Metals Exploration (MTL), a London-traded miner with assets in the Pacific Rim region, booked a half-year loss of £12.5m prior to currency effects and has accumulated losses of £48.5m on its profit and loss account. These figures, however, are of secondary importance; financing considerations predominate even as Metals Exploration moves into the ramp-up phase at its Runruno gold/molybdenum mine in the Philippines.
That process is expected to be completed by the end of November, leading on to full commercial production, following a number of costly delays. Nothing unusual there, but the miner was forced to obtain commitments to raise approximately $6.4m (£4.9m) last month, following on from an earlier $5m private placement in July. With just £1.6m in cash on the balance sheet at the June half-year, the funds were needed for working capital as the delays to the project have hindered the ability to meet obligations under the current debt package. Debt restructuring discussions are ongoing with lenders HSBC (HSBA) and BNP Paribas (fr:BNP).
Construction works on part of the project were suspended in 2015 because of water damage caused by Typhoon Lando. Rehabilitation works were completed earlier this year. However, ongoing performance monitoring and conditions attached to lifting of the official suspension order have dragged on, though it is expected to be rescinded by the end of this month.
| METALS EXPLORATION (MTL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 6.13p | MARKET VALUE: | £117m | |
| TOUCH: | 5.8p-6.5p | 12-MONTH HIGH: | 10.1p | LOW: 3.1p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 5.9p | NET DEBT: | 56% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | nil | -1.3 | -0.14 | nil |
| 2016 | nil | -16.3 | -0.75 | nil |
| % change | - | - | - | - |
Ex-div:- Payment:- | ||||
