Lunnon Metals (ASX:LM8) approves final investment decision for Lady Herial

Lunnon Metals has moved from study to execution at its Lady Herial gold project, with the Board approving the Final Investment Decision following completion of a Feasibility Study and the Ore Purchase Agreement with St Ives Gold Mining Co. Pty Ltd becoming unconditional, allowing mining contracts to be executed and operations to commence.

Highlights

• Lady Herial Feasibility Study reported to the ASX on 16 January 2026

• Operating free cash flow pre tax of $40.4M at $6,250 per oz, $42.9M at $6,500 per oz and $47.9M at $7,000 per oz, with spot gold at approximately $6,900 per oz at the time of compilation

• Final Investment Decision approved by the Board following confirmation that the Ore Purchase Agreement with St Ives Gold Mining Co. Pty Ltd is unconditional, enabling mining to commence

The Feasibility Study released on 16 January 2026 sets out the development parameters for Lady Herial as a short life, high grade, low strip ratio open pit, with ore scheduled to be mined and processed over an 8 to 10 month period, providing a defined production window supported by detailed operating and cost assumptions contained in the study.

The economic outcomes presented are framed around a range of gold prices, with pre tax operating free cash flow of $40.4M at $6,250 per oz, rising to $47.9M at $7,000 per oz, positioning the project’s cash generation profile against prevailing Australian dollar gold prices that were close to the upper end of this range at the time of the announcement.

The Board’s approval of the Final Investment Decision follows confirmation that the Ore Purchase Agreement with major shareholder St Ives Gold Mining Co. Pty Ltd is now unconditional, a contractual step that underpins the pathway from study to mining by securing the commercial framework for ore processing and sale.

With this condition satisfied, Lunnon Metals has progressed to finalising mining and operational arrangements, with Hampton Civil and Mining selected as the preferred mining contractor and Goldfields Technical Services of Kalgoorlie appointed to provide statutory positions, operational blast design, dig plans, mine geology, surveying and site and run of mine pad management.

Final contracts are being prepared and are expected to be executed in the short term, after which mining can commence.

In commenting on the milestone, Non Executive Chair Liam Twigger said that the decision marked a transition from discovery to production within a compressed timeframe, noting,

“Today’s FID approval is a proud moment for everyone at Lunnon Metals. Being nimble and fleet of foot is a key attribute and speaks to the quality, drive and initiative of our management team. To go from discovery at Lady Herial to production in under two years is outstanding and provides a great template and platform to build shareholder value.”

His remarks also acknowledged the roles of Gold Fields, contractors, stakeholders and the DMPE in advancing the project to this stage, reflecting the collaborative and regulatory processes required to reach an investment decision on a new open pit development.

From a corporate perspective, the approval of the Final Investment Decision and the transition to contract execution place Lunnon Metals in a defined development phase, with mining expected to commence once contractual and statutory arrangements are finalised.

The project economics have already been framed within the Feasibility Study and its associated production and cash flow assumptions, which the company has confirmed remain materially unchanged since lodgement on 16 January 2026.

In an industry context characterised by elevated Australian dollar gold prices, the Lady Herial decision situates Lunnon Metals among a cohort of producers and near term producers advancing short life, high grade open pit projects capable of being brought into production within relatively short development timeframes.

The company now enters the execution phase, where delivery of the mine plan, contractor performance and operational readiness will be central as it progresses toward initial mining and cash generation from the Foster Belt after more than 30 years without gold or nickel production in the area.

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