The Meeka Metals Ltd (ASX: MEK) share price is in focus after the company reported June 2026 quarter gold production of 6,424 ounces, a slight improvement on the previous quarter but below expectations. Mine operating cash flow came in at $6.4 million, while cash at quarter end stood at $38 million.
Image source: Getty Images
- Gold production for the June quarter was 6,424oz (March quarter: 6,083oz)
- Gold sales for the quarter totalled 6,242oz at an average price of $6,213/oz
- Full-year FY26 gold production reached 56,400oz
- Mine operating cash flow was $6.4m; net mine cash outflow of $11.1m after $17.5m in growth capital
- Closing ore stockpiles increased to 25,414oz (806kt @ 1.0g/t Au)
- Cash balance decreased to $38m as at 30 June 2026
What else do investors need to know?
The quarter saw the first contribution of higher-grade underground stope ore to the mill blend, with underground ore expected to make up 40% of the blend in the September quarter. Open pit mining continued to be affected by lower-than-expected contractor productivity, delaying access to high-grade open pit ore.
As a result, Meeka Metals plans to end open pit mining in July 2026, preserving a significant in-ground open pit resource. The company invested $17.5 million in non-recurring growth projects this quarter, including underground development at Andy Well, equipment, and expansion of site infrastructure.
Managing Director Tim Davidson said:
It was another frustrating quarter from a production perspective and while the result fell short of expectations, the drivers are well understood and the corrective path is clear. Production is expected to improve in the September 2026 quarter as the operation transitions away from its reliance on open pit ore. Higher-grade underground production is ramping up and will make up an increasing proportion of the mill blend, lifting both head grade and recovered ounces. Cash is expected to grow through the September 2026 quarter on the back of this stronger gold production, as the higher-margin underground material flows through to the bottom line. Development of our second underground mine at Turnberry, commencing in September 2026 will further increase the availability of higher-grade underground ore for the processing plant.
Meeka expects gold production and operating cash flow to increase in the September quarter, driven by a greater proportion of higher-margin underground ore in the mill feed. The company is set to begin portal development on the second underground mine at Turnberry in September 2026, further boosting access to higher-grade ore.
With the conclusion of open pit mining, management aims to reduce costs and focus on underground operations, positioning Meeka to benefit from improved grades and production stability.
Over the past 12 months, Meeka Metals shares have declined 34%, trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.
