Optimization, Exploration & Expansion - LUCA Webinar SummaryOptimization, Exploration & Expansion - LUCA Mining (LUCA.v LUCMF) Webinar Summary with Adelaide Capital
Operating two fully permitted mines in Mexico, Campo Morado and Tahuehueto, LUCA Mining (LUCA.v LUCMF) is focused on optimization, exploration, and expansion with a goal to significantly increase production.
Both assets are de-risked with permitting fully in place, 90% of required capital secured and infrastructure valued at $500 million supporting the operations
2024 Production and Financial Guidance:
- Gold Equivalent Production: Expected to produce 60,000–70,000 ounces with plans in place to double production from both assets by next year and a path to increase to 200,000 ounces.
- Revenue: Estimated between $90 million and $105 million.
- All-In Sustaining Cost (AISC): Between $1,320 and $1,500 per gold equivalent ounce.
- Key Metals Contribution: Gold (41%), Zinc (24%), Silver (15%), Copper (18%), and Lead (2%).
Campo Morado:
- Location: VMS deposit located in Guerrero State, Mexico.
- Production: Produces zinc, copper, gold, and silver from a polymetallic underground deposit.
- Optimization: Recent optimization efforts have significantly increased copper concentrate grades and recoveries with plans to sell three different concentrates before year end
- 2024 Production Goal: 35,000 to 40,000 gold equivalent ounces.
- Exploration Upside: Planning new exploration programs leveraging accumulated technical data to explore large, well-defined ore bodies with additional targets for copper and other metals.
Tahuehueto Mine:
- Location: Remote, brand-new mine in Durango State, Mexico.
- Production: Currently ramping up to commercial production. Mining sulfide ore and producing zinc and lead concentrates.
- 2024 Production Goal: 25,000 to 30,000 gold equivalent ounces.
- Exploration Potential: Major exploration potential, including untested structures and mineralization open in all directions. Main veins open at depth and along strike with plans to start drilling soon.
- Mine Life: Expected to have a 10+ year mine life with a substantial potential for resource expansion.
Strategic Goals & Future Outlook:
- Current Assets: Capable of producing 130,000-140,000 ounces annually without major new investments.
- Doubling Production: Aims to double production to 100,000 ounces of gold equivalent in the near term and 250,000 ounces of gold equivalent production in the longer term.
- Exploration and expansion plans are in place for both mines, with significant brownfield potential.
- The company sees potential for M&A growth and longer-term district-scale development.
- Next 12 months could transform Luca into a completely different company
Financials and Corporate Structure:
- Market Cap: C$97 million as of July 2024.
- Shares Outstanding: 169 million (224.4 million fully diluted).
- Cash: C$2.8 million with C$24.4 million in debt.
- Balance Sheet: No current institutional following or research coverage but stock price has more than doubled in the last 6 months.
- Debt Management: Aim to be debt free in a few years.
Upcoming Catalysts:
- Confirmation of production ramp-ups at Tahuehueto & Campo Morado
- Drill results from both sites
This webinar highlighted LUCA's robust potential for production growth, strong asset base and aim on both immediate and long term expansion.
Poised for significant growth with two active mines in Mexico, robust exploration potential, and a strategic focus on increasing production and revenue, LUCA is well-positioned to advance toward mid-tier production status with ongoing optimization and expansion efforts.
For more information, refer to LUCA's corporate presentation:
https://t7x6fa.p3cdn1.secureserver.net/wp-content/uploads/2024/07/Luca-Mining-Presentation-July-24-2024.pdf Posted on Behalf of Luca Mining Corp.