Metals Exploration reports solid first quarter
By Josh White
Date: Wednesday 23 Apr 2025
(Sharecast News) - Metals Exploration reported a solid operational and financial performance in the first quarter of 2025 on Wednesday, with free cash flow rising to $23.5m, up from $22.5m in the prior quarter.
The AIM-traded company also finalised its acquisition of Condor Gold in January, expanding its footprint into Nicaragua alongside existing operations in the Philippines.
Gold sales for the quarter totalled 18,219 ounces at an average realised price of $2,661 per ounce, generating revenue of $48.4m.
Production rose to 20,992 ounces, up from 18,829 ounces in the fourth quarter of 2024, supported by higher ore volumes and grades.
A total of 537,000 tonnes were processed during the quarter at a head grade of 1.34 grams per tonne, with a gold recovery rate of 90.7%.
All-in sustaining costs rose slightly to $1,303 per ounce, from $1,289.
Mining activity also increased, with total material moved reaching 2.90 million tonnes and ore mined rising to 503,000 tonnes, up from 284,000 tonnes in the fourth quarter.
The quarter marked the end of a long safety record, with the first lost time injury since December 2016 occurring in late March.
In Nicaragua, the group made rapid progress at the La India project following the Condor Gold acquisition.
Key management positions were filled, a second-hand processing plant was acquired, and engineering and construction partners were appointed.
An exploration programme had been developed, with drilling expected to begin in the second quarter.
In the Philippines, exploration activity continued at the Dupax project, with geophysics set to start in April, while drilling at the Abra project was postponed to the third quarter.
Metals Exploration also repaid a £5.5m short-term bridging loan through the transfer of ordinary shares from treasury.
The company said it remained well-capitalised and focused on advancing both its operational and development portfolios.
"I am pleased to report a successful start to 2025, with the completion of the acquisition of Condor Gold in January, marking the beginning of an exciting new development for the company," said chief executive officer Darren Bowden.
"We have had a busy Q1 following completion, which included the recruitment of our Nicaraguan in-country management team, the design of a gold resource extension and verification drill programme, and the purchase of a fit for purpose gold ore processing and concentrating plant.
"This puts us in a good position to reach first gold pour at the end of 2026, as we recently re-affirmed."
Bowden said the company had a strong quarter financially, with positive free cash flow and gold revenue up on the fourth quarter.
"There was also an increase in our processing operations compared to the previous quarter, with gold production of 20,992 ounces in the first quarter of 2025.
"This was an excellent start to the year, and we hope to continue with this strong performance as the year goes on.
"Unfortunately, one of our colleagues at Runruno suffered an injury at the end of March and is undergoing medical care in Manilla."
Darren Bowden said the company was investigating how the incident occurred, and would support him during his recovery.
"Safety of our employees is our number one priority, and we are saddened by this news."
At 0920 BST, shares in Metals Exploration were down 5.2% at 7.11p.
Reporting by Josh White for Sharecast.com.
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