X64 Reports 6% Rise in Gold Production to 13,895 Ounces with AISC at US$1,994

Operational Performance and Cost Efficiency

X64’s latest quarterly activities report for the period ending 31 December 2024 highlights a positive operational momentum at its flagship Co-O Mine in the Philippines. Gold production rose by 6% quarter-on-quarter to 13,895 ounces, driven by mining higher-grade stopes despite a slight reduction in ore tonnage mined. The average head grade improved to 5.53 grams per tonne, up from 5.2 grams per tonne in the previous quarter, while mill recovery remained robust at 95.72%.

Cost control efforts yielded a modest but meaningful reduction in All-In-Sustaining-Costs (AISC), which fell to US$1,994 per ounce from US$2,045 in the September quarter. This improvement reflects operational efficiencies and sustained focus on cost discipline amid challenging market conditions.

Tigerway Decline Project Advances

The Tigerway Decline project, a critical infrastructure development aimed at enhancing underground access and ventilation, achieved a significant milestone during the quarter. Excavation and support works progressed by 512.44 metres, bringing overall completion to 88.49%. Importantly, integration of the Tigerway into existing underground workings commenced, promising improved ore haulage efficiency and safer working conditions. Project expenditure to date stands at US$50.1 million, with final costs and completion timing under review.

Exploration Success and Resource Expansion

Exploration drilling intensified with a 15% increase in underground drilling metres to 8,035 metres. The campaign focused on resource definition at Levels 10 and 11, returning several high-grade intercepts including standout results such as 0.60 metres at 652.80 g/t gold and 4.00 metres at 140.45 g/t gold. These results bolster confidence in expanding the mineral resource base and underpin future production growth potential.

The Royal Crowne Vein project also saw progress with six drillholes completed, aimed at upgrading indicated and inferred resources currently estimated at 96,000 ounces of contained gold.

Financial Position and Corporate Developments

At quarter end, X64 reported a consolidated cash balance of US$5.1 million, down slightly from US$5.6 million in the prior quarter. The company continues to manage expenditures prudently, with capital works and sustaining capital investments scaled back during the period. Corporate general and administrative expenses remained steady at US$0.9 million.

Notably, the company remains under voluntary trading suspension since February 2023 as it works through a restructuring framework. A key development post-quarter was the execution of a Memorandum of Agreement between subsidiary MMPRC and associate PMC, outlining terms for a US$140 million loan repayment, including an initial US$10.5 million payment received in January 2025.

Outlook and Strategic Focus

X64’s operational and exploration progress during the December quarter positions it well for future growth, contingent on successful restructuring outcomes. The advancing Tigerway project and encouraging drilling results provide tangible catalysts for production expansion and cost optimization. Meanwhile, the company’s Queensland exploration assets remain on care and maintenance, reflecting a strategic focus on core Philippine operations.