METALS EXPLORATION PLC METALS EXPLORATION PLC
Registered Number 05098945
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Contents | |
PRODUCTION AND FINANCIAL HIGHLIGHTS…………………………………………………………………………….2 | |
CHIEF EXECUTIVE OFFICER'S REPORT | 5 |
AUDIT COMMITTEE REPORT | 11 |
REMUNERATION COMMITTEE REPORT | 14 |
SUSTAINABILITY REPORT | 19 |
CORPORATE GOVERNANCE STATEMENT | 23 |
DIRECTORS' REPORT | 27 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES | 36 |
INDEPENDENT AUDITOR'S REPORT | 37 |
CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME | 44 |
CONSOLIDATED BALANCE SHEET | 45 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | 46 |
CONSOLIDATED CASH FLOW STATEMENT | 48 |
COMPANY BALANCE SHEET | 49 |
COMPANY STATEMENT OF CHANGES IN EQUITY | 50 |
COMPANY CASH FLOW STATEMENT | 51 |
NOTES TO THE FINANCIAL STATEMENTS | 52 |
METALS EXPLORATION PLC
ABOUT METALS EXPLORATION
Philippine Gold Producer
Metals Exploration plc ("Metals Exploration", the "Company", or the "Group") is a Philippines focused gold producer operating the Runruno gold and molybdenum mine 250 kilometres north of Manila in the mineral rich Nueva Viscaya province.
Group vision & mission statement
The Group's vision is to be the most admired gold producer in the Philippines. Our mission is to enhance the lives of our people and local communities through the responsible management of our natural resources, to build a multi-project business and to deliver performance that stakeholders can be proud of.
Well-defined values embedded into the business processes and structures along with consistent leadership actions and behaviors provide the foundation for corporate culture and its subsequent success. As a responsible mining company, we ensure that our Company's core values reverberate across all aspects of our business and represent the way we do business.
Corporate information | |||
Directors | D.C. Cather | (Independent Non-Executive Chairman) | |
D.P. Bowden | (Chief Executive Officer and Executive Director) | ||
A.H. Chubb | (Non-Executive Director) | ||
T.J. Livesey | (Independent Non-Executive Director) | ||
S.M. Smith | (Non-Executive Director) | ||
G.R. Walker | (Non-Executive Director) | ||
Company Secretary | MSP Corporate Services Limited | ||
Registered office | 38 - 43 Lincoln's Inn Fields | ||
London WC2A 3PE | |||
Auditors | CLA Evelyn Partners Limited | ||
45 Gresham Street | |||
London EC2V 7BG | |||
Nominated & Financial Adviser | Strand Hanson Limited | ||
26 Mount Row | |||
London W1K 3SQ | |||
Broker & Financial Adviser | H&P Advisory Ltd, trading as | ||
Hannam & Partners | |||
3rd Floor, 7-10 Chandos Street | |||
London W1G 9DQ | |||
Solicitors | Armstrong Teasdale LLP | Squire Patton Boggs | |
38 - 43 Lincoln's Inn Fields | 2 & A Half Devonshire Square | ||
London WC2A 3PE | London EC2M 4UJ | ||
Registrars | Share Registrars Limited | ||
3 The Millennium Centre, Crosby Way | |||
Farnham Surrey GU9 7XX | |||
Company's registered number | 05098945 |
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METALS EXPLORATION PLC
PRODUCTION AND FINANCIAL HIGHLIGHTS
FY2022 | FY2021 | % CHANGE |
GOLD PRODUCTION (ounces) | ||
72,537 ozs | 73,206 ozs | Down 1% |
AVERAGE GOLD RECOVERY (% of head | ||
grade) | ||
85.7% | 84.5% | Up 1.4% |
LOST TIME INJURIES | ||
NIL | NIL | Nil - no lost time injuries |
SALES REVENUE (US$ MILLIONS) | ||
$124.4 | $129.8 | Down 4.2% |
OPERATING PROFIT (US$ MILLIONS) | ||
$23.8 | $29.4 | Down 19.0% |
PROFIT BEFORE TAX (US$ MILLIONS) | ||
$8.7 | $11.3 | Down 23.0% |
FREE CASH GENERATED FROM OPERATIONS | ||
(US$ MILLIONS) | ||
$38.2 | $46.5 | Down 17.8% |
NET DEBT (US$ MILLIONS) | ||
$81.1 | $98.9 | Down 18% |
TOTAL DEBT REPAYMENTS (US$ MILLIONS) | ||
$33.8 | $39.7 | Down 14.9% |
TOTAL GOVERNMENT TAXES & FEES (US$ | ||
MILLIONS) | ||
$13.9 | $12.3 | Up 13.0% |
TOTAL COMMUNITY PROGRAM | ||
EXPENDITURE (US$ MILLIONS) | ||
$3.6 | $1.9 | Up 89.5% |
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METALS EXPLORATION PLC
CHAIRMAN'S REPORT
Dear Shareholder,
