Company Overview

New Murchison Gold Limited (ASX: NMG) is a Western Australian gold company focused on the Murchison goldfield near Meekatharra. Its key asset is the Garden Gully Project, a 677km² tenure package over the Abbotts Greenstone Belt, with Crown Prince now established as the company’s first producing mine. NMG has moved out of the pure explorer bucket and, by late 2025, was reporting its first full quarter of production and cash generation.

Core Products & Competitive Position

NMG’s economic product is gold-bearing ore from Crown Prince, sold under an ore purchase agreement with Westgold rather than processed through NMG-owned infrastructure. That matters because it cuts upfront capital intensity and lets NMG monetise ore through nearby third-party capacity at Bluebird, only 36km away. Competitive positioning is therefore less about owning a mill and more about having a high-grade orebody near established infrastructure, plus a strategic relationship with Westgold, which is also a 16% shareholder.

Core Assets, Reserves & Resource Life

The centrepiece is the Crown Prince deposit within Garden Gully. As at 30 September 2025, Crown Prince’s mineral resource stood at 2.245Mt at 3.8g/t for 276.9koz of gold, while ore reserves were 920kt at 4.6g/t for 135.6koz. The company says Crown Prince is forecast to produce about 140,000 contained ounces over an initial 30-month open pit mine life, with drilling underway beneath the pit and at nearby prospects to extend mine life further. In other words, the current reserve base supports the first mining phase, while the broader resource inventory and nearby targets are the real “life beyond the starter pit” story.

Production Profile – Small High-Grade Starter Mine

The Crown Prince deposit is relatively high grade for an open-pit gold operation (around 4–5 g/t), but the reserve size is modest.
Based on current mine plans, the deposit is expected to yield roughly 140k ounces over about 30 months, implying annual production in the range of 50–60k ounces.

This positions NMG as a small emerging gold producer, where the current pit primarily provides cash flow while exploration aims to extend mine life.

Key Operational and Financial Metrics

Production and Ore Sales

During the December 2025 quarter, New Murchison Gold reported its first full quarter of steady-state production from the Crown Prince Gold Mine.
A total of 187,384 tonnes of gold-bearing ore were sold under the Ore Purchase Agreement with Westgold at an average grade of 4.0 g/t, equating to approximately 22,766 ounces of gold for the period.

This volume exceeded the originally contemplated quarterly OPA limit of 150,000 tonnes, reflecting a smooth ramp-up of mining operations.

Gold Price and Operating Margin

For reporting purposes, the attributable realised gold price for the quarter was approximately A$6,315 per ounce, while the company reported an All-in Sustaining Cost (AISC) of around A$2,149 per ounce.

Cash Generation and Balance Sheet Strength

Operational ramp-up translated into strong cash generation during the quarter, with the company reporting A$72.3 million in cash inflows from operations.

As of 31 December 2025, New Murchison Gold held A$92 million in cash, with no debt and no hedging in place, providing financial flexibility for future exploration and development activities.

Growth Projects

Lydia Prospect – Near-Mine Exploration Upside

Lydia is a near-mine exploration target within the broader Garden Gully project area. Recent drilling has returned several high-grade intersections, suggesting the potential to define an additional mineral resource that could provide supplementary ore feed to the Crown Prince operation if further drilling confirms continuity.

Recent drilling at the Lydia prospect has returned several notable high-grade gold intersections, including results such as 0.4 metres at around 346 g/t Au and 0.2 metres at roughly 1,205 g/t Au in narrow quartz-vein structures.

While these grades are extremely high, they occur over very narrow intervals and therefore do not represent the average grade of a potential ore body.

Abbotts Prospect – Regional Exploration Potential

The Abbotts prospect lies within the Abbotts Greenstone Belt, a gold-bearing geological corridor that hosts multiple mineralised occurrences across the project area. Exploration work remains at an early stage, but the prospect represents potential regional upside should economically significant mineralisation be defined through ongoing drilling.

Crown Prince Underground – Potential Mine Life Extension

In addition to the current open-pit mining operation, the company is evaluating the potential for underground development beneath the Crown Prince pit. If deeper drilling confirms the continuation of high-grade mineralisation at depth, underground mining could provide a pathway to extend the overall life of the operation beyond the currently defined open-pit reserves.

Valuation

Based on current operations at the Crown Prince mine, annualised production of roughly 80,000 ounces and an estimated margin of around A$4,800 per ounce at a gold price near A$7,000/oz imply potential annual free cash flow in the order of A$200–250 million.

With approximately 27 months of remaining mine life from currently defined reserves, the operation could generate roughly A$400–500 million of cumulative free cash flow over the remaining life of the open-pit mine.

Including the company’s A$92 million cash balance, this suggests an indicative valuation in the order of roughly A$500–600 million, with additional upside dependent on exploration success at Lydia, Abbotts and potential underground extensions at Crown Prince.

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Technical View

Trend Reversal and Breakout

After several years trading below the long-term trend, NMG broke decisively above its 200-day moving average during 2025, signalling a structural shift in market sentiment. The move coincided with the transition of the Crown Prince project from exploration to production.

Strong Rally Followed by Normal Consolidation

The share price has rallied sharply from roughly A$0.01 to above A$0.07, reflecting improved fundamentals and rising gold prices. Recent pullbacks appear consistent with a normal consolidation phase following a strong multi-month advance.

Key Support Levels

Technically, the first meaningful support zone appears around A$0.045–0.05, where recent buyers previously entered the market. A deeper correction toward the 50-day moving average near A$0.038 would still leave the broader uptrend intact.

New Murchison Gold (ASX: NMG) share price forecast — *Source: TradingView*

FAQs About New Murchison Gold (ASX: NMG)

1- What is the company’s main producing asset?

Production currently comes from the Crown Prince open-pit gold mine within the Garden Gully project in Western Australia.

2- How long is the remaining mine life?

Based on current reserves, the open-pit operation has roughly 27 months of remaining mine life.

3- Does the company have exploration upside?

Yes. Ongoing exploration at Lydia, Abbotts and the Crown Prince underground target could extend mine life if additional resources are defined.

4- How strong is the balance sheet?

The company reported roughly A$92 million in cash and no debt, providing flexibility for exploration and development.