It has been an extremely challenging time for the whole of the Philippine mining industry, it said, while Runruno has also been affected by technical issues, external factors and cash flow constraints.
The Philippines government in particular has tightened up on licences for mines in the country. Metals Ex said it had not received any suspension or closure order though it said a lack of a tree cutting permit had held back the ramp-up.
Gold is being produced at the mine, with three doré bullion shipments containing 7,557 ozs of gold sold in the three months to March and generating US$9.2mln gross revenue.
Recoveries of only 56% were achieved in the quarter, which was blamed on greater use of oxide ore in the BIOX process rather than the sulphide ore it is designed for.
Sulphide ore is now being processed again and the plant’s performance is improving, Metals Ex said.
A waiver has been provided by the project’s lenders deferring the March 2017 capital payment. The company has cash of US$3.8mln and restructured its US$81mln facility in January.
Shares eased 3% to 3.25p.