LONDON (Alliance News) - Metals Exploration PLC on Thursday said revenue rose in 2018 on increased gold production from its Runruno project in the Philippines, but its loss widened dramatically as it took a big impairment on the underperforming project.
Metals Exploration was trading 8.0% lower on Thursday at 0.69 pence a share.
The natural resources exploration and development company said revenue in 2018 rose to USD61.4 million from USD45.0 million reported in 2017, as gold production increased to 48,053 ounces from 44,172 ounces.
Metals Exploration's pretax loss widened sharply to USD177.9 million from USD17.9 million reported a year earlier, as it recorded a GBP179.8 million impairment in 2018 for Runruno.
Overall gold recoveries from processing operations at Runruno during 2018 were 57.9%, representing a 20% increase on 2017, but below the feasibility forecast of 91%.
The lower-than-design recovery from Runruno has hurt the overall cash position of the company, it explained.
"Significant effort is being put into the various studies that are underway with the ultimate objective of improving the cash flow generated by the Runruno operation," the company said in its statement Thursday.
Metals Exploration recorded a USD33.4 million foreign exchange gain in 2018, up from USD1.1 million the year prior, due to the change in presentational currency from sterling to dollar.