Meeka cashes $23.9M as Murchison gold machine hits stride

Meeka Metals has notched up another robust quarter of production at its Murchison gold mine in Western Australia, lifting gold output 28 per cent to 9174 ounces, while generating $23.9 million in cash, taking its cash at bank to a very healthy $67.4 million. 

All-in sustaining costs came in at $2365 per ounce, comfortably cushioned by an average realised gold price of A$6275 per ounce, with 7953 ounces sold for $49.9 million in revenue.

The December and gold production and resulting cash balance marked strong progress in the company’s ramp-up trajectory, with output sitting towards the upper end of the company’s 7000–10,000-ounce guidance range for the quarter.

Meeka says its processing throughput and head grade are both increased as planned, delivering 89,000 tonnes at a grade of 3.3 grams per tonne (g/t) gold, with metallurgical recovery clocking in at an impressive 97 per cent. 

Notably, the company says its daily throughput has climbed above 1500 tonnes since early January, setting the stage for the installation of a larger mill feed chute and a new screen deck to lift capacity to 600,000 tonnes per annum, slated to start in the March quarter.

A temporary December slowdown due to concurrent maintenance issues - mill liner replacement, primary crusher bearing change-out and screen deck work - cost about nine days of processing. Still, the downtime was used to fast-track throughput upgrades.

Ore stockpiles also grew in the quarter to 396,000 tonnes at 1g/t gold for  13,217 ounces, providing a mill feed buffer and optionality going forward.

Meeka says it's underground mining at Andy Well is accelerating at a rate of knots with a 136 per cent increase on the prior quarter’s development. The company says preparations for a second underground mine at Turnberry are now underway, with development expected to start by the middle of the year.

On the exploration front at Andy Well, Meeka has been busy extending its high-grade Wilber lode by about 450 metres to the south, returning intervals such as 4m at a whopping 27.82g/t gold and 8m at 9.35 g/t, with mineralisation remaining open at depth below about 100m.

At Turnberry, drilling on the northeastern flank and south extensions delivered thick high-grade intercepts outside existing open-pit plans, including 22m at 3.25g/t and multiple 8–20m intervals above 3g/t to the south. 

The results are expected to extend open-pit life at Turnberry and support underground potential, with drilling ongoing.

Meeka Metals managing director Tim Davidson said: “This was another strong ramp-up quarter with operations steadily building momentum and production toward the upper end of plan. The mill is now consistently achieving over 1,500 tonnes per day (~550ktpa), with further throughput gains expected in the March 2026 quarter with the installation of a larger mill feed chute and new screen deck, targeting 600ktpa.”

The quarter’s cash flow surge is expected to resume as the gold price moves above a record $7500 an ounce today. 

With no debt beyond equipment finance, full unhedged exposure and multiple shallow high-grade extensions feeding the existing plant, Meeka’s Murchison operation is establishing itself as a cash-generative producer with clear near-term expansion pathways.

Since that first gold pour last July, the operation has wasted no time finding its rhythm, sliding smoothly into consistent production while the resource base keeps stretching. 

That kind of dual-engine growth is precisely the formula that should surely allow the Murchison player to break into the mid-tier producers’ club - and the sort of lofty market valuation that usually comes with the membership badge.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au