Lunnon Metals Limited (ASX:LM8) Lifts Cash to $43.0M After Lady Herial Pit Finishes Within 3.5% of Forecast

Sonal Goyal

28 October 2026 01:09 PM AEDT

Lunnon Metals Limited (ASX:LM8) Lifts Cash to $43.0M After Lady Herial Pit Finishes Within 3.5% of Forecast

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Key Highlights

Cash stood at $43.0 million at 30 September 2026, compared with $22.2 million at 30 June 2026.
Lady Herial produced 303,437 tonnes at 1.68 g/t Au and 14,910 oz of gold sold, with pre-tax free cash flow 3.5% below the January 2026 Feasibility Study.
The Hustler Mineral Resource rose 20% to 36,200 oz of gold at 826,000 tonnes and 1.4 g/t Au.
The $13 million FY2027 exploration program drilled 9.9km in the quarter, against a full-year plan of 43.4km.

Lunnon Metals Limited (ASX:LM8) closed the September 2026 quarter with $43.0 million in cash, up from $22.2 million at 30 June 2026, after mining at its Lady Herial open pit in the Kambalda Gold and Nickel Project finished on 8 August. Deliveries to Gold Fields Ltd during the quarter totalled 96,556 tonnes at 1.88 g/t Au for 5,821 oz, while the company started a $13 million exploration program across its Foster Baker area leases.

Lady Herial Final Reconciliation

The quarter included $35.1 million of revenue received, inclusive of GST and unaudited, against approximately $7.6 million spent on direct operating costs. Over its life the pit yielded 303,437 tonnes at 1.68 g/t Au, with 14,910 oz of gold sold at 91% metallurgical recovery. Against the January 2026 Feasibility Study, tonnes were 13.1% higher than the 268,247 forecast, while grade was 11.1% lower than the 1.89 g/t Au estimate. Gold sold was 0.7% above the study figure of 14,806 oz, equal to 100.7% of the ounces in the Ore Reserve.

Revenue was $93.26 million against $92.54 million forecast, at an average gold price of $6,254 per ounce. Total operating costs were 5.1% higher at $31.62 million, which the company attributed mainly to haulage and processing of the additional tonnes, although the unit operating cost of $104 per tonne of ore was 7.1% lower than the $112 estimate. Pre-tax free cash flow was $55.7 million on a 100% basis against $57.7 million forecast, with Lunnon Metals' 70% share at $39.0 million compared with $40.4 million. All-in-sustaining cost was $2,368 per ounce against $2,354. The Ore Reserve is now fully depleted, and the post-mining Lady Herial Mineral Resource is 589,600 tonnes at 2.0 g/t Au for 37,000 oz.

Exploration Across the Foster Baker Area

The FY2027 program is the first year of a two-year test of an Exploration Target of 25-30 million tonnes for 1.2-2.4 million ounces of gold at grades of 1.5-2.5 g/t Au, to a depth of 400 metres. In the quarter the company completed 106 reverse circulation holes for 7,537m and 12 diamond holes for 2,349m, totalling 9,900m across 12 of 31 planned prospects. No aircore drilling took place. The program calls for more than 20,000m of RC, more than 10,000m of diamond and more than 10,000m of aircore drilling over the year.

At Benmore, a hole drilled 1.7km north of Gold Fields' Athena and Hamlet underground mines, JAN26DD_011, cut about 90m of sheared basalt and dolerite with an alteration assemblage typical of St Ives style gold deposits, including 1.37m at 3.03 g/t Au from 302.07m. At Koombana, 300 metres south-east of Hustler, 19 RC holes returned results including 22.0m at 3.31 g/t Au from 5 metres. Infill drilling at Hustler produced 1.0m at 80.80 g/t Au and 3.62m at 10.80 g/t Au, and at Plentiful 14.0m at 1.42 g/t Au was recorded from 68 metres.

Hustler, Nickel and Corporate Items

The updated Hustler Mineral Resource comprises 171,000 tonnes Indicated at 1.3 g/t Au and 655,000 tonnes Inferred at 1.4 g/t Au. The Scoping Study for a possible Lady Herial cut-back and Hustler pit is close to complete, but its finalisation has been deferred until both resource models are updated.

After the quarter ended, Gold Fields agreed to acquire the Kambalda Nickel Concentrator from BHP. Lunnon Metals holds the fully permitted Baker underground nickel deposit, which contains 33.7kt of nickel metal in the resource. One lost-time injury was recorded during the quarter, and royalty payments continued to the Ngadju Native Title Aboriginal Corporation.

Where the Quarter Leaves the Company

Lunnon Metals finished the quarter with $43.0 million in cash, a completed open pit that reconciled closely with its feasibility forecasts, an expanded Hustler resource and 9.9km of drilling completed toward its 43.4km annual plan.

FAQs

Q: How much cash did Lunnon Metals hold at 30 September 2026?

A: Cash stood at $43.0 million, compared with $22.2 million at 30 June 2026.

Q: How did Lady Herial compare with the Feasibility Study?

A: The pit produced 303,437 tonnes at 1.68 g/t Au for 14,910 oz sold, with total operating costs 5.1% higher and pre-tax free cash flow 3.5% lower than the January 2026 study.

Q: What is the Hustler Mineral Resource?

A: Hustler stands at 826,000 tonnes at 1.4 g/t Au for 36,200 oz, a 20% increase, made up of 171,000 tonnes Indicated and 655,000 tonnes Inferred.

Q: How much drilling was completed under the FY2027 exploration program?

A: The company drilled 9,900m in the quarter, comprising 7,537m of RC and 2,349m of diamond, against a planned 43,400m for the year.

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