Quarterly Update to 30 June 2024
No summary for this filing – the full text is below.
Select text to share a quote on X · sign in to keep highlights & notes in your MTL notes
Ø Agreement, subject to shareholder approval, for the Company to complete an off-market buy back of Runruno Holdings Limited's ("RHL") 18.6% shareholding.
Ø Company debt free following resolution of all debt disputes.
Ø Production fee agreement with RHL which will result in the termination of the Revolving Credit Facility, with no termination fee payable.
Finance
Ø Q2 2024 gold revenue of US$46.7 million (Q1 2024: US$44.4 million).
Ø Q2 2024 gold sales of 20,124 ounces sold at an average realised gold price of US$2,320 per ounce (Q1 2024: 21,465 ounces at an average US$2,069 per ounce).
Ø Q2 2024 positive free cash flow of US$24.8 million (Q1 2024: US$21.6 million).
Ø H1 2024 AISC of US$1,066 per oz (H1 2023: US$1,110 per oz) - below the lower 2024 full year production guidance estimate of US$1,175 per oz.
Mining Operations
Ø Q2 2024 mining production of ore and waste was below forecast at 2.71Mt (Q1 2024: 3.31Mt), with a total of 516Kt of ore mined in Q2 2024 (Q1 2024: 678Kt).
Processing Operations
Ø Q2 2024 gold production of 19,529 ounces (Q1 2024: 23,006 ounces) recovered from 518Kt at a head grade of 1.31g/t (Q1 2024: 581Kt at a head grade of 1.35g/t).
Ø Q2 2024 gold recovery of 89.1% (Q1 2024: 90.0%).
Darren Bowden, CEO of Metals Exploration, commented:
"This has been another excellent quarter for the Company, and we have continued to see a strong performance at Runruno across our key metrics; with excellent gold sales, resulting in strong revenues and positive free cash flow.
"We were also delighted to become debt free during the quarter as well as reach agreement on proposals to acquire 100% of RHL's 18.6% shareholding. These are both highly significant events for the Company, and greatly strengthen our balance sheet, whilst removing any operational restrictions that have previously been placed on the team.
"The second half of the year promises more of the same as the gold price continues to remain robust. We can now look to utilise our strong balance sheet to deliver our growth strategy of appropriate acquisition opportunities with the objective to ensure ongoing future production and cash flow. This is an exciting time for the Company, and we look forward updating shareholders on our progress in due course."
Production and Finance Summary
| Runruno Project Report | Quarter | Quarter | FY 2024 | FY 2023 | |
|---|---|---|---|---|---|
| FY 2024 | Actual | Actual | Actual | Actual | |
| PHYSICALS | Units | Q2 2024 | Q2 2023 | 6 Months | 6 Months |
| Mining | |||||
| Ore Mined | Tonnes | 516,094 | 565,767 | 1,172,930 | 848,023 |
| Waste Mined | Tonnes | 2,197,984 | 2,928,776 | 4,849,036 | 5,385,929 |
| Total Mined | Tonnes | 2,714,078 | 3,494,543 | 6,021,966 | 6,233,952 |
| Au Grade Mined | g/tonne | 1.39 | 1.62 | 1.37 | 1.59 |
| Strip Ratio | 4.18 | 5.01 | 4.07 | 6.08 | |
| Processing | |||||
| Ore Milled | Tonnes | 518,440 | 522,307 | 1,099,159 | 1,068,391 |
| Au Grade | g/tonne | 1.31 | 1.66 | 1.34 | 1.48 |
| S 2 Grade | % | 1.28 | 1.55 | 1.35 | 1.41 |
| Au Milled (contained) | Ounces | 21,915 | 27,894 | 47,489 | 50,701 |
| Recovery | % | 89.1 | 86.9 | 89.6 | 89.8 |
| Au Recovered/Poured | Ounces | 19,529 | 24,235 | 42,535 | 45,533 |
| Sales | |||||
| Au Sold | Ounces | 20,124 | 24,744 | 41,589 | 46,186 |
| Au Price | US$/oz | 2,320 | 1,984 | 2,190 | 1,939 |
| FINANCIALS (Unaudited) | |||||
| Revenue | |||||
| Gold Sales | (US$000's) | 46,684 | 49,093 | 91,085 | 89,552 |
| Operating Costs - Summary | |||||
| Mining | (US$000's) | 4,449 | 5,223 | 9,609 | 10,466 |
| Processing | (US$000's) | 8,413 | 8,580 | 17,549 | 17,813 |
| G&A | (US$000's) | 2,699 | 2,950 | 5,649 | 5,901 |
| Total Operating Costs | (US$000's) | 15,561 | 16,753 | 32,807 | 34,181 |
| Excise Duty | (US$000's) | 1,872 | 1,975 | 3,646 | 3,610 |
| UK/Philippine G&A | (US$000's) | 3,100 | 2,980 | 4,771 | 4,661 |
| Total Direct Production Costs | (US$000's) | 20,533 | 21,708 | 41,225 | 42,452 |
| Net Cash Income | (US$000's) | 26,151 | 27,385 | 49,861 | 47,100 |
| Total Capital Costs | (US$000's) | 1,363 | 3,334 | 3,506 | 5,206 |
| Total non-cash costs | (US$000's) | 13,183 | 7,512 | 27,417 | 15,364 |
| Free Cashflow | ( US$000's) | 24,787 | 24,051 | 46,355 | 41,894 |
| Cash Cost / oz Sold - C1 | US$/oz | 768 | 723 | 780 | 818 |
| Cash Cost / oz Sold - AISC | US$/oz | 1,083 | 1,058 | 1,066 | 1,110 |
Note: AISC includes all UK Corporate costs.
