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Metals Exploration PLC on Friday lowered annual production guidance, noting the impact of extreme weather and cyanide contamination on its Philippines business. Its shares slipped 2.5% to 12.18 pence on Friday morning in London, having more than doubled in the past year. The London-based miner operates Runruno, a gold and polybdenum mine near Manila, as well as La India in Nicaragua, which it acquired from former AIM listing Condor Gold PLC back in January. Back in October, Metals Exploration warned that full-year gold production was likely to be at the lower end of guidance, which was set between 70,000 ounces and 75,000 ounces. This followed a six-week processing suspension at Runruno, to deal with cyanide contamination. Metals Exploration now sees full-year production between 65,000 ounces and 70,000 ounces. The company produced 83,897 ounces of gold in 2024, which was 1.5% lower than its output in 2023. It attributed the guidance cut to typhoon damage, ‘combined with further changes to the mine schedule necessitated by the clean-up of the pit areas, and the cyanide contamination.’ This comes after super-typhoon Uwan hit an island near Runruno on Sunday. Metals Exploration noted it was ‘one of several typhoons to recently make landfall in the Philippines, causing significant damage and loss of life.’ The death toll from typhoons in the Philippines over the past two weeks has exceeded 200 people, AFP reported on Tuesday. ‘Uwan was the strongest to pass over the Runruno project site, bringing heavy rainfall and severe winds,’ Metals Exploration said. ‘The resulting damage to the project site included the loss of river crossings, damage to access roads, loss of roofing and subsequent water damage in administration and maintenance buildings, and minor land/mud-slips in the pit area and elsewhere around the project site.’ It maintained that infrastructural damage at Runruno itself was ‘not material’ though it has had to establish alternative ways to access the site, as community infrastructure which was used by the company has been compromised. Generators prevented the loss of Biox bacteria when the site lost main grid power, the firm added. It expects power to return with the next few days, though processing will remain suspended for about seven days. Drilling at the Dupax area is on pause to repair damage, with a restart planned in the next two weeks. The company began mining again on Tuesday. Chief Executive Darren Bowden commented: ‘Our focus for the rest of the year will be on maximising value generation from our mining and processing operations at Runruno, while continuing to provide meaningful support to the local community during this challenging period; as well as progressing the construction at La India in Nicaragua.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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