Lunnon Metals Wraps Lady Herial Mine with $39M Pre-Tax Free Cash Flow

• Total ore mined 303,437t at 1.68 g/t Au
• 14,910 oz gold sold with 91% recovery
• August invoice $5.1 million vs $1.2 million costs
• Free cash flow within 3.5% of feasibility forecast
• Mineral resource estimate largely unchanged post-mining

Lady Herial Mine Completes Ahead of Schedule

Lunnon Metals Limited (ASX:LM8) has successfully completed open pit mining at its Lady Herial gold deposit in early August 2026, beating the timeline set out in its January Feasibility Study. The operation delivered a total of 303,437 tonnes of ore at an average grade of 1.68 grams per tonne (g/t) gold, yielding 14,910 ounces of gold sold under the Ore Purchase Agreement (OPA) with Gold Fields subsidiary St Ives Gold Mining Co.

The final month of operations saw Lunnon invoice Gold Fields approximately $5.1 million for gold delivered, against direct operating costs of $1.2 million (unaudited, excluding GST). This strong margin contributed to an estimated $39 million in pre-tax free cash flow for Lunnon Metals, closely tracking the feasibility study’s projections.

Operational and Financial Performance Aligns with Feasibility Study

A detailed reconciliation against the January 2026 Feasibility Study shows Lunnon mined 13% more tonnes than forecast, albeit at an 11% lower grade due to occasional dilution and minor additional ore blocks. Despite the grade dip, the total gold ounces mined slightly exceeded expectations at 100.7% of the Ore Reserve estimate.

Operating costs were 5.1% higher than forecast, primarily driven by increased haulage and processing of the extra ore. However, unit operating costs per tonne were actually 7.1% lower, reflecting operational efficiencies. The all-in sustaining cost (AISC) per ounce was $2,368, marginally above the feasibility estimate.

With a cash balance of $41.4 million as of 31 August 2026, Lunnon Metals is well positioned to fund its $13 million self-financed FY2027 drill program targeting extensions and new discoveries within the Kambalda/St Ives gold camp.

Mineral Resource and Ore Reserve Status Post-Mining

Mining at Lady Herial has fully depleted the Ore Reserve declared in January 2026. The Mineral Resource Estimate (MRE) has been updated post-mining depletion, showing a remaining resource of approximately 590,000 tonnes at 2.0 g/t Au for 37,000 ounces in the Foster-Baker area, with no material changes to the underlying assumptions or parameters.

The final mined gold ounces of 14,910 closely match the forecast 14,806 ounces, with only a minor 715 ounces not delivered under the OPA due to dilution effects on narrow ore blocks. Geological cross sections confirm the final pit profile aligns well with the conceptual designs.

Strategic Positioning in a Prolific Gold Camp

Lady Herial sits within Lunnon’s Kambalda Gold & Nickel Project (KGNP), a 47 square kilometre tenure in the historically rich Kambalda/St Ives gold district. This region has produced over 18 million ounces of gold and 1.6 million tonnes of nickel since discovery, underscoring the significance of Lunnon’s holdings.

The KGNP benefits from proximity to established infrastructure and nearby processing plants, including Gold Fields’ Lefroy plant, facilitating efficient ore processing and logistics. The successful completion of Lady Herial mining and the strong cash flow generated provide a solid foundation for Lunnon’s continued exploration ambitions in the region.

Bottom Line?

Lady Herial’s near-perfect execution against feasibility targets sets a high bar for Lunnon Metals as it pivots to exploration-driven growth in FY2027.

Questions in the middle?

• How will Lunnon Metals prioritise its $13 million FY2027 drill program to extend resources beyond Lady Herial?
• What impact will the stable cash position have on Lunnon’s strategy for advancing the Hustler deposit?
• Could operational efficiencies at Lady Herial translate into cost savings for future mining projects within the KGNP?