Lunnon Metals Completes Lady Herial Mine Early with Record July Gold Output

Record July Performance Caps Off Early Completion

Lunnon Metals (ASX:LM8) has closed out mining activities at its Lady Herial gold open pit ahead of schedule, with July 2026 marking the strongest month since operations began. The company delivered nearly 77,000 tonnes of ore grading 1.79 grams per tonne gold, yielding 4,439 ounces to Gold Fields’ St Ives subsidiary. This surge in output exceeded feasibility study forecasts and allowed the mine to wrap up in early August, well before the planned timeline.

Robust Cash Flow and Financial Metrics

July’s gold deliveries generated approximately $14.8 million in revenue (excluding GST), against direct operating costs of $2.5 million, according to unaudited figures. This strong margin has propelled Lunnon Metals’ share of free cash flow to $35.3 million pre-tax, reflecting its 70% stake under the Ore Purchase Agreement (OPA) with Gold Fields. Total gold delivered through July reached 13,652 ounces, reconciling closely with the January 2026 feasibility study’s projections.

The OPA has functioned as intended, enabling efficient operations and timely payments. With the final parcels of gold ore delivered in early August and invoicing set for September, Lunnon Metals anticipates total pre-tax free cash flow of around $38 million, within 5% of the original forecast. The agreement also reimburses pre-development capital costs, including crucial grade control drilling, totaling approximately $2.5 million.

Rehabilitation Progress and Project Wind-Down

Environmental rehabilitation is progressing alongside mining activities. The eastern waste dump has been fully rehabilitated, while topsoil spreading on the western dump continues and will be completed post-mining. With mining operations concluded, only minor demobilisation and rehabilitation tasks remain before the project’s formal close-out.

Strategic Position in a World-Class Gold Camp

Lady Herial sits within the Kambalda Gold & Nickel Project (KGNP), a prolific Australian gold camp with a rich history of production exceeding 18 million ounces. The project benefits from proximity to established infrastructure and nearby processing plants, including Gold Fields’ Lefroy facility. This strategic location and the smooth execution of the OPA underpin Lunnon Metals’ strong operational and financial outcomes.

Looking ahead, Lunnon Metals is well positioned to leverage its cash flow from Lady Herial to fund exploration and development across the Foster-Baker area, targeting substantial gold resources identified in recent drilling campaigns.