Meeka Metals’ March quarter gold production declined due to heavy rainfall impacting mining access, while processing throughput improved significantly. The company expects stable throughput in the near term and increased output as underground ore contributes more.
- Gold production fell to 6,083oz in March quarter from 9,174oz in December quarter
- Processing throughput increased 37% to 123kt despite high moisture oxide ore
- Cash position strengthened to $50.1 million at quarter end
- Weather delayed access to high-grade ore in Turnberry pits
- Throughput expected to rise in September quarter with more underground ore
Quarterly Production and Operational Impact
Meeka Metals Limited (ASX:MEK) has reported a decline in gold production to 6,083 ounces for the March 2026 quarter, down from 9,174 ounces in the December 2025 quarter. The company attributed the decrease primarily to significant rainfall that hampered open pit mining activities and delayed access to higher-grade ore in the Turnberry Central and South pits. As a result, the processing plant relied more heavily on lower-grade stockpiles during the period.
Despite these challenges, processing throughput at the Murchison Gold Project improved markedly, rising 37% quarter-on-quarter to 123,000 tonnes. This increase was achieved even though the oxide ore processed had a high moisture content, often exceeding 15%, which limited the plant’s ability to further increase throughput. Meeka Metals expects processing throughput to remain consistent in the June 2026 quarter as oxide ore continues to dominate the feed blend.
Outlook and Operational Developments
The company anticipates a further increase in processing throughput in the September 2026 quarter, driven by a higher proportion of fresh ore sourced from underground mining operations. This transition is expected to enhance plant efficiency and gold recovery. Additionally, the delayed access to higher-grade ore in the Turnberry pits during the March quarter is expected to be resolved in the June quarter, potentially supporting improved production levels.
Meeka Metals’ Managing Director Tim Davidson commented on the quarter, highlighting the operational challenges and improvements: "While it was a frustrating quarter from a production perspective, we saw significant improvement in process plant throughput, a 37% quarter-on-quarter increase in tonnes processed. We expect to see continued improvement in plant throughput as the mill feed transitions to increasingly fresh ore from underground over the coming quarters."
Financial Position and Supply Chain Stability
The company’s cash position strengthened to $50.1 million at 31 March 2026, up from $37.3 million at the end of December 2025. This increase provides a solid liquidity buffer as Meeka Metals progresses its operations.
Regarding fuel supply, Meeka Metals sources diesel under a long-term agreement with Australia’s largest transport fuel distributor and retailer. The company confirmed that regular diesel deliveries continue without disruption, and key energy-reliant service providers remain confident in their ability to meet contracted service requirements.
Context Within Project Development
The Murchison Gold Project, located near Meekatharra in Western Australia, hosts a high-grade 1.2 million ounce gold resource at 3 grams per tonne. The project includes both open-pit and underground mining feeding a central processing plant. Gold production commenced in July 2025, with operations ramping up rapidly since then.
Meeka Metals is also advancing a $6 million ore sorting upgrade aimed at increasing processing capacity by 200,000 tonnes per annum, targeting commissioning in the September 2026 quarter. This upgrade is expected to improve feed grade and reduce processing costs, complementing the operational improvements noted in the recent quarter. The upgrade details and expected benefits were outlined in a recent update on the company’s processing expansion plans.
Overall, the March quarter results reflect the operational challenges posed by weather conditions but also demonstrate progress in processing efficiency and financial resilience as Meeka Metals advances its development plan.
Bottom Line?
Meeka Metals faces near-term production headwinds from weather but is positioned for throughput gains and higher-grade ore access in coming quarters.
Questions in the middle?
- How will the ore sorting upgrade impact production and costs once commissioned in September 2026?
- What are the risks of further weather disruptions on open pit mining and processing throughput?
- How will the transition to underground fresh ore affect gold recovery rates and operational efficiency?