TIDMMTL
RNS Number : 1217J
Metals Exploration PLC
25 April 2022
METALS EXPLORATION PLC
QUARTERLY UPDATE TO 31 MARCH 2022
Metals Exploration plc (AIM: MTL) ("Metals Exploration", the
"Company" or the "Group"), a gold producer in the Philippines, is
pleased to announce its quarterly results for Q1 2022.
Finance and corporate
-- Gold sold during Q1 2022 of 15,685 ounces at an average
realised gold price of US$1,898 per ounce (Q4 2021: 18,505 ounces
at an average gold price of US$1,794 per ounce).
-- Gold sales of US$29.8 million in Q1 2022 (Q4 2021: US$33.2 million).
-- Positive free cash flow of US$8.2 million in Q1 2022 (Q4 2021: US$10.1 million).
-- Senior debt repaid during Q1 2022 of US$12.0 million (Q4 2021: US$11.8 million).
-- Senior debt outstanding as at 31 March 2022 was US$12.9
million (31 December 2021: US$24.6 million).
-- Net debt as at 31 March 2022 was US$94.2 million (31 December 2021: US$98.9 million).
Mining Operations
-- No lost time injuries occurred during the period, with over
16 million hours worked without a reportable injury .
-- Ore mined increased for the quarter to 779kt (Q4 2021: 637kt)
with waste mined at 3.15Mt (Q4 2021: 2.24Mt).
Processing Operations
-- Gold recovered during Q1 2022 of 14,819 ounces (Q4 2021:
18,435 ounces) - mainly attributable to a lower head grade of
1.02g/t (Q4 2021: 1.15g/t.
-- Gold recovery for Q1 2022 was 89.0% (Q4 2021: 89.0%).
COVID-19 Impacts
-- Reducing number of COVID-19 cases being recorded amongst
personnel at the project site with operations continuing to be
largely unaffected.
-- All infected personnel and their traced close contacts have been/were isolated.
-- COVID-19 vaccine programme well advanced, with over 95% of
all employees having had at least two vaccination doses.
Darren Bowden, CEO of Metals Exploration, commented :
"This was another strong quarter for the Company. Mining
production of ore and waste was above forecast at 3.96Mt, with a
total 779Kt of ore mined, whilst the gold recovered numbers were
impacted by a lower head grade, we continue to achieve excellent
gold recovery levels. We are also delighted to have continued to
accelerate the payment of our debt and are on track to repay our
Senior Debt in full in Q4 2022. This achievement will strengthen
our financial position.
This strong performance was yet again achieved against the
backdrop of our continued focus on safety and the well-being of our
staff. It is a testament to our staff for the way that they have
continued to work and behave, that the project has been largely
unaffected by COVID-19 in the quarter and that we have now reached
16 million man hours worked without a reportable injury. This is an
excellent performance which we aim to continue.
We are well set to continue to deliver our planned strategy for
the coming year and I look forward to providing further updates in
due course."
Production and Finance Summary
Runruno Project
Report Quarter Quarter FY 2022 FY 2021
-------------------- ---------- -------------------- ----------
FY 2022 Actual Actual Actual Actual
-------------------- ---------- -------------------- ----------
PHYSICALS Units Q1 2022 Q1 2021 3 Months 3 Months
------------- ---------- ----------
Mining
------------- ---------- ----------
Ore Mined Tonnes 779,299 422,895 779,299 422,895
-------------- ---------- ----------
Waste Mined Tonnes 3,151,787 2,013,001 3,151,787 2,013,001
-------------- ---------- ----------
Total Mined Tonnes 3,963,735 2,435,896 3,963,735 2,435,896
-------------- ---------- ----------
Au Grade Mined g/tonne 1.05 1.39 1.05 1.39
-------------- ---------- ----------
Strip Ratio 3.96 4.53 3.96 4.53
---------- ----------
Processing
------------- ---------- ----------
Ore Milled Tonnes 507,044 536,754 507,044 536,754
-------------- ---------- ----------
Au Grade g/tonne 1.02 1.33 1.02 1.33
-------------- ---------- ----------
S(2) Grade % 0.86 1.06 0.86 1.06
-------------- ---------- ----------
Au Milled (contained) Ounces 16,655 22,875 16,655 22,875
