Leeuwin Metals [ASX:LM1]

Metals & Mining

Marda Drilling Confirms High-Grade Growth Potential; A$5.8M Raise Strengthens Path to Maiden Resource

We update Leeuwin Metals (ASX: LM1) with a revised Target Share Price of $0.422, this represents a total upside potential of 181.4%, reflecting a significant increase from the current share price of $0.150 and an 11.1% increase from the previous Target Share Price of $0.380 from our re-initiation report from August this year. LM1 has maintained a strong trajectory of progress in recent months, positioning itself for a potential re-rating as exploration momentum accelerates across the Marda Gold Project. The completion of a 5,000m RC drilling campaign at the Evanston prospect successfully confirmed extensions of known lodes and uncovered new high-grade gold zones, marking the first major drilling effort at the site in two decades. Supported by a recent A$5.8 million placement and ongoing geological modelling, LM1 enters its next phase of exploration with strong financial backing and clear near-term catalysts, paving the way toward its maiden Mineral Resource Estimate (MRE) and a potential market re-rating.

Strong Drilling Results Reinforce High-Grade Potential at Evanston

LM1 recently completed a 5,000m RC drilling program at the Evanston prospect, delivering strong intercepts that confirm high-grade mineralisation and structural continuity within a gently plunging anticline. Building on these results, the company is advancing geological modelling across Evanston, Python, and Marda Central to support its maiden JORC-compliant MRE. A 10,000m follow-up RC drilling program is scheduled to begin before the end of 2025, targeting down-dip extensions, DHEM conductors, and newly defined structural trends, positioning LM1 for its next phase of resource growth and value creation.

A$5.8 Million Raising Positions LM1 for Resource Expansion

LM1 recently completed a A$5.8 million capital raise, backed by strong institutional and sophisticated investor support. The placement was completed at A$0.235 per share, representing a modest discount to the prevailing market price and highlighting investor confidence in the company’s growth trajectory. Proceeds from the raising will be primarily directed toward accelerating exploration at the Marda Gold Project, with a focus on the Evanston prospect to support the upcoming maiden MRE. Additional funds will be allocated to advancing non-core projects, business development initiatives, and general working capital. With a strengthened financial position, LM1 is well-placed to sustain exploration momentum, expand its resource base, and deliver key milestones across its growing gold portfolio.

Updated Valuation and Price Target

We update our valuation for LM1 to $0.370 per share in the base case and $0.474 in the upside case with a Price/NAV of 0.36x. LM1 presents a compelling valuation opportunity, supported by strong exploration momentum across the Marda Gold Project and consistent progress toward defining its maiden JORC-compliant MRE. The company’s recent drilling success at Evanston has confirmed high-grade extensions and opened new structural corridors for resource growth, while additional targets at Python and Marda Central highlight the project’s scalability. The broader gold market remains robust, with prices holding above A$6,000/oz amid ongoing macroeconomic uncertainty, providing a favourable backdrop for emerging explorers. With a strengthened balance sheet following its A$5.8 million placement, a well-structured exploration pipeline, and multiple near-term catalysts, LM1 is well-positioned for a potential market re-rating as it advances toward resource definition and long-term value creation.

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