Posted on Behalf of Luca Mining Corp. – Canaccord Genuity initiated protection with a SPECULATIVE BUY score and a C$4.40 worth goal (vs. ~C$1.97 on the time of the report) for Luca Mining (LUCA.v LUCMF)

Core Funding Thesis

• Luca has executed a transparent monetary and operational turnaround, shifting from losses to rising money movement via optimization at its Mexican operations.
• Administration is now positioned to pursue NAV-accretive progress, manufacturing will increase, and mine-life extensions.

Operational Turnaround: Campo Morado

• Optimization since H2/23 elevated mill throughput from ~1,300 tpd to >2,000 tpd.
• Copper recoveries improved from ~42% to >70%.
• These adjustments drove larger manufacturing and money movement, decreasing web debt from ~US$28M to ~US$10M by Q3/25.
• 2026 EBITDA is forecast at ~US$120M, representing a >10x improve from 2025 ranges.

Manufacturing Combine Shift Towards Gold

• Mine planning at Campo Morado is anticipated to transition into extra gold-rich ore beginning in 2028 with improvement of the Reforma zone.
• Reforma hosts higher-grade gold (2.38 g/t Au) and ~59% larger grades than current head grades.
• Deliberate mill retrofits may elevate gold recoveries to ~60% from ~25%, supporting a possible >4x improve in gold-attributable money movement by 2029.

Exploration Upside and Mine Life Extension

• First exploration drilling in over a decade started in H1/25.
• Part 1 included ~5,000 m of floor and underground drilling.
• Outcomes recognized new mineralization close to present infrastructure and high-grade intercepts (e.g., 55.8 m at 5.9 g/t AuEq).
• New assays are operating 10–15% larger than present useful resource grades, reinforcing useful resource progress potential.

Second Working Asset: Tahuehueto

• Luca commissioned its second Mexican operation, Tahuehueto, in Q1/25.
• Provides operational diversification and reduces single-asset threat.
• Polymetallic manufacturing at the moment generates ~57% of income from valuable metals, anticipated to rise towards ~74% as gold grades enhance.

Valuation and Re-rating Potential

• Luca trades at ~0.32x P/NAV, properly beneath peer averages (~0.55x).
• Goal valuation applies a 0.7x P/NAV a number of on an estimated NAV of ~US$1.35B.
• A number of levers for re-rating: exploration success, mill optimization, rising manufacturing, and stability sheet enchancment.

Key Close to-Time period Catalysts

• Ongoing exploration outcomes via 2026.
• Potential debt facility refinancing (H2/26).
• Up to date technical research and mill retrofit affirmation at Campo Morado (mid–late 2026).
• Continued enchancment in manufacturing, recoveries, and free money movement.

Backside Line

Canaccord views Luca as a leveraged turnaround story transitioning right into a growth-oriented, cash-flow-generating valuable metals producer, with significant upside if execution at Campo Morado continues and gold-rich zones are efficiently introduced on-line.

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Take a look at the report right here: https://x.com/AllStreetsWolf/standing/2018424363595219270/photograph/1