-------------- ---------- ----------
Recovery % 89.0 81.9 89.0 81.9
-------------- ---------- ----------
Au Recovered/Poured Ounces 14,819 18,725 14,819 18,725
-------------- ---------- ----------
Sales
------------- ---------- ----------
Au Sold Ounces 15,685 18,316 15,685 18,316
-------------- ---------- ----------
Au Price US$/oz 1,898 1,788 1,898 1,788
-------------- ---------- ----------
FINANCIALS (Unaudited)
------------------------- ------------- ---------- ----------
Revenue
------------- ---------- ----------
Gold Sales (US$000's) 29,773 32,757 29,773 32,757
-------------- ---------- ----------
Operating Costs
- Summary
------------- ---------- ----------
Mining (US$000's) 6,335 5,535 6,335 5,535
-------------- ---------- ----------
Processing (US$000's) 7,370 7,486 7,370 7,486
-------------- ---------- ----------
G&A (US$000's) 2,700 2,911 2,700 2,911
-------------- ----------
Total Operating
Costs (US$000's) 16,405 15,932 16,405 15,932
-------------- ----------
Excise Duty (US$000's) 1,217 1,350 1,217 1,350
-------------- ---------- ----------
UK/Philippine G&A (US$000's) 1,682 1,599 1,682 1,599
-------------- ---------- ----------
Total Direct Production
Costs (US$000's) 19,304 18,881 19,304 18,881
-------------- ---------- ----------
Net Cash Income (US$000's) 10,469 13,877 10,469 13,877
-------------- ---------- ----------
Total Capital Costs (US$000's) 2,263 2,345 2,263 2,345
-------------- ---------- ----------
Total non-cash costs (US$000's) 4,673 4,324 4,673 4,324
-------------- ---------- ----------
Free Cashflow ( US$000's) 8,206 11,532 8,206 11,532
-------------- ---------- ----------
Cash Cost / oz Sold
- C1 US$/oz 982 886 982 886
-------------- ---------- ----------
Cash Cost / oz Sold
- AISC US$/oz 1,311 1,175 1,311 1,175
-------------- ---------- ----------
Note: AISC includes all UK Corporate costs.
Review of Operations
Although some positive cases of COVID-19 continue to be reported
on-site, these positive cases did not impact operations
significantly.
Gold sales for Q1 2022 were US$29.8 million (Q4 2021: US$33.2
million), at an average realised gold price of US$1,898 per ounce
(Q4 2021: average gold price of US$1,794 per ounce); producing a
positive free cash flow of US$8.2 million (Q4 2021: US$10.1
million).
During Q1 2022, debt repayments of US$12.0 million (Q4 2021:
US$11.8 million) were made. The net Group debt position as at 31
March 2022 was US$94.2 million (Q4 2021: US$98.9 million). Cash
holdings at 31 March 2022 were $0.7million (31 December 2021: $4.7
million).
Mining Operations
Mining production of ore and waste for Q1 2022 was above
forecast at 3.96Mt (Q4 2021: 2.88Mt), with a total of 779Kt of ore
mined in Q1 2022 (Q4 2021: 637kt).
Back-fill of waste into Stage 1 was well underway which allowed
for shorter waste haul distances while Stage 3 development
continues.
Although the removal and resettlement of illegal miners from
Stages 3 and 4 of the Project site is largely complete, full access
to Stage 3 has not yet been achieved. Despite several court orders
in the Company's favour, access to a key area of Stage 3 has not
yet been achieved. This delay has resulted in changes to the
Company mine plan such that higher grade material in Stage 3 is now
not scheduled for mining until Q4 2022.
Process Plant
Throughput for Q1 2022 was 507kt (Q4 2021: 537kt). Gold
production for Q1 2022 was 14,819 ounces at a recovery rate of
89.0% (Q4 2021: 18,435 ounces at a recovery rate of 89.0%). The
lower quarter production was attributable to a lower head grade of
1.02g/t (Q4 2021: 1.15g/t).
A series of power failures on 23 March 2022 contributed to a
failure of the BIOX bacteria culture with the resultant loss of
production for the last week of the quarter. Difficulties were
experienced in re-establishing a stable bacteria culture in BIOX
due to an as yet unknown contaminant that developed in the return
water sources that were being used to feed the BIOX circuit. These
events resulted in the BIOX circuit being down approximately three
weeks.
