Metals Exploration (LSE:MTL) has reported further progress at its La India gold project in Nicaragua, with development remaining on track to deliver first gold production in December 2026.
The company has also secured a US$27 million equipment financing facility from a local bank, with more than US$20 million already drawn. The funding reimburses capital expenditure previously incurred by Metals Exploration and provides a significant boost to the group’s available cash resources as construction advances.
Process plant construction reaches key milestones
Installation of the La India processing plant is approximately halfway complete, with the ball mill now fully installed and the SAG mill prepared for positioning.
Civil engineering works are also well advanced, alongside construction of the project’s tailings storage facilities.
Much of the supporting site infrastructure is approaching completion. Offices, accommodation facilities, water treatment systems and a grid connection are already in place, providing the foundations required for commissioning and eventual production.
Mining activities are progressing alongside construction, supported by an expanding owner-operated fleet of Caterpillar haul trucks and excavators.
Pre-stripping has allowed Metals Exploration to build an ore stockpile of approximately 244,000 tonnes, providing material for the processing plant as commissioning gets under way.
Safety record remains strong during construction
The La India development has accumulated approximately two million working hours without a lost-time injury, maintaining a strong safety performance during a period of intensive construction activity.
Metals Exploration has also energised a 2 MW grid connection and installed backup generation capacity. Completion of the project’s main electrical substation remains targeted for the end of 2026.
Some imported equipment has experienced delays because of international shipping disruption linked to the conflict in Iran. The company is exploring alternative logistics arrangements to reduce the potential impact and preserve the timetable for first production.
Runruno production expected at upper end of guidance
At the group’s producing Runruno gold mine in the Philippines, Metals Exploration expects 2026 output to reach the upper end of its guidance range of 40,000 to 48,000 ounces.
The stronger production outlook is being supported by access to higher-grade ore from the Stage 5 open pit.
Runruno’s near-term cash generation, combined with progress at La India and the additional project financing, supports Metals Exploration’s strategy of expanding gold production across its two operating jurisdictions.
Financial position supports growth strategy
Metals Exploration’s broader outlook benefits from strong financial performance, including revenue growth, healthy margins and a balance sheet that has been substantially de-risked.
A relatively low price-to-earnings multiple also provides valuation support.
Technical indicators are less favourable, however, with a negative MACD and the shares trading below important longer-term moving averages. This creates a more neutral technical backdrop despite the improving operational and financial outlook.
More about Metals Exploration
Metals Exploration Plc is an AIM-listed gold production, development and exploration company with principal assets in the Philippines and Nicaragua.
Its portfolio comprises the producing Runruno gold mine in the Philippines and the La India development project in Nicaragua. Runruno currently provides the group’s production base, while La India is being developed as its next source of gold output.
The company’s dual-asset strategy is designed to increase attributable gold production while diversifying operational exposure across two jurisdictions.
Metals Exploration’s activities span open-pit mining, mineral processing, project development and infrastructure construction, supported by owner-operated mining fleets and local financing arrangements.
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