LUCA MINING CORP REPORTS SECOND QUARTER 2025 RESULTS

Executive Summary

• Luca Mining reported Q2 2025 revenue of US$36.8 M (up 102% YoY) and record H1 2025 revenue of US$75.4 M, driven by a 28% increase in gold‑equivalent production to 17,861 oz.
• Adjusted EBITDA turned positive at US$5.8 M for the quarter; net free cash flow remained positive for the first half of the year ($4.9 M) despite a Q2 cash outflow from development spending.
• The company reduced debt by $1.5 M, completed 1,780 m of underground development and 6,804 m of exploration drilling, and reaffirmed its 2025 production guidance of 85‑100 k AuEq oz with US$30‑40 M free cash flow expected.

Key Details

• Financial Highlights – Q2 2025
• Revenue: US$36.8 M (↑102% YoY)
• Adjusted EBITDA: US$5.8 M (↑39% YoY)
• Mine operating cash flow before taxes: US$12.0 M (↑261% YoY)
• Net earnings (loss): –US$3.2 M; Adjusted net earnings: +US$3.3 M

• All‑in sustaining cost (AISC): US$3,310 per AuEq oz (↑45% YoY, reflecting catch‑up development)

• Production Highlights – Q2 2025

• Gold‑equivalent production: 17,861 oz (↑28% YoY)
• Gold produced: 6,622 oz (↑55%)
• Silver produced: 279,839 oz (↑49%)
• Zinc produced: 11.96 M lb (↑74%)
• Copper produced: 2.58 M lb (↑66%)

• Consolidated tonnes milled: 253,717 t (↑65% YoY) – Campo Morado 181,320 t; Tahuehueto 72,396 t

• Operating Metrics

• Plant utilization: >90% at Tahuehueto; grinding availability 98.7% at Campo Morado
• Throughput increase: 65% YoY consolidated tonnes milled
• Direct mining cost per tonne: US$93 (↑11%)

• Cash cost per AuEq oz sold: US$2,275 (↓20%)

• Capital & Exploration Activity

• Underground development completed: 1,780 m at $6.2 M total cost
• Exploration drilling executed: 6,804 m at $1.4 M total cost
• Campo Morado drill program: 5,000 m underground (≈25 holes) + 2,500 m surface; encouraging widths above cutoff grades.

• Tahuehueto drill program: 10,500 m total, targeting vein extensions and high‑grade breccia zones; new mineralized intersections identified.

• Guidance & Outlook

• 2025 production target: 85,000–100,000 AuEq oz (payable 65,000–80,000 oz).
• Expected free cash flow for 2025: US$30‑40 M before working‑capital adjustments.
• Management anticipates stronger H2 performance as Tahuehueto ramps up and base‑metal prices support margins.

Notable Quotes

• “This was a quarter of consolidation for Luca, with record H1 revenue, double‑digit production growth, reduction of our debt by $1.5 million and meaningful cash generation from operations,” – Dan Barnholden, CEO.

Materiality Assessment: Material – Positive (significant earnings improvement, strong operational metrics, reaffirmed guidance).