JPMorgan Says Cut Equities and Buy More Gold

The US debt ceiling scare, rising recession risks and Federal Reserve hawks are just a handful of reasons why JPMorgan Chase is advising investors to cut exposure to stocks and hold more gold and cash.

With the macro environment taking on more and more risk, JPMorgan strategists are trimming exposure to US equities and increasing its cash holdings by 2%. The multinational bank is also shifting away from energy and moving full steam ahead towards gold.

JPMorgan’s chief global markets strategist Marko Kolanovic said that the risk-reward for equities is poor due to a number of factors including elevated recession risk, stretched valuations, high interest rates and tightening liquidity and pointed to gold’s safe-haven properties as a hedge against these risks.

Of course, JPMorgan isn’t the only bank that’s bullish on gold. According to a new survey from the World Gold Council, up to 24% of central banks were looking to raise gold holdings this year.

In 2022, net gold purchases by central banks totaled 1,135 tonnes, sending gold buying levels to the highest level in 55 years. Since the beginning of 2023, the big banks are following the same trend, accumulating gold at the fastest pace on record.

Rising gold prices bodes well for the producers of the yellow metal, like Luca Mining (TSXV:LUCA) (OTCQX:LUCMF), a Canadian mining company bringing its second mine into commercial production this year.

A Junior Resource Company With a Unique Opportunity for Rapid Growth

Luca Mining holds two high-quality Mexican gold, silver and base metal mining projects with a combined 2.2 million gold equivalent ounce Measured & Indicated (M&I) resource.

The Campo Morado mine, a polymetallic underground operation with a Measured & Indicated (M&I) resource of 16.6 million tons grading 4.01% zinc, 0.80% copper, 0.93% lead, 123 g/t silver and 1.70 g/t gold, and the Tahuehueto Gold project, which is on track to deliver initial production by June 30, 2023.

On June 15, the company announced that pilot-scale testing of Jameson Cell technology at Campo Morado shows promise of improving base and precious metals recoveries and concentrate grades. A major advantage of Jameson Cell technology is the cells are smaller than conventional flotation cells and have no moving parts, meaning they can be easily maintained online without any shutdowns.  

Luca Mining has also been making significant progress at its Tahuehueto gold mine. Last month, the company announced a detailed two step plan in achieving 1,000 tonnes per day (tpd) commercial production at Tahuehueto, with the first stage of 500 tpd projected to be completed by the end of June.

Along with construction, Tahuehueto is undergoing pre-production, allowing the team to continue fine-tuning systems and plant performance ahead of full-scale production. So far, the average lead recovery to concentrate has been 79.8%, with a composition of 29% lead, 50.5 g/t gold, and 584 g/t silver on average. To date, the average zinc recovery in May is 59.7%, with 47% zinc, 12.6 g/t gold, and 144 g/t silver. According to the 2022 PFS, total gold and silver recoveries are roughly 86% (average for April 2023).

The company expects the final stage of 1,000 tpd production at the Tahuehueto Gold project to be finished by the end of 2023.

Luca Mining also bolstered its board of directors with the addition of Dr. Neil O’Brien, a consulting economic geologist and former mining executive with three decades of experience including Board of Director roles in public and private mineral exploration companies, and Phil Brumit Sr., a mining executive with over 40 years of experience in property evaluation, engineering, project management, construction, start-up and operations.

Dr O’Brien previously served as SVP exploration and new business development for Lundin Mining, while Brumit served as former executive VP projects & operations at Josemaria Resources, president and managing director at Minera Candelaria, a subsidiary of Lundin Mining, president of Freeport-McMoRan’s African division and senior advisor, North American manager of operations for Newmont and general manager of operations for PT Newmont Nusa Tenggara’s Batu Hijau mine in Indonesia.   

For more information about Luca Mining (TSXV:LUCA) (OTCQX:LUCMF), click this link.

Featured Image @ FreePik

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Luca Mining Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Luca Mining Corp.’s industry; (b) market opportunity; (c) Luca Mining Corp.’s business plans and strategies; (d) services that Luca Mining Corp. intends to offer; (e) Luca Mining Corp.’s milestone projections and targets; (f) Luca Mining Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Luca Mining Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Luca Mining Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Luca Mining Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Luca Mining Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) the accuracy of budgeted costs and expenditures; (e) Luca Mining Corp.’s ability to attract and retain skilled personnel; (f) political and regulatory stability; (g) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (h) changes in applicable legislation; (i) stability in financial and capital markets; and (j) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Luca Mining Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Luca Mining Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Luca Mining Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Luca Mining Corp.’s business operations (e) Luca Mining Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Luca Mining Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Luca Mining Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Luca Mining Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Luca Mining Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Luca Mining Corp. or such entities and are not necessarily indicative of future performance of Luca Mining Corp. or such entities.

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