Lunnon Metals (LM8) H1 2025 earnings summary

Executive summary

• Focused exploration on gold at the Kambalda Gold & Nickel Project, with significant drilling at Lady Herial yielding high-grade, near-surface gold intercepts and advancing the prospect toward potential open-pit development in 2025.

• Early-stage drilling at Lunnon Basalt & Sediment confirmed gold mineralisation, enhancing the prospectivity of Defiance West, supported by a $220,000 WA Government EIS grant.

• Nickel exploration and development activities at Baker and Foster advanced, with regulatory approvals secured for both mines, but new surface nickel exploration paused due to weak market sentiment.

• Loss for the half-year was $8.60 million, including a $4.96 million impairment on exploration assets, reflecting lower nickel prices and sector conditions.

Financial highlights

• Net loss for the six months ended 31 December 2024 was $8.60 million, down from $16.34 million in the prior year period.

• Impairment expense of $4.96 million recognised on exploration and evaluation assets, mainly due to nickel price declines.

• Cash and cash equivalents at 31 December 2024 were $19.36 million, down from $21.90 million at 30 June 2024.

• Net cash outflow from operating activities was $2.51 million, a significant reduction from $7.60 million in the prior period.

• No new equity raises during the period; minor inflows from option exercises and incentive plans.

Outlook and guidance

• Lady Herial gold prospect to undergo further drilling and economic assessment in early 2025, targeting open-pit development.

• Baker and Foster nickel projects await updated cost estimates and market improvement before further development.

• Exploration at Defiance West to continue, supported by government grant funding.