Two Mines, Cashed Up and in Production - LUCA & TokStocks Two Mines, Cashed Up and in Production - Luca Mining (LUCA.v LUCMF) CEO Dan Barnholden on TokStocks: https://www.youtube.com/watch?v=d12GiPqZJ2A
Luca Mining Overview
- Two operating mines: Campo Morado (a poly-metallic mine in Mexico's Guerrero Gold Belt) and Tahuahueto (a primarily gold-focused epithermal deposit in Northwest Durango).
- Infrastructure: High-quality infrastructure inherited from previous operators, including grid power, road access, and processing facilities. Campo Morado features a 2400 TPD mill.
- Vision: Focused on three pillars, Optimization, Exploration, and Expansion, aiming to rehabilitate and expand operations to reach 100,000 gold-equivalent ounces in 2025.
Key Achievements and Goals
- Operational Highlights:
- Campo Morado: Transition to a mining contractor, aiming to ramp up production to 2400 TPD.
- Tahuahueto: Nearing commercial production, targeting 30,000 ounces of gold-equivalent annually.
- Production and Financials:
- 2024: Forecast of 60,000 gold-equivalent ounces (split between the two mines).
- 2025: Target of 100,000 gold-equivalent ounces, with projected cash flows of CAD $40–60 million.
- Debt Management: Plan to be debt-free by mid-2026, enabling more flexibility for growth and shareholder returns.
- Exploration Potential:
- New exploration team hired to double reserves and grade at both mines.
- Significant upside at Campo Morado, a historically high-grade VMS deposit with untapped potential.
Investment Highlights
- Market Position: CAD $105–110 million market cap with significant infrastructure and exploration potential undervalued relative to peers.
- Insider Ownership: ~40% insider ownership ensures alignment with shareholders. Bartholden personally invested over $1 million.
- Catalysts: Production ramp-up at both mines, Exploration results from Campo Morado and Tahuahueto expected in early 2025 & Continued debt reduction and potential for shareholder returns.
Positioned at a critical inflection point, with improving operations, strong exploration upside, and a clear path to profitability, LUCA's strategic focus on optimization and expansion, coupled with its undervalued market position, makes it an appealing opportunity for investors seeking exposure to the mining sector.
Posted on Behalf of Luca Mining Corp.