VANCOUVER, BC, Aug. 29,
2024 /CNW/ - Luca Mining
Corp. ("Luca" or the "Company") (TSXV: LUCA)
(OTCQX: LUCMF) (Frankfurt: Z68) is pleased to announce its
financial results for the six months ended June 30, 2024.
Highlights
- Record Net Quarterly Revenue for Q2 2024 of US$18.2 million, up 49% from Q2 2023.
Total Net Revenue for the six months ended June 30, 2024, of US$34.5
million, an increase of 33% over the same 2023 period.
- Positive Net Earnings of US$4.7
million for Q2 2024, an increase of 217% over Q2
2023. Q2 Earnings per share ("EPS") increased
130% over the same 2023 period at US$0.03 per share. Total Net Earnings for the six
months ended June 30, 2024, were
US$10.0 million, a 303% increase over
the same 2023 period with EPS increasing 175% to US$0.06.
- Cash flow from Operations: US$739,000 in positive
cash flow from operations, with cash flow from operations before
working capital changes at US$3.4
million.
- Positive EBITDA and Adjusted EBITDA:
US$6.1 million in positive EBITDA and
US$4.1 million in positive Adjusted
EBITDA for Q2
- Production of 13,947 troy oz of gold
equivalent: being comprised of 4,278 ounces of gold,
188,267 ounces of silver, 3,125 tonnes of zinc, 706 tons of copper
and 667 tonnes of lead.
- Operating Costs: All-in Sustaining costs per AuEq
oz produced ("AISC") was US$1,714 at Campo
Morado and US$1,677 at
Tahuehueto resulting in a consolidated AISC of US$1,766. AISC increased in Q2 due to a reduction
in tonnes milled over Q1, offset by reduced overall sustaining
capital expenditure as Tahuehueto construction completed. AISC is
expected to decrease at both Tahuehueto and at Campo Morado as production ramps up in the
second half of 2024.
- Tahuehueto Construction Completed: The installation
of the third filter press in August
2024 marked the completion of major construction at
Tahuehueto. The Company is now commissioning the plant and
anticipates ramping up to full production by Q4 2024.
- Campo Morado Improvement Project
("CMIP"): Progress continues on refurbishment of
float cells, thickeners and filters to ensure reliable plant
operation. The focus remains on two key objectives: increasing mill
throughput, and sustaining plant performance. The copper-lead
separation stage of the project is advancing and is expected to be
completed by Q4 2024.
Dan Barnholden, CEO
stated, "I am very pleased with our Q2 2024 results. We
have achieved positive net income, positive EBITDA and positive
Adjusted EBITDA for the second quarter in a row, as well as
positive cash flow from operations. I fully expect this trend to
continue as Campo Morado and
Tahuehueto continue to ramp up to full capacity. We have engaged a
leading mine contractor, Cominvi, S.A. de C.V., for our
Campo Morado operations which will
improve our mobile equipment availability as well as provide
enhanced efficiencies going forward. 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 second half and substantial cash flows
in 2025."
"Lisa Dea, CFO,
commented, "It has been gratifying to witness the
transformation of the Company over the past several months. The
numbers show that the Company has truly turned a corner, and I look
forward to further growth ahead."
Production and Financial Overview
![(CNW Group/Luca Mining Corp.) (CNW Group/Luca Mining Corp.)](https://mma.prnewswire.com/media/2492218/Luca_Mining_Corp__LUCA_REPORTS_RECORD_NET_QUARTERLY_REVENUE_IN_Q.jpg)
1.
|
Gold equivalents are
calculated using an 81.00:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0019:1
(Au/Cu) and 0.0004:1 (Au/Pb) ratio for Q2 2024; 81.80:1 (Ag/Au),
0.0006:1 (Au/Zn), 0.0019:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for
Q2 2023, an 84.46:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0019:1 (Au/Cu) and
0.0004:1 (Au/Pb) ratio for YTD 2024; and an 83.02:1 (Ag/Au),
0.0006:1 (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 29 of
the June 30, 2024 MD&A.
|
3.
|
AISC per AuEq oz includes
mining, processing, direct
overhead, corporate general
and administration expenses,
reclamation, and sustaining capital on page 29 of
the June 30, 2024 MD&A.
|
4.
|
See Reconciliation of
earnings before interest, taxes, depreciation, and amortization on
page 26 of the June 30, 2024 MD&A.
|
5.
|
See
"Non-IFRS Financial Measures" on page 25
of the June 30, 2024 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 25 of the
June 30, 2024 MD&A.
|
8.
|
All-in cost per AuEq oz
includes AISC plus interest paid and loan payments. See page
29 of the June 30, 2024 MD&A.
|
9.
|
Production costs
include mining, milling, and direct overhead cost at the operation
sites. See reconciliation on page 29 of the June 30, 2024
MD&A.
|
About Luca Mining Corp.
