Metals Exploration plc’s gold production in the Philippines fell 48% in the first half of 2026 as lower ore grades and recovery rates weighed on output at its Runruno gold mine in Nueva Vizcaya, with mining operations expected to cease in the fourth quarter.
The London-listed mining company produced 21,451 ounces of gold in the six months ended June 30, down from 40,985 ounces a year earlier, according to its interim results released Sept. 29.
Gold recovery at Runruno declined to 80.7% from 91.4% in the same period last year, while the average grade of ore processed fell to 0.87 grams per metric ton from 1.34 grams.
Despite lower production, the company generated $100 million in gold sales revenue, compared with $118.9 million a year earlier, as the average realized gold price rose to $4,677 per ounce from $2,884.
Metals Exploration reported positive free cash flow of $54.7 million from its Philippine operations, down from $70.7 million in the first half of 2025.
Mining operations at Runruno are forecast to end in the fourth quarter of 2026, marking a transition for the company as it seeks to develop new mineral assets in the Philippines and bring its La India gold project in Nicaragua into production.
Batong Buhay project advances
Metals Exploration is expanding its Philippine exploration portfolio through agreements signed in June to develop the Batong Buhay porphyry copper-gold project, about 200 kilometers north of Runruno.
The company has begun preparatory work to determine the design of a drilling campaign expected to start in the fourth quarter of 2026.
The project was previously explored through a 21-hole drilling program in the late 1970s. Its main target, Dickson, has a historical, non-JORC-compliant resource estimate of 86.9 million metric tons grading 0.83% copper equivalent from surface.
Historical drilling at Dickson included an intercept of 160.93 meters grading 0.92% copper and 0.60 grams per metric ton of gold, equivalent to 1.48% copper.
At the Maalinao North prospect, a historical intercept of 198.12 meters grading 1.15% copper and 0.10 grams per metric ton of gold was reported, equivalent to 1.24% copper.
The company cautioned that the historical resource estimate does not comply with the Joint Ore Reserves Committee reporting code.
Metals Exploration is also pursuing the Abra project, although no exploration work was conducted there during the first half as the National Commission on Indigenous Peoples continued consultation activities with affected Indigenous communities.
Runruno maintains safety record
The company said Runruno recorded 3.95 million work hours without a lost-time injury as of June 30, with no such incident reported since March 30, 2025.
Its residual storage impoundment spillway was nearing completion and was designed to handle a maximum probable flood event. Metals Exploration will continue monitoring and maintaining the facility for 10 years after processing operations end at the mine.
The company also released its 2025 sustainability report in April, covering its environmental and community performance in the Philippines.
Group earnings increase
At the group level, Metals Exploration reported revenue of $100 million for the first half, down from $118.9 million a year earlier. However, net profit rose to $22.1 million from $16.5 million, supported by lower costs and other changes in its financial results.
Operating profit increased to $30.2 million from $29.1 million, while earnings before interest, taxes, depreciation, amortization, impairment and share-based payment charges declined to $55.9 million from $72.3 million.
Gold production across the group's operations totaled 21,451 ounces during the period, all from Runruno, as the La India project in Nicaragua remained under construction.
La India was 56% complete at the end of June and 74.4% complete as of the date of the interim report. First gold production remained targeted for December 2026, although commercial production was expected to begin in the first quarter of 2027.
The project's budget increased slightly to about $180 million because of higher logistics costs and new import duties. The company also secured a $27 million equipment loan from a Nicaraguan bank, fully drawn in August and September.
Metals Exploration said its priorities were to maximize remaining value at Runruno, complete La India safely and efficiently, and advance its exploration portfolio in the Philippines and Nicaragua.
