New Murchison Gold Limited delivered a robust December quarter with production exceeding contractual ore sales limits and unveiled high-grade drilling success at the Lydia Gold Prospect, underpinning its growth ambitions.
- Ore sales exceeded Ore Purchase Agreement limits with 187,384 tonnes sold
- Mined ore grade averaged 4.2 g/t with a 95.9% gold recovery
- High-grade drilling at Lydia Prospect highlights near-term production potential
- Company remains debt-free with $92 million cash on hand
- Financial year-end shifted to 30 June to align with ASX gold peers
Strong Production Ramp-Up at Crown Prince
New Murchison Gold Limited (ASX – NMG) has reported a solid operational quarter ending 31 December 2025, marked by a smooth ramp-up of mining activities at its Crown Prince Gold Mine. The company mined 163,562 tonnes of ore at a grade of 4.2 grams per tonne, alongside low-grade material stockpiled separately for future use. Notably, ore sales reached 187,384 tonnes, surpassing the 150,000 tonnes cap set by the Ore Purchase Agreement (OPA) with Westgold Resources Limited, reflecting operational flexibility and strong demand.
The blending of low-grade material with high-grade ore, supported by a favourable gold price environment, resulted in a robust run-of-mine grade of 4.0 g/t. Crushing and processing activities maintained steady throughput, with a gold recovery rate of 95.9%, translating into 22,766 ounces of gold sold in ore form during the quarter.
Exploration Focus Shifts to Growth Opportunities
With Crown Prince now operating at steady-state production, New Murchison Gold has pivoted its exploration efforts towards unlocking underground potential and advancing near-mine projects. The Lydia Gold Prospect, situated close to Crown Prince, delivered impressive high-grade drilling results post-quarter, including standout intercepts such as 3 metres at 32.9 g/t gold and 9.1 metres at 10.3 g/t gold. These findings bolster the prospect’s candidacy as a near-term addition to the production pipeline, leveraging existing infrastructure.
Exploration drilling also continues at Crown Prince and other regional targets within the extensive 677 square kilometre Garden Gully Gold Project tenure. The company plans to update its Mineral Resource estimates in the first quarter of 2026, which will be closely watched by investors seeking clarity on resource growth and mine life extension.
Financial Strength and Corporate Developments
Financially, New Murchison Gold remains in a strong position, ending the quarter with $92 million in cash, no debt, and an unhedged exposure to gold prices. The company generated $72.3 million in cash flow from operations during the quarter, underpinning its capacity to fund ongoing development and exploration activities.
In a strategic move to align reporting with its ASX gold producer peers, NMG announced a change of its financial year-end from 30 September to 30 June, resulting in a transitional nine-month financial year. Additionally, the Board has proposed appointing BDO Audit Pty Ltd as the new auditor and committed to conducting future Annual General Meetings in a hybrid format to enhance shareholder engagement.
Outlook
As New Murchison Gold integrates stage 1 and stage 2 pits at Crown Prince and advances exploration targets like Lydia, the company is positioning itself for sustained production growth. The combination of operational momentum, promising exploration results, and a robust balance sheet sets a positive tone for the year ahead.
Bottom Line?
New Murchison Gold’s operational and exploration strides position it well for growth, but upcoming resource updates will be key to validating its long-term potential.
Questions in the middle?
- How will the integration of stage 2 pit development impact production costs and output?
- What are the timelines and expected scale for Lydia’s incorporation into the production pipeline?
- How will the financial year-end change affect comparability of future quarterly and annual results?