Luca Mining (TSX-V: LUCA, OTCQX: LUCMF, Frankfurt: Z68) is a
diversified Canadian mining company with two 100%-owned producing
mines in Mexico. The Company
produces gold, silver, zinc, copper and lead from these mines that
each have considerable development and resource upside.
The Campo Morado mine, is an
underground operation located in Guerrero
State, a prolific mining region in Mexico. It produces copper-zinc-lead
concentrates with precious metals credits. It is currently
undergoing an optimisation program which is already generating
significant improvements in recoveries and grades, efficiencies,
and cashflows.
The Tahuehueto Gold, Silver Mine is a new underground operation
in Durango State, Mexico, within
the Sierra Madre Mineral Belt which hosts numerous producing and
historic mines along its trend. The Company has completed the
installation of major equipment and is commissioning its mill
capacity to 1,000 tonnes per day, with key test work and production
ramp-up underway, to achieve full production by Q4 2024.
The Company expects its operations to start generating positive
cash flows in 2024. Luca Mining is focused on growth with the aim
of maximizing shareholder returns.
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. Chris
Richings, 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
It should be noted that Luca declared commercial production at
Campo Morado prior to completing a
feasibility study of mineral reserves demonstrating economic and
technical viability. Accordingly, readers should be cautioned
that Luca's production decision has been made without a
comprehensive feasibility study of established reserves such that
there is greater risk and uncertainty as to future economic results
from the Campo Morado mine and a
higher technical risk of failure than would be the case if a
feasibility study were completed and relied upon to make a
production decision. Luca has completed a preliminary economic
assessment ("PEA") mining study on the Campo Morado mine that provides a conceptual
life of mine plan and a preliminary economic analysis based on the
previously identified mineral resources (see news releases dated
November 8, 2017, and April 4, 2018).
Positive operating cash flow is defined as excluding capital,
debt repayment and Trafigura financing.
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,
disclosure regarding the planned program to improve mining
operations at Campo Morado; and
other possible events, conditions or financial performance that are
based on assumptions about future economic conditions and courses
of action; the timing and costs of future activities on the
Company's properties, such as production rates and increases;
success of exploration, development and bulk sample processing
activities, and timing for processing at its own mineral processing
facility on the Tahuehueto project 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 current exploration,
development, environmental and other objectives concerning the
Campo Morado Mine and the Tahuehueto Project can be achieved; that
the program to improve mining operations at Campo Morado will proceed as planned; the
continuity of the price of gold and other metals, economic and
political conditions, and operations. 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 MD&A, 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 ration,
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 ration, 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.
Working Capital
Working capital is a non-IFRS measure that is a common measure
of liquidity but does not have any standardized meaning. The most
directly comparable measure
prepared in accordance with IFRS is current assets and net of current
liabilities. Working capital is calculated
by deducting
current liabilities from current assets.
Working capital should
not be considered in isolation
or as a substitute from measures prepared
in accordance with IFRS. The measure is intended to assist readers
in evaluating our liquidity.
Mine Operating Cash Flow before Taxes
Mine operating cash flow before taxes is a non-IFRS
measure that does not have a standardized meaning prescribed by IFRS
and therefore may not be comparable to similar measures presented
by other issuers. Mine operating cash flow is calculated as revenue
minus production costs, transportation and selling costs and
inventory changes. Mine operating cash flow is used by management
to assess the performance of the mine operations, excluding
corporate and exploration activities, and is provided to investors
as a measure of the Company's operating performance.
EBITDA
EBITDA is a non-IFRS financial measure, which excludes the
following from net earnings:
- Income tax expense;
- Finance costs;
- Amortization and depletion.
Adjusted EBITDA excludes the following additional items from EBITDA:
- Share based compensation;
- Non-recurring impairments (reversals);
- Loss (gain) on Settlement of debt;
- Significant other non-routine finance items.
Adjusted EBITDA per share is calculated by dividing Adjusted
EBITDA by the basic weighted average number of shares outstanding
for the period.
