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By Team Ace Investors
COMPANY OVERVIEW
New Murchison Gold Limited (“NMG” or the “Company) is a mineral exploration and gold mining company that holds a substantial package of tenements in the prolific Murchison goldfield near Meekatharra, Western Australia. The Company is focused on the Garden Gully Gold Project, which comprises a 677km2 tenure package covering the Abbotts Greenstone Belt and other key regional structures. The Company operates the Crown Prince Gold Mine and has multiple gold deposits along the belt. Gold mineralisation in the belt is controlled by major north trending structures and contact zones between felsic and mafic metamorphosed rocks.
Source – Company’s Report
INVESTMENT RATIONALE
- Strategic Roadmap Focused on Scaling, Commercialisation and Long-Term Growth – The Company’s strategic plan is focused on progressing the Crown Prince project through a series of interconnected stages. It aims to build the project to scale while advancing development workstreams, followed by commercialising the Crown Prince deposit and optimising operations to improve efficiency. Alongside this, the group intends to expand its overall mineral resource base through continued exploration and ultimately drive long-term company growth, supported by the Crown Prince Underground Mine and Lydia Open Pit. In addition, the company sees significant regional upside at Garden Gully and plans to continue systematic exploration across its extensive 677 km² tenure package to identify further growth opportunities.
- Strong Cash Generation Supports Expansion and Exploration - Crown Prince is generating strong cash flows from its high-margin open-pit operations, benefiting from a favourable gold price environment. The company generated $72 million during the December 2025 quarter, with significant leverage to rising gold prices, which surpassed A$7,500 per ounce in January 2026. During the quarter, the average realised gold price was A$6,315 per ounce, while all-in sustaining costs, including OPA charges, were A$2,149 per ounce, resulting in robust margins. Under the Ore Processing Agreement (OPA), processing charges range from $30–45 per tonne plus a 10% administration margin, with NMG earning margins of 8.5% during the first three months and 17% thereafter. Exploration activities are focused on both near-mine opportunities and larger transformational targets, with priority given to existing mining leases around Crown Prince Deeps and the East Pit to maximise the benefits of existing infrastructure. Supported by established facilities for mining operations, logistics, fuel, sampling, flights and accommodation, the company is well positioned to expand production and bring additional mines into operation.
Source – Company’s Report
- Strong Exploration Progress Strengthens Near-Term Growth Pipeline - Exploration activities remained focused on unlocking underground potential at Crown Prince Operations (CPO) while advancing near-term open-pit projects at Crown Prince East, Lydia and Abbotts. High-grade drilling results at Crown Prince East and the Lydia gold prospects confirmed significant mineralisation, enhancing their prospects as near-term contributors to the CPO production pipeline. In addition, drilling below the planned maximum depth of the Crown Prince open pit returned encouraging results, highlighting further underground potential. Ongoing technical studies are supporting mineralisation modelling and future resource definition, with an updated CPO resource and reserve estimate targeted for the September 2026 quarter.
- Extensive Project Pipeline Provides Multiple Growth Avenues – The Company possesses a strong pipeline of exploration and development opportunities across its flagship Garden Gully Gold Project, spanning assets from early-stage prospects to producing operations. Key projects, including Crown Prince, Lydia, Abbotts and Crescent are located on granted mining leases, significantly shortening the path to commercialisation. The portfolio includes a range of prospects such as Youngs, Transylvania, Government Well, West Caledonian, Eclipse, White Horse, Moonlight, Sabbath, Abernethy and Kingswood, providing a continuous pipeline of future growth opportunities. With assets progressing through resource definition, development and reserve stages into production, and with Crown Prince Underground already moving toward operations, the company is well positioned to sustain production growth and extend the life of its mining portfolio.
- Transition to Producer Status Achieved; Focus Shifts to Optimisation and Regional Growth - NMG has successfully transformed from an explorer into a cash-generating gold producer through a low-capital development strategy, creating shareholder value while delivering employment, royalties and community benefits, and strengthening relationships with Native Title groups, suppliers and contractors. The company is now focused on optimising and stabilising Crown Prince operations through continuous improvements, expanding resources and reserves, and developing deeper extensions of the orebody via a new underground mine. Near-term growth initiatives also include advancing the East Pit, Lydia and Abbotts open-pit prospects. Looking ahead, ongoing exploration efforts are targeting large-scale regional opportunities and highly prospective tenements to expand the resource base, while leveraging existing relationships to maintain processing flexibility and support future growth.
- Strategic Belt-Scale Land Position Supports Long-Term Exploration Potential – NMG holds a highly strategic 677 km² tenure position within the prospective Abbotts Greenstone Belt near Meekatharra, Western Australia, covering most of the key geological structures across the belt. The company’s projects are concentrated on the eastern side of the belt, where gold mineralisation is more prevalent and closely associated with north-south trending splays from the major Abernethy Shear Zone. Crown Prince is one of several advanced projects located along these favourable structures, which remain highly prospective for further discoveries. The company also benefits from its proximity to numerous operating gold mines and five processing facilities within a 200 km radius, providing significant infrastructure advantages. Exploration activities focus on identifying mineralisation along favourable horizons and shear zone splays through regional drilling and geochemical programs, followed by detailed geological interpretations to advance priority prospects and expand the resource base.
- Cash build of $63.6m for the quarter. NMG is unhedged, has no debt and finished the March quarter with $155.6m cash.
ACE’s RECOMMENDATION
The Company has executed a rapid development strategy, progressing Crown Prince from resource definition to production within a short timeframe. In November 2024, the company delivered a Mineral Resource Estimate of 279 koz at 3.9 g/t gold, with the Southeastern Zone proving transformational due to its strong underground potential and extension opportunities on a granted mining lease.
In December 2024, an Ore Purchase Agreement with Westgold secured access to the Bluebird mill, providing a low-capital processing solution while also benefiting Westgold through improved mill throughput and lower unit costs. By June 2025, NMG had received mining approvals, secured funding, made the final investment decision, established commercial arrangements, and commenced mining with the first blast. Ore sales began in September 2025, and by the December 2025 quarter, the company had generated $72 million in cash, successfully transitioning from an exploration company to a self-funded gold producer. We recommend the stock as a SPECULATIVE BUY at the closing price of $0.046, with a stop loss of $0.033.
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