LUCA MINING CORP. REPORTS RECORD ANNUAL RESULTS FOR 2025 AND EXCEEDS REVISED PRODUCTION GUIDANCE
Rhea-AI Summary
Luca Mining (OTCQX: LUCMF) reported record 2025 results with revenue of $176.8M (+103%), Adjusted EBITDA $46.0M (+226%), and net free cash flow before working capital $20.8M. Tonnes mined and milled rose ~53% and 51%, respectively, while cash increased to $25.5M and long-term debt fell over 80% to $3.3M.
The company achieved revised production guidance across metals, restarted exploration (~30,140m drilled), and invested $27.3M in sustaining capital to accelerate underground development and support future growth.
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Positive
- Revenue +103% to $176.8 million for 2025
- Adjusted EBITDA +226% to $46.0 million
- Net free cash flow before working capital of $20.8 million
- Cash balance increased to $25.5 million year-end
- Loans payable reduced >80% to $3.3 million
- Tonnes mined and milled increased ~53% and 51% respectively
Negative
- Net loss of $21.1 million for 2025 due to non-cash adjustments
- Non-cash fair-value hit of $38.9 million tied to silver stream derivative
- Sustaining capital spend rose to $27.3 million, increasing near-term cash needs
- Tahuehueto AISC per AuEq rose to $2,832 (from $1,845), a >50% increase
News Market Reaction – LUCMF
On the day this news was published, LUCMF gained 6.12%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Transformational Year with
- Cash increasing to
$25.5 million - Long-term debt reduced by over
80% to$3.3 million - Net free cash flow before working capital exceeded revised guidance by more than
100% to$20.8 million $15.5 million
The Company continues to execute on its strategic priorities as it enters 2026 from a position of increased financial strength and operational momentum.
2025 Highlights
- Continued emphasis on safe, disciplined operations: Strong focus on operational discipline during the year, reinforcing supervision visibility, housekeeping standards, and contractor coordination. Corrective actions implemented throughout the year contributed to improved operating stability, supporting more consistent underground and plant performance toward year end.
- Transformational Operational Growth: Tonnes mined and milled increased
53% and51% , respectively, to 1.01 million tonnes, reflecting higher throughput and improved operational stability across bothCampo Morado and Tahuehueto.
- Strong Multi-Metal Production Growth: Increase throughput resulted in significant growth across key metals, with silver production up
69% , zinc up72% , lead up53% , and copper up37% compared to 2024. As a result, Luca achieved revised guidance for all metals produced, including payable silver production above the top end of revised guidance.
- Strategic Investment in Mine Development: Sustaining capital expenditures increased to
$27.3 million as the Company accelerated underground development and exploration programs designed to improve mine sequencing, access higher-grade zones, and support long-term production reliability.
- Strong Financial Performance: Revenue increased
103% to$176.8 million $87.2 million 226% to$46.0 million $14.1 million in 2024, driven by higher production levels and stronger realized precious metal prices.
- Significant Balance Sheet Improvement: The Company reduced loans payable from
$17.0 million $3.3 million 80% during the year. As of the date of this MD&A, outstanding loans payable have been further reduced to$1.4 million $20.8 million $15.5 million $25.5 million $10.2 million
- Exploration Programs Reinitiated to Support Resource Growth: During 2025, the Company reinitiated exploration activities across its projects for the first time in more than a decade. To date, approximately 30,140 metres of exploration drilling have been completed, improving geological understanding of the deposits, identifying additional mineralized zones, and supporting potential resource expansion. These exploration programs represent an important step towards unlocking additional value within the Company's asset portfolio and establishing a pipeline of future growth opportunities.
- Increased Equity Participation and Strengthened Liquidity: The Company received
$20.0 million in proceeds from the exercise of 50,024,980 warrants and 4,932,681 stock options (2024:$3.4 million
Luca's CEO, Dan Barnholden commented "2025 was a transformational year for Luca Mining. We delivered strong operational growth, significantly increased production across both mines, improved our performance, including strong free cash flow, all while strengthening our balance sheet and advancing our long-term exploration and development programs. With production exceeding revised guidance across all five metals, revenues more than doubling, and adjusted EBITDA increasing
(1) | Original Guidance as published in the Company's March 31, 2025 news release. |
Despite strong operating performance, the Company reported a net loss of
Excluding these factors, underlying operating performance improved significantly year-over-year, as reflected in strong growth in Adjusted EBITDA, Net Free Cashflow before working capital items and mine operating cash flow.
