LONDON (ShareCast) - (Sharecast News) - Philippines gold producer Metals Exploration reported 14,980 ounces of gold sold in its third quarter on Friday, at an average realised price of $1,714 per ounce, compared to 14,992 ounces at an average realised price of $1,858 per ounce in the second quarter.
The AIM-traded firm said gold sales totalled $25.7m in the period, down from $27.8m in the second quarter, while positive free cash flow slipped to $4.2m from $5.4m.

Senior debt repaid during the quarter totalled $3.5m, down from $5m, while senior debt outstanding as at 30 September was $4.7m, which was expected to be fully repaid in the fourth quarter, and was down from $8.1m on 30 June.

Net debt as at 30 September came in at $92.4m, compared to $92.9m three months earlier.

Looking at its mining, Metals Exploration reported no lost time injuries during the period, with more than 17.6 million hours worked without a reportable injury.

Mining production of ore and waste for the third quarter was above forecast at 3.64 million tonnes, up from the second quarter's three million tonnes, with a total of 380,000 tonnes of ore mined, down from 510,000 tonnes quarter-on-quarter.

On the processing front, gold recovered during the third quarter totalled 15,715 ounces, down from 16,529 ounces in the second quarter, from a head grade of 1.26 grams per tonne, up from 1.18 grams per tonne.

The head grade for the fourth quarter was expected to average 1.44 grams of gold per tonne.

Gold recovery for the third quarter was 84.8%, the board added, down from 86.6% in the second three months of the year.

Full-year production was currently expected to be at or slightly below the lower range of guidance, which was for between 67,000 and 71,000 ounces.

Metals Exploration said production was negatively impacted by delayed access to higher grade material in stage three, BIOX instability due to numerous transmission line power outages, and a higher sulphur content than forecast in the processed ore.

"Runruno has continued to perform well during the quarter from an operational and safety point of view, despite transmission line power outages which have impacted the stability of the BIOX," said chief executive officer Darren Bowden.

"These power outages combined with the delayed access to higher grade material in stage three, and a higher sulphur content than forecast have all impacted our 2022 guidance.

"Notwithstanding the above, the plant is operating well and gold production in the fourth quarter is expected to be the best quarter result for this year."

Bowden said there was a "major upgrade" continuing to the process plant return water, cooling systems and tailings line pumps, which the firm believed would benefit the future performance of the plant.

"In addition to this, we are on track to repay our senior debt in this coming quarter which will considerably strengthen our financial position, not least through a significant reduction in the interest rate on the remaining debt."

Reporting by Josh White at Sharecast.com.

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