FY2021
IPO and Kambalda consolidation
The June 2021 listing raised A$15m. Acquiring the residual 49% interest consolidated the project’s mineral rights, subject to specified retained rights.
ASX: LM8 · Five-year financial review
(ASX: LM8) Lunnon Metals Limited Financial Review - FY2021~25
Lunnon Metals’ five-year financial story moved from IPO-funded nickel exploration to a gold-focused programme as nickel conditions weakened. Equity raisings sustained cash, but acquisition accounting and exploration impairments made statutory losses much larger than cash spending alone.
Reading the figures: Units are stated above each table or beside the metric. Brackets denote negative amounts. Supported nil is shown as zero; unlike reporting bases remain separately labelled.
FY2025 cash
A$15.263m
Cash at 30 June; not forecast project proceeds.
FY2025 operating outflow
A$6.568m
Cash used in operating activities.
FY2025 exploration assets
A$19.359m
Accounting carrying value after impairment.
FY2025 statutory loss
A$13.234m
Includes A$4.956m non-cash impairment.
Five years in context
The IPO and acquisition of the residual Kambalda interest established the early asset base. Baker’s discovery and initial resource followed, while the later Fisher and Silver Lake nickel-rights purchase broadened the portfolio.
The financial turning point was nickel rather than mine sales: weaker prices and suspended drilling triggered material write-downs. By FY2025, gold absorbed most directly expensed exploration, while nickel accounted for almost all impairment.
Events behind the numbers
FY2022
Baker discovery and fresh equity
Baker’s discovery and first Mineral Resource estimate accompanied a A$30m equity raising. Resource estimates were project milestones, not operating income.
FY2023
Nickel-rights acquisition and a non-cash charge
The Fisher and Silver Lake nickel-rights transaction completed in October 2022. Acquisition accounting generated a share-based expense as well as a capitalised asset.
FY2024
Nickel impairment; new equity protected liquidity
Weaker nickel prices and reduced exploration led to a major impairment. Placement and share-purchase funding arrived during FY2024, including the November 2023 St Ives tranche.
FY2025
Lady Herial gold work takes priority
Gold drilling expanded and nickel on-ground drilling was nil. Lady Herial reached a resource estimate and scoping study before year-end; the nickel study announced in July was a subsequent event.
FINANCIAL REVIEW / 01
Why the loss is not a cash-spending measure
The acquisition-related equity charge explains the unusual FY2023 share-based expense. The following year’s larger loss was instead dominated by impairment. FY2025’s narrower loss reflected lower impairment and exploration charges, not a transition to mineral-sales earnings.
Exploration is shown separately because its accrual cost, cash payment and capitalised amount answer different questions. Interest and grants are retained as income without confusing them with project-study economics.
Statutory loss and selected non-cash expense
A$ million
Loss after taxShare-based payment expense
AI-generated presentation · values from Statutory result and principal corporate costs; no missing values plotted as zero.
Statutory result and principal corporate costs
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Loss after tax | (2.532) | (6.647) | (17.735) | (24.106) | (13.234) |
| Other / grant income plus finance income | 0.039 | 0.175 | 0.761 | 1.202 | 0.914 |
| Employee expense | (0.984) | (1.877) | (3.354) | (3.955) | (2.862) |
| Share-based payment expense | (0.324) | (0.490) | (8.508) | (1.061) | (0.900) |
| Depreciation and amortisation | (0.018) | (0.102) | (0.137) | (0.151) | (0.160) |
| Audit / assurance expense | (0.132) | (0.188) | (0.224) | (0.175) | (0.118) |
| Computer expense | (0.052) | (0.144) | (0.184) | (0.181) | (0.225) |
| Legal expense | (0.246) | (0.233) | (0.078) | (0.036) | (0.161) |
| ASX and share-registry expense | (0.157) | (0.093) | (0.118) | (0.125) | (0.078) |
| Finance expense | (0.025) | (0.006) | (0.004) | (0.011) | (0.006) |
Signed P&L expenses; selected cost lines do not exhaust total expenses. FY2021 D&A uses the explicit following-year comparative. Income combines other/grant and finance income without counting interest twice; this is not mineral sales.
FY2023 share-based payment includes acquisition accounting, not only staff remuneration. Exploration expense and impairment appear separately below.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Exploration charges in the income statement
A$ million
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Exploration and evaluation expense | (3.393) | (5.277) | (6.480) | (4.137) |
FY2022 uses the later statement’s grouped P&L comparative; the original statement itemised drilling, site support, consultants, samples and exploration staff. It is not the cash-flow exploration-payment amount.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Exploration impairment
A$ million
| Metric | FY2024 | FY2025 |
|---|---|---|
| Impairment expense | (12.551) | (4.956) |
An accounting write-down, not an additional cash payment.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 02
Equity raisings replenished cash; exploration used it
The two largest funding years financed the expanded exploration programme. FY2023 had no share-issue cash proceeds despite large non-cash acquisition consideration; FY2024’s new equity then rebuilt liquidity.
