Campo Morado Mine PEA: $645M NPV
Luca Mining Corp.'s Campo Morado Mine in Guerrero State, Mexico has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $645M.
Luca Mining Corp.'s Campo Morado Mine has reported Preliminary Economic Assessment (PEA) results for the zinc project in Guerrero State, Mexico. The study headlines an after-tax net present value of $645M. It reflects Luca Mining Corp.'s (LUCA.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $645M.
Production and mine plan. The project envisions an underground operation.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 3% royalty.
These figures are extracted from Luca Mining Corp.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 16.6 Mt | 4.01% Zn, 0.80% Cu, 0.93% Pb, 123 g/t Ag, 1.70 g/t Au | 1.5 Blbs Zn, 909 koz Au, 0.3 Blbs Cu, 0.3 Blbs Pb, 66 Moz Ag |
Our Analysis
- NPV after-tax
- $645M
higher than 52% of 558 projects we track
A US$645M after-tax NPV against a US$237M market capitalisation is the whole argument in one line: the study values this zinc asset at roughly 2.7 times what the entire company is worth. There are two ways to read that, and the honest answer is that both are live. Either the market has not connected the study to the share price, or it has looked at a scoping-level PEA in Guerrero State and decided the number is unlikely to survive contact with permitting, financing and construction. The gap is not evidence of mispricing on its own; it is a question the company has to answer.
The returns themselves rank respectably rather than spectacularly: the NPV sits above 52% of the 558 projects we track across all commodities, which is a solid middle-of-the-pack position and nothing more. That ranking deserves to be read alongside the study stage. A PEA is preliminary, may lean on inferred resources, and its capital estimate typically carries a plus or minus 50% band, so the headline figure is a direction of travel rather than a number to underwrite. Investors should treat the ranking as indicative and wait for a feasibility-level study before granting it weight.
Scale is where the story tightens. This is one of nine projects we track for the company, so the asset competes for attention and capital inside a diversified micro-cap portfolio, and a build of this size cannot be quietly funded from a US$237M equity base. That is the practical hurdle: not whether the NPV is real, but whether a company this size can finance and permit a development of that magnitude without diluting heavily or bringing in a partner. The single question that decides the investment is whether management can convert a scoping study into a funded, permitted mine before the market's skepticism hardens into a permanent discount.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.
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