Luca Mining Corp. (Ticker: LUCA.v or LUCMF for US investors), which operates two mining sites in Mexico—Campo Morado and Tahuehueto—is well-positioned to capitalize on ongoing optimization efforts and potential margin improvements, as indicated by the Q1 2024 earnings report.
As argued in the Seeking Alpha article linked below, Luca Mining’s recent performance has been buoyed by a combination of factors, including recovery from oversold levels, increased production, and improved margins at both mining sites.
Campo Morado, with a throughput capacity of over 2,000 tonnes per day (t/d) is undergoing optimization work in collaboration with Ausenco, suggesting that the margins at this site could see substantial improvement.
Tahuehueto is a higher margin mine expected to reach a throughput of 1,000 t/d by the end of 2024.
When both mines operate near their design capacities, Luca's annual gold equivalent (AuEq) production is projected to be around 80,000 ounces, a figure that may prove conservative depending on the success of optimization efforts at Campo Morado.
Campo Morado’s optimization work has already begun to positively impact recoveries and Tahuehueto’s ramp-up is also on track, with expected throughput reaching 1,000 t/d by late 2024.
Tahuehueto’s lower treatment and selling costs are anticipated to contribute a larger percentage of production, thus reducing overall costs for the company.
Overall, Luca Mining Corp. is on a promising path of growth and improvement. The successful optimization of Campo Morado and the ramp-up of Tahuehueto are key drivers that could significantly boost the company's production and margins.
If these efforts continue as planned, Luca Mining could see substantial upside potential, making it a compelling investment opportunity.
https://seekingalpha.com/marketplace/1370-off-the-beaten-path/analysis/6032821-earnings-season-q1-24-luca-mining-continues-to-show-improvements
Posted on behalf of LUCA Mining Corp.