Metals Exploration Reports Record FY2025 Results, La India Construction On Track

• FY2025 free cash flow of US$115.3 million, compared to US$96.7 million in FY2024
• Gold revenue of US$208.4 million for FY2025 from 66,082 ounces sold at US$3,154 per ounce average price
• La India project 33% complete and ahead of schedule, targeting Q4 2026 production start with 145,000 ounces annual capacity
• Runruno produced 65,287 ounces in FY2025 at all-in-sustaining costs of US$1,368 per ounce
• Debt-free balance sheet with US$41.6 million cash at 31 December 2025

Metals Exploration (AIM: MTL) is a mineral exploration and development company focused on operating and developing gold projects in the Philippines and Nicaragua. The company currently produces gold from its Runruno mine in the Philippines whilst developing the La India project in Nicaragua. Metals Exploration has recorded over 2 million man-hours without a lost-time injury in the Philippines and has maintained a zero lost-time injury record in Nicaragua since acquisition.

FY2025 Financial Results

Metals Exploration reported free cash flow of US$115.3 million for FY2025, compared to US$96.7 million in FY2024. Gold revenue reached US$208.4 million, up from US$191.1 million in the prior year. The company achieved an average realised gold price of US$3,154 per ounce in FY2025, compared to US$2,312 per ounce in FY2024.

Q4 2025 generated pre-tax free cash flow of US$40 million versus US$4.5 million in Q3 2025. Gold sales for the quarter totalled US$63.9 million from 16,009 ounces at an average realised price of US$3,995 per ounce. The Q3 2025 comparable figures were US$25.5 million from 8,833 ounces at US$2,889 per ounce. All-in-sustaining costs for Q4 2025 were US$1,584 per ounce, down from US$1,923 per ounce in Q3 2025.

Cash holdings increased to US$41.6 million at 31 December 2025 from US$28.3 million at 30 September 2025. The company has no debt. La India construction has been fully funded from Runruno cash flow to date.

Runruno Production and FY2026 Outlook

Runruno produced 15,156 ounces in Q4 2025, up from 9,145 ounces in Q3 2025, bringing FY2025 total production to 65,287 ounces. Mining totalled 2.79 million tonnes in Q4 2025, including 710,000 tonnes of ore. The processing plant treated 538,000 tonnes at a head grade (gold content in ore) of 1.04 grammes per tonne with an 84.1% recovery rate, compared to 324,000 tonnes at 1.06 grammes per tonne with 83.3% recovery in Q3 2025.

Annual production of 65,287 ounces was at the lower end of revised guidance of 65,000 to 70,000 ounces. Production was affected by a Q3 2025 BIOX cyanide contamination issue and a seven-day processing pause in November 2025 when Super-typhoon Uwan damaged the national power grid. Mining operations were suspended for two days during the typhoon. Back-up generators maintained BIOX bacteria viability, and mains power was restored ahead of initial forecasts.

FY2026 production guidance for Runruno is 50,000 to 60,000 ounces at all-in-sustaining costs of US$1,400 to US$1,650 per ounce. The lower production reflects lower grade material and reduced recovery performance of approximately 82% as the mine nears depletion. Mining operations are forecast to cease in Q3 2026, with processing continuing into late 2026 or early 2027.

CEO Darren Bowden stated:

"Our production guidance for FY2026 at Runruno is 50,000 - 60,000 oz due to the mine approaching the end of its life with the mine plan scheduling lower grade material with slightly lower recovery performance."

La India Development Progress

Construction at La India in Nicaragua is 33% complete, ahead of schedule and within revised budget. The project remains on track for first gold production in Q4 2026 with an annual production target of 145,000 ounces. The processing plant capacity has been increased to 1.8 million tonnes per annum from the original 1.4 million tonnes per annum design.

Completed works during Q4 2025 include bulk earthworks for the processing plant and technical services area, the run-of-mine pad with ore stockpiling commenced, tailings storage facility access, and several operational camp accommodation buildings. The on-site laboratory is scheduled to become operational in February 2026. Pre-stripping of the open pit is 19% complete. Process plant foundations, general infrastructure and bulk earthworks are progressing ahead of schedule. Exploration and infill drilling totalled 4,676 metres during the quarter.

CEO Darren Bowden commented:

"In Nicaragua, we have seen excellent momentum in the development of the La India Gold Project towards production, which remains on track for first gold in Q4 2026. Overall construction is ahead of schedule at 33%, and I look forward to providing further updates on progress throughout 2026. With an annual production target of 145,000 oz of gold, La India will serve to replace cash flow from Runruno as mining operations cease there." 

Outlook

The company's stated priorities for 2026 include completing Runruno mining operations through Q3 2026, commissioning La India for Q4 2026 production start, and evaluating options for the Runruno processing plant following ore depletion. Drilling at the Dupax exploration project has indicated the target ore zone is deeper than predicted, leading the company to conclude that an economic resource cannot be defined in time to extend Runruno processing operations with Dupax ore.

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