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Lunnon Metals Limited
(Sydney:LM8)
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Rating:72Outperform
Price Target:
AU$0.37
▲(3.33% Upside)
Action:Reiterated
Date:10/08/26
The score is driven by the FY2026 financial turnaround (strong margins and positive free cash flow) alongside a very low-leverage balance sheet, tempered by the prior multi-year history of losses and cash burn that creates sustainability risk. Technically, signals are mixed (negative MACD and below the 200-day average), while valuation is supportive due to the low P/E.
Positive Factors
FY2026 profitability turnaround
FY2026 demonstrates a substantial shift from limited activity to meaningful scale and strong profitability. If this performance is sustained, the improved margin structure can support reinvestment, strengthen the company’s capacity to advance projects, and provide a more durable earnings base.
Negative Factors
Unproven earnings durability
The latest turnaround follows several years of minimal revenue and losses, so the current earnings profile has not yet been demonstrated across a sustained operating cycle. This history raises the risk that FY2026 profitability may be volatile or difficult to maintain.
Read all positive and negative factors
Positive Factors
Negative Factors
FY2026 profitability turnaround
FY2026 demonstrates a substantial shift from limited activity to meaningful scale and strong profitability. If this performance is sustained, the improved margin structure can support reinvestment, strengthen the company’s capacity to advance projects, and provide a more durable earnings base.
Read all positive factors
Lunnon Metals Limited (LM8) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$70.50M
Dividend YieldN/A
Average Volume (3M)116.01K
Price to Earnings (P/E)5.9
Beta (1Y)1.64
Revenue GrowthN/A
EPS GrowthN/A
CountryAU
Employees19
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.05
Shares Outstanding227,416,100
10 Day Avg. Volume72,270
30 Day Avg. Volume116,013
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.42
Price to Sales (P/S)1.70
P/FCF Ratio6.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.60Price Target Upside66.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.06
Revenue Forecast (FY)AU$31.67M
Lunnon Metals Limited Business Overview & Revenue Model
Company Description
Operating from West Perth, Australia, Lunnon Metals Limited is an Australian company dedicated to the exploration and development of nickel and gold deposits. Formed in 2014, the company's primary asset is its complete ownership of the Kambalda Ni...
How the Company Makes Money
Lunnon Metals does not have publicly available information indicating material operating revenue from selling products or providing services; as an exploration-stage company, it generally does not generate consistent cash flow from operations. null...
Lunnon Metals Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
66
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.69M | 0.00 | 1.55K | 7.50K | 660.00 |
| Gross Profit | 13.22M | -159.90K | 1.55K | -129.51K | -101.54K |
| EBITDA | 14.53M | -13.07M | -12.51M | -17.59M | -6.54M |
| Net Income | 12.24M | -13.23M | -24.11M | -17.74M | -6.65M |
Balance Sheet | |||||
| Total Assets | 56.96M | 35.27M | 47.15M | 54.35M | 52.23M |
| Cash, Cash Equivalents and Short-Term Investments | 22.22M | 15.37M | 22.01M | 19.70M | 32.87M |
| Total Debt | 135.94K | 34.51K | 82.17K | 125.31K | 22.12K |
| Total Liabilities | 8.50M | 1.16M | 790.22K | 2.49M | 2.59M |
| Stockholders Equity | 48.45M | 34.11M | 46.36M | 51.86M | 49.65M |
Cash Flow | |||||
| Free Cash Flow | 10.13M | -6.58M | -15.19M | -13.88M | -9.20M |
| Operating Cash Flow | 10.65M | -6.57M | -11.29M | -7.37M | -5.86M |
| Investing Cash Flow | -3.68M | -108.15K | -3.85M | -6.57M | -3.66M |
| Financing Cash Flow | -115.36K | 37.34K | 17.50M | 605.30K | 28.43M |
Lunnon Metals Limited Technical Analysis
Negative
0.36
Price Trends
0.33
Negative
0.32
Negative
0.35
Negative
Market Momentum
>-0.01
Positive
45.25
Neutral
27.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LM8, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.33, and above the 200-day MA of 0.35, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LM8.
Lunnon Metals Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$70.50M | 5.86 | 31.11% | ― | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
45 Neutral | AU$42.65M | -2.91 | -16.19% | ― | ― | 46.91% | |
44 Neutral | AU$39.00M | -14.82 | -9.85% | ― | ― | -11.36% | |
42 Neutral | AU$47.38M | -48.67 | -3.47% | ― | 185.18% | 80.00% |
* Basic Materials Sector Average
AU:LM8
Lunnon Metals Limited
0.33
0.05
17.86%
AU:ZNC
Zenith Minerals Limited
0.07
-0.02
-24.73%
AU:OR3
Auroch Minerals Ltd.
0.05
<0.01
4.65%
AU:BSX
Blackstone Minerals Ltd
0.03
-0.03
-50.94%
AU:LNQ
Linq Minerals Limited
0.56
0.38
208.33%
Lunnon Metals Limited Corporate Events
Lunnon Metals Eyes Strategic Upside from Gold Fields’ Deal for Kambalda Nickel Concentrator
Oct 7, 2026
Lunnon Metals has highlighted BHP’s agreement to sell the Kambalda Nickel Concentrator to Gold Fields, the junior miner’s largest shareholder. With the key processing asset likely to be controlled by a major investor, Lunnon plans to e...
