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Analysts Are Optimistic We'll See A Profit From Lunnon Metals Limited (ASX:LM8)

Simply Wall St · 1d ago

We feel now is a pretty good time to analyse Lunnon Metals Limited's (ASX:LM8) business as it appears the company may be on the cusp of a considerable accomplishment. Lunnon Metals Limited focuses on the exploration and development of nickel and gold in Australia. On 30 June 2025, the AU$75m market-cap company posted a loss of AU$13m for its most recent financial year. Many investors are wondering about the rate at which Lunnon Metals will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Expectations from some of the Australian Metals and Mining analysts is that Lunnon Metals is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$45m in 2026. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 31% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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ASX:LM8 Earnings Per Share Growth December 29th 2025

Underlying developments driving Lunnon Metals' growth isn’t the focus of this broad overview, however, keep in mind that typically metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

See our latest analysis for Lunnon Metals

One thing we’d like to point out is that Lunnon Metals has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Lunnon Metals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Lunnon Metals' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

  1. Historical Track Record: What has Lunnon Metals' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Lunnon Metals' board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.