Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI) reports production results for the fourth quarter and full year 2024 from its five operating mines in Latin America and West Africa. For the full year 2024, Fortuna produced a record 369,637 ounces of gold and 3,724,945 ounces of silver for a record 455,958 gold equivalent ounces1, including lead and zinc by-products. All references to dollar amounts in this news release are expressed in US dollars.
Fourth quarter 2024 highlights
Full year 2024 highlights
2025 consolidated production and cost guidance highlights
Notes:
2024 consolidated operating results
Gold production (oz) |
Silver production (oz) |
|||||
Mines | Q4 2024 | FY 2024 | 2024 Guidance | Q4 2024 | FY 2024 | 2024 Guidance |
Séguéla, Côte d’Ivoire | 35,244 | 137,781 | 126,000 – 138,000 | – | – | – |
Yaramoko, Burkina Faso | 29,576 | 116,206 | 105,000 – 119,000 | – | – | – |
Lindero, Argentina | 26,806 | 97,287 | 93,000 – 105,000 | – | – | – |
San Jose, Mexico | 4,239 | 17,811 | 19,000 – 23,000 | 594,373 | 2,548,402 | 3,100,000 – 3,600,000 |
Caylloma, Peru | 128 | 552 | – | 249,238 | 1,176,543 | 900,000 – 1,100,000 |
Total | 95,993 | 369,637 | 343,000 – 385,000 | 843,611 | 3,724,945 | 4,000,000 – 4,700,000 |
Séguéla Mine, Côte d’Ivoire
Achieves top end of guidance for gold production
Q4 2024 | FY 2024 | 2024 Guidance | ||
Tonnes milled | 430,117 | 1,561,800 | – | |
Average tpd milled | 4,727 | 4,279 | – | |
Gold grade (g/t) | 2.95 | 2.95 | – | |
Gold recovery (%) | 91.7 | 93.0 | – | |
Gold production (oz)1 | 35,244 | 137,781 | 126,000 – 138,000 |
Note:
Highlight
In the fourth quarter, mine production totaled 715,008 tonnes of ore, averaging 2.34 g/t Au, and containing an estimated 53,796 ounces of gold from the Antenna, Ancien, and Koula pits. Movement of waste totaled 3,670,138 tonnes, for a strip ratio of 5.1:1. The Antenna pit was the primary source of production, yielding 530,651 tonnes of ore, with the Koula and Ancien pits contributing the remainder.
Séguéla produced 35,244 ounces of gold at an average head grade of 2.95 g/t Au, a 0.7 and 9.7 percent increase, respectively, compared to the third quarter in 2024. Despite higher grades in the fourth quarter, production remained essentially unchanged quarter over quarter due to inventory movements in the plant circuit. The higher gold grade is in line with the planned mining sequence and is representative of the life of mine grade. Plant throughput for the quarter averaged 208 tonnes per hour (tph), which is 35 percent higher than name plate design capacity of 154 tph.
AISC for the full year is expected to be within the 2024 guidance range of between $1,110 and $1,230 per ounce sold, with AISC in the fourth quarter above the average for the year, reflecting higher capex execution in the last quarter of 2024.
Yaramoko Mine, Burkina Faso
Achieves top end of guidance for gold production
Q4 2024 | FY 2024 | 2024 Guidance | ||
Tonnes milled | 102,105 | 454,969 | – | |
Average tpd milled | 1,122 | 1,243 | – | |
Gold grade (g/t) | 9.18 | 8.21 | – | |
Gold recovery (%) | 98.16 | 98.12 | – | |
Gold production1 (oz) | 29,576 | 116,206 | 105,000 – 119,000 |
Note:
Highlights
In the fourth quarter, 102,105 tonnes of ore were treated at an average head grade of 9.18 g/t Au, producing 29,576 ounces of gold. This represents a 37 percent increase in grade, and a 6 percent increase in ounces, compared to the third quarter in 2024. The reduced tonnage milled was primarily due to the failure of the mill variable speed drive circuit breaker which resulted in approximately 16 days of lost milling time. The increased head grade is attributable to ore being mainly sourced from stoping operations in the 55 Zone and QVP as development operations decrease. In 55 Zone, ore development was completed during the quarter, and waste development operations are scheduled to be completed in the first quarter of 2025. At the 109 Zone, open pit mobilization operations commenced, with mining due to start later in the first quarter of 2025.