Management believes EBITDA is a valuable indicator of the
Company's ability to generate liquidity by producing operating cash
flow to fund working capital needs, service debt obligations, and
fund capital expenditures. Management uses EBITDA for this purpose.
EBITDA is also frequently used by investors and analysts for
valuation purposes whereby EBITDA is multiplied by a factor or
"EBITDA multiple" based on an observed or inferred relationship
between EBITDA and market values to determine the approximate total
enterprise value of a Company.
EBITDA is intended to provide additional information to
investors and analysts. It does not have any standardized
definition under IFRS and should not be considered in isolation or
as a substitute for measures of operating performance prepared in
accordance with IFRS. EBITDA excludes the impact of cash costs of
financing activities and taxes, and the effects of changes in
operating working capital balances, and therefore is not
necessarily indicative of operating profit or cash flow from
operations as determined by IFRS. Other companies may calculate
EBITDA and Adjusted EBITDA differently.
Realized Price per Ounce and Realized Price per Tonne
Realized price per ounce or per tonne are based on provisional
prices received from the sales of gold, silver, zinc, copper and
lead before price adjustments and treatment and refining charges.
It also excludes income from streaming.
Operating Cash Flow before Working Capital Changes
Operating cash flow before working capital changes per share is
a non-IFRS measure that does not have a standardized meaning
prescribed by IFRS and therefore may not be comparable to similar
measures presented by other issuers. Operating cash flow per
share is calculated by dividing cash from operating activities by
the basic weighted average shares outstanding. Operating cash
flow per share is used by management to assess operating
performance on a per share basis, irrespective of working capital
changes and is provided to investors as a measure of the Company's
operating performance.
Cash Cost per AuEq Ounce, All-In
Sustaining Cost per AuEq Ounce,
All-In Cost per AuEq Ounce and Production Cost per Tonne
Cash costs
per gold equivalent oz and production costs per tonne
are measures developed by precious metals companies in an effort to
provide a comparable standard; however, there can be no assurance
that the Company's reporting of these non-IFRS measures
and ratios are similar to those reported by other mining
companies. Cash costs per gold equivalent ounce and total
production cost per tonne are non-IFRS performance measures used by
the Company to manage and evaluate operating performance at its
operating mining unit, in conjunction with the related IFRS
amounts. They are widely reported in the silver mining industry as
a benchmark for performance, but
do not have a standardized meaning and are disclosed in addition to IFRS
measures. Production costs include mining, milling, and direct
overhead at the operation sites. Cash costs include all
direct costs plus royalties and special mining duty. Total
production costs include all cash costs plus amortization and
depletion, changes in amortization and depletion in finished goods
inventory and site share-based compensation. Cash costs per gold
equivalent ounce is calculated by dividing cash costs and total
production costs by the payable gold equivalent ounces produced.
Production costs per tonne are calculated by dividing production
costs by the number of processed tonnes. The following tables
provide a detailed reconciliation of these measures to the
Company's direct production costs, as reported in its consolidated
financial statements.
All-in Sustaining Costs ("AISC") is a non-IFRS performance
measure and was calculated based on guidance provided by the World
Gold Council ("WGC"). WGC is not a regulatory industry organization
and does not have the authority to develop accounting standards for
disclosure requirements. Other mining companies may calculate AISC
differently as a result of differences in underlying accounting
principles and policies applied, as well as differences in
definitions of sustaining capital expenditures. AISC is a more
comprehensive measure than cash cost per ounce and is useful for
investors and management to assess the Company's operating
performance by providing greater visibility, comparability and
representation of the total costs associated with producing gold
equivalent ounces from its current operations, in conjunction with
related
IFRS amounts. AISC helps investors to assess costs
against peers in the industry
and helps management assess the performance of its
mine.
AISC includes total production costs (IFRS
measure) incurred at the Company's mining operation, which forms
the basis of the Company's total cash costs. Additionally, the
Company includes sustaining capital expenditures, corporate general
and administrative expenses, operating lease payments and
reclamation cost accretion. The Company believes this measure
represents the total sustainable costs of producing silver and gold
concentrate from current operations and provides additional
information of the Company's operational performance and ability to
generate cash flows. As the measure seeks to reflect the full cost
of gold equivalent ounces from the zinc and lead concentrate
production from current operations, new projects capital at current
operation is not included. Certain other cash expenditures,
including share-based payments, tax payments, dividends and
financing costs are also not included.
