Luca Mining Reports 20% Increase in Gold Equivalent Production

Canada-based precious metals producer Luca Mining reported a 20% increase in AuEq oz in 1Q24. The company believes that it can maintain these positive results throughout the rest of the year, as it is well-positioned to benefit from rising prices of precious and industrial metals.

Luca Mining produced 14,148 troy oz AuEq during 1Q24, marking a 20% increase from the previous quarter. This production included 4,297oz of gold, 207,505oz of silver, 3,068t of zinc, 791t of copper, and 661t of lead. The company's total net revenue for the quarter was CAD$22 million (US$16.1), representing a 21% increase from 4Q23.

During the quarter, Luca Mining generated CAD$4.8 million in operating income and CAD$7.3 million in net income. The company also reported CAD$4 million in positive operating cash flow before working capital changes. “We have achieved a number of significant milestones that are key to our overall growth plans, including increasing revenues, and most importantly generating positive operating cash flow, before working capital changes, and positive net income,” says Ramon Perez, President, Luca Mining. 

The company reported all-in-sustaining costs (AISC) of US$1,325 per AuEq oz at Campo Morado and US$1,690 at Tahuehueto, leading to a consolidated AISC of US$1,549 per AuEq oz. The company expects these costs to decrease at both mines as production continues to ramp up in 2H24.

Perez says that Luca Mining started 1Q24 with pre-production at Tahuehueto averaging 250t/d and ended the period averaging over 450t/d. Furthermore, construction at the Tahuehueto mine is nearing completion, with the third filter press, the final major component, currently being installed. Commissioning of this equipment is expected upon completion in 2Q24.

The Campo Morado Improvement Project is also advancing, focusing on increasing throughput at the mine and implementing a copper lead separation process to produce three separate copper, zinc, and lead concentrates. “The Mine Improvement Program we initiated in 4Q23 has resulted in better recoveries, which is reflected in the financial information presented. The 1Q24 results at Campo Morado are based on an average throughput of approximately 1,390t/d, and we are currently in the process of ramping up to our next target of 2,000t/d as we move into June 2024,” Perez said. 

Perez says that Luca Mining is in a strong position with two long-life mines as metal prices are rising. He adds that the company has the ability to continue creating significant shareholder value by taking advantage of unhedged gold, silver, and copper production. “Looking ahead, we anticipate that the positive trajectory observed in 1Q24 will persist throughout the 2Q and the remainder of 2024. These developments affirm our commitment to driving growth and shareholder value creation,” says Lisa Dea, CFO, Luca Mining.