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Lunnon Metals Limited (AU:LM8)
ASX:LM8
Australian Market
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Lunnon Metals Limited (LM8) AI Stock Analysis

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AU:LM8

Lunnon Metals Limited

(Sydney:LM8)

Rating:43Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The company's overall stock score is heavily influenced by its poor financial performance, marked by persistent losses and cash flow issues. The neutral technical analysis score indicates a lack of strong market momentum, while the negative P/E ratio further highlights valuation concerns. Without positive earnings calls or corporate events to improve sentiment, the stock remains a risky investment.

Lunnon Metals Limited (LM8) vs. iShares MSCI Australia ETF (EWA)

Lunnon Metals Limited Business Overview & Revenue Model

Company DescriptionLunnon Metals Limited focuses on the exploration and development of nickel and gold in Australia. It holds 100% interest in the Kambalda Nickel project, which comprises 19 contiguous mining tenements and area covering 23 square kilometers located within the Kambalda Nickel District, Eastern Goldfields, Western Australia. The company was formerly known as ACH Nickel Pty Ltd and changed its name to Lunnon Metals Limited in February 2021. Lunnon Metals Limited was incorporated in 2014 and is based in West Perth, Australia.
How the Company Makes MoneyLunnon Metals Limited makes money primarily through the exploration, development, and sale of nickel resources. The company engages in the extraction of nickel ore from its mining operations, which is then processed and sold to customers, including smelters and refiners, who further refine the nickel for use in various industries. Key revenue streams for Lunnon Metals include the sale of nickel concentrates and potentially other by-products extracted during the mining process. The company may also benefit from strategic partnerships with larger mining firms or offtake agreements that ensure a steady demand for its nickel products. Market factors such as global nickel prices, demand for electric vehicles, and advancements in battery technologies significantly influence the company's earnings.

Lunnon Metals Limited Financial Statement Overview

Summary
Lunnon Metals Limited faces significant financial challenges with persistent losses affecting profitability and cash flow. Despite a strong equity position, the income statement and cash flows indicate substantial operational inefficiencies and cash management issues.
Income Statement
30
Negative
Lunnon Metals Limited has shown significant volatility in its revenue growth with substantial losses over the years. The revenue growth from 2023 to 2024 is negative, and the company has been unable to maintain a consistent gross profit margin or net profit margin. Additionally, EBIT and EBITDA margins are significantly negative, indicating operational inefficiencies and substantial losses.
Balance Sheet
40
Negative
The balance sheet shows a strong equity position with low levels of debt, resulting in a low debt-to-equity ratio. However, the company's return on equity (ROE) is negative due to continued losses. The equity ratio is strong, showing stability in terms of asset financing through equity.
Cash Flow
35
Negative
The cash flow analysis reveals negative operating cash flow and free cash flow over the years, suggesting cash management challenges. The free cash flow growth rate is negative, indicating worsening cash flow performance. The operating cash flow to net income ratio is less relevant due to negative net income.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.55K7.50K660.000.000.00
Gross Profit-151.02K-129.51K-101.54K-17.92K0.00
EBITDA-12.51M-17.59M-6.54M-2.49M-22.08K
Net Income-24.11M-17.74M-6.65M-2.53M-1.45M
Balance Sheet
Total Assets47.15M54.35M52.23M28.03M918.06K
Cash, Cash Equivalents and Short-Term Investments22.01M19.70M32.87M13.96M794.33K
Total Debt82.17K125.31K33.62K52.51K3.83M
Total Liabilities790.22K2.49M2.59M689.59K3.88M
Stockholders Equity46.36M51.86M49.65M27.34M-2.96M
Cash Flow
Free Cash Flow-15.19M-13.88M-9.20M-2.16M-1.44M
Operating Cash Flow-11.29M-7.37M-5.86M-2.01M-1.44M
Investing Cash Flow-3.85M-6.57M-3.66M-147.13K0.00
Financing Cash Flow17.50M605.30K28.43M15.33M0.00

Lunnon Metals Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.24
Price Trends
50DMA
0.22
Positive
100DMA
0.22
Positive
200DMA
0.23
Positive
Market Momentum
MACD
<0.01
Negative
RSI
58.48
Neutral
STOCH
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LM8, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.22, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LM8.

Lunnon Metals Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥180.40B11.216.29%3.20%3.88%3.23%
44
Neutral
AU$1.39M-7.86%37.50%
43
Neutral
-35.49%32.85%
41
Neutral
AU$1.95M-94.58%15.56%
34
Underperform
AU$2.35M-48.57%73.13%
31
Underperform
AU$2.85M-66.25%-80.00%
25
Underperform
AU$2.08M-20.32%90.91%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LM8
Lunnon Metals Limited
0.24
0.06
33.33%
AU:MRD
Mount Ridley Mines Limited
0.01
0.00
0.00%
AU:AOA
Ausmon Resources Limited
AU:C7A
Aus Tin Mining Limited
0.01
0.00
0.00%
AU:SLZ
Sultan Resources Ltd.
0.01
0.00
0.00%
AU:FIN
Fin Resources Limited

Lunnon Metals Limited Corporate Events

Lunnon Metals Reports Promising Gold Discoveries and Strategic Negotiations
Jul 25, 2025

Lunnon Metals Limited announced significant progress in their June 2025 quarterly activities, highlighting the first-time gold Mineral Resource estimate at Lady Herial and robust financial outcomes from the scoping study. The company is negotiating with Gold Fields Ltd for processing agreements and continues to explore promising prospects like the Foster Gold Belt, supported by a strong cash balance of $15.4 million, ensuring ongoing exploration and development efforts.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals to Present Growth Strategy at Noosa Mining Conference
Jul 22, 2025

