Metals Exploration PLC on Wednesday said that 2023 production and revenue had reached record levels, exceeding the company’s previous forecasts for the full year.
The Philippines-focused gold producer recorded annual gold revenue of $166.7 million in 2023, up 34% from $124.4 million in 2022. Record gold sales of 85,744 ounces sold at an average realised price of $1,944 per ounce, up from 69,249 ounces at $1,797 in 2022. This compares to a current gold spot price of $2,032.02.
Full year gold production of 85,194 ounces exceeded the company’s revised upper guidance forecast of 81,000 ounces, with all-in sustaining costs of $1,126 per ounce slightly above full-year lower guidance of $1,120.
Gold revenue was down 18% over the fourth quarter to $34.7 million from $42.4 million.
Annual ore and waste mining production was above forecasts at 12.36 million tonnes, down slightly from 13.72 million tonnes in 2022.
Positive free cash flow more than doubled to $72.3 million in 2023 from $35.7 million a year prior, despite dropping over the fourth quarter to $11.5 million from $19.0 million.
Mezzanine debt repayments of $11.5 million were reduced from $18.5 million in the final quarter, with net debt of $19.9 million as at December 31 down from $30.6 million in September.
In the new year, Metals Exploration announced the acquisition of an ‘extensive exploration tenement’ in the Abra area in the north Philippines. The tenement covers around 16,200 hectares and contains ‘multiple prospective targets in both gold and copper’ according to Chief Executive Officer Darren Bowden.
The company forecasts gold production of between 74,000 and 80,000 for 2024, alongside AISC of between $1,175 to $1,1275 per ounce.
Commenting on the results, Bowden said: ‘This was another very strong quarter for MTL, leading us to achieve record annual gold revenues and production, exceeding the upper production guidance of our revised 2023 forecasts. Throughout the year, we also maintained our excellent safety record while delivering higher gold recovery levels and strong cash flows, which have enabled us to continue to further deleverage the company.’
Shares in Metals Exploration were down 7.9% at 2.72 pence each in London on Wednesday afternoon.
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