Episode Details

ng mines in Mexico. Production reflected stable operations at Campo Morado and the continued ramp-up of underground mining and processing activities at Tahuehueto. The company is also engaged in ongoing metallurgical testing to improve recovery rates and future payability for their 5 metals, and 3 concentrates; with an emphasis on gold and silver recoveries.

2025 Highlights

• Transformational Operational Growth: Tonnes mined and milled increased 53% and 51%, respectively, to 1.01 million tonnes, reflecting higher throughput and improved operational stability across both Campo Morado and Tahuehueto.

• Strong Multi-Metal Production Growth: Increase throughput resulted in significant growth across key metals, with silver production up 69%, zinc up 72%, lead up 53%, andcopper up 37% 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 from $87.2 million in 2024, whileAdjusted EBITDA increased 226% to $46.0 million, compared to $14.1 millionin 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 at December 31, 2024 to $3.3 million at December 31, 2025, representing a reduction of more than 80% during the year. As of the date of this MD&A, outstanding loans payable have been further reduced to $1.4 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

Q1 2026 Operational and Financial Results Update:

• During the first quarter of 2026, the Company completed approximately 10,058 metres of drilling. Exploration activities were primarily focused on near-mine and resource expansion targets, achieving the objectives of extending mine life and improving production flexibility at the Company’s operating assets.
• Operationally the company was on strong footing, with solid operating performance and strong silver production in a favorable price environment. The Company remained focused on operational improvements at both mines, with particular emphasis on Campo Morado which is moving into an expansion study towards a technical report in the second half of 2026.
• That company announced on March 9th the appointment of Nick Shakesby as Chief Operating Officer (“COO”), effective April 1, 2026. Luca has also strengthened its technical team to advance and execute on optimization and growth initiatives, including the Campo Morado Expansion.
• As of March 31, 2026, Luca’s cash position increased to approximately $36.4 million, compared to $25.5 million at year-end 2025. The increase was primarily driven by strong operating cash flow, supplemented by approximately $2.1 million in proceeds from warrant and option exercises and net realized gains of approximately $3.6 million from silver call options. These options were implemented to re-establ