- See Reconciliation of earnings before interest, taxes, depreciation, and amortization in the MD&A.
- See "Non-IFRS Financial Measures" in the MD&A.
- Based on provisional sales before final price adjustments, treatment, and refining charges.
- Mine operating cash flow before taxes is calculated by adding back royalties, changes in inventory and depreciation and depletion to mine operating earnings. See Reconciliation to IFRS in the MD&A.
- Net free cash flow before working is operating cash flow before working capital changes, less capital expenditures. See Reconciliation to IFRS in the MD&A.
- Information presented herein for the three months and year ended December 31, 2024, has been adjusted to reflect the impact of the reclassification of certain transportation cost from revenues to cost of sales. See Note 2 of the consolidated financial statements as of December 31, 2025.
Operational Performance
The Company achieved a step-change in operational scale in 2025, driven by increased throughput and improved operating stability across both
Higher production volumes more than offset the impact of lower precious metal grades and modestly lower recoveries, demonstrating the strong operating leverage of the Company's assets. During the second half of the year, Luca significantly increased underground development and exploration activity to improve mine sequencing and access higher-grade zones, positioning the operations for improved performance going forward.
In the fourth quarter, the mine processed 170,238 tonnes of mineralized material, representing a
Cash costs averaged
For the full year,
On an annual basis, cash costs decreased to
Operational initiatives focused on improving blending control, reagent optimization, and circuit stability continued to enhance metallurgical performance and concentrate quality. Improved ore blending practices and process control adjustments contributed to more consistent recoveries during the second half of the year.
Underground development advanced new mining areas and improved access to additional stopes, supporting both near-term production stability and longer-term operational flexibility. Exploration drilling during the year also returned encouraging results adjacent to existing workings, reinforcing the potential for near-mine resource expansion and future production growth.
Tahuehueto (
Tahuehueto delivered a transformative year in 2025, achieving commercial production on March 31, 2025, and continued to increase operating scale through the year, contributing significantly to the Company's overall growth in production and financial performance.
In the fourth quarter, the mine processed approximately 90,737 tonnes (+
Cash costs per AuEq ounce sold averaged
For the full year, Tahuehueto processed 311,629 tonnes compared to 165,470 in 2024, with gold production contributing 17,410 ounces (+
On an annual basis, cash cost per AuEq ounce sold was
During the year, the Company advanced installation of a copper-lead separation circuit, with mechanical installation substantially completed in the fourth quarter. This system is expected to improve recoveries, concentrate quality, and payabilities by enabling the production of separate copper and lead concentrates. Commissioning is expected in 2026.
Underground development accelerated during the second half of the year, improving mine sequencing and operational flexibility, while exploration drilling continued to return encouraging results from near-mine targets.
This news release should be read in conjunction with the company's consolidated financial statements for the year ended December 31, 2025 and associated Management's Discussion and Analysis ("MD&A") which are available on the Company's website, www.lucamining.com and on Sedar+ at www.sedarplus.com.
Qualified Person
The technical information contained in this news release has been reviewed and approved by Mr. Paul D. Gray, P.Geo., Vice-President Exploration at Luca Mining. Mr. Gray is a Qualified Person for the Company as defined by National Instrument 43-101.
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
The Company's Campo Morado Mine hosts VMS-style, polymetallic mineralization within a large land package comprising 121 square kilometres. It is an underground operation, producing zinc, copper, gold, silver and lead. The mine is located in Guerrero State.
The Tahuehueto Mine is a large property of over 100 square kilometres 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. The Company has successfully commissioned its mill and is now in commercial production.
On Behalf of the Board of Directors
(signed) "Dan Barnholden"
Dan Barnholden, Chief Executive Officer
For more information, please visit: www.lucamining.com
Cautionary Note Regarding 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 and 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.
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SOURCE Luca Mining Corp.