Meeka Metals : 31 December 2023 Interim Financial Report

Interim Financial Report to Shareholders

For the half year ended 31 December 2023 ABN 23 080 939 135

	DISCOVER | GROW | DEVELOP
	ASX:MEK
Contents
CORPORATE DIRECTORY	3
DIRECTORS' REPORT	4
AUDITOR'S INDEPENDENCE DECLARATION	7
NOTE 1: CORPORATE INFORMATION	12
NOTE 2: DIVIDENDS	13
NOTE 3: SEGMENT REPORTING	14
NOTE 4: LOSS PER SHARE	14
NOTE 5: CASH & CASH EQUIVALENTS	14
NOTE 6: EXPLORATION & EVALUATION ASSETS	14
NOTE 7: REHABILITATION PROVISION	15
NOTE 8: ISSUED CAPITAL AND RESERVES	16
NOTE 9: CONTINGENT ASSETS AND LIABILITIES	16
NOTE 10: SIGNIFICANT AFTER BALANCE DATE EVENTS	17
NOTE 11: RELATED PARTY TRANSACTIONS	17
DIRECTORS' DECLARATION	18
INDEPENDENT AUDITOR'S REVIEW REPORT	19

2

CORPORATE DIRECTORY

Directors

Paul Chapman

Timothy Davidson

Roger Steinepreis

Paul Adams

Company Secretary

Tony Brazier

Home Securities Exchange

Australian Securities Exchange Limited Level 40, Central Pak

152-158 St Georges Terrace PERTH WA 6000

ASX Code: MEK

Share Registry

Automic Group

Level 5, 191 St Georges Terrace

PERTH WA 6000

DISCOVER | GROW | DEVELOP

ASX:MEK

Registered Office &

Principal Place of Business

Level 2, 46 Ventnor Avenue

WEST PERTH WA 6005

Telephone: [phone]

Email: [e-mail]

Website: www.meekametals.com.au

Auditor

Grant Thornton Audit Pty Ltd

Level 43 Central Park

152-158 St Georges Terrace

PERTH WA 6000

Solicitor

Steinepreis Paganin

Level 4, 16 Milligan Street

PERTH WA 6000

3

DISCOVER | GROW | DEVELOP

ASX:MEK

DIRECTORS' REPORT

The Directors present their report for the half year ended 31 December 2023.

DIRECTORS

The names and details of the Company's Directors in office during the six months and until the date of this report are as follows. The Directors were in office for the entire period unless otherwise stated.

Paul Chapman	Non-executive Chairman	Appointed 24 May 2022
Timothy Davidson	Managing Director	Appointed 24 May 2022
Roger Steinepreis	Non-executive Director	Appointed 5 November 2012
Paul Adams	Non-executive Director	Appointed 15 February 2021
Morgan Barron	Non-executive Director	Appointed 5 November 2012 /
		Resigned 31 January 2024

PRINCIPAL ACTIVITIES

The principal activities of the Group during the period were exploration and development assessment of gold assets in Western Australia.

REVIEW OF OPERATIONS

Murchison Gold Project

The Company made considerable progress in advancing its Murchison Gold Project during the review period.

In mid-July, the Company released a feasibility study outlining a flexible and straightforward development strategy that delivers meaningful production and solid financial outcomes. Highlights include:

• Average annual gold production of 80,000oz over the first eight years, with peak production of 103,000oz in year six;
• Recovered gold production of 663,000oz over 9.3 years (8 years mining, 1.3 years stockpile processing);
• Initial Probable Ore Reserve of 4.1Mt @ 3.1g/t gold for 410,000oz;
• 92% of production in the first three years is from Measured and Indicated Mineral Resources;
• Undiscounted free cash flow (after capital and pre-tax): $363M (at $2,750/oz) and $521M (at $3,000/oz);
• Pre-taxNet Present Value (NPV5%) of $249 million ($2,750/oz) and $371 million ($3,000/oz); and a pre-tax Internal Rate of Return (IRR) of 40% ($2,750/oz) and 56% ($3,000/oz);
• Payback following process plant commissioning of 22 months ($2,750/oz) and 16 months ($3,000/oz);
• All-inSustaining Cost (AISC) of $1,684/oz.

