Lunnon Metals (ASX:LM8) has reported continued production ramp-up at its Lady Herial open pit gold mine in Western Australia, with July delivering the strongest monthly mining performance to date.

Ore volumes exceeded planned levels in July, allowing open pit mining operations to be completed ahead of the January 2026 feasibility study (FS) schedule. The final parcel of gold ore was delivered to the mine ore pad on 8 August.

The ore purchase agreement (OPA) between Lunnon Metals and Gold Fields subsidiary St Ives Gold Mining (SIGM) has functioned as designed, enabling both parties to safely and efficiently expedite operations and achieve an early completion of mining activities. Under this arrangement, Lunnon Metals mines and delivers ore to SIGM's nearby processing infrastructure, allowing the junior miner to monetise the deposit without investing in its own treatment plant — a capital-efficient model commonly used in the Western Australian gold sector, where established operations can process third-party ore.

In July, total material mined reached 76,397 bank cubic metres, with ore mined totalling 76,937 tonnes at 1.79 grams per tonne (g/t) gold, containing 4,439 ounces of gold.

For July 2026, Lunnon Metals invoiced SIGM approximately $14.8 million for the delivery of 4,039 ounces of gold, based on the 91% metallurgical recovery rate established in the OPA. Direct operating expenses for the Lady Herial site during the same period totalled approximately $2.5 million.

The A$ gold price applicable to July ore deliveries was $5,850.83 per ounce. The average gold price realised across the project to date stands at $6,258/oz, compared with the $6,250/oz assumption used in the January 2026 FS.

Cumulative deliveries to SIGM through the end of July reached nearly 284,000 tonnes at 1.64 g/t gold, representing approximately 15,000 ounces and yielding 13,652 recovered ounces at the agreed 91% metallurgical recovery. Total ore tonnes and total gold delivered reconciled at 110% and 100% respectively against the January 2026 FS estimates, indicating that the deposit's tonnage and grade aligned closely with the geological model underpinning the feasibility study.

Following the strong July performance, extraction of the final approximately 1,400 ounces of gold was completed in early August. Mining operations are now finished, with only minor rehabilitation and demobilisation work remaining.

Aggregate gold sales through the end of July exceeded $85 million, generating total Lady Herial free cash flow of more than $50 million. Under the OPA terms, Lunnon Metals is entitled to a 70% share of free cash flow, equating to $35.3 million once the July invoice is settled.

Prior to market open, LM8 shares were steady at 30.5 cents, with a market capitalisation of $68.11 million.