By FY2025, capitalised exploration cash payments had fallen sharply, while operating exploration payments remained material. The distinction matters: low investing outflow does not mean exploration had stopped.
FY2021 convertible-note proceeds formed part of financing cash. Converting notes and earlier debt into shares changed equity and debt without bringing in the same cash a second time.
Three cash-flow lanes
A$ million
Net operating cash flowNet investing cash flowNet financing cash flow
AI-generated presentation · values from Operating, investing and financing cash flow; no missing values plotted as zero.
Exploration cash: operating versus investing
A$ million
Classified as operating cash — expensed explorationClassified as investing cash — capitalised exploration
AI-generated presentation · values from Cash paid for exploration and evaluation; no missing values plotted as zero.
Operating, investing and financing cash flow
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Net operating cash flow | (2.013) | (5.861) | (7.367) | (11.286) | (6.568) |
| Net investing cash flow | (0.147) | (3.661) | (6.572) | (3.854) | (0.108) |
| Net financing cash flow | 15.329 | 28.432 | 0.605 | 17.501 | 0.037 |
| Share-issue proceeds | 15.000 | 30.000 | 0.000 | 18.480 | 0.000 |
| Share-issue costs paid | (0.779) | (1.537) | 0.000 | (0.959) | 0.000 |
| Option-exercise proceeds | 0.018 | 0.000 | 0.642 | 0.024 | 0.085 |
Cash proceeds, not the fair value of securities issued for acquisitions. FY2023 and FY2025 share proceeds/costs and FY2022 option proceeds are expressly nil.
FY2021 financing also includes A$1.1m of convertible-note cash proceeds; conversion to equity is a separate non-cash event. Lease payments explain part of the difference between components and net financing.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Cash paid for exploration and evaluation
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Classified as operating cash — expensed exploration | 0.000 | (3.472) | (4.882) | (8.447) | (4.357) |
| Classified as investing cash — capitalised exploration | 0.000 | (3.049) | (6.437) | (3.897) | (0.097) |
FY2021 is explicit nil in these two separately classified later-comparative lines, not a statement that no exploration activity occurred. Cash payments differ from accrual expense and capitalised additions.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 03
Cash provides flexibility; exploration assets require recoverability
Exploration assets formed a substantial part of the balance sheet. Acquisition additions built that balance through FY2023; subsequent write-downs reduced it. Positive net assets therefore do not represent an equal amount of spendable cash.
The FY2023 transaction illustrates the distinction particularly clearly: securities issued as consideration were worth more than the recognised mineral rights, with the difference charged to profit and loss rather than left in the asset balance.
Cash, total assets and net assets
A$ million
Cash and cash equivalentsTotal assets (FY2025: segment-assets total)Total equity / calculated net assets
AI-generated presentation · values from Financial position at 30 June; no missing values plotted as zero.
Exploration carrying balance
A$ million
Closing exploration and evaluation carrying value
AI-generated presentation · values from Exploration assets: acquisitions, additions and write-downs; no missing values plotted as zero.
Financial position at 30 June
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Cash and cash equivalents | 13.963 | 32.873 | 19.540 | 21.902 | 15.263 |
| Total assets (FY2025: segment-assets total) | 28.030 | 52.235 | 54.349 | 47.149 | 35.267 |
| Total liabilities | 0.690 | 2.589 | 2.489 | 0.790 | 1.157 |
| Total equity / calculated net assets | 27.341 | 49.645 | 51.860 | 46.359 | 34.109 |
FY2021 total assets uses the FY2022 comparative; FY2023 uses the FY2024 comparative. FY2025 total assets is the total of all reported segments, including non-commodity assets.
FY2025 net assets is calculated: A$35.266506m total segment assets less A$1.157491m Group liabilities = A$34.109015m. It is not labelled a directly reported equity line.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Exploration assets: acquisitions, additions and write-downs
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Closing exploration and evaluation carrying value | 13.731 | 18.374 | 33.587 | 24.229 | 19.359 |
Accounting carrying amount, not resource tonnage or a project valuation.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Exploration-asset movements
A$ million
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Opening carrying balance | 18.374 | 33.587 | 24.229 |
| Exploration assets acquired | 11.959 | 0.000 | 0.000 |
| Exploration expenditure capitalised | 3.254 | 3.193 | 0.086 |
Acquisitions are recognised asset cost, including non-cash consideration. Capitalised additions are not identical to cash payments. FY2024 and FY2025 acquired assets are expressly nil. Impairments above reconcile the reduction to closing balances.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FY2023 Fisher and Silver Lake acquisition accounting
A$ million
| Metric | FY2023 |
|---|---|
| Equity instruments issued — fair-value consideration | 18.065 |
| Cash acquisition costs | 1.159 |
| Recognised exploration asset | 11.959 |
| Acquisition-related share-based P&L expense | (7.265) |
A$18.064515m equity consideration + A$1.158812m cash costs = A$19.223327m total consideration; less A$11.958812m recognised asset leaves A$7.264515m share-based expense.
