Metals Exploration Shares Rise on Record 2Q Gold Production; Guidance Raise — Commodity Comment

Shares of Metals Exploration rose 10% on Thursday after the company saw record gold production for the second quarter of the year and raised its full-year guidance. Here’s what the Philippines-focused gold miner had to say:

On gold production:
“Record half-year gold production of 45,533 ounces (1H 2022: 31,348 ounces) recovered from 1.07Mt at a head grade of 1.48g/t (1H 2022: 1.02Mt at a head grade of 1.09g/t).”

“2Q 2023 gold production of 24,235 ounces (1Q 2023: 21,299 ounces) recovered from 522Kt at a head grade of 1.66g/t (1Q 2023: 546Kt at a head grade of 1.30g/t).”
On mining production:
“Mining production of ore and waste was above forecast at 3.49Mt (1Q 2023: 2.74Mt), with a total of 566Kt of ore mined in 2Q 2023 (1Q 2023: 282Kt).”
On gold sales:
“1H 2023 – 46,186 ounces sold at an average realized gold price of $1,939 per ounce (1H 2022: 30,676 ounces at an average $1,878 per ounce).”
“2Q 2023 – 24,744 ounces sold at an average realized gold price of $1,984 per ounce (1Q 2023: 21,442 ounces at an average $1,887 per ounce).”
On gold revenue:
“1H 2023 – $89.6 million (1H 2022: $57.6 million); 2Q 2023 – $49.1 million (1Q 2023: $40.5 million).”
On free cash flow:
“1H 2023 – $41.9 million (1H 2022: $13.6 million); 2Q 2023 – $24.1 million (1Q 2023: $17.8 million).”
On gold recovery:
“Record half-year gold recovery of 89.8% (1H 2022: 87.7%); 2Q 2023 gold recovery of 86.9% (1Q 2023: 93.4%).”
On guidance:
“FY2023 updated gold production forecast: 78,000 – 81,000 ounces (previous guidance: 68,000 – 72,000 ounces).”
“FY 2023 updated AISC forecast: $1,120-$1,200 per ounce (previous guidance: $1,250-$1,300 per ounce).”
Shares at 0803 GMT were up 0.20 pence at 2.15 pence.
Write to Ian Walker at ian.walker@wsj.com