During the quarter, 117,817 tonnes of ore were mined averaging 8.5 g/t Au from the 55 Zone and QVP.
AISC for the full year is expected to be slightly above the 2024 guidance range of between $1,220 and $1,320 per ounce sold. This was driven by successful exploration results and the required additional mine development, consistent with the extension of the life of mine into 2025.
Note:
Lindero Mine, Argentina
Achieves guidance for gold production
Q4 2024 | FY 2024 | 2024 Guidance | ||
Ore placed on pad (t) | 1,757,290 | 6,367,505 | – | |
Gold grade (g/t) | 0.60 | 0.62 | – | |
Gold production (oz)1 | 26,806 | 97,287 | 93,000 – 105,000 |
Note:
Highlight
In the fourth quarter, 2.05 million tonnes of ore were mined, with a stripping ratio of 1.54:1.
A total of 1.76 million tonnes of ore were placed on the leach pad averaging 0.60 g/t Au, containing an estimated 34,151 ounces of gold.
Gold production for the quarter was 26,806 ounces of gold, comprised of 24,679 ounces in doré bars, 2,086 ounces contained in rich fine carbon, and 41 ounces contained in copper precipitate. The 10 percent increase in production, when compared to the previous quarter, is due to a higher rate of pregnant solution percolation related to the first lift of ore placed on the new leach pad expansion area. The mine began placing ore on the expanded leach pad in the second half of October 2024. By year end, the $51.8 million leach pad expansion project was approximately 88 percent complete, with $6 million remaining to be spent in the first quarter of 2025. This will be used to finalize minor construction activities, demobilize construction contractors, and close out the project. The leach pad expansion is expected to be completed on budget.
Lindero’s energy supplier commenced work on a 14.5 MWh solar power plant project in September of 2024. Currently, the project is 41 percent complete, and a 1 MWh battery energy storage system has already been installed and linked to the existing power plant. The project is expected to be complete by the third quarter of 2025.
AISC for the full year is expected to be towards the higher end of the 2024 guidance range between $1,730 and $1,950 per ounce sold, principally due to the appreciation of the Argentine peso throughout the year. However, AISC is expected to improve in 2025 as disclosed in the Lindero outlook section.
Operational efficiency initiatives related to mine, plant capacity, and gold recovery
These initiatives are aligned with Fortuna’s continuous improvement strategy, and the operation continues to identify opportunities to improve its competitiveness.
San Jose Mine, Mexico
Production from the tail end of reserves
Q4 2024 | FY 2024 | 2024 Guidance | ||
Tonnes milled | 190,063 | 735,591 | – | |
Average tpd milled | 2,437 | 2,138 | – | |
Silver grade (g/t) | 118 | 125 | – | |
Silver recovery (%) | 82.70 | 86.07 | – | |
Silver production (oz) | 594,373 | 2,548,402 | 3,100,000 – 3,600,000 | |
Gold grade (g/t) | 0.85 | 0.89 | – | |
Gold recovery (%) | 81.96 | 84,76 | – | |
Gold production (oz) | 4,239 | 17,811 | 19,000 – 23,000 |
Highlight
In the fourth quarter, the San Jose Mine produced 594,373 ounces of silver and 4,239 ounces of gold at average head grades of 118 g/t Ag and 0.85 g/t Au, an increase of 16 and 12 percent, respectively, when compared to the third quarter of 2024. The positive results were due to higher grades being mined, with the processing plant milling 190,063 tonnes at an average rate of 2,437 tonnes per day. Metallurgical recoveries continued to be impacted by higher iron oxide material from the upper levels.
