Metals Exploration PLC Interim Results - H1 2025

• Free cash flow of US$70.7 million in H1 2025 versus US$46.4 million in H1 2024
• Gold production of 40,985 ounces with recovery rates of 91.4% versus 89.6% in prior year
• Condor Gold acquisition completed 15 January 2025, adding La India project with 2.2 million ounce gold resource
• Construction activities commenced at La India with targeted first production Q4 2026
• Dupax exploration licence received covering 3,100 hectares, 20km from Runruno facility

Company Overview

Metals Exploration PLC (AIM: MTL) is a gold production, exploration and development company with assets in the Philippines and Nicaragua. The company's primary operation is the Runruno gold mine in the Philippines, which has produced gold since operations began.

Following the acquisition of Condor Gold plc in January 2025, the company now holds the La India gold project in Nicaragua. The La India project contains a 2.2 million ounce gold resource and had received all necessary development approvals prior to acquisition. Mining operations at Runruno are forecast to cease in Q4 2026.

Financial Performance and Operations

Metals Exploration reported revenue of US$118.9 million for H1 2025 from gold sales of 41,240 ounces at an average price of US$2,884 per ounce. This compared to H1 2024 revenue of US$91.1 million from 41,589 ounces at US$2,190 per ounce. Free cash flow increased to US$70.7 million from US$46.4 million in the prior year period.

Gold production at Runruno totalled 40,985 ounces compared to 42,535 ounces in H1 2024. The company processed 1.04 million tonnes of ore at a head grade of 1.34 grammes per tonne, achieving recovery rates of 91.4%. Total material mined was 5.9 million tonnes, including 1.0 million tonnes of ore at a grade of 1.54 grammes per tonne.

The company maintained a debt-free status after repaying a £5.5 million short-term loan through transfer of treasury shares. Earnings before interest, tax, depreciation, amortisation, impairment and share-based charges were US$72.3 million versus US$47.2 million in H1 2024. Post-period processing was temporarily paused due to cyanide contamination attributed to illegal mining activities, though production guidance of 70,000-75,000 ounces for 2025 remains unchanged.

Condor Gold Acquisition and La India Development

The acquisition of Condor Gold was completed via court-sanctioned scheme of arrangement for total consideration including £20.27 million cash, 830 million new shares at £0.057 per share, and share options. The transaction includes contingent value rights providing for US$14.4 million upon first gold production from La India and potential additional payments based on resource expansion.

Development activities at La India have progressed with bulk earthworks 30% complete by period end and construction of camp facilities underway. The company has awarded contracts for construction, relocated artisanal miners from the mining area, and purchased the Rock Creek processing plant which has arrived in Nicaragua. CEO Darren Bowden stated:

"Purchasing the plant allows us to fast track project development, saving considerable development time."

The company has committed to a minimum 40,000 metre drill programme on Condor tenements within five years, with 2,274 metres completed by 30 June 2025. First drilling commenced 23 April 2025. Bowden noted:

"The Board believes there is significant upside potential through a combination of an expansion of existing Mineral Resources and potential new discoveries."

Philippine Exploration Activities

The Dupax exploration licence was issued in August 2025, covering approximately 3,100 hectares located 20 kilometres from the Runruno processing facility. An induced polarisation survey and 2,500 metre drill programme have commenced. The discovery of resources at Dupax could potentially extend processing operations at Runruno beyond the current mine life.

Three copper and copper-gold targets have been identified at the Abra project through geochemical and geophysical surveys. Drill programmes have been designed but are not expected to commence until Q1 2026 pending completion of consultation activities with local indigenous communities.

The company's safety record of over 26 million hours without lost time injury ended in March 2025 due to a fuel line fire incident, though the affected employee has returned to full-time work.

Development Timeline

Metals Exploration has outlined key milestones with La India construction targeting first production by Q4 2026, coinciding with the expected end of Runruno mining operations. The company maintains 2025 production guidance of 70,000-75,000 ounces despite temporary processing interruptions. Exploration programmes continue at both Philippine and Nicaraguan properties as the company develops its resource base beyond current operations.

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