19th May 2025 12:10
(Alliance News) - Metals Exploration PLC on Monday said revenue increased in 2024 amid higher gold prices, although pretax profit fell due to an impairment loss.
The Philippines and Nicaragua-focused gold producer, explorer and developer said revenue increased 15% to USD191.1 million in 2024 from USD166.7 million a year prior.
Pretax profit fell 71% to USD34.6 million from USD119.6 million, as the firm swung to an impairment loss of USD9.1 million from a USD97.7 million gain a year ago.
The provision for loss on derivatives also multiplied to USD6.5 million from USD29,759.
Excluding these costs, however, operating profit increased 83% to USD53.5 million from USD29.2 million in 2023.
Metals exploration said gold production fell 1.5% to 83,897 ounces from 85,194 ounces in 2023. Average gold recovery improved to 90.5% from 88.7%.
The all-in-sustaining-cost of gold increased 0.8%, to USD1,135 per ounce from USD1,126 per ounce. This was above AISC guidance of USD1,125 per ounce.
The rising price of the yellow metal resulted in an average sales price of USD2,312 per ounce, up 19% from USD1,944 per ounce in 2023.
The board did not declare a dividend for 2024, unchanged from the prior year.
Looking ahead, Metals Exploration said 2025 production guidance for the Runruno mine has been set at between 70,000 and 75,000 ounces, with an AISC between USD1,225 and USD1,325 per ounce.
The mine produced 83,897 ounces of gold in 2024.
It expects "general operational results" in 2025 to be steady, so free cash flow is maintained from a stable consistent level of mining and gold production.
The firm said it plans to actively pursue development of the La India project in Nicaragua, with the aim to start commercial production by the end of 2026.
"We are in an excellent position to capitalise on the historic record gold price environment. This will support the company's desire to generate large amounts of free cashflow to fund the development of La India and exploration programmes at Abra and Dupax, whilst minimising shareholder dilution," said Non-Executive Chair Steven Smith.
Metals Exploration shares were 3.3% higher at 7.85 pence in London early on Monday afternoon.
By Michael Hennessey, Alliance News reporter
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