Annual production of silver and gold were 18 and 6 percent below the lower end of annual guidance, respectively. Approximately 5 percent of the lower production for both metals was due to the effect of the iron oxide in the metallurgical recovery. Head grades for the year were aligned with the geological model, albeit slightly lower than expected.
As the mine was operating at the tail end of reserves, lower tonnes than expected were mined in areas which included old adits and stopes with high geologic uncertainty. As a result, the largest impact on annual silver production was due to lower tonnage extracted than anticipated.
Notes:
Caylloma Mine, Peru
Strong performance, exceeding top end of annual production guidance for all metals
Q4 2024 | FY 2024 | 2024 Guidance | |
Tonnes milled | 139,761 | 551,430 | – |
Average tpd milled | 1,553 | 1,549 | – |
Silver grade (g/t) | 67 | 80 | – |
Silver recovery (%) | 83.32 | 83.29 | – |
Silver production (oz)1 | 249,238 | 1,176,543 | 900,000 – 1,100,000 |
Lead grade (%) | 3.36 | 3.57 | – |
Lead recovery (%) | 91.73 | 91.07 | – |
Lead production (lbs) | 9,499,719 | 39,555,339 | 29,000,000 – 34,000,000 |
Zinc grade (%) | 4.94 | 4.71 | – |
Zinc recovery (%) | 91.14 | 90.61 | – |
Zinc production (lbs) | 13,873,690 | 51,905,635 | 36,000,000 – 39,000,000 |
Note:
In the fourth quarter, the Caylloma Mine produced 249,238 ounces of silver at an average head grade of 67 g/t Ag. While silver production was 18 percent lower than the previous quarter, it was in line with the production sequence for the period. Total silver production for the year was 7 percent higher than the upper end of annual guidance.
Zinc and lead production was 13.87 Mlbs and 9.50 Mlbs, respectively for the fourth quarter, with average head grades of 4.94 % Zn and 3.36 % Pb, an increase of 6 percent for zinc and a decrease of 7 percent for lead, when compared to the third quarter of 2024. Zinc and lead production was above the higher end of annual guidance by 33 percent and 16 percent respectively. Increased production is the result of positive grade reconciliation to the reserve model in the lower levels of the underground mine.
AISC for 2024 is expected to be towards the high end of annual guidance range between $18 and $21 per ounce sold, due to the impact of a higher silver price relative to zinc and lead in the silver equivalency calculation, resulting in lower equivalent ounces.
2025 consolidated production and cost guidance
Production guidance for 2025 is lower than 2024, due to the anticipated completion of the sale of the non-core San Jose Mine in the first quarter of 2025, and the impact resulting from a higher silver price relative to zinc and lead in the calculation of silver equivalent production at the Caylloma Mine.
Cash cost and AISC are guided to be in line with 2024, despite increases in the stripping ratio for both the Lindero and Séguéla mines, which for Lindero is anticipated to peak in 2025 and for Séguéla in 2026. This is expected to be offset by lower capex at both the Lindero and Yaramoko mines. Lindero’s capital investments in equipment and infrastructure are expected to decrease by approximately 67 percent, while capital expenditures at Yaramoko are expected to decrease by approximately 60 percent.
The Company is also capitalizing on various productivity and cost efficiency initiatives in 2025. Several of the main projects already reflected in our AISC projections amount to $16 million in incremental cash flow (pre-tax) at Lindero, and the optimization of the Séguéla processing facility to treat 1.7 million tonnes per year.
In addition, the Company is providing 2-year guidance for the Séguéla Mine to reflect the significant improvement in gold production and AISC expected for 2026 at our flagship asset.
