Metals Exploration (MTL) H2 2024 earnings summary

Executive summary

• Achieved record gold revenue of $191.1 million and free cash flow of $96.7 million in FY2024, supported by strong gold prices and operational performance at Runruno.

• Became debt free in June 2024 after full repayment of all external debt, removing previous operational restrictions.

• Completed acquisitions of Condor Gold Plc (La India project, Nicaragua) and YMC Group (Abra tenements, Philippines), expanding into a multi-project company.

• Runruno mine exceeded upper-end production guidance with 83,897 oz gold produced; La India project targeted for first gold pour by end of 2026.

• Received top Philippine government awards for environmental and safety performance for the third consecutive year.

Financial highlights

• Sales revenue rose 14.6% year-over-year to $191.1 million; operating profit increased 83.2% to $53.5 million.

• Adjusted EBITDA up 19.5% to $98.7 million; free cash generated from operations up 33.7% to $96.7 million.

• Net debt reduced by 71.2% to $6.8 million; company is now debt free post year-end.

• Gross profit margin improved to 32.7% (from 22.4% in FY2023); basic EPS at 1.29 cents (down from 5.70 cents due to prior year impairment reversal).

• No dividend recommended for FY2024.

Outlook and guidance

• FY2025 Runruno production guidance: 70,000–75,000 oz at AISC of $1,225–$1,325/oz.

• La India project in Nicaragua targeted for commercial production by end of FY2026, with annual production goal of 145,000 oz in FY2027.

• Continued focus on M&A and exploration to replace Runruno reserves and sustain cash flow.