Metals Exploration: Incremental Q2 production beat, general meeting the short term focus

Metals Exploration (“MTL”) has reported Q2 gold production of 19.5koz from the company’s Runruno mine in the Philippines, at an All-in Sustaining Cost (“AISC”) of US$1,083/oz. This was an incremental beat compared to our expectations of 19.3koz at an AISC of US$1,104/oz. Production is on track to meet guidance and, following the agreement with lenders last month, the company is now debt free with cash of US$6.6m at the period end. The main near term catalyst should be the completion of the off m

Metals Exploration: Settlement with lenders and buyback of RHL shares announced, production tracking well

Metals Exploration (“MTL”), which operates the Runruno gold mine in the Philippines, has released production for April and May, and announced a buyback of the shares held by Runruno Holdings Limited (‘RHL’). The company has also agreed full and final debt settlements with both RHL and MTL Lux, the company’s two largest shareholders, resolving the dispute on what interest rate should have applied. Production of 14.47koz for these months is running ahead of our expectation and MTL is comfortably o

Metals Exploration: Q1 Results - solid production and cost performance

Metals Exploration (“MTL”), which operates the Runruno gold mine in the Philippines, provided a Q1’24 operational update last week. Q1 gold output was 23koz, +20% vs H&Pe and 15% ahead of the rate required to hit the top of FY24 guidance. With three years left at Runruno, mined grades remain strong at 1.35g/t. Key drivers of the beat were ore throughput and recovery rates, coming in at 581kt and 90%, respectively, 14% and 4pp above H&Pe. With the mezzanine debt fully repaid, albeit at a disputed

Metals Exploration: Final mezzanine debt repaid

Metals Exploration (“MTL”), which operates the Runruno gold mine in the Philippines, has announced that it has made the last payment under its mezzanine debt facility with US$2.6m outstanding under its long term facility. We view this as a material positive for MTL, taking the total of principal and interest repaid since 2020 to US$171.3m with the balance sheet now effectively de-geared driven by solid recent operational delivery. The main near term catalysts for the shares should be hitting 202

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Hybridan Small Cap Feast - 18 Mar 24

18th March 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Metals Exploration: Q4 production a solid beat, 2024 guidance above expectation

Metals Exploration (“MTL”) has released Q4 production of 17.6koz (H&Pe 13.5koz) from the company’s Runruno mine in the Philippines. This takes production for the year to 85.1koz compared to guidance of 78koz-81koz (H&Pe 81koz). AISC for 2023 was US$1,126/oz compared to guidance of US$1,120/oz - US$1,200/oz (H&Pe US$1,150/oz). Guidance for 2024 is for production of 74koz-80koz at an AISC of US$1,175/oz-US$1,275/oz compared to our previous expectation of 71koz at an AISC of US$953/oz. Net debt at

Metals Exploration: Early stage exploration acquisition

Metals Exploration (“MTL”) has announced that it has entered into an agreement to acquire a controlling interest in the ‘YMC Group’ that holds exploration tenements in the Abra area of northern Luzon in the Philippines that are prospective for gold and copper. The acquisition cost is US$1.6m in cash and options to subscribe for 41m new shares in the company. We view this as a positive for MTL as, based on the current reserve, the company’s Runruno mine should be depleted in 2027. These early sta

Hybridan Small Cap Feast - 12 Jan 24

12th January 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Metals Exploration: Solid Q3 as de-gearing continues

Metals Exploration (“MTL”) has released a Q3 update from its Runruno mine in the Philippines, with production of 22koz beating our forecast of 16.7koz. This was principally driven by processing higher grade material and the company is well positioned to meet, and with scope to exceed, guidance for the year of 78koz-81koz. Revenue for the Quarter was US$42.4m with gold sales of 22.7koz. This resulted in US$19m of FCF with net debt falling to US$30.6m at the period end. Negotiations around the ele

Metals Exploration: Interims solidify record half year results

Metals Exploration (“MTL”) has released its interim financial results following the record first half of operations that saw >US$30m of operating profit and a net debt reduction of US$44.1m. MTL beat their guidance with first half production of 46koz, 64% of the top of the previous full year guidance, with full year guidance being increased to 78koz-81koz of gold. The strong performance of Runruno came despite the fleet needing to be deployed to develop the residual storage impoundment for part

