Path Toward 100,000 AuEq Oz by 2025 On Path Towards 100,000 Gold Equivalent Ounces by 2025 - CruxInvestor Feature on LUCA Mining (LUCA.v, LUCMF)
With two key assets in Mexico, the producing Campo Morado and near-term producing Tahuehueto, Luca Mining (LUCA.v, LUCMF) is a junior gold and base metals producer targeting over 100,000 gold equivalent ounces of combined production by 2025: https://www.cruxinvestor.com/posts/luca-mining-two-producing-assets-in-mexico-on-path-towards-100-000-gold-equivalent-ounces-by-2025
Recent Developments
- Financing Initiative (September 2024): Luca Mining raised funds to support high-return opportunities and attract institutional investors. The capital will be used to accelerate projects at both mines.
- Debt Management: The company has $18 million in debt and plans to repay $12 million in regular debt starting in October 2024.
Campo Morado Operations
- Production Increase: Efforts are underway to boost mining rates to 2,000-2,400 tons/day, with mill recovery improvements projected to raise 2025 production to 80,000 gold equivalent ounces.
- Exploration: Luca Mining plans to invest $25 million to explore 38 identified targets, potentially doubling the resource base.
Tahuehueto Mine
- Newly Constructed: This new mine is expected to contribute significantly to Luca's production, with a 10-year mine life and modest capital expenditures to sustain operations.
Financial Outlook
- Luca Mining anticipates generating $200-250 million in revenue by 2025.
- Potential free cash flow of around C$40 million annually.
Challenges
- Execution Risks: Optimization at Campo Morado and ramp-up at Tahuehueto are critical to meeting production targets.
- Metal Price Volatility: The company’s revenue is vulnerable to fluctuating metal prices, particularly zinc, gold, and copper.
Offering a compelling investment case with two producing assets, significant growth potential, and strong management alignment, LUCA provides a natural hedge with gold, copper, silver, zinc, and lead amid ongoing exploration and improvement efforts.
For more information, refer to Crux Investor's companion interview with LUCA's CEO Dan Barnholden: https://www.youtube.com/watch?v=_Fvqkik-ZhM
Posted on Behalf of Luca Mining Corp.