Philippines miner Metals Exploration posts record free cashflow despite production issues
Aim-listed Metals Exploration has achieved record gold revenue of $208-million and record free cashflow of $115-million in the year ended December 31, 2025, despite reporting lower production.
The company produced 65 287 oz of gold from the Runruno gold mine, in the Philippines, at an average recovery rate of 88.4%. This compares to 83 897 oz produced in the prior financial year at a recovery rate of 90.5%, marking a 22% change in output and 2.3% change in the average gold recovery rate.
Chairperson Steven Smith attributes the lower production to delays caused by a cyanide contamination issue during the third quarter and the impact of the Uwan typhoon in the fourth quarter.
In fact, Metals Exploration revised its full-year gold production guidance to between 40 000 oz and 48 000 oz this year to reflect circuit disruption challenge, coupled with a geological model downgrade after grade control drilling and the impact of historical illegal small-scale mining activity on recoverable ounces.
Meanwhile, in the year under review, the company reported a 15% year-on-year increase in operating profit to $61.6-million, compared with an operating profit of $53.5-million in the prior year.
Adjusted earnings before interest, taxes, depreciation and amortisation increased by 19.2% year-on-year to $125-million in the 2025 financial year.
Notably, the company has reduced its net debt from $6.8-million in the prior year, to nil in the reporting year.
This while Metals Exploration has advanced the La India project construction, in Nicaragua, to 50% completion as of May 22, with first production expected in December this year. Metals Exploration has managed to fund the construction and development of La India entirely using free cash flow generated from Runruno.
The company also continues to explore the La India prospect to delineate upside potential.
