LONDON (ShareCast) - (Sharecast News) - Metals Exploration reported record free cash flow for the first half on Thursday, as higher gold prices offset a slight dip in production, although it warned of full-year production at the lower end of its guidance range.
For the six months ended 30 June, the AIM-traded miner generated free cash flow of $70.7m, up from $46.4m a year earlier.

Earnings before interest, tax, depreciation and other charges rose to $72.3m from $47.2m.

Gold production at the Runruno project in the Philippines slipped to 40,985 ounces from 42,535 ounces, though recoveries improved to 91.4% from 89.6%.

Sales totalled 41,240 ounces at an average realised price of $2,884 per ounce, lifting revenues to $118.9m from $91.1m.

The group said it remained debt free after repaying a shareholder loan during the period.

"The first half of 2025 was a hugely successful period in which we achieved record free cashflow and strong revenues from our operations at Runruno and continued to execute our strategy of becoming a multi-project company following the completion of the acquisition of Condor Gold targeting first production at the La India gold project by the fourth quarter of 2026," said chief executive Darren Bowden.

At La India, the company had started construction and awarded the majority of contracts required to complete development.

It also purchased and shipped the Rock Creek gold ore processing plant to Nicaragua, a move Bowden said would "fast track project development, saving considerable development time".

Drilling and bulk earthworks were already underway, with a minimum 40,000-metre programme planned over the next five years to expand resources beyond the existing 2.2 million ounces outlined.

Exploration efforts were also advancing in the Philippines, where the group had started geophysical surveys and drilling at the newly licensed Dupax project, 20 kilometres from Runruno.

Early work was also planned for its Abra copper-gold targets, with drilling expected to start in early 2026.

The firm reiterated guidance of 70,000 to 75,000 ounces of gold production for 2025, albeit now likely towards the lower end of the range following a six-week pause in processing caused by cyanide contamination linked to illegal mining activity.

Bowden said Metals Exploration remains focused on expanding its production base and building long-term value through both its Philippine and Nicaraguan assets.

At 1248 BST, shares in Metals Exploration were down 3.57% at 12.44p.

Reporting by Josh White for Sharecast.com.

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