The following tables
provide detailed reconciliations of these measures
to cost of sales, as reported in notes to our consolidated financial
statements.
1.
|
Gold equivalents are
calculated using an 81.00:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0019:1
(Au/Cu) and 0.0004:1 (Au/Pb) ratio for Q2 2024; 81.80:1 (Ag/Au),
0.0006:1 (Au/Zn), 0.0019:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for
Q2 2023.
|
2.
|
Cash cost per gold
equivalent ounce includes mining, processing, and direct overhead
costs.
|
3.
|
AISC per AuEq
oz
includes mining, processing, direct overhead, corporate
general and administration expenses, reclamation and sustaining capital.
|
4.
|
Production costs
include mining, milling, and direct overhead at the operation
sites.
|
5.
|
Tahuehueto is currently
pre-production as construction of the plant to 1,000 tonnes per day
is near completion.
|
![(CNW Group/Luca Mining Corp.) (CNW Group/Luca Mining Corp.)](https://mma.prnewswire.com/media/2492212/Luca_Mining_Corp__LUCA_REPORTS_RECORD_NET_QUARTERLY_REVENUE_IN_Q.jpg)
1.
|
Gold equivalents are
calculated using an 84.46:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0019:1
(Au/Cu) and 0.0004:1 (Au/Pb) ratio for YTD 2024; and an 83.02:1
(Ag/Au), 0.0006:1 (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.
|
3.
|
AISC per AuEq
oz
includes mining, processing, direct overhead, corporate
general and administration expenses, reclamation and sustaining capital.
|
4.
|
Production costs
include mining, milling, and direct overhead at the operation
sites.
|
5.
|
Tahuehueto is currently
pre-production as construction of the plant to 1,000 tonnes per day
is near completion.
|
The following table is a summary of these measures to cost of
sales by quarter and year to date.
![(CNW Group/Luca Mining Corp.) (CNW Group/Luca Mining Corp.)](https://mma.prnewswire.com/media/2492211/Luca_Mining_Corp__LUCA_REPORTS_RECORD_NET_QUARTERLY_REVENUE_IN_Q.jpg)
1.
|
Gold equivalents are
calculated using an 81.00:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0019:1
(Au/Cu) and 0.0004:1 (Au/Pb) ratio for Q2 2024, an 88.72:1 (Ag/Au),
0.0005:1 (Au/Zn), 0.0018:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for
Q1 2024; 85.07:1 (Ag/Au), 0.0006:1 (Au/Zn), 0.002:1 (Au/Cu) and
0.0005:1 (Au/Pb) ratio for Q4, 2023; 81.84:1 (Ag/Au), 0.0006:1
(Au/Zn), 0.002:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for Q3 2023;
81.80:1 (Ag/Au), 0.0006:1 (Au/Zn), 0.002:1 (Au/Cu) and 0.0005:1
(Au/Pb) ratio for Q2 2023; 83.71:1 (Ag/Au), 0.0008:1 (Au/Zn),
0.002:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for Q1 2023, an 84.46:1
(Ag/Au), 0.0005:1 (Au/Zn), 0.0019:1 (Au/Cu) and 0.0004:1 (Au/Pb)
ratio for YTD 2024; and an 83.02:1 (Ag/Au), 0.0006:1 (Au/Zn),
0.0020:1 (Au/Cu) and 0.0005:1 (Au/Pb) ratio for YTD 2023
|
2.
|
Cash cost per gold
equivalent ounce includes mining, processing, and direct overhead
costs.
|
3.
|
AISC per AuEq oz
includes mining, processing, direct overhead, corporate general and
administration expenses, reclamation, and sustaining
capital.
|
4.
|
Production costs
include mining, milling, and direct overhead at the operation
sites.
|
5.
|
1.3488, 1.3617, 1.3412,
1.3433 and 1.3520 average FX rate for Q1 2024, Q1, Q2, Q3 and Q4
2023, respectively, used to translate CAD$ to USD$.
|
![Luca logo (CNW Group/Luca Mining Corp.) Luca logo (CNW Group/Luca Mining Corp.)](https://mma.prnewswire.com/media/2492205/Luca_Mining_Corp__LUCA_REPORTS_RECORD_NET_QUARTERLY_REVENUE_IN_Q.jpg)
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SOURCE Luca Mining Corp.