Metals Exploration PLC on Tuesday said that it is expecting a lower head grade for the rest of the year, as gold revenue fell in the third quarter from the second.

For the three months ended September 30, the Philippines-focused gold producer reported gold revenue of $42.4 million.

This represented a decline from $49.1 million the previous quarter, but an increase from $25.7 million in the same quarter a year prior.

Gold sales amounted to 22,043 ounces, sold at an average realised gold price of $1,926 per ounce.

This compared to 24,744 ounces at an average of $1,984 per ounce the previous quarter, and 14,980 ounces at $1,714 per ounce in the same quarter a year prior.

Gold production came to 22,034 ounces, compared to 24,235 ounces in the second quarter.

Gold was recovered from 483,000 tonnes, at a head grade of 1.60 grams per tonne, compared to 522,000 tonnes, at a head grade of 1.66 grams per tonne in the previous quarter.

Reflecting on its financial status, Metals Exploration said that the elevation of its mezzanine debt to secured status is progressing to execution stage.

However, the firm clarified that uncertainty remained over the interest rate, as well as the date of its application, which will be applied to the outstanding loan in the period prior to completion of the elevation.

For the third quarter, mezzanine debt repayments stood at $18.5 million, reduced from $20.7 million the previous quarter.

‘This has been another very strong operational quarter at Runruno with mining production above forecast with excellent gold recovery in our processing operations,’ said Chief Executive Officer Darren Bowden.

‘Although a lower head grade is expected in the remaining quarter of the year we look forward to a strong finish to the year; whilst maintaining focus on our exceptional health and safety standards.’

Metals Exploration shares were trading 7.1% lower at 1.95 pence each in London on Tuesday morning.

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