Further unplanned downtime during the quarter resulted from
tails line failures and conveyor belt and return water line
repairs. A major upgrade to the process plant return water and
cooling systems is underway. Once completed the ability to control
BIOX temperature will be enhanced with further production gains in
BIOX an expected result.
Residual Storage Impoundment ("RSI")
Work has commenced on the final RSI dam-wall raise. D am water
freeboard remains well above design minimum levels. Detailed
planning of the RSI final in-rock spillway is underway.
Occupational Health & Safety
Runruno continues to record an exceptional safety record with
over 16 million hours worked without a reportable injury as at the
date of this announcement.
Environment and Compliance
Compliance matters continue to be successfully monitored, and
the mine remains compliant, with no outstanding material
issues.
Community & Government Relations
In conjunction with relevant government agencies, the Company
continues in its efforts to complete the removal of the few
remaining illegal miners, including their infrastructure and
dwellings, from those areas scheduled to be mined as part of mine
plan Stages 3 and 4.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, which forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal)
Act 2018 (as amended). Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
- END -
-
For further information please visit or contact:
Metals Exploration PLC
Via Tavistock Communications
Limited +44 (0) 207 920 3150
-------------------------
Nominated & Financial STRAND HANSON LIMITED
Adviser:
-------------------------
James Spinney, James
Dance, Rob Patrick +44 (0) 207 409 3494
-------------------------
Financial Adviser & Broker: HANNAM & PARTNERS
-------------------------
Matt Hasson, Franck Nganou +44 (0) 207 907 8500
-------------------------
Public Relations: TAVISTOCK COMMUNICATIONS
LIMITED
-------------------------
Jos Simson, Nick Elwes,
Oliver Lamb +44 (0) 207 920 3150
-------------------------
Web: www.metalsexploration.com
Twitter: @MTLexploration
LinkedIn: Metals Exploration
Competent Person's Statement
Mr Darren Bowden, a director of the Company, a Member of the
Australasian Institute of Mining and Metallurgy and who has been
involved in the mining industry for more than 25 years, has
compiled, read and approved the technical disclosure in this
regulatory announcement in accordance with the AIM Rules - Note for
Mining and Oil & Gas Companies.
Forward Looking Statements
Certain statements relating to the estimated or expected future
production, operating results, cash flows and costs and financial
condition of Metals Explorations, planned work at the Company's
projects and the expected results of such work contained herein are
forward-looking statements which are based on current expectations,
estimates and projections about the potential returns of the Group,
industry and markets in which the Group operates in, the Directors'
beliefs and assumptions made by the Directors . Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by words such as the
following: "expects", "plans", "anticipates", "forecasts",
"believes", "intends", "estimates", "projects", "assumes",
"potential" or variations of such words and similar expressions.
Forward-looking statements also include reference to events or
conditions that will, would, may, could or should occur.
Information concerning exploration results and mineral reserve and
resource estimates may also be deemed to be forward-looking
statements, as it constitutes a prediction of what might be found
to be present when and if a project is actually developed.
These statements are not guarantees of future performance or the
ability to identify and consummate investments and involve certain
risks, uncertainties and assumptions that are difficult to predict,
qualify or quantify. Among the factors that could cause actual
results or projections to differ materially include, without
limitation: uncertainties related to raising sufficient financing
to fund the planned work in a timely manner and on acceptable
terms; changes in planned work resulting from logistical, technical
or other factors; the possibility that results of work will not
fulfil projections/expectations and realize the perceived potential
of the Company's projects; uncertainties involved in the
interpretation of drilling results and other tests and the
estimation of gold reserves and resources; risk of accidents,
equipment breakdowns and labour disputes or other unanticipated
difficulties or interruptions; the possibility of environmental
issues at the Company's projects; the possibility of cost overruns
or unanticipated expenses in work programs; the need to obtain
permits and comply with environmental laws and regulations and
other government requirements; fluctuations in the price of gold
and other risks and uncertainties.
The Company expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward looking
statements contained herein to reflect any change in the Group's
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based
unless required to do so by applicable law or the AIM Rules.
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END
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