We are initiating coverage on Meeka Metals (MEK) with a SPEC BUY rating and set a $0.21 Price Target. Since acquiring the Andy Well project in 2021, MEK has advanced the Murchison Gold project to a DFS level by late 2024 with first gold targeted by 1QFY26. MEK is finalising the upgrade of its Andy Well Mill to 600ktpa and pre-stripping of the Turnberry and St Annes open pits is scheduled to commence this month. We forecast a 10-year mine life at an average production rate of 52kozpa at an AISC of A$2,292/oz. The timing of MEK’s commissioning period is perfectly timed to coincide with unhedged gold sales into record gold prices which should help mitigate cashflow pressures associated with any ramp-up hurdles.
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