Exploration, Development & Operating Polymetallic Projects Exploration, Development & Operating Polymetallic Projects in Mexico - Interview with Luca Mining (LUCA.v LUCMF) CEO Dan Barnholden: https://www.youtube.com/watch?v=4lckrNbivjU
Overview of Luca Mining
- Company Structure: Operates two mines in Mexico—Campo Morado (zinc, gold, copper, silver, lead) and the newly commissioned Tahuehueto mine (Northwest Durango).
- 2025 Goals: Both mines are ramping up production with expectations of significant cash flow.
Q3 Transition and Transformative Changes
- Challenges in Q3: Lower production due to transitioning to contract mining.
- Strategic Shifts: Contract mining introduced to improve production efficiency at Campo Morado with minimal capital expenditure.
- Future Outlook: Both mines are expected to achieve full production capacity in 2025.
CEO Background and Leadership Initiatives
- CEO Dan Barn Holden: Joined in July 2024 after 20 years as a mining-focused investment banker.
- Team Building: Fostered morale through initiatives like site barbecues and achieved 365 days without a lost-time incident at Campo Morado.
Exploration Efforts and Talent Expansion
- Exploration Importance: No meaningful exploration in over a decade; massive opportunities to grow resources.
- Key Hires:
- Paul Gray: Formerly of Victoria Gold, with a track record of significant discoveries.
- Jill Carille: Credited with discoveries in Guerrero, including Ana Paula and Morelos.
- Fernando Tiis: Mexican national returning to contribute locally.
- Exploration Goals: Expand near-mine resources to boost cash flow and explore broader property potential.
Mexico’s Mining Climate
- Government Reforms: Concerns about legislative changes, including royalty hikes, are easing.
- Positive Outlook: Existing permits and underground operations minimize impact; sees Mexico as a rebound market.
Capital Structure and Financial Highlights
- Shares Outstanding: Approximately 200 million.
- Debt: $17.4 million owed to Trafigura, with plans to extinguish by mid-2026 or earlier.
- Convertible Debentures: $5.8 million convertible at $0.35.
- Warrants: 40 million warrants at $0.50, expected to be exercised and proceeds used for debt repayment.
- Goal: Achieve debt-free status with 250 million shares outstanding.
Upcoming Catalysts
- Commissioning of Tawa Weto Mine: Full operation expected within weeks.
- Drill Results: First three holes sent for assay, promising exploration potential.
- Operational Hires: Further additions to the senior team expected.
- Insider Activity: Significant insider buying reflects internal confidence in the company’s turnaround.
Positioned for growth with two profitable mines, robust exploration potential, and a strategy to streamline its capital structure, LUCA is at the beginning of a transformative period as the company gears up for a cash-flow-rich future.
Posted on Behalf of Luca Mining Corp.