Lunnon Metals Sets Date and Details for 2026 Annual General Meeting
Oct 6, 2026
Lunnon Metals has convened its Annual General Meeting for 5 November 2026 at The Park Business Centre in West Perth, with proceedings scheduled to begin at 9:00am AWST. The company has released the notice of meeting, proxy voting form and a shareh...
Lunnon Metals Details Governance Framework in Annual Report
Sep 25, 2026
Lunnon Metals Limited has outlined its key corporate governance and administrative framework in its latest annual report, detailing its board composition, company secretary, and principal place of business in West Perth, Western Australia. The dis...
Lunnon Metals Advances Plentiful Gold Prospect with Consistent Drill Results
Sep 24, 2026
Lunnon Metals has reported new reverse circulation drilling results from the Plentiful prospect at Foster-Baker, returning consistent, thick gold intersections such as 12 metres at 1.42 grams per tonne and 14 metres at 1.42 grams per tonne. The mi...
Lunnon Metals Reaffirms Project Assumptions and Disclosure Limitations in ASX Presentation
Sep 10, 2026
Lunnon Metals has released a presentation outlining key assumptions, risks and qualifications surrounding its mineral resource estimates and various technical and economic studies for its nickel and gold projects. The document emphasises that info...
Lunnon Metals’ Lady Herial Mine Exceeds Feasibility Targets, Generates A$39m Free Cash
Sep 6, 2026
Lunnon Metals has completed mining at its Lady Herial open pit gold operation ahead of schedule, delivering 303,437 tonnes at 1.68 grams per tonne and selling 14,910 ounces of gold under its ore purchase agreement with St Ives Gold Mining. The pro...
Lunnon Metals Updates Director’s Share and Option Holdings After Fee Option Exercise
Aug 24, 2026
Lunnon Metals Limited has disclosed a change in director Deborah Lord’s interests in the company’s securities following the exercise of director fee options. The update, lodged under ASX listing rules, outlines revised holdings in both...
Lunnon Metals Discloses Director Liam Twigger’s Option Exercise and Revised Indirect Holdings
Aug 24, 2026
Lunnon Metals has disclosed a change in the indirect interests of non-executive director Liam Twigger, reflecting an internal rebalancing of his holdings via family-related entities. Twigger exercised 144,494 zero exercise price director fee optio...
Lunnon Metals Updates on Director Edmund Ainscough’s Incentive-Linked Shareholding
Aug 24, 2026
Lunnon Metals Limited has reported a change in director Edmund Ainscough’s indirect interests, reflecting the exercise of incentive-based performance rights held through NUB Holdings Pty Ltd and Sobro Holdings Pty Ltd. The director’s s...
Lunnon Metals Reports Lapse of Performance Rights
Aug 24, 2026
Lunnon Metals Limited has reported the lapse of 307,041 performance rights, which ceased on August 19, 2026 after the conditions attached to these rights were not met or became incapable of being satisfied. The cessation reduces the pool of outsta...
Lunnon Metals Seeks ASX Quotation for Additional Ordinary Shares
Aug 24, 2026
Lunnon Metals Limited has applied to the ASX for quotation of an additional 250,456 ordinary fully paid shares under its existing LM8 ticker. The securities were issued on August 19, 2026 and the formal application was lodged on August 24, 2026, i...
Lunnon Metals Seeks ASX Quotation for New Employee Incentive Shares
Aug 24, 2026
Lunnon Metals Limited has applied for quotation of 3,826,712 new ordinary fully paid shares on the Australian Securities Exchange, with an issue date of August 19, 2026. The securities have been issued under an employee incentive scheme, signaling...
Lunnon Metals Updates Market on Director’s Forfeited Performance Rights
Aug 14, 2026
Lunnon Metals Limited has disclosed a change in the interests of director Edmund Ainscough, updating the market on his direct and indirect holdings in ordinary shares and unquoted performance rights. The filing details his positions through NUB Ho...
Lunnon Metals Reports Lapse of 2.98 Million Performance Rights
Aug 7, 2026
Lunnon Metals Limited has announced the cessation of 2,982,389 performance rights, which have lapsed because the conditions attached to these rights were not met or can no longer be satisfied. The lapse of these conditional securities reduces the ...
Lunnon Metals Boosts Cash on Strong Lady Herial Output, Ramps Up Gold Exploration
Jul 29, 2026
Lunnon Metals reported a sharp increase in cash to $22.2 million at the end of the June 2026 quarter, driven by strong production and cash flow from the Lady Herial open pit gold operation, with subsequent July receipts lifting unaudited cash to a...
Lunnon Metals Cautions Investors on Exploration Presentation and Resource Guidance
Jul 21, 2026
Lunnon Metals has released a presentation outlining key aspects of its exploration and project development work, including mineral resource estimates, scoping and feasibility studies, and commercial arrangements such as an Ore Purchase Agreement. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.