RE:RE:RE:RE:RE:RE:RE:RE:with I think that's a pretty good summary of the history, but others who have been invested for longer know a lot more than me about the challenges this company has faced. Luca came to my attention only last summer during an interview I heard with a Chinese mining investor. Can't remember his name, but he recommended two companies, Luca and Cerro de Pasco in Peru, which is a centuries old mine riddled with environmental problems. Luca caught my attention enough to buy some soon after and the more I look into it, the more appealing it appears, AS LONG AS THEY CAN DELIVER, which they appear to be on the verge of accomplishing.
They hired Ausenco to revamp their Campo Morado mill to handle the complex deposit and improve recovery rates.
This is from their november news release:
- A bulk concentrate is being produced with greater than 70% copper recovery (compared to a historical range between 35- and 40%). The concentrate produced contained greater than 14-16% copper (compared to historical values near 11%).
- Overall zinc recovery is expected to increase from 76% to 86% and the final concentrate grade increases from 46% to 56% zinc over the next 12 months.
- The Company expects the optimization program to result in a revenue increase of at least 40% with only very modest capital expenditures.
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Let's hope these guys are on the right track and if the timing is right, they could be hitting their stride when it matters most.
But the thing that continues to catch my attention is the value of their reserves relative to their market cap. I'd like to hear from others on this, so I know I'm not missing something important. As far as I can tell, they're as undervalued as any mining company I can find in this regard.