VANCOUVER, BC (By Luca, 26.May.2026, Words: 725) — Luca Mining Corp. delivered another strong financial quarter (1Q:26), achieving revenue of $57.6mn, net earnings of $12.6mn, and adjusted EBITDA of $25.4mn, supported by continued contributions from both operations, improved operating leverage, and a favourable commodity price environment.
The quarter demonstrated the company’s growing financial strength, with significant self-funded investments in sustaining capital, underground development, infrastructure and exploration programs designed to improve production flexibility, long-term operating performance and long-term value creation.
The company remains focused on converting operational improvements and elevated sustaining investment into improved production consistency and long-term free cash flow generation.
Campo Morado (Guerrero, Mexico)
Campo Morado delivered consolidated zinc-equivalent production of 37.3 million ZnEq pounds in 1Q:26, a 17% increase compared to 31.8 million pounds in 1Q:25, supported by higher silver, lead, and zinc grades. The mine maintained stable throughput of approximately 2,074 tonnes per operating day at 92.5% mill availability.
Sustaining capital investment accelerated meaningfully during the quarter, with Campo Morado recording $5.5mn (1Q:25: $0.5mn), directed toward underground development, electrical upgrades, tailings infrastructure, flotation rehabilitation, and operational reliability initiatives designed to improve long-term mining flexibility and production stability. The ongoing Stage 3 Campo Morado Improvement Project (CMIP 3), including flotation cell refurbishment, reagent automation, a new online analyzer, and modernization of thickener tanks continues to advance, with completion expected to support improved metallurgical recoveries and concentrate quality.
Metallurgical recoveries were impacted during the quarter by elevated iron-content ore from certain mining areas and variable ore blends as underground development activities progressed across multiple new fronts. The company actively implemented reagent optimization, flotation circuit adjustments, regrinding initiatives, and feed blending controls to manage these transient challenges, and management expects recoveries to normalize as underground development and ore blending practices continue to improve.
AISC per ZnEq payable pound at Campo Morado increased to $1.19/lb during the quarter (1Q:25: $0.96/lb), reflecting the company’s significantly increased sustaining capital investment program of $5.5 million, an 11-fold increase over the prior-year period. This investment, directed toward underground development, electrical infrastructure, flotation rehabilitation, and tailings works, is intentional and strategic: it is building the operational platform expected to drive improved mine sequencing, higher recoveries, and production consistency through the balance of 2026 and beyond. Cash cost per ZnEq payable pound remained well-controlled at $0.97/lb (1Q:25: $0.90/lb, +7%), demonstrating that underlying operating efficiency is intact. Management expects AISC to normalize as the sustaining capital investment program completes and the operational benefits are realized.
Tahuehueto (Durango, Mexico)
Tahuehueto achieved an important operational milestone during the quarter with the commencement of copper concentrate production, improving metal payability and supporting overall value realized from the operation. This development enables Tahuehueto to receive direct payment for copper production while improving lead concentrate quality and marketability, representing an important step in optimizing the value of the mine’s polymetallic production stream.
Further, Tahuehueto continued its progression toward stable, full-rate operations in 1Q:26. Tonnes milled increased 12% to 79,203 tonnes as throughput advanced toward the plant’s 1,000 tpd design capacity. Silver production surged 49% to 96,651 ounces, driven by a 45% improvement in silver head grades to 48 g/t. Copper production increased 23% to 368 thousand pounds, supported by higher copper grades.
Gold production of 3,503 ounces reflected the impact of lower gold grades (1.73 g/t vs. 2.40 g/t in 1Q:25) and lower metallurgical recoveries as mine sequencing progressed through development areas. The ongoing transition of underground mining activities to contractor Cantera was substantially completed by the end of the quarter, positioning the operation for improved equipment reliability, productivity, and operational continuity through the remainder of 2026. Management expects feed grades and recoveries to improve as additional higher-grade underground mining areas, including the Creston vein system, become accessible.
AISC per AuEq ounce at Tahuehueto increased to $3,321/oz (1Q:25: $2,054/oz), primarily reflecting $2.6mn in sustaining capital expenditures (1Q:25: $0.8mn, +219%), together with lower gold production volumes resulting from grade and recovery headwinds associated with mine sequencing through development areas. The underlying cash cost per AuEq ounce of $2,573/oz, while elevated, reflects the temporary impact of lower grades and recoveries rather than structural cost deterioration. As underground development unlocks access to higher-grade mining areas, including the Creston vein system, which has returned intercepts of up to 16.1 g/t AuEq in recent drilling, and contractor Cantera reaches full operational integration, management expects both cash cost and AISC to improve materially.
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