-- Stifel Canada on Thursday maintained its buy rating on the shares of Luca Mining (LUCA.V) and its C$4.00 price target after the company released fourth-quarter results.
"Luca printed a strong 4Q25, with FCF generation of $15.5MM ahead of consensus/Stifel at $13.0MM & $8.9MM, driven by increased production at Tahuehueto and higher realized pricing. Importantly, continued cash build and balance sheet improvement (bank debt expected to be repaid in 3Q26) directionally strengthens the balance sheet ahead of Campo Morado Expansion scoping study expected by end of year. With Campo Morado execution stabilizing and FCF generation improving, we see increasing confidence in LUCA's ability to deliver on its growth profile which targets >2x production (~55kozpa to ~110kozpa AuEq by 2029) while increasing precious metals revenue from ~64% to 76%. At 0.28x spot P/NAV (vs peers ~0.54x spot P/NAV) we see scope for re-rating as execution and funding risk is reduced," analyst Cole McGill wrote.
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Price: $1.49, Change: $+0.06, Percent Change: +4.20%