In addition to the development of a standalone 1.0Mtpa plant, alternative development scenarios have also been considered and remain under consideration. These include:

• Recommissioning, with potential to expand, the existing Andy Well processing facility (reduced capital, reduced processing capacity, high-grade focus including underground and St Anne's open pit mine);
• 100% toll milling (reduced capital, increased haulage costs, increased processing costs, open-pit focus); and
• combination of the above (high-grade through the Andy Well processing facility, with lower- grade open pit ore processed at a third-party facility within haulage distance).

A significant 6.4km infill and extensional drill programme was completed, with strong results delivered at both Turnberry and St Annes.

4

DISCOVER | GROW | DEVELOP

ASX:MEK

Turnberry (685,000oz @ 2.0g/t Au) results included:

• 19m @ 8.75g/t Au from 48m including 10m @ 14.18g/t Au (23TBAC026);
• 18m @ 2.21g/t Au from 60m including 4m @ 6.80g/t Au (23TBRC001);
• 35m @ 1.49g/t Au from 30m including 9m @ 3.34g/t Au (23TBAC019);
• 7m @ 2.65g/t Au from 35m including 3m @ 4.93g/t Au (23TBAC030); and
• 12m @ 2.42g/t Au from 76m including 1m @ 18.25g/t Au (23TBAC039).

St Anne's (25,000oz @ 2.8g/t Au) results included:

• 6m @ 3.71g/t Au from 53m including 2m @ 9.09g/t Au (23SAAC002);
• 7m @ 3.51g/t Au from 26m including 2m @ 9.84g/t Au (23SAAC004);
• 15m @ 1.47g/t Au from 34m (23SAAC005);
• 5m @ 2.15g/t Au from 68m including 2m @ 4.95g/t Au (23SAAC008); and
• 14m @ 2.28g/t Au from 53m including 2m @ 4.57g/t Au and 1m @ 13.45g/t Au (23SAAC010).

The drill results will support the updating of grade control models for Turnberry and St Anne's open pit mines in the March quarter of 2024.

In December, development approval documentation was submitted to the Department of Energy, Mines, Industry Regulation and Safety. Approval is expected in the March quarter of 2024.

CORPORATE

The Company issued 132.5 million shares to raise $5.3 million (before costs) through several placements during the review period.

The shares had an issue price of $0.04 each, with participants receiving one (1) attaching unlisted option for every two (2) new shares acquired, exercisable at $0.06 and expiring in October and December 2025. Directors and management contributed $210,000, increasing their total investment in the Company to $3 million.

The funds will be used to finance the next phase of drilling in parallel with advancing the Murchison Gold Project through to a 'shovel ready' development stage.

FINANCIAL PERFORMANCE

The Group reported a net loss after income tax for the six months ended 31 December 2023 of $886,753 (2022: $626,780 loss). Operating costs of the Group consisted of exploration costs, employment costs, professional fees, directors' fees and other costs associated with an ASX listed company.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the Group that occurred during the review period.

AUDITOR'S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires the Group's auditor, Grant Thornton Audit Pty Ltd, to provide the Directors with an Independence Declaration in relation to the audit of the interim financial report for the six months ended 31 December 2023.

This Independence Declaration is attached to the Directors' Report and forms a part of the Directors' Report.

SUBSEQUENT EVENTS

No material events have occurred between the reporting date and the date of signing this report.

5

DISCOVER | GROW | DEVELOP

ASX:MEK

Signed in accordance with a resolution of the Directors.

Timothy Davidson

Managing Director

14 March 2024

6

Grant Thornton Audit Pty Ltd

Level 43 Central Park

152-158 St Georges Terrace

Perth WA 6000

PO Box 7757

Cloisters Square

Perth WA 6850

T [phone]

Auditor's Independence Declaration

To the Directors of Meeka Metals Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Meeka Metals Limited for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been:

1. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. no contraventions of any applicable code of professional conduct in relation to the review.

GRANT THORNTON AUDIT PTY LTD

Chartered Accountants

L A Stella

Partner - Audit & Assurance

Perth, 14 March 2024

www.grantthornton.com.au

ACN-130 913 594

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. 'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another's acts or omissions. In the Australian context only, the use of the term 'Grant Thornton' may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.

