Shares of Metals Exploration experienced a significant increase of 10% on Thursday following the announcement of their record-breaking gold production for the second quarter of this year. As a result, the company has raised its full-year guidance, indicating a promising outlook for the Philippines-focused gold miner.
Impressive Gold Production Numbers
Metals Exploration has reported a remarkable half-year gold production of 45,533 ounces, a substantial increase from the 31,348 ounces achieved in the first half of 2022. The gold was recovered from a total of 1.07 million tonnes of ore at a head grade of 1.48g/t. Comparatively, the gold mining operations in the first half of 2022 extracted 1.02 million tonnes with a head grade of 1.09g/t. This demonstrates a notable improvement in production efficiency.
For the second quarter of 2023, Metals Exploration recorded a gold production of 24,235 ounces from 522,000 tonnes of ore, at an impressive head grade of 1.66g/t. In the first quarter of 2023, the company achieved 21,299 ounces from 546,000 tonnes of ore with a head grade of 1.30g/t. These figures further highlight the company’s dedication and success in increasing their gold production.
Mining Production Exceeds Expectations
Metals Exploration’s mining production for the second quarter of 2023 exceeded expectations. The company successfully mined a total of 3.49 million tonnes of ore and waste, surpassing the 2.74 million tonnes mined in the first quarter of 2023. Specifically, in the second quarter, they mined an impressive 566,000 tonnes of ore compared to the 282,000 tonnes mined in the previous quarter. This demonstrates their commitment to maximizing operational efficiency and output.
Strong Gold Sales and Revenue
In terms of gold sales, Metals Exploration saw a significant increase in the first and second quarters of 2023. In the first half of the year, they sold a total of 46,186 ounces of gold, generating an average realized gold price of $1,939 per ounce. This is a substantial improvement compared to the 30,676 ounces sold in the first half of 2022, with an average realized gold price of $1,878 per ounce. Similarly, in the second quarter of 2023, the company sold 24,744 ounces at an average realized gold price of $1,984 per ounce. In comparison, they sold 21,442 ounces in the first quarter of 2023 at an average realized gold price of $1,887 per ounce. These robust sales figures have led to a significant increase in gold revenue.
The company reported gold revenue of $89.6 million for the first half of 2023, a considerable improvement from $57.6 million in the same period last year. Additionally, in the second quarter of 2023 alone, Metals Exploration generated $49.1 million in gold revenue, compared to $40.5 million in the first quarter of 2023. These impressive financial results indicate the overall strength and growth potential of the company.
Strong Cash Flow and Gold Recovery Rates
Metals Exploration has also demonstrated strong free cash flow throughout this period. In the first half of 2023, they achieved a free cash flow of $41.9 million, a substantial increase from $13.6 million in the first half of 2022. Furthermore, in the second quarter of 2023, the company had a free cash flow of $24.1 million, compared to $17.8 million in the first quarter of 2023. This positive cash flow reflects efficient financial management and the company’s profitability.
In addition to their impressive production and financial achievements, Metals Exploration has achieved remarkable gold recovery rates. With a record half-year gold recovery rate of 89.8%, surpassing the 87.7% achieved in the first half of 2022, the company has proven its commitment to optimizing efficiency in the extraction process. Although the gold recovery rate for the second quarter of 2023 slightly decreased to 86.9% compared to the exceptional 93.4% in the first quarter of 2023, the overall recovery rates signify robust operational performance.
Revised Guidance and Positive Market Response
Metals Exploration has provided an updated forecast for gold production and all-in-sustaining costs (AISC) for the entire year of 2023. The revised gold production forecast now stands at a range of 78,000 to 81,000 ounces, a substantial increase from the previous forecast of 68,000 to 72,000 ounces. Furthermore, they have adjusted the AISC forecast to a range of $1,120 to $1,200 per ounce, a decrease from the previous projection of $1,250 to $1,300 per ounce. These revised forecasts highlight the company’s confidence in its future prospects and ability to deliver strong results.
As a result of these positive announcements, shares of Metals Exploration experienced a modest increase of 0.20 pence to reach 2.15 pence at 0803 GMT. This market response reflects investor confidence in the company’s performance and its potential for long-term growth.
In conclusion, Metals Exploration has achieved record-breaking gold production, robust financial results, and impressive recovery rates. With their revised guidance indicating further growth opportunities, the company is well-positioned for success in the future.