The acquisition charge is already included in FY2023 total share-based payment expense; do not add it again.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 04
Gold spending and nickel write-downs tell different stories
Gold dominated FY2025 exploration expense, but nickel dominated impairment. That contrast captures the change in activity more clearly than the Group loss alone; central costs still contributed to the result.
Lady Herial’s study economics are scenarios, not recognised revenue or forecast cash included in these statements. The post-year-end nickel study was not advanced beyond scoping; the issuer linked this to nickel conditions and uncertainty over Kambalda processing infrastructure. It did not restate the earlier Baker Ore Reserve at June 2025, which is not evidence of physical depletion.
FY2025 financial focus: gold, nickel and central costs
A$ million
| Metric | FY2025 |
|---|---|
| Gold exploration expense | (3.754) |
| Nickel exploration expense | (0.383) |
| Gold impairment | (0.054) |
| Nickel impairment | (4.903) |
| Gold segment loss | (3.807) |
| Nickel segment loss | (5.286) |
| Non-commodity segment loss | (4.141) |
Single-year statutory allocation. Segment losses sum to Group loss; costs and losses are not additional separate cash payments.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Reading the figures
- FY2022 exploration expense uses the later grouped comparative; detailed original-year categories were different. FY2021 D&A similarly uses its explicitly reported comparative total.
- FY2025 total assets comes from the total of all reportable segments. Net assets is a transparent assets-minus-liabilities calculation, not a separately reported equity value.
- Exploration expenditure and asset carrying value are not reserve value. Study scenarios and post-year-end announcements are kept separate from historical financial results.
- Prepared from existing year-by-year extraction records only. No raw-source retrieval, database query, financial web research or MiniMax call. GPT review against saved extractions; not an independent original-document audit.
Annual-report source registry
- Lunnon Metals Limited - Annual Report to ShareholdersExisting annual extraction, including separately identified historical comparatives.
- Lunnon Metals Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- Lunnon Metals Limited - 2023 Annual Report to ShareholdersExisting annual extraction, including separately identified historical comparatives.
- Lunnon Metals Limited - 2024 Annual Report to ShareholdersExisting annual extraction, including separately identified historical comparatives.
- Lunnon Metals Limited - 2025 Annual Report to ShareholdersExisting annual extraction, including separately identified historical comparatives.
Prepared solely from the existing year-by-year extraction datasets. No raw annual-report body, PDF, new database lookup or financial web research was used. Review is against those stored extractions, not a new independent original-document audit.
Sources, copyright and independence
The source references in this report identify the public disclosures used and should be read with the associated section, table and reporting-period qualifications. This report paraphrases, organises and compares those disclosures for descriptive and educational purposes rather than reproducing source text.
Copyright and other rights in linked reports, company names, logos and third-party materials remain with their respective owners. MII Research does not claim affiliation with or endorsement by the company covered in this report, the ASX or cited organisations.
AI-led method
This report uses AI actively and extensively for evidence extraction, comparison, organisation, calculation checks, drafting, translation planning and presentation. Material claims received reasonable editorial review against cited public sources; this was not an audit, assurance engagement or independent verification. Limitations in public sources, AI systems and review may leave errors, omissions, inconsistencies or translation, classification and interpretation errors.
Any AI-generated visual accompanying this report must carry an adjacent, visible AI-generated label or caption. Such visuals are illustrative rather than source evidence and do not replace the cited annual-report text, table or section source.
Information notice
This record is for general descriptive and educational information only. It is not financial-product, investment, legal, tax, technical or other professional advice; it is not a securities recommendation, valuation, target price, offer, solicitation or invitation to buy, sell or hold.
It does not consider any reader’s objectives, financial situation, needs, knowledge, experience or risk tolerance. Independently verify material information against the primary disclosures, obtain appropriate independent professional advice and do not use this record as the sole or primary basis for any decision.
Public sources are used in good faith, but no representation or warranty is made as to accuracy, completeness, reliability, currency or fitness for a particular purpose. To the maximum extent permitted by law, MII Research disclaims liability for direct, indirect, incidental, consequential, opportunity or investment loss arising from use of or reliance on this record; nothing excludes or limits liability that cannot lawfully be excluded or limited.
Report suspected errors to MII Research with the relevant report section and primary-source document and page reference so that the record can be reviewed and corrected where appropriate.