lost time injuries during the period, with more than 17 million hours worked without a reportable injury.

Ore mined decreased for the quarter to 510,000 tonnes, from 779,000 tonnes, with waste mined at 2.47 million tonnes, down from 3.15 million tonnes in the first quarter.

Looking at its processing operations, the firm recovered 16,529 ounces of gold, up from 14,819 ounces in the prior period, from a higher head grade of 1.18 grams per tonne, compared to 1.02 grams per tonne.

Gold recovery for the second quarter was 86.6%, down from 89.0% in the first quarter.

Metals Exploration said its operations were still “largely unaffected” by the impacts of Covid-19, adding that its vaccine programme was “well-advanced”, with over 95% of all of its employees having had at least two doses.

“Runruno has maintained a positive trend in recovery and we are delighted that the operation is now able to sustain an over-85% average recovery,” said chief executive officer Darren Bowden.

“The project is well positioned for a strong second half of 2022 as the grade in the mine improves once the higher grade ore in stage three is accessed.

“The company remains on track to meet our 2022 production guidance and to repay the senior debt during the fourth quarter as forecast, which will further strengthen our balance sheet.”

At 1236 BST, shares in Metals Exploration were down 2.78% at 0.88p.

Reporting by Josh White at Sharecast.com.