Metals Exploration Reports Record US$47.2 Million Quarterly Cash Flow

• Pre-tax free cash flow increased to US$47.2 million from US$23.5 million in Q1 2025
• Gold sales rose to US$70.5 million from US$48.4 million in the previous quarter
• All-in-sustaining-cost decreased to US$1,098 per ounce from US$1,303 per ounce
• La India construction reached 30% completion for bulk earthworks
• Cash position strengthened to US$43.5 million with no debt obligations

Metals Exploration PLC (AIM: MTL) is a gold mining company with operations in the Philippines and Nicaragua. The company operates the Runruno Gold Mine in the Philippines, which has been in production since 2016. The company also owns the La India gold project in Nicaragua, which is under construction.

The company acquired Condor Gold in 2024, adding mining concessions covering 587 square kilometres in Nicaragua to its portfolio. Metals Exploration maintains a debt-free balance sheet and funds development activities through cash generation from its producing operations.

Q2 Performance Shows Increased Cash Generation

The company reported record quarterly results across financial metrics. Gold sales increased to US$70.5 million from US$48.4 million in Q1 2025. Sales volumes rose to 23,021 ounces at an average realised price of US$3,061 per ounce, compared with 18,219 ounces at US$2,661 per ounce in the previous quarter.

Pre-tax free cash flow reached US$47.2 million compared to US$23.5 million in Q1 2025. All-in-sustaining-cost decreased to US$1,098 per ounce from US$1,303 per ounce, representing a reduction in production costs per ounce.

Gold production totalled 19,993 ounces from 504,000 tonnes of ore processed at a head grade of 1.40 grams per tonne. Gold recovery improved to 92.1% from 90.7% in the first quarter. Mining operations processed 525,000 tonnes of ore during the reporting period.

The Runruno operation recorded no lost time injuries during the quarter and maintained compliance with environmental and regulatory requirements.

Exploration Programme Targets Resource Expansion

The company commenced resource extension drilling at La India following drill rig mobilisation in April 2025. The programme aims to expand the existing resource base while providing geotechnical data for ongoing construction activities.

Access negotiations at the Abra project in the Philippines continue through consultations with indigenous communities via the National Commission for Indigenous Peoples. Drilling operations are scheduled to commence in Q1 2026.

The Dupax project awaits final government approvals for exploration licences, expected during Q3 2025. Following approval, the company plans to commence geophysical surveys and initial drilling programmes.

The exploration strategy covers both development and regional assets across the company's portfolio in established mining jurisdictions.

Financial Position Supports Development Activities

Cash holdings increased to US$43.5 million at quarter end from US$20.7 million in March 2025. The company maintains no debt obligations and funds operations through internal cash generation.

Capital expenditure totalled US$1.6 million during the quarter, allocated between sustaining operations at Runruno and advancing construction at La India. The company continues to fund development activities without external financing requirements.

Operating cash flow from Runruno provides funding for La India construction activities. The company's financial structure eliminates debt service obligations and maintains operational flexibility.

Working capital management maintains adequate liquidity for ongoing operations while supporting development project requirements.

La India Development Maintains Construction Schedule

Construction activities at La India progressed according to schedule with bulk earthworks reaching 30% completion. The company held a ground-breaking ceremony in May 2025, attended by government officials and community representatives.

The Rock Creek process plant disassembly in Alaska advanced ahead of original timelines. Ocean transport of equipment to Nicaragua is scheduled before end-July 2025. Major construction contracts have been awarded for most project components except plant erection, CIL tank fabrication and treatment facilities.

Key infrastructure construction commenced including construction office, accommodation facilities and fuel storage. Geotechnical and infill drilling programmes are underway following drill rig mobilisation in April.

The company maintains government support and community engagement in Nicaragua. Resource extension drilling aims to validate and expand the existing resource base at La India.

CEO Darren Bowden commented:

"This has been a record-breaking quarter for the Company which has seen us take a significant step forward in our strategy to deliver sustainable value from both our producing and development assets."

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