#11407541v1w

7

DISCOVER | GROW | DEVELOP

ASX:MEK

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

	31 December	31 December
	2023	2022
Note	$	$
Interest income	14,281	3
Other income	-	100,000
Consulting & professional fees	(29,346)	(101,336)
Corporate expenses	(92,690)	(74,453)
Depreciation	(35,745)	(33,847)
Directors' benefit expense	(109,081)	(109,073)
Employee benefit expense	(376,578)	(136,270)
Insurance expenses	(37,176)	(32,832)
Other expenses	(189,148)	(196,645)
Share based payment expense	(8,104)	(36,427)
Travel expenses	(23,166)	(5,900)
Loss from operations	(886,753)	(626,780)
Income tax expense	-	-

Loss after income tax for the half year

Other comprehensive income for the half-year:Other comprehensive income for the half year, net of income tax

Total comprehensive loss for the half year attributed to members of Meeka Metals Limited

Loss per share for the half year attributable to the members of Meeka Metals Limited

(886,753) (626,780)

--

(886,753) (626,780)

Basic & diluted loss per share - cents per share

4

(0.08)

(0.06)

The above consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes

8

DISCOVER | GROW | DEVELOP

ASX:MEK

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

		31 December	30 June
		2023	2023
	Note	$	$
ASSETS
Current Assets
Cash & cash equivalents	5	4,678,394	2,774,035
Trade & other receivables		191,384	157,306
Total Current Assets		4,869,778	2,931,341
Non-Current Assets
Property, plant & equipment		30,829	33,364
Exploration & evaluation assets	6	29,295,448	27,054,459
Right-of-use assets		116,490	142,136
Other non-current assets		15,290	15,290
Total Non-Current Assets		29,458,057	27,245,249
TOTAL ASSETS		34,327,835	30,176,590
LIABILITIES
Current Liabilities
Trade & other payables		462,030	755,793
Lease liabilities		31,434	54,188
Employee entitlements		133,104	135,162
Total Current Liabilities		626,568	945,143
Non-Current Liabilities
Rehabilitation provision	7	3,956,285	3,722,680
Lease liabilities		93,610	93,610
Total Non-Current Liabilities		4,049,895	3,816,290
TOTAL LIABILITIES		4,676,462	4,761,433
NET ASSETS		29,651,373	25,415,157
EQUITY
Issued capital	8	68,074,692	62,157,670
Reserves		3,034,918	4,516,763
Accumulated losses		(41,458,237)	(41,259,274)
TOTAL EQUITY		29,651,373	25,415,157

The above consolidated statement of financial position is to be read in conjunction with the attached notes

9

DISCOVER | GROW | DEVELOP

ASX:MEK

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

		Share	Share based	Accumulated	Total
		Capital	Payment	Losses	Equity
			Reserve
	Note	$	$	$	$
Total Equity at 1 July 2022		53,801,006	4,462,656	(40,265,231)	17,998,431
Loss for the half year		-	-	(626,778)	(626,778)
Total Comprehensive Loss for the Half Year		-	-	(626,778)	(626,778)
Issue of fully paid ordinary shares		8,833,420	-	-	8,833,420
Share issue costs		(476,755)	-	-	(476,755)
Movement in accumulated losses		-	-	84	84
Share based payments		-	36,427	-	36,427
Total Equity at 31 December 2022		62,157,671	4,499,083	(40,891,925)	25,764,829
Total Equity at 1 July 2023		62,157,670	4,516,763	(41,259,274)	25,415,159
Comprehensive Loss for the Half Year
Loss for the half year		-	-	(886,753)	(886,753)
Total Comprehensive Loss for the Half Year		-	-	(886,753)	(886,753)
Issue of fully paid ordinary shares		6,250,562	(950,650)	-	5,299,912
Share issue costs		(333,540)	-	-	(333,540)
Share based payments - Issue of broker options		-	148,404	-	148,404
Share based payments - Issue of broker options
Share based payments - Issue of employee options		-	8,192	-	8,192
Transfers to accumulated losses		-	(687,791)	687,791	-
	8
Total Equity at 31 December 2023	68,074,692	3,034,918	(41,458,237)	29,651,373

The above consolidated statement of changes in equity is to be read in conjunction with the attached notes.

10