Lunnon Metals' (ASX:LM8) mining at its Lady Herial operation in Western Australia advanced as planned in May, helping position the company for a catalyst-rich fiscal 2027, Euroz Hartleys said in a Friday note.
The total ore mined was over 52,000 tonnes at 1.71 grams per tonne grade of gold for about 2,900 gold ounces.
Attributable free cash flow to Lunnon Metals was AU$7.4 million, which enabled the early repayment of a AU$6 million working capital facility in June.
"Holding the gold price constant, we expect an uptick in [free cash flow] over the coming months as mined grade lifts and the strip ratio declines," the investment firm said.
The next key market updates for Lunnon Metals will be disclosures on the company's exploration plans and the quality of high-priority targets across the underexplored KGNP tenure, Euroz Hartleys said.
It maintained a speculative buy rating and AU$0.84 per share price target on the mining firm "with high conviction."
Lunnon Metals shares fell 3% in recent Friday trade.