Metals Exploration (LSE:MTL) said construction at its La India gold project in Nicaragua has progressed faster than planned, reaching around 40% completion by mid-March 2026 compared with the original target of 35%. Project expenditure has reached approximately US$80 million and remains broadly aligned with expectations. However, the overall capital budget has been increased to US$171 million, largely reflecting higher costs for electrical infrastructure. The company said funding remains supported by free cash flow generated from its Runruno mine and access to an undrawn US$30 million gold pre-pay facility.
Work across the site continues to advance, with foundations for the processing plant now about 65% complete and the primary crusher already installed. Major earthworks have been finished and non-processing infrastructure is around 77% complete. Metals Exploration has also agreed a collaborative arrangement with Nicaragua’s national grid operator ENATREL to develop a 138kV substation, which is expected to reduce costs. In addition, the company is pursuing a US$20 million equipment financing facility to fund its mining fleet. Management highlighted strong safety performance across the project and reiterated that first gold production remains scheduled for December 2026, signalling steady project execution and further de-risking for investors.
The company’s outlook is supported by solid financial performance, including revenue growth, improving margins and strong cash flow generation. Technical indicators also point to a clear upward trend in the share price, although elevated momentum readings suggest the stock may be approaching overbought levels in the near term. Valuation metrics are less supportive due to a negative price-to-earnings ratio and the absence of dividend yield data.
More about Metals Exploration
Metals Exploration plc is a gold-focused mining, development and exploration company with operations in the Philippines and Nicaragua. Its principal producing asset is the Runruno gold mine in the Philippines, which is generating the cash flow used to fund development of the La India gold project in Nicaragua. The company aims to build a portfolio of open-pit gold operations and position itself as an emerging regional mid-tier gold producer.
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