Lunnon Metals (LM8) Q2 2025 TU earnings summary

Executive summary

• Lady Herial confirmed as a high-grade, near-surface gold prospect, with significant de-risking achieved through close-spaced drilling and technical studies during the quarter.

• Early scout drilling at Lunnon Basalt and Sediment supports potential for new gold discoveries, with Defiance West EIS program to commence in February 2025.

• Agreement reached with Ngadju Native Title Aboriginal Corporation, securing land access for all current gold activities and Foster-Baker nickel resources.

• Strong cash position of $19.5 million at quarter end, supporting ongoing and expanded exploration activities.

Financial highlights

• Cash balance at 31 December 2024 was $19.5 million, down from $21.1 million at 30 September 2024.

• Net payments for exploration, evaluation, and development totaled $0.95 million for the quarter.

• Net cash outflow from operating activities was $1.64 million for the quarter.

• Estimated quarters of funding available at current spend rate is 12.

Outlook and guidance

• March 2025 quarter to focus on further de-risking Lady Herial, infill drilling, and technical studies to expedite permitting for a potential shallow open pit.

• EIS co-funded drilling at Defiance West to begin in February 2025, targeting Beta/Hunt style gold systems.

• Increased exploration spend anticipated as multiple gold prospects are tested concurrently.

• Commercial discussions to be initiated for ore treatment options, including with major shareholder Gold Fields.