15th Jan 2021 10:47
(Alliance News) - Metals Exploration PLC on Friday said it sold a "record" amount of gold in the fourth quarter of 2020 with sales up sharply from the third.
Shares in Metals Exploration were up 9.7% at 2.08 pence in London in morning trading.
The natural resources exploration and development company, which has assets in the Pacific Rim region, sold 20,295 ounces of gold from its Runruno project in the three months ended December 31, up 11% from 18,247 ounces in the same quarter of 2019.
The 20,295 ounce figure was also up 26% from the third quarter and a "record level" for Metals Exploration. This was despite "greater than normal rainfall" due to typhoon Vamco, which hurt mining activities.
The average realised gold price dipped to USD1,869 per ounce in the fourth quarter from USD1,943 per ounce in the third, though was up from USD1,481 in the final quarter of 2019.
The firm achieved a quarter-on-quarter 21% increase in gold sales to USD37.9 million from USD31.3 million and a 40% year-on-year rise from USD27.0 million.
Total gold sales for 2020 came to USD122.1 million from USD94.3 million in 2019. Its sold 68,510 ounces of gold, up from 67,356 ounces in 2019, at an average realised price per ounce of USD1,782, up from USD1,400.
On October 23, Metals Exploration announced the conclusion of a debt restructuring with lenders, with trading in its shares re-commencing October 26. As at December 31, it had total interest-bearing liabilities of around USD128.3 million.
In the fourth quarter of 2020, Metals Exploration made an early USD8 million senior debt repayment and has, since the quarter ended, repaid a further USD7.3 million under the terms its new debt facilities.
If enough cash resources are generated, Metals Exploration may opt to make further early repayments to minimise interest payments.
Metals Exploration reported no lost time for injuries during the period and had only one Covid-19 case reported at its mine site to date. Nonetheless, travel restrictions persist and are hindering the ability of key senior personnel from freely travelling to and from the mine site.
Chief Executive Darren Bowden said: "I am pleased to report our operational update for Q4 2020. This has been a record quarter for the company having achieved a 26% increase in gold ounces sold and USD37.9 million of sales revenue. We are particularly pleased to have achieved this given the ongoing challenges of Covid-19 that all companies are dealing with at this time as well as the impact of the four Typhoons during the quarter which resulted in heavier than anticipated rainfall which impacted mining operations.
"Our focus remains on maintaining our exceptional safety record and Covid testing and management protocols, whilst also looking to continue to build on this operational performance at Runruno for 2021 and beyond."
By Anna Farley; [email protected]
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