Meeka Metals Limited

ASX:MEK

Meeka Metals Limited

ASX:MEK
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$0.240 (+2.1%)
Last close price
#56
Rank
8
Held by
14
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Reports (2) My Report Forum Investors
Forum Topics MEK MEK Risks

Pinned straw:
BkrDzn
Added 7 months ago

I have been doing a little thinking and I think MEK may run be running a little closer to the sun than I am comfortable with. That and some scuttlebutt, leads me to believe that there is an elevated risk that MEK may have to raise. Quantum could be $10-20m which is easily doable in this market.

I have de-risked my position further and will look at any raise as a catalyst to re-buy. That said, I have been finding good opportunities amongst the gold developers cohort (AAR & MI6) and selective explorers (BNZ).

skaex
Added 7 months ago

What makes you think they need another raise so close to commissioning? In one of the recent MoM episodes, it was mentioned that the Davidsons are ‘good for cost… because they’re as tight as fish’s aholes… they won’t be spending money they don’t need to.’ ????

They might consider a raise after commissioning if it’s necessary for operational purposes, but if everything goes to plan, we could see a solid price increase before any additional raise happens.

That’s just my opinion—I don’t have any inside info beyond what was discussed in that MoM episode.

8
SudMav
Added 6 months ago

@BkrDzn - you were spot on. Cap raising announced this morning and Mek in a trading halt

https://api.investi.com.au/api/announcements/mek/a9302b3c-f6d.pdf

9
thetjs
Added 6 months ago

From the AFR today:

’Fund managers were told the fresh funds would be applied to mobilising a third open pit mining fleet, for open pit and underground expansion drilling and gold price protection via put options. Meeka Metals hopes to move from drilling and mining to processing and gold production in the coming financial year.’

offered at 15 cents by all accounts.

10
skaex
Added 6 months ago

Hey @BkrDzn, your scuttlebutt definitely has more ears than the average pleb ????. I thought the raise would come at least after commissioning—or even post first gold pour—but they jumped at the chance to raise now. That tells me they really need the cash, though I’m almost sure they’ll massage the announcement to include some positive news.

Might just add to the bag though, since they’re actually delivering the project on time and gold’s booming.

12