Updated val and sensitivity analysis.
After being a seller of late, I have added some MEK as it has de-rated a little harder than the rest. Based on my model, its is barely pricing in A$5000/oz and should the gold price maintain this level (A$6700-A$7100/oz) through a consolidation phase, the MEK has the chance to re-rate significantly (50-100%) by continuing to deliver to plan going forward, with upside as they demonstrate the pathway to increase throughput to 1mtpa from ~0.60-0.65ktpa by CY27. With that I have added a little back to my position as a way to dial back up my gold exposure.
In the drilling update, Oct production is run-rate of ~45kozpa. First year is 50koz+ so tracking well in the final stages of ramp.
Thursday 1st May 2025: Murchison Development Update - April 2025
Excerpts from pages 3 and 5:
Getting close to production now, remembering that they're refurbing and upgrading the Andy Well processing plant, not building a new plant - this plant ran well for Doray Minerals back in the day, and it's going to be bigger and better under Meeka management, and while the share price has dropped to as low as 14.25 cents/share so far today, likely due to the fact that there is unlikely to be much in the way of further positive share price catalysts in May, until the plant commissioning begins in June (as shown in the timeline above), Meeka's SP remains within that rising channel, as shown below.
Disclosure: I hold Meeka Metals (MEK) shares both here and in my largest real money portfolio.
31-Dec-2024: MEK released this: Murchison Development Update – December 2024 (.pdf file) before the market opened - and their share price closed flat (@ $0.077, i.e. 7.7 cps), however MEK are being bid up today (02-Jan-2025) on no news, so perhaps a delayed response?
The uptrend remains intact (/in place), in my opinion.
Here are the pics from page 2 of Tuesday's update:
There are more images on pages 3 and 4, plus plenty of other details on page 1, plus this timeline on page 5:
I hold MEK shares, and I've been happy with their share price rises recently, however looking at how much they have achieved in December, and that their next updates will probably occur in March and June, I'm expecting less newsflow in Jan & Feb, and that MEK's share price will likely now rise and fall much more in line with gold price movements, so I may lock in some profit here and let the rest ride.
OK, Firstly, check out this from the team at Money of Mine (podcast):
Source: https://www.moneyofmine.com/p/look-every-advanced-gold-project-australia [last week]
You can subscribe to their daily "Director's Special" newsletter for free here: https://www.moneyofmine.com/
You may notice that there are only TWO projects on the whole list that have progressed to DFS (definitive feasibility study) level: De Grey's (DEG's) Hemi and Meeka Metals' (MEK's) Murchison gold project. And DEG's market cap is getting up towards $3 billion, (currently circa $2.75 billion) which means there's a LOT baked into their valuation considering they are still just project DEVELOPERS, NOT producers.
Meeka Metals' (MEK's) m/cap is just over $50 million. And they have a good lot of infrastructure already in place, which is why their Initial Capex requirements in the table above are just $44m vs Hemi's capex of $2.9 billion - which could easily blow out from here and become substantially higher than that. I think there's too much risk associated with DEG's high valuation, which suggests that they have an enormous amount of gold at Hemi. They do have a lot, but I'm not buying into that valuation at this early stage.
Almost every Aussie gold company presented at Diggers and Dealers in Kalgoorlie this week, but I couldn't find a presso from Meeka amongst them - see here: https://www.youtube.com/@diggersndealers2023/videos
That link has "2023" in it, but it does contain all of the 2024 D&D pressos that they've uploaded this week as well.
No, Meeka are just getting on with it - see here: https://meekametals.com.au/investor-dashboard/
Links to their most recent announcements are on that page (just scroll down a little).
Meeka's most recent presso that I can find is from late May and it was their DFS Pathway to Production presso: https://www.investi.com.au/api/announcements/mek/5a738e78-bca.pdf
More Presentations here: https://meekametals.com.au/presentations/
Their biggest advantage is the project's location and existing infrastructure:
Source: https://stockhead.com.au/resources/meeka-metals-confirms-shallow-oxide-gold-at-st-annes-part-of-its-bigger-murchison-gold-project/ [17-Jan-2024]
https://meekametals.com.au/murchison-gold-project/
The Murchison Gold Project (MEK 100%) covers the northern extent of the highly prospective Mount Magnet and Youanmi Shear Zones in the prolific Murchison Gold Fields of Western Australia.
The project is located adjacent to several multi-million ounce gold mines and includes 281km² of granted Mining Leases and Exploration Licences. The project hosts a high grade 1.2Moz Mineral Resource with all Mineral Resources located on granted Mining Leases, hence there are minimal impediments to production.
Drill Core image source: https://www.proactiveinvestors.com.au/companies/news/1008753/meeka-metals-confirms-high-grade-gold-up-to-8-20-g-t-at-st-anne-s-within-murchison-project-1008753.html [13-March-2023]
Meeka have been on this for a while, and they're closer than ever to becoming producers now. Be warned that they are likely to need to raise more capital this year, and they currently have no income, as they are not yet producers; they are still gold project developers, but as Aussie gold projects go, this is the most advanced project I can find at this point that is not already producing, so that's why I've taken a small position in this one.
High risk, high reward, so small position size, as is appropriate due to the elvated risk associated with any company that is pre-revenue, and these companies are always more of a gamble than an investment, as all pre-revenue companies are to be honest, so they won't suit many people at all.
But if you're going to bring a new Australian gold project online with minimal capex requirements, there's probably never been a better time to do it.
Source: https://goldprice.org/