Emphasizing the potential for positive changes, LUCA Mining's (LUCA.v, LUCMF) CEO, Javier Reyes, joined Natural Resource Stocks at the 2024 Rule Symposium to discuss its strategy for producing gold, silver, copper, zinc, and lead from two operating mines:
https://www.youtube.com/watch?v=sIIJ1S0d-kU Javier Reyes' Background
- Over 25 years of experience on the buy side, primarily investing in mining securities, especially in Mexico.
- Disappointments in past investments led him to take a different approach by running mining operations himself.
- Rebranded & restructured LUCA to ensure a solid foundation for future growth.
Investment Strategy and Market Challenges
- Importance of having diversified producing assets, permits in place, and avoiding capex risk.
- Global resource of nearly 3 million ounces of gold equivalent in Mexico
- Combined annual gold equivalent production is ~80k oz
- Struggles in the natural resource space and the need for a company to stand out by avoiding common pitfalls like capex overruns and failing to secure permits.
Operational Achievements and Future Plans
- Two producing assets with long mine lives
- Campo Morado: Capacity exceeds 2,000 t/d, current optimization work has shown promise for improving profitability
- Tahuehueto: Higher-margin mine on track to reach a throughput of 1,000t/d by late 2024
- Currently aiming to increase production and optimize operations.
- Commitment to maintaining low dilution and high investor protection thus focus approach on financing the company at higher prices without warrants, showing a strong commitment to shareholder value.
- Significant projected revenue growth with expectations of $150 million in 2024 and $250 million in 2025 as LUCA brings its second asset into commercial production.
Team and Expertise
- Highly experienced team with a mix of local and international expertise.
- Board includes notable figures like Neil Oaan and Phil Bromid, who bring extensive experience in geology and mining engineering.
- Prioritizes building a strong team culture, ensuring smooth operations, and maintaining high safety standards.
Financial Performance and Projections
- Undervalued compared to its market cap and production capabilities.
- Aim to achieve substantial revenue and cash flow growth, transitioning from a junior mining profile to a mid-tier producer.
- Significantly reduced debt and maintains a strong commitment to avoiding shareholder dilution.
Providing significant diversification to a range of vital metals in our current economy, LUCA is worth keeping an eye on with a range of potential future catalysts including strong commodity prices boosting margins, achieving an annualized AuEq production of 80Koz, improved recoveries and changing from 2 to 3 concentrates at Campo Morado and the ramping up of Tahuehueto to 1,000t/d.
For more information, refer to this deep dive:
https://www.reddit.com/r/Wealthsimple_Penny/comments/1dlgkx6/luca_mining_lucav_a_junior_gold_copper_silver/ Posted on Behalf of Luca Mining Corp.