Lunnon Metals Posts Record June Gold Output at Lady Herial

• June 2026 yields 3,473 ounces gold, best month to date
• $12 million received versus $3 million costs in June
• 90% pit volume and 66% gold mined to end June
• Operations on track to complete by August/September
• Strong cash balance supports FY2027 exploration plans

June Delivers Record Gold Output and Cash Flow

Lunnon Metals Limited (ASX:LM8) has reported its strongest month so far at the Lady Herial gold open pit, mining over 62,000 tonnes of ore at 1.73 grams per tonne (g/t) to produce 3,473 ounces of gold in June 2026. This milestone translated into a substantial $12 million payment from Gold Fields subsidiary St Ives Gold Mining Co., dwarfing Lunnon’s operating costs for the month, which stood at approximately $3 million (unaudited, excluding GST).

The Ore Purchase Agreement with Gold Fields continues to operate smoothly, with total deliveries to date reaching nearly 207,000 tonnes at 1.59 g/t for 10,561 ounces of gold, of which 9,613 ounces have been recovered after metallurgical processing. This steady flow of ore and cash has bolstered Lunnon's balance sheet, with an estimated cash position exceeding $21 million as of 30 June 2026.

Progress Towards Pit Completion and Rehabilitation

Mining operations remain on schedule to complete by August or September, closely tracking the feasibility study (FS) timeline. By the end of June, approximately 90% of the total pit volume and 66% of the planned gold had been extracted. As the pit approaches its final stages, the waste-to-ore ratio is declining, which should enhance operating margins in the coming months.

Parallel to mining, rehabilitation efforts are advancing with 80% completion of the abandonment bund surrounding the pit and ongoing topsoil spreading over waste dumps. The company is also considering selective 'goodbye' cuts to extract any remaining ore beyond the original plan, potentially adding incremental ounces to the tally.

Gold Price and Financial Outlook Remain Supportive

The average A$ gold price realised to date stands at approximately $6,429 per ounce, about 3% above the $6,250 per ounce assumed in the FS. June’s deliveries were priced at $6,027 per ounce. Despite a recent dip in the Australian dollar gold price to around $5,750 per ounce and rising diesel costs, Lunnon Metals expects to achieve free cash flow (pre-tax) within 7% of the FS projections.

These figures suggest that the company is navigating cost pressures and commodity price fluctuations without materially altering the financial assumptions underpinning the project. The FS sensitivity analysis included scenarios for such variations, and current conditions fall within those tested ranges.

Setting the Stage for FY2027 Exploration Ambitions

Managing Director Edmund Ainscough highlighted that Lady Herial’s operational success has positioned Lunnon Metals well for the next phase. With a strong cash buffer and a revitalised team, the company is primed to pursue its FY2027 exploration budget, targeting the 23 square kilometres it holds in the heart of the prolific 18-million-ounce St Ives gold camp.

Exploration plans are ambitious, aiming to unlock further discoveries beyond Lady Herial, which is nearing the end of its mine life. This focus aligns with the company's broader strategy to capitalise on the region’s significant gold potential and leverage existing infrastructure.

Bottom Line?

Lady Herial’s record June performance and strong cash flow set a solid foundation for Lunnon Metals’ exploration push in FY2027, but the final months of mining will test cost controls amid fluctuating gold prices.

Questions in the middle?

• Will Lunnon Metals secure additional ore from selective ‘goodbye’ cuts before pit closure?
• How will ongoing gold price volatility impact the final free cash flow outcome for Lady Herial?
• Can the strong cash position accelerate exploration success in the broader Foster-Baker area?