Lady Herial Mining Is Done, and Lunnon Metals (ASX:LM8) Holds A$43.0 Million in Cash

Aditi Sarkar

28 October 2026 04:10 PM AEDT

Lady Herial Mining Is Done, and Lunnon Metals (ASX:LM8) Holds A$43.0 Million in Cash

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Highlights

Cash reached A$43.0 million at 30 September 2026, up from A$22.2 million at 30 June, after final ore deliveries.
Lady Herial sold 14,910 ounces at 91 per cent recovery, equal to 100.7 per cent of the January 2026 study.
Pre-tax free cash flow for Lunnon's 70 per cent share was A$39.0 million, against a feasibility forecast of A$40.4 million.
Exploration drives Lunnon, with an A$13 million FY2027 budget and a Foster-Baker Exploration Target of 1.2 to 2.4 million ounces.

Mining at the Lady Herial open pit near Kambalda finished in early August 2026, and the cash has landed. Lunnon Metals Ltd (ASX:LM8) reported on 28 October 2026 that cash stood at A$43.0 million at the end of the September quarter, up from A$22.2 million at 30 June. The company said no further mining revenue is forecast, which leaves exploration as the focus.

Cash after mining ends

Receipts from customers were A$35.1 million, GST inclusive and unaudited, mainly under the Ore Purchase Agreement with SIGM, a subsidiary of Gold Fields. Direct production payments were about A$7.6 million and exploration and evaluation payments A$2.7 million. Related-party payments totalled A$198,000.

Lady Herial: final tally

Deliveries to Gold Fields in the quarter were 96,556 tonnes at 1.88 grams per tonne gold, containing 5,821 ounces. Across the whole pit, 303,437 tonnes were mined at 1.68 g/t gold and 14,910 ounces were sold at 91 per cent metallurgical recovery.

Against the January 2026 Feasibility Study, tonnes were 13.1 per cent higher, grade was 11.1 per cent lower, ounces were 100.7 per cent of forecast and operating costs were 5.1 per cent higher. Pre-tax free cash flow was A$55.7 million on a 100 per cent basis against a forecast of A$57.7 million. Because the Lady Herial Ore Reserve is fully depleted, the company reports no gold Ore Reserves.

The exploration push

In the quarter, the company drilled 106 reverse circulation holes for 7,537 metres and 12 diamond holes for 2,349 metres. Year-to-date drilling of 9,900 metres compares with a plan of 43,400 metres for the financial year.

The Foster-Baker Exploration Target is 25 to 30 million tonnes for 1.2 to 2.4 million ounces of gold to a depth of 400 metres. It is conceptual, with no certainty that further exploration will deliver a Mineral Resource. The Hustler Mineral Resource, announced in July 2026, is 826,000 tonnes at 1.4 g/t gold for 36,200 ounces.

Reported results included 22.0 metres at 3.31 g/t gold from 5 metres at Koombana, 12.0 metres at 1.42 g/t from 76 metres at Plentiful, and 17.86 metres at 0.61 g/t in the prioritised zone at Benmore. Scoping study updates for the Lady Herial cut-back and for Hustler are deferred until their resource models are updated.

Nickel and the Gold Fields link

The Baker nickel deposit has a Mineral Resource of 1.03 million tonnes at 3.3 per cent nickel, containing 33,700 tonnes of nickel metal above a 1.0 per cent cut-off. There was no on-ground nickel activity in the quarter. BHP has agreed to sell the Kambalda Nickel Concentrator to Gold Fields, Lunnon's largest shareholder with 29.61 per cent of voting power. Settlement is expected in calendar 2027, subject to conditions including regulatory approvals.

Other matters

Lunnon had 227,416,106 shares on issue. Ngadju royalty payments continued, and the company disclosed a lost time injury during exploration activities in the quarter. Any development decision would depend on future work, studies and approvals that the quarterly report does not confirm.

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