LUCA REPORTS Q3 2026 PRODUCTION RESULTS

Luca Mining Corp. (LUCA) released quarterly production figures for the three months ended September 30, 2026, alongside updates on pending mergers and acquisitions. The company did not issue a full earnings release, providing no income statement, AISC or cash-cost figures, or balance sheet data beyond a cash line.

Consolidated payable production for the third quarter included 4,304 ounces of gold, 248,365 ounces of silver, 530,000 pounds of lead, 7,455,000 pounds of zinc, and 1,648,000 pounds of copper. Consolidated produced metal for the same period totaled 5,351 ounces of gold, 334,043 ounces of silver, 1,964,000 pounds of lead, 10,350,000 pounds of zinc, and 2,332,000 pounds of copper.

At the Campo Morado mine, produced metal for the quarter consisted of 1,930 ounces of gold, 259,124 ounces of silver, 1,044,000 pounds of lead, 8,685,000 pounds of zinc, and 1,947,000 pounds of copper. At the Tahuehueto mine, produced metal included 3,420 ounces of gold, 74,919 ounces of silver, 921,000 pounds of lead, 1,665,000 pounds of zinc, and 384,000 pounds of copper.

Cash reserves fell to approximately $19.1 million at September 30, 2026, down from $24.7 million at June 30, 2026, representing a $5.6 million, or 23%, quarterly draw. Management attributed the decline to lower sales volumes, reduced realized gold and silver prices, and elevated costs related to corporate development activities, underground development, infrastructure, exploration, and operational team buildout ahead of the Cozamin acquisition.

Exploration efforts included approximately 12,100 meters drilled in the third quarter, bringing the total for the first nine months of 2026 to approximately 33,700 meters. The release reiterated the acquisition of El Barqueño from Agnico Eagle, announced on September 17, 2026, and the acquisition of Cozamin from Capstone Copper, announced on September 21, 2026.

CEO commentary focused on temporarily reduced access at Tahuehueto and the M&A pipeline, without quantifying the production shortfall or reaffirming specific production or cost targets. Consolidated gold output declined materially quarter-over-quarter, a decrease driven almost entirely by Tahuehueto, an asset management had previously indicated would see improvements.

Luca Mining Corp. (LUCA) reported a material decline in production at its Tahuehueto operation for the third quarter, marking a reversal from the company’s Q2 2026 MD&A guidance which had projected strength through Q3. Consolidated payable gold fell to 4,304 oz, down approximately 19.9% from 5,373 oz in Q2. Payable silver decreased to 267,404 oz, a drop of roughly 7.1% from the previous quarter’s 267,404 oz, while payable copper declined to 1,963 k lbs, down about 16.0% from Q2 levels. Management noted that these volume declines coincided with lower realized gold and silver prices, creating a dual pressure on revenue.

The company did not disclose Q3 cash costs or All-In Sustaining Costs (AISC). In the absence of this data, unit costs likely increased given the reduced production volumes. Meanwhile, cash reserves decreased by $5.6 million to $19.1 million as the company pre-funded a $290 million upfront acquisition. This reduction in liquidity occurs ahead of a transformational, debt-financed deal, presenting a potential risk to the balance sheet.

Commentary regarding lower realized prices suggests that the commodity tailwinds assumed in the 2027 pro-formas are not flowing uniformly. Conversely, improvements at Campo Morado remain evident, and the M&A pipeline, if closed, would be transformative for the business.

The stock’s recent performance provides context for the market’s reaction. Following the Q2 print on August 17, 2026, which landed at C$0.99, the shares rallied to C$1.15 by October 9, representing a 16% recovery. The market had leaned constructive into this release, meaning the soft Q3 results and Tahuehueto miss represent an unpriced negative rather than a confirmation of a move already reflected in the price.

Luca Mining Corp. (TSXV: LUCA; OTCQX: LUCMF; Frankfurt: Z68) is a Canadian polymetallic producer operating two wholly owned underground mines in Mexico's Sierra Madre belt. The company’s Campo Morado mine, located in Guerrero State, is a fully permitted underground VMS operation producing zinc, copper, gold, silver, and lead on a 121 km² land package. Throughput at Campo Morado has risen from under 1,200 tpd to over 2,000 tpd, approaching its 2,400 tpd plant capacity.

The Tahuehueto mine in Durango State is a greater than 100 km² epithermal gold-silver vein operation. Commercial production was declared in March 2025 following the completion of its ramp-up phase. The mine produces primarily gold and silver, with a copper-lead separation circuit added in late 2025 to improve payability.

While the company describes both mines as generating strong cash flow with considerable development and resource upside, third-quarter numbers indicate that cash generation is thinner and less consistent than that description implies, with Tahuehueto’s contribution proving volatile.

Luca Mining also holds pending additions to its portfolio, including Cozamin in Zacatecas, a copper-silver underground mine with 20 years of continuous production, and El Barqueño in Jalisco. El Barqueño is a 32,000 ha exploration and development property that is currently unpermitted for exploration due to the POETR program.