Interview with Dan Barnholden, CEO of Luca Mining Corp.

Our previous interview: https://www.cruxinvestor.com/posts/luca-mining-tsxvluca-emerging-producer-targetting-100000-gold-equivalent-ounces-by-2025-5929

Recording date: 28th November 2024

Luca Mining (TSXV:LUCA) presents a compelling investment opportunity as an emerging gold producer with significant optimization and exploration upside. The company operates two producing gold mines in Mexico: Campo Morado in Guerrero state and Tahuehueto in Durango state, with a clear path to generating over 100,000 ounces of gold equivalent production in 2025 at all-in sustaining costs below $1,000/oz.

A recently closed $11.5 million financing has provided the capital to complete critical optimization initiatives at both mines. At Campo Morado, Luca is working to boost throughput to the 2,400 tonne per day nameplate capacity by Q1 2025, up from 1,400-1,600 tpd in H1 2024. Key workstreams include engaging a mining contractor to fill the mill and improving metallurgical recoveries.

Tahuehueto is now consistently operating at 800 tpd following a recent expansion, with expectations of reaching the 1,000 tpd capacity in the coming weeks and declaring commercial production shortly thereafter.

Luca has also assembled a world-class exploration team to aggressively explore both assets and drive organic resource growth who aims to find higher-grade ore to enhance the near-term mine plan, extend mine life to support a 150,000 oz/year production profile, and make new discoveries in the surrounding land package.

Initial drill results from Tahuehueto are already showing "extraordinary" potential according to CEO Dan Barnholden. Luca expects to generate sufficient operating cash flow to repay its $12.3 million debt over the next 18 months. With a market capitalization of under $110 million at a recent $0.55 share price, Luca appears undervalued relative to its near-term cash flow growth and long-term exploration upside. Upcoming catalysts include the declaration of commercial production at Tahuehueto, initial drill results from the exploration program, and continued operational improvements.

Longer-term, Luca is well-positioned to re-rate towards peer valuations as the turnaround gains traction. The company could also become an attractive acquisition target or undertake its own accretive M&A as the balance sheet improves. For investors seeking precious metals exposure, Luca offers a compelling mix of near-term cash flow growth and long-term optionality.

View Luca Mining's company profile: https://www.cruxinvestor.com/companies/luca-mining-corp

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