Broker Watch

Find out which investment bank retained its bullish stance on smallcap Lunnon Metals

Wed 25 Jan 23, 4:16pm (AEST)
Nickel rocks with little miner figurines
Source: iStock

Key Points

  • Macquarie Research sees Lunnon Metals shareholders enjoying 34% returns over a 12 month period
  • Bank has retained its price target of $1.30 for the nickel explorer
  • Nickel prices remain elevated over pre-COVID levels and Macquarie sees Lunnon set to re-work old Foster mine in near future

The analyst team in the lab at Macquarie Research put their weight behind smallcap ASX explorer Lunnon Metals (ASX:LM8) on Wednesday. 

The investment bank has given Lunnon a twelve month price target of $1.30. 

As at 1415 AEST Wednesday 25 January 2023, Lunnon’s share price is 99c (up 2% in the second last hour of trade). 

Macquarie’s research note used Tuesday’s close price of 97c in its forecast, at which time, the 12 month target reflected a total return of 34%. 

Using Market Index’s free company data, a broker consensus scan shows that four brokers recommend Lunnon as a “Buy” and one broker recommends Lunnon as a “Hold.” 

Why is Macquarie bullish? 

Lunnon has recently expanded its JORC-compliant Mineral Resource Estimate (MRE) at its keystone Foster-Baker Project. The nickel play consists of two large separate prospects, Foster and Baker, respectively. 

Foster contains a historical mine that has since become flooded, a typical water table issue with disused mines. 

Macquarie highlighted the following: 


  • Lunnon increased the MRE for its Baker deposit by 95% over six months from 568kt of ore for 15.8kt of nickel, up to 929kt ore for 30.8kt of nickel. 

  • Lunnon expects to commence mine design for Baker in 1Q CY2023 

  • Final Investment Decision expected “through the year” 


  • Foster MRE increased by 3.7kt in nickel based on review of historical drilling results 

  • Permits to dewater and re-enter historical mine at Foster “well advanced” 

While Lunnon’s latest quarterly results with regards to cash flow only had a modest impact on earnings, according to Macquarie Research, it maintains its $1.30 price target and stated cash flows were as it expected. 

The elephant in the room? Nickel prices remain firmly elevated over pre-COVID levels, despite coming down from recent peaks.

A look at Lunnon's one year charts
A look at Lunnon's one year charts


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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