Quarterly Activities/Appendix 5B Cash Flow Report
| Stock | Lunnon Metals Ltd (LM8.ASX) |
|---|---|
| Release Time | 30 Oct 2025, 8:15 a.m. |
| Price Sensitive | Yes |
Lunnon Metals Quarterly Activities/Appendix 5B Cash Flow Report
- De-risking of Lady Herial gold deposit largely complete
- Executed Ore Purchase Agreement with Gold Fields Ltd for processing of Lady Herial material
- Records a 70% share of future free cash flow for Lunnon Metals
- Hustler and Plentiful advanced significantly as follow up development targets
Lunnon Metals Limited (ASX: LM8) reported on activities undertaken during the September 2025 quarter. Key highlights include: cash balance of $13.3 million supporting ongoing programs; continued drilling and exploration at the Foster-Baker project, with a focus on the Lady Herial gold deposit; successful conclusion of an Exclusivity Period and execution of an Ore Purchase Agreement (OPA) with St Ives Gold Mining Co. Pty Ltd (a subsidiary of Gold Fields Ltd), which records Lunnon Metals' share of potential free cash flow at 70%; continued success with follow-up assay results from other prospects in the Foster Gold Belt discovery program; and the Nickel Assets Scoping Study update confirming the value of the Baker and Foster deposits. The company's strategy is to aggressively pursue emerging gold prospects and advance them through accelerated resource definition and permitting, similar to the approach taken with Lady Herial. The focus for the December 2025 quarter will be on completing an updated Mineral Resource for Lady Herial, obtaining regulatory approval to commence mining, and progressing other key development and exploration targets.
The Lady Herial Scoping Study indicates that open pit mining of the deposit, applying Lunnon Metals' 70% share of potential free cash flow as agreed in the OPA, could yield approximately A$42 million at the current all-time high Australian dollar gold price of over A$6,000/oz.
The focus for the December 2025 quarter will be on achieving key objectives, including completing an updated Mineral Resource for the Lady Herial gold deposit, obtaining regulatory approval to commence mining, awarding the mining contract, and progressing the project-wide aircore program and other exploration targets such as Hustler and Plentiful.