September 18, 2025

Luca Mining - Review Of Q2 Operations and Financials, Further Debt Repayment, Ongoing Met Work, and Exploration Update

16 minutes

Dan Barnholden, CEO of Luca Mining (TSX.V:LUCA – OTCQX:LUCMF – FSE:TSGA), joins us to review their Q2 operations and key financial metrics, the further debt repayment, ongoing metallurgical work, 4 separate exploration programs, and provides insights on key upcoming catalysts across both of Luca’s producing assets – the Tahuehueto and Campo Morado mines, located in the prolific Sierra Madre mineralized belt in Mexico.

Second Quarter Highlights

Gold equivalent production totaled 17,861 ounces in Q2 2025, up 28% compared to Q2 2024, and 39,154 ounces in H1 2025, supported by continued ramp-up at Tahuehueto, strong base metals output, and strong plant availability at Campo Morado.

Tahuehueto advanced operationally, maintaining over 90% plant utilization in the quarter while increasing tonnes milled by 104% year over year to 72,396, underscoring continued ramp-up progress and plant reliability.

Throughput momentum continued as well in the quarter, with a 65% increase in consolidated tonnes milled to 253,717; Campo Morado milled 181,320 tonnes (+54%), an average of 2,133 tonnes per day, while Tahuehueto more than doubled output, averaging 905 tonnes per day in the quarter, compared to the same period in the prior year.

Gold production reached 6,622 ounces, up 55% from Q2 2024, supported by stable recoveries at Tahuehueto and steady plant operations despite lower mined grades.

Campo Morado set a new benchmark with 98.7% grinding availability, its highest of the year, and delivered 11,106 gold-equivalent ounces—supported by stronger zinc and copper grades.

Tahuehueto contributed 6,755 gold-equivalent ounces, a 44% increase year over year, and silver production rose 108% to 71,441 ounces, highlighting rising output from higher-grade zones.

Zinc, copper, and lead production rose 74%, 66%, and 49%, respectively, on a consolidated basis, benefiting from improved head grades, higher throughput, and processing efficiency across both sites.

Consolidated revenues more than doubled year-over-year to US$36.78 million driven by higher production volumes and improved realized prices across most metals, and delivered record revenue of US$75.4 million for the first half of the year..

Cash provided by operating activities totaled $12.61 million in Q2 2025, a substantial increase from $739,000 in Q2 2024, primarily driven by a 102% increase in revenues supported by higher gold-equivalent production (+28%) and improved realized prices. Strong throughput growth at both operations, particularly a 104% increase in tonnes milled at Tahuehueto and 98.7% grinding availability at Campo Morado, contributed to enhanced cash generation.

Adjusted net earnings totaled $3.26 million in Q2 2025, a step in the right direction from a near break-even result in Q2 2024. The turnaround reflects improved operational profitability, stronger metal sales, and disciplined cost management, offsetting non-cash and non-recurring items that impacted the reported net loss.

Positive adjusted EBITDA of US$5.8 million in Q2 2025 (Q2 2024 – positive adjusted EBITDA of $4,166), with US$18.2 million generated in the first half of the year; supported by increased sales across gold, zinc, and copper, as well as improved operating margins.

For the year ahead, the Company anticipates producing between 85,000 and 100,000 gold equivalent ounces with payable ounces ranging between 65,000 and 80,000. The Company expects to generate between US$30 million and US$40 million in free cash flow before working capital adjustments for the year, reflecting the strength of its core mining operations.

Dan goes on to highlight both the underground drilling and surface drilling going on at Campo Morado and Tahuehueto, with essentially 4 exploration programs, and the first meaningful drilling in over a decade. In addition to targeting new high-grade gold and silver areas, there is a concerted effort to expand mineralization and extend the mine life for both projects. The company is also engaged in ongoing metallurgical testing to improve recovery rates for their 5 metals, and 3 concentrates.

If you have any question for Dan regarding Luca Mining, then please email those into us at [email protected] or [email protected].

In full disclosure Shad is a shareholder of Luca Mining at the time of this recording and may choose to buy or sell shares at any time.

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