RHL's 18.6% shareholding buy-back
During the quarter, the Company announced a proposal to acquire 100% of RHL's 18.6% shareholding in the Company, being 393,513,302 ordinary shares, as part of a wider full and final settlement with RHL in relation to various finance agreements and other matters.
The transaction is subject to, inter alia, the requisite shareholder approvals being granted, as detailed in the Company's announcement of 20 June 2024. It is anticipated that a general meeting of shareholders to seek shareholder approval of this off-market buy-back, amongst other matters, will be held in August 2024. Further announcements will be made in due course.
Once approved, these proposals will ensure that the Company is no longer subject to operational restrictions imposed upon it under the relevant finance agreements. This will enable the Company to focus on its growth strategy utilising its strong, debt free, balance sheet and the free cash being delivered from Runruno to evaluate further appropriate acquisition opportunities with the objective to ensure ongoing future production and cash flow for the Company and its shareholders. For further details please refer to the Company's announcement of 20 June 2024.
Abra Project Acquisition
During Q1 2024, the Company announced the proposed acquisition of an extensive exploration tenement in the prospective Abra area of the Philippines, covering 16,200 hectares, which is approximately 200km north of the Company's Runruno mine. Approval of this acquisition will be sought at the general meeting expected to be held in August 2024. For further details on the proposed acquisition, please refer to the Company's announcement of 12 January 2024. The acquisition is in line with the Company's strategy to grow the Company within the Philippines and ultimately the broader region, leveraging the Company's established in-country knowledge, experience, and strong technical team.
Runruno Operations
Q2 2024 operations produced another strong quarter result for the Company with gold sales of US$46.7 million (Q1 2024: US$44.4 million), at an average realised gold price of US$2,320 per ounce (Q1 2024: average gold price of US$2,069 per ounce); producing a positive free cash flow of US$24.8 million (Q1 2024: US$21.6 million).
Finance
During Q2 2024, the Company resolved all debt related disputes and after paying the final principal/interest and an agreed amount for appropriate lender related legal fees, the Group can confirm that it is debt free.
The Company's cash holdings at 30 June 2024 were US$6.6 million (31 March 2024: US$1.1 million).
Mining Operations
Mining production of ore and waste for Q2 2024 was affected by inclement weather, while ore production was restricted due to ROM pad limitations. Total production of ore and waste was below forecast at 2.71Mt (Q1 2024: 3.31Mt), with a total of 516Kt of ore mined in Q2 2024 (Q1 2024: 678kt).
Process Plant
During Q2 2024 most aspects of the process plant performed adequately with a high average recovery rate of 89.1% (Q1 2024: 90.0%).
Gold produced during Q2 2024 was 19,529 ounces (Q1 2024: 23,006 ounces) from ore milled in Q2 2024 of 518Kt (Q1 2024: 581Kt).
Planned downtime included scheduled maintenance to the semi-autogenous grinding ("SAG") mill girth gear. Unplanned downtime consisted mainly of power interruptions, pump changeovers as well as repairs to the return discharge line ("RDL") and final tails line, conveyor belts, rollers and trommel panel screens.
Residual Storage Impoundment ("RSI")
The RSI dam-wall is at its final height and the dam water freeboard remains well above design minimum levels. Construction of the RSI final in-rock spillway continues.
Occupational Health & Safety
Environment & Compliance
Community & Government Relations
The Company continues to receive strong support from local communities and government agencies.
-
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.