Metals Exploration: Good quarter driven by grade, guidance hiked

Metals Exploration (MTL) has reported a solid set of Q2 production results from the company’s Runruno mine in the Philippines. Gold production was 24.7koz, above our expectation of 24.2koz and Q1 output of 21.4koz. No lost time injuries were reported during the period. This drove gold sold in H1 to 46.2koz at an average realised gold price of US$1,939/oz. The main driver of improved performance during the quarter was grade: mined grade increased from 1.53g/t to 1.62g/t, with processed grade incr

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Metals Exploration: Solid quarter expected at Runruno

We preview Metals Exploration’s (“MTL”) Q2 production results and interim financial results for H1 2023. Q1 gold output from the company’s Runruno mine in the Philippines was 21.4koz and we expect an increase in Q2 to 24.2koz. This is being driven by an improvement in grade from 1.3g/t to 1.6g/t and with recoveries remaining high at 94%. While the company reported a death at the operation in May, this does not appear to have been an industrial accident and should not have had a material impact o

Zeus Industrials Round-Up - 13 September 2024

The UK industrial sector continues to show promising signs of recovery, with manufacturing PMI reaching a 26-month high of 52.5 in August as all survey indicators but one expanded. Economic data has also been encouraging, with UK pay growth cooling to a two-year low and inflation rising only slightly in July – supporting the case for further interest rate cuts this year by the BoE.

PANMURE LIBERUM: Commodity snapSHOT: Met-Coal’s evolution, illustrated

AUCTUS ON FRIDAY -136/09/2024

AUCTUS PUBLICATIONS ________________________________________ Chariot (CHAR LN)C; Target price £0.40 per share: Anchois-3 encounters gas in the appraisal targets but one of the exploration target is dry – The Anchois-3 well has 3 objectives. While the initial pilot hole encountered the targeted reservoirs at the Anchois Footwall prospect, they were interpreted as water wet. Our ReNAV for this prospect was £0.03/sh. The well was sidetracked in the B sands which are the main appraisal targets. Prel

SP Angel Morning View: Gold hit a new high as investors look towards rate cuts

Arkle Resources* (ARK LN) – Drilling at Stonepark Block Endeavour Mining (EDV LN) – Commercial production at BIOX Expansion and Lafigue Greatland Gold (GGP LN) – Retail offer raises an additional £6.7m Kore Potash* (KP2 LN) – Interims Premier African Minerals (PREM LN) – Update on the Zulu lithium project

THE MONTHLY January 2020

The Office for National Statistics (ONS) is due to publish its most up-to-date survey on share ownership in mid-January, which identifies the beneficial owners and decision- makers of the stock market. Hardman & Co has worked together with the share analysis service, Argus Vickers, to jointly produce its own survey, which anticipates the conclusions of the ONS survey but goes into much greater detail. Our work does not use a sample of 200 quoted companies as the ONS historically has, but rather

Chariot Limited (AIM: CHAR): Anchois-3 encounters gas in the appraisal target but one of the exploration targets is dry

• The Anchois-3 well has 3 objectives. While the initial pilot hole encountered the targeted reservoirs at the Anchois Footwall prospect, they were interpreted as water wet. Our ReNAV for this prospect was £0.03/sh. • The well was sidetracked in the B sands which are the main appraisal targets. Preliminary interpretation indicates the presence of gas in these sands. Our unrisked NAV for the 2C resources is £0.27/sh. We carry 75% probability of development. • Drilling is ongoing towards the deepe

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Gulf Marine Services (GMS LN) - Contract award and increased 2024 guidance

GMS has announced another new contract award, at a higher day rate, alongside an increase in the lower end of the 2024 EBITDA guidance range. This all continues to demonstrate the buoyant nature of the market for the company’s vessels.

DEC Interim results

DEC reported interims that showed stable underlying production, resilient EBITDA margin and strong cash generation.

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Hybridan Small Cap Feast - 12 September 2024

12th September 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: None Delistings: None What’s baking in the oven? Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs research@hybridan.com Banquet Buffet*** Andrad

Morning Note – 10 September 2024

Morning Note – 11 September 2024

6 key reasons to own GGP

Oil & Gas - Cavendish sector note

Chariot, 88 Energy, Afentra, Star Energy, Jadestone Energy, Pantheon Resources, Deltic Energy, Zephyr Energy, Energean, Equinor, Var Energi, TotalEnergies, Eni SpA, Repsol, Woodside Energy Group Source: FactSet, weekly change 22/07/2024-26/07/2024 Oil dipped as algorithmic traders took advantage of market uncertainty, while traders weighed Chinese demand against falling US stockpiles. West Texas Intermediate fell to settle near $77 a barrel, capping the largest weekly decline since the beginning