VANCOUVER, BC, April 23, 2025 /CNW/ - Luca Mining Corp. ("Luca" or the "Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased to report results for the fourth quarter and year ended December 31, 2024. The Company achieved record annual production of 57,487 ounces gold equivalent ("oz AuEq") leading to record-high mine operating cash flow before taxes of USD $22.3 million with net free cash flow before working capital at USD $6.6 million and an adjusted EBITDA of USD $14.1 million. These excellent results showcase the effectiveness of the Company's programs for construction, optimization and ramp up in the operations as well as improving mine planning and operating strategy. Carrying on the positive momentum, 2025 production is expected to range from 80,000 to 100,000 ounces gold equivalent, a year on year increase of over 38 to 73%.
Net revenue for the year ended December 31, 2024, increased by 59% to USD $80.6 million, compared to 2023. Mine operating earnings rose significantly to USD $17.2 million, representing a 1,477% increase year-over-year. As anticipated, cash costs and all-in sustaining costs ("AISC") increased by 20% and 15%, to USD $1,503 and USD $1,827 per gold equivalent ounce produced, respectively, reflecting the transition to contract mining at Campo Morada and the Company's strategic investments in mine and mill infrastructure.
Despite the Company's significantly improved operational performance, net earnings were materially impacted by a non-cash accounting adjustment related to the Tahuehueto silver stream (the "Stream"). During 2024, the Company amended the terms of the Stream (refer to the August 15, 2024 press release). As part of the amendment, a portion of the Stream was settled in cash, shares, and refined silver not produced at the Tahuehueto mine. This change resulted in the Stream being reclassified as a derivative instrument and measured at fair value. The difference between the fair value of the Stream and its previous carrying value as deferred revenue resulted in a cumulative initial non-cash expense of USD $14.4 million which was recorded in the statement of loss and comprehensive loss. As a result, the Company recorded a net loss of USD $10.4 million for the year. The fair value of the Stream will be re-assessed at each quarter in the future and the resulting gain or loss will be recognized in the statement of loss and comprehensive loss.
Financial and operating results for the three and twelve months ended December 31, 2024 are summarized below. All amounts are in U.S. dollars unless otherwise indicated.
1. | Gold equivalents ("AuEq") are calculated using an 84.96:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0016:1 (Au/Cu) and 0.0003:1 (Au/Pb) ratio for Q4 2024; an 85.07:1 (Ag/Au), 0.0006:1 (Au/Zn), 0.0019:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for Q4 2023, an 82.59:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0018:1 (Au/Cu) and 0.0004:1 (Au/Pb) ratio for YTD 2024; and an 84.37:1 (Ag/Au), 0.0007:1 (Au/Zn), 0.0020:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for YTD 2023, respectively. |
2. | Cash cost per gold equivalent ounce includes mining, processing, and direct overhead costs. See Reconciliation to IFRS on page 37 the Company's MD&A. |
3. | AISC per AuEq oz includes mining, processing, direct overhead, corporate general and administration expenses, reclamation, and sustaining capital on page 37 in the Company's MD&A.. |
4. | See Reconciliation of earnings before interest, taxes, depreciation, and amortization on page 36 in the Company's MD&A. |
5. | See "Non-IFRS Financial Measures" on page 33 in the Company's MD&A. |
6. | Based on provisional sales before final price adjustments, treatment, and refining charges. |
7. | Mine operating cash flow before taxes is calculated by adding back royalties, changes in inventory and depreciation and depletion to mine operating loss. See Reconciliation to IFRS on page 34 in the Company's MD&A. |
8. | All-in cost per AuEq oz includes AISC plus interest paid and loan payments. See page 37 in the Company's MD&A. |
9. | Production costs include mining, processing, and direct overhead cost at the operation sites. See reconciliation on page 37 in the Company's MD&A. |
10. | Net free cash flow before working is operating cash flow before working capital changes, less capital expenditures. See page 34 in the Company's MD&A. |
Dan Barnholden, CEO, commented, "It has been an extraordinary year for Luca. We have transformed our operations, transformed our finances, and have embarked on exciting, high impact exploration at both of our mines. Optimization programs at both mines are ongoing, and our increasing focus on precious metals grades and recoveries at Campo Morado will be an increasing focus of our efforts going forward. Over the course of 2025, we expect production levels to reach 80,000 to 100,000 ounces gold equivalent and free cash flow to be between $30 million and $40 million. These extraordinary outcomes set the stage for further organic growth initiatives and, increasingly, to turn our attention to accretive M&A opportunities, as we set our sights on becoming a leading mid-tier producer."
Proactive and Successful Health and Safety Record
Record Production
Successful Exploration
Debt Reduction On Track
Strong Balance Sheet
About Luca Mining Corp.
Luca Mining Corp. (TSX-V: LUCA, OTCQX: LUCMF, Frankfurt: Z68) is a Canadian mining company with two wholly owned mines located in the prolific Sierra Madre mineralized belt in Mexico. These mines produce gold, copper, zinc, silver, and lead and generate strong cash flow. Both mines have considerable development and resource upside as well as world-class exploration potential.
The Company's Campo Morado Mine, located in Guerrero State, hosts VMS-style, polymetallic mineralization within a large land package comprising 121 sq km. It is an underground operation, producing zinc, copper, gold, silver and lead.
The Tahuehueto Mine is a large property of over 75 sq km, located in Durango State. The project hosts epithermal gold and silver vein-style mineralization. Tahuehueto is a newly constructed underground mining operation producing primarily gold and silver contained in zinc and lead concentrates. The Company has successfully commissioned its mill and is now in commercial production.
For more information, please visit: www.lucamining.com
On Behalf of the Board of Directors
(signed) "Dan Barnholden"
Dan Barnholden, CEO
Qualified Persons
The technical information contained in this News Release has been reviewed and approved by Mr. Paul Gray, Vice-President Technical at Luca Mining as the Qualified Person for the Company as defined in National Instrument 43-101.
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, estimated production guidelines for 2025 and other possible events, conditions or performance that are based on assumptions about the proposed exploration program and its anticipated results; the timing and costs of future activities on the Company's properties, such as production rates increases and sustaining capital expenditures; success of exploration, development, and metres to be drilled in exploration on the Tahuehueto Mine site and the Campo Morado Mine site. In certain cases, Forward-Looking Information can be identified using words and phrases such as "plans"," expects", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the Company will be able to raise additional capital as necessary; the current exploration, development, environmental and other objectives concerning the Tahuehueto Mine can be achieved; that consistent and sustainable mill feed at Campo Morado Mine will be achieved; the continuity of the price of gold and other metals and economic and political conditions. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
NON-IFRS FINANCIAL MEASURES
The Company has disclosed certain non-IFRS financial measures and ratios in this news release, as discussed below. These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by Management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company's performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company's performance prepared in accordance with IFRS.
Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure ("NI 52- 122") as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation.
A non-IFRS ratio is defined by 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.
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SOURCE Luca Mining Corp.
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