LONDON (ShareCast) - (Sharecast News) - Metals Exploration said in an update on Monday that normal operations have resumed at its Runruno gold project in the Philippines following a temporary halt in processing caused by cyanide contamination earlier in the quarter.
The AIM-traded company maintained its full-year production forecast despite weaker third-quarter output and revenue.

Gold production for the three months ended 30 September fell to 9,145 ounces from 19,993 ounces in the previous quarter, while sales dropped to 8,833 ounces at an average realised price of $2,889 per ounce.

Metals Exploration said gold revenue declined to $25.5m from $70.5m, and pre-tax free cash flow was $4.5m, compared with $47.2m in the second quarter.

All-in sustaining costs rose to $1,923 per ounce, reflecting reduced output during the processing pause.

Chief executive Darren Bowden said the company's operations team acted quickly to address the contamination issue, with processing now fully restored.

"This has been a challenging auarter at Runruno due to the pause in gold processing operations, but I am pleased with the work of our operational team to quickly identify the cause of the issue and implement new process monitoring and production procedures," he said.

"Processing operations have now resumed as normal, and no change to the company's 2025 production guidance is required."

Development at the company's La India gold project in Nicaragua progressed ahead of schedule during the quarter.

The Rock Creek process plant was delivered to site in August, and construction of related infrastructure, including bulk earthworks, mine camp and fuel storage facilities, was said to be advancing as planned.

Metals Exploration said it remained on track to begin gold production at La India in the fourth quarter of 2026.

Exploration activity also advanced at the newly awarded Dupax tenement in the Philippines, covering around 3,100 hectares near Runruno.

An induced polarisation survey was completed, and a 2,500-metre drill programme is now under way, with results expected in due course.

Bowden said the company expects a stronger performance in the fourth quarter.

"Now that processing operations at Runruno are back to normal, we look forward to a more positive fourth quarter where we can continue to capitalise on the operational excellence of our team amongst the backdrop of the favourable high gold price environment," he said.

At 1528 BST, shares in Metals Exploration were down 1.87% at 13.64p.

Reporting by Josh White for Sharecast.com.

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