Metals Exploration
Corporate Presentation
February 2025
1
Introduction to Metals Exploration
AIM-quoted gold producer, producing c. 80,000oz of gold per year at Runruno in the Philippines. Recently completed the acquisition of Condor Gold, as part of its strategy of pursuing M&A and other growth opportunities to replace Runruno as it approaches the end of its life of mine in 2027.
Proven Operator
- Turnaround of Runruno resulted in strong cash generation. Company is now debt-free* and focused on growth opportunities
M&A Activity
- Acquisition of Condor Gold and the La India gold project in Nicaragua - clear development path to production and significant upside potential, replacing cashflow from Runruno
- Acquisition of YMC group in August 2024, acquiring the Abra tenements. Drill ready targets defined and government approval for drilling received
ESG & Health and Safety
- Strong ESG focus in order to create net-positive impact for stakeholders and local communities
- Health and Safety is fundamental. Over 25 million man-hours recorded with no lost time incidents occurring
* MTL is debt free, save for the £5.5m unsecured bridging loan facility secured from Drachs in connection with the Company's offer for Condor Gold.
3
2024 Highlights
Record FY2024 numbers
Focus on growth - acquisition
of Condor Gold and YMC
Group
Debt repaid early in Q1 2024
and now debt free*
Runruno FY2024 production of 83,897 ounces exceeding guidance
Runruno processing plant
fully optimised
- Revenues US$191.1 million
- Positive free cashflow US$96.7 million
Note, unaudited
Safety achievements with 25 million man-hours without a lost time injury
Record 2024 delivering record free cashflow
* MTL is debt free, save for the £5.5m unsecured bridging loan facility secured from Drachs in connection with the Company's offer for Condor Gold.
4
Metals Exploration Growth Strategy
Growth Strategy
3-5yrs
YMC Develop Tier 1
Cu Target 10yrs Manikbel project
Runruno
- Flagship Operation
- Nationally recognised for outstanding community relations
- Debt Free*
- Positive cashflow to fund Condor development
- MTL market Cap £152m as at 27 January 2025
Condor Gold 2-4yrs
- Expansion into Americas
- Target production Au 145koz per annum
- Low Capital Investment (USD 122m)**
- 12+ years of potential mine life**
- Expand resource through exploration targets
- Open Pit and Underground
- NPV (6%): USD882m
- Regional Opportunities (Asia pacific and the Americas)
- Dupax Project
- Repurpose of existing infrastructure
- MTL is debt free, save for the £5.5m unsecured bridging loan facility secured from Drachs in connection with the Company's offer for Condor Gold.
** MTL internal estimate
Creation of a global gold mining champion
2 |
Jurisdictions |
2 |
Core assets |
6
Identified
exploration targets
>70-150kozpa
Continuous cash
flow1
La India
Runruno
>12 years | 1.1Moz |
Combined LoM2 | Reserves |
2.8Moz
Total resource
>5Moz
Exploration
potential
Notes:1Combined Runruno and potential La India production | 6 |
2With potential to extend to >16 years of combined LoM |
Acquisition of
Condor Gold
7
Transaction highlights
✓
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Creation of a geographically diverse >100kozpa gold producer
- The combined company will operate across two continents with two key projects, potentially adding + 145kozpa from La India to >70kozpa from Runruno, with several exploration opportunities already identified
Clear development plan and path to production at La India
- We have identified a clear path to production with work already underway and first gold pour targeted for end of 2026
Proven production with significant development potential
- The combined company has a compelling equity story with a construction ready project which could extend operations for a further 10+ years as La India comes online
Runruno cashflow to fund La India construction
- Cashflow from the remaining LoM of Runruno will be used to fund the construction of the La India project, reducing dilution for current shareholders
Best-in-class operational and management team
- Darren Bowden has successfully delivered the successful turn-around of the Runruno project and has >15 years of experience operating in Latin America
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Acquisition of Condor Gold - Rationale
- Clear development path to production utilising our existing and future cash reserves. Leveraging our proven track record as a mine builder and operator
- La India is fully permitted and construction ready. Construction to start now the deal is complete, targeting to have the project running prior to the finalisation of Runruno
-
Darren Bowden has > 15 years' experience working in
Central/South America and is a fluent Spanish speaker
- Able to quickly assemble a team of experienced individuals; some already on site
- Cash flow used to finance the development of the next production ready asset either in the Philippines or elsewhere
Production target of 145 Koz pa. Aiming to replace cashflow from Runruno as it approaches end of life of mine in 2027
Significant upside potential - >2 Moz of gold outlined, target 5 Moz
Aiming to replace cashflow from Runruno as it approaches end of life of mine 2027
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Condor Gold
- Condor Gold was a dual listed AIM-TSX (AIM:CNR, TSX:COG) silver and gold metals exploration and development company with properties in Nicaragua. Condor had an extensive concession package of 587 sq km, with key assets in the La India Gold Mining District
- Numerous parallel gold structures indicating more than 5 Moz gold district potential
- M&I resource grade of 3.6 g/t Au eq, high by industry standards
- At La India, 80Koz pa gold production under base case with potential to upsize to 145 Koz pa
La India - Strong Economics:
2022 BFS: NPV (6%) @2,500/oz Au of US$338m and IRR of 71%
MTL Internal Study 2025: NPV (6%) @2,500/oz Au of US$882m and IRR of 54%
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