Lunnon Metals Limited announced that its Managing Director, Edmund Ainscough, will present at the Noosa Mining Conference. This presentation is expected to highlight the company’s strategic initiatives and growth prospects, potentially impacting its market positioning and offering insights to stakeholders about future developments.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals’ Scoping Study Reveals Potential in Nickel Projects
Jul 20, 2025

Lunnon Metals Limited has completed a Scoping Study for its Baker and Foster nickel sulphide projects, indicating potential economic viability despite current market challenges. The study suggests sequential mining of Baker and Foster, with Baker showing stronger economic potential even at prevailing nickel prices. However, due to uncertainties in the nickel sector and processing arrangements, the study remains at the Scoping level, and further evaluation is needed before confirming an economic development case.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Enters Exclusive Negotiations with Gold Fields for Lady Herial Gold Processing
Jun 16, 2025

Lunnon Metals Limited has commenced a 90-day exclusivity period to negotiate a sale and purchase agreement with St Ives Gold Mining Co. Pty Ltd, a subsidiary of Gold Fields Ltd, for processing the Lady Herial gold deposit. The Scoping Study indicates promising financial returns from mining the deposit, and the agreement could enhance Lunnon Metals’ position in the gold market, leveraging the nearby SIGM processing plant and current high gold prices.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Unveils Lady Herial Scoping Study
Jun 16, 2025

Lunnon Metals Limited has released an investor presentation for the Lady Herial Scoping Study, which will be utilized by the Managing Director in discussions with investors, brokers, and analysts. This development is part of the company’s strategic efforts to enhance its market presence and operational efficiency, potentially impacting its positioning in the mining sector.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Unveils Promising Scoping Study for Lady Herial Gold Deposit
Jun 15, 2025

Lunnon Metals Limited has completed a Scoping Study for the Lady Herial gold deposit, revealing a short-mine life, high-grade open pit opportunity with robust economic potential. The study, based on a high percentage of Measured and Indicated Resources, suggests significant pre-tax cash flow, although commercial agreements for processing are still pending, which may affect the project’s economic viability.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Uncovers High-Grade Gold at Foster-Baker Project
Jun 9, 2025

Lunnon Metals Limited announced promising results from its surface exploration programs at the Foster-Baker project, particularly at the Halloween and Guiding Star prospects. The discovery of high-grade gold mineralization and a potential paleochannel at Halloween, along with significant drilling results at Guiding Star, suggests strong potential for future gold discoveries. These findings enhance the understanding of historical data and indicate a high-grade component at Guiding Star that previous drilling may have missed. The company plans to continue exploration and integrate these findings with other targets in the Foster Gold Belt, while advancing permitting for the Lady Herial Mineral Resource.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Uncovers High-Grade Gold at Kambalda Prospects
Jun 2, 2025

Lunnon Metals Limited announced promising results from surface exploration at its Hustler and Koombana prospects, part of the Kambalda Gold & Nickel Project. High-grade gold assays were identified, suggesting potential new discoveries akin to the company’s Lady Herial resource. The identification of a new linking structure at Hustler and the confirmation of high-grade mineralization at Koombana enhance the prospects’ potential, supporting further drilling plans. These developments could significantly impact Lunnon Metals’ resource growth and future production capabilities, offering potential benefits for stakeholders.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Unveils New Gold Structure at Kambalda Project
May 29, 2025

Lunnon Metals Limited announced the discovery of a new gold structure during a sterilisation drilling program near its Lady Herial gold deposit at the Kambalda Gold & Nickel Project. The drilling revealed significant gold mineralisation, suggesting potential for further exploration and development in the area, which could enhance the company’s positioning in the gold market. The discovery supports the presence of stacked gold structures in the Foster Gold Belt, and the company plans to adjust its infrastructure placement to accommodate potential open pit mining operations.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Secures Government Grant for Promising Gold Exploration
May 27, 2025

Lunnon Metals Limited has secured a Western Australian government grant to explore a promising gold target at the Foster-Baker site. The grant supports drilling efforts to test a 600-meter magnetic anomaly, known as the Plentiful Dolerite, which could potentially host significant gold mineralization. This initiative aims to enhance the company’s gold exploration credentials and could lead to substantial discoveries, further solidifying Lunnon Metals’ position in the gold mining sector.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals Unveils Promising Gold Discoveries at Defiance West
May 15, 2025

Lunnon Metals Limited has announced significant findings from its drilling program at the Defiance West target within the Kambalda Gold & Nickel Project. The results confirm the presence of two substantial gold structures, with assays showing notable gold intercepts. This discovery, supported by the Western Australian Government’s Exploration Incentive Scheme, opens up new opportunities for gold exploration in previously untested areas, potentially enhancing the company’s position in the gold mining sector.

The most recent analyst rating on (AU:LM8) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Lunnon Metals Limited stock, see the AU:LM8 Stock Forecast page.

Lunnon Metals to Present at Gold Conference
Apr 30, 2025

Lunnon Metals Limited has announced that its Managing Director, Edmund Ainscough, will present at the Shaw and Partners Gold Conference in Perth. This presentation is part of the company’s efforts to engage with investors and stakeholders, potentially impacting its market positioning and investor relations.

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.Date of analysis: Jul 24, 2025