Luca Mining Reports 49% Revenue Increase in 2Q24

Canada-based Luca Mining reported significant growth in net revenue, earnings, and cash flow. The company achieved a record net quarterly revenue of US$18.2 million, a 49% increase compared to the same period in 2023.

Luca Mining achieved record net quarterly revenue of US$18.2 million for 2Q24, marking a 49% increase compared to 2Q23. Total net revenue for 1H24 reached US$34.5 million, up 33% from the same period in 2023.

Net earnings for 2Q24 were US$4.7 million, a 217% increase from 2Q23. Earnings per share (EPS) for 2Q24 were US$0.03, a 130% rise compared to the previous year. Total net earnings for 1H24 was US$10 million, up 303% from the same period in 2023, with EPS increasing 175% to US$0.06.

Luca Mining reported positive cash flow from operations of US$739,000, with cash flow from operations before working capital changes at US$3.4 million. EBITDA for 2Q24 was US$6.1 million, and Adjusted EBITDA was US$4.1 million.

Luca Mining's production for the quarter included 13,947 troy oz AuEq, consisting of 4,278oz of gold, 188,267oz of silver, 3,125t of zinc, 706t of copper, and 667t of lead. All-in Sustaining Costs (AISC) per AuEq ounce produced were US$1,714 at Campo Morado and US$1,677 at Tahuehueto, resulting in a consolidated AISC of US$1,766. The increase in AISC in 2Q24 was attributed to a reduction in tons milled compared to 1Q24, though this was partially offset by reduced overall sustaining capital expenditure due to the completion of Tahuehueto construction. The company expects AISC to decrease as production ramps up in 2H24.

The completion of major construction at Tahuehueto included installing the third filter press in August 2024. The plant is now in the commissioning phase, with full production anticipated by 4Q24. Luca Mining continues the Campo Morado Improvement project, focusing on refurbishing float cells, thickeners, and filters to enhance plant operation. Key objectives include increasing mill throughput and sustaining plant performance. The copper-lead separation stage of the project is expected to be completed by 4Q24.

Luca Mining views these results as part of a positive operational and financial trend, having achieved favorable outcomes for two consecutive quarters. Dan Barnholden, CEO, Luca Mining, highlighted the significance of commissioning Cominvi for the Campo Morado operations in Guerrero. He noted that this partnership will enhance equipment availability and contribute positively to the Campo Morado project. “I fully expect this trend to continue as Campo Morado and Tahuehueto continue to ramp up to full capacity. These improvements, along with the ongoing Campo Morado Improvement project and Tahuehueto achieving commercial production in the near future, sets the stage for exciting growth in the 2H24 and substantial cash flows in 2025,” he added.

In an interview with MBN, Ramón Pérez, President, Luca Mining, discussed the company’s strategy to enhance efficiency and deliver better results to investors. He mentioned that hiring new management is part of its effort to meet new production targets and improve market valuation. “I think 2024 will be a great year for us as we try to recover our market valuation to US$200 million. We believe we have all the ingredients to achieve that and continue to grow,” Pérez added.