Operational Hiccups Tested Meeka Metals’ Ramp-Up but Growth Prospects Remain Strong

Strong Operational Momentum at Murchison

Meeka Metals Limited (ASX – MEK) has reported a solid ramp-up in operations for the December 2025 quarter at its Murchison Gold Project in Western Australia. Gold production increased by 28% quarter-on-quarter to 9,174 ounces, achieved at an all-in sustaining cost (AISC) of A$2,365 per ounce. This performance places production towards the upper end of the company’s planned ramp-up range of 7,000 to 10,000 ounces for the quarter.

Processing throughput and ore grade both improved as anticipated, with the plant now consistently processing over 1,500 tonnes per day, equivalent to approximately 550,000 tonnes per annum. Planned upgrades, including a larger mill feed chute and a new screen deck scheduled for installation in the March 2026 quarter, are expected to lift throughput further to 600,000 tonnes per annum.

Financial Strength and Growth Investment

Financially, Meeka Metals demonstrated strong cash generation, with mine operating cash flow nearly doubling to A$23.9 million compared to the previous quarter. After investing A$19.8 million in growth capital, primarily directed towards underground development at the Andy Well mine and new mining equipment, the company reported a positive net mine cash flow of A$4.1 million. Cash and gold holdings increased to A$67.4 million, reflecting a healthy balance sheet with no debt aside from equipment financing.

The company remains fully exposed to gold price movements, having no hedging arrangements in place, which could amplify upside if gold prices strengthen.

Operational Challenges and Safety Record

December saw some operational setbacks with approximately nine days of processing lost due to concurrent maintenance issues, including premature mill liner wear and a primary crusher bearing failure. These issues have since been resolved, and the downtime was used productively to accelerate planned plant upgrades.

On the safety front, Meeka Metals maintained an excellent record with no lost time injuries reported during the quarter, a lost time injury frequency rate (LTIFR) of zero, and a total recordable injury frequency rate (TRIFR) of 9.5. There were no significant environmental incidents, underscoring the company’s commitment to sustainable operations.

Exploration Success Fuels Growth Prospects

Exploration drilling at new targets within the Fairway shear zone, particularly at Rosapenna, delivered encouraging high-grade gold intersections such as 23 metres at 1.05 grams per tonne gold, including a 4-metre section at 4.67 grams per tonne. Drilling at Turnberry North and South also revealed broad zones of high-grade mineralisation outside current open pit designs, suggesting potential for resource expansion and extended mining operations.

At the Andy Well underground mine, development accelerated significantly with a 136% increase in metres developed quarter-on-quarter. Surface drilling south of the current mining footprint intersected strong grades, extending the known strike of the Wilber lode by approximately 450 metres. These results support the company’s strategy to grow underground resources and extend mine life.

Looking Ahead

Meeka Metals is on track to continue its production ramp-up with further throughput enhancements planned for the March quarter. The company’s growth pipeline remains robust, with ongoing drilling along the Fairway shear zone and underground resource targets below Turnberry. With a strong balance sheet, operational momentum, and promising exploration results, Meeka Metals is well positioned to advance its Murchison Gold Project towards sustained production growth.