The period under review has seen Metals Exploration continue to make excellent operational progress despite a number of challenges which impacted the operating profit for the year. As Chairman, I am delighted to announce that the Company ended FY2022 exceeding its guidance for gold production and at an All-In-Sustaining-Cost(AISC) of US$1,235 per ounce, below the FY2022 AISC guidance of between US$1,275 to US$1,325 per ounce. This was an outstanding achievement by the team and a testament to the continued high standards that they strive to achieve.
Earlier in FY2022, the Philippines Government relaxed its Covid restrictions which facilitated international travel. I was therefore able to visit Runruno and our office in Manila for the first time since my appointment in April 2021. In this vein, although Covid remains an ongoing health issue, its impact on the workforce and operation is negligible, though the after effects of the pandemic continue to have some impact on the mine's supply chains.
As for my initial impressions of the operation when I visited in May 2022, I could not have been more impressed by the positive "buzz" there was on site amongst all the employees and management. It was clearly a high performing, high morale site. That is testament to the CEO and General Manager's leadership. One also could not fail to be impressed by the exemplary housekeeping which to me is a proxy for good management, including management of safety and care for the environment and local communities.
We were also delighted that this commitment, as well as the Company's continued focus on safety and the communities where we operate, has been recognised by the Government. As a Company, we were very pleased to receive the highest government mining award attainable in the Philippines, the Presidential Mineral Industry Environmental Award (PMIEA) in the Surface Mining Category. In addition to this, the Company was also named Runner-up for the award for Safest Surface Mining Operation Award and third runner up in the Best Mining Forest Contest - Metallic Category. These awards are recognition of the team's continued achievements and of their outstanding levels of dedication, initiative and innovation in the pursuit of excellence in environmental protection, health and safety management and social/community development.
As a mining company, safety as a mindset and in particular, the safety of our team, remains at the forefront of everything we do. In this respect, we are delighted to be able to report an exceptional safety record. At the time of publishing this report, the Group has achieved in excess of 19 million man-hours with no lost time incidents occurring. An outstanding achievement for any mining company; and something the team is incredibly proud of, and are dedicated to ensure that this record continues into the year ahead.
Our community programmes remain at the heart of what we do and each year the Group sets aside 1.5% of direct mining and processing costs to be applied in its Social Development and Management Program ("SDMP") projects; designed to benefit the local communities. Last year working with the local communities, we invested US$3.6 million in a number of areas including, but not limited to, health, education, and infrastructure development.
We do not intend to rest "on our laurels" in these respects. We will continue to ensure that we operate to the highest standards and actively promote responsible mining practices to reduce the potential environmental impacts of our operations and enhance the environmental performance in mined-out and disturbed areas; whilst continuing to work with our local communities to deliver our extensive community and environmental programmes targeted to their requirements.
The focus at Runruno for FY2022 was on improving plant performance and operational reliability, thereby underpinning strong cash flows for the Company. This has helped us accelerate the repayment of our debt.
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Metals Exploration plc published this content on 16 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2023 06:09:04 UTC.