2025 consolidated production and cost guidance table
Mine | Silver (Moz) | Gold (koz) | Lead (Mlbs) | Zinc (Mlbs) | Cash Cost1,2,3,5 | AISC1,2,3,5 |
Silver | ($/oz Ag Eq) | ($/oz Ag Eq) | ||||
Caylloma, Peru | 0.9 – 1.0 | – | 29 – 32 | 45 – 49 | 15.0 – 16.6 | 21.7 – 24.7 |
Gold | ($/oz Au) | ($/oz Au) | ||||
Lindero, Argentina4 | – | 93 – 105 | – | – | 1,060 – 1,235 | 1,600 – 1,770 |
Yaramoko, Burkina Faso | – | 107 – 121 | – | – | 880 – 1,000 | 1,165 – 1,320 |
Séguéla, Côte d´Ivoire | – | 134 – 147 | – | – | 680 – 750 | 1,500 – 1,600 |
Consolidated Total | 0.9 – 1.0 | 334 – 373 | 29 – 32 | 45 – 49 | $895 – 1,0156 | $1,550 – 1,6806 |
Notes:
1. Cash Cost and all-in sustaining cost (AISC) are non-IFRS financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers. Refer to the note under “Non-IFRS Financial Measures” below.
2. Cash cost includes production cash cost and for Lindero, is net of copper by-product credit. AISC includes sustaining capital expenditures, worker’s participation (as applicable) commercial and government royalties mining tax, export duties (as applicable), subsidiary G&A and Brownfields exploration and is estimated at metal prices of $2,500/oz Au, $30.0/oz Ag, $2,100/t Pb, and $2,700/t Zn. AISC excludes government mining royalty recognized as income tax within the scope of IAS-12.
3. Silver equivalent is calculated at metal prices of $2,500/oz Au, $30.0/oz Ag, $2,100/t Pb and $2,700/t Zn. The guidance assumes an exchange rate of 0.89 USD/EUR. For Argentina, it assumes an annual inflation rate of 29% and an annual devaluation of 18 percent.
4. The cost guidance for the Lindero Mine does not take into account potential changes by the new Argentine Government to national macroeconomic policies, the taxation system and import and export duties which, if implemented, may have a material impact on costs.
5. Historical non-IFRS measure cost comparatives: The following table provides the historical cash costs and historical AISC for the Company’s five mines which were operating during the year ended December 31, 2023, as follows:
Mine | Cash Costa,b,c | AISCa,b,c |
Silver | ($/oz Ag Eq) | ($/oz Ag Eq) |
Caylloma, Peru | 14.28 | 19.90 |
Gold | ($/oz Au) | ($/oz Au) |
Lindero, Argentina | 920 | 1,565 |
Yaramoko, Burkina Faso | 809 | 1,499 |
Séguéla, Côte d’Ivoire | 357 | 760 |
(a) Cash cost and AISC are non-IFRS financial measures; refer to the note under “Non-IFRS Financial Measures” below.
(b) Silver equivalent was calculated at metal prices of $1,902/oz Au, $23.37/oz Ag, $2,155/t Pb and $2,706/t Zn for the year ended December 31, 2023.
(c) Further details on the cash costs and AISC for the year ended December 31, 2023 are disclosed on pages 38, 40, and 41 (with respect to cash costs) and pages 39 and 42 (with respect to AISC) of the Company’s management discussion and analysis (“MD&A”) for the year ended December 31, 2023 dated as of March 16, 2024 (“2023 MD&A”) which is available under Fortuna’s SEDAR+ profile at www.sedarplus.ca and is incorporated by reference into this news release, and the note under “Non-IFRS Financial Measures” below
2025 Guidance Outlook
Séguéla Mine, Côte d’Ivoire
Optimizing Séguéla’s potential through 2026 and beyond
The Company is providing 2-year guidance for the Séguéla Mine to reflect the significant improvement in gold production and AISC planned for 2026.
2025 | 2026 | |
Annual gold production (koz) | 134 – 147 | 160 – 180 |
Cash cost ($/oz Au)1 | 680 – 750 | 720 – 790 |
AISC ($/oz Au)1 | 1,500 – 1,600 | 1,260 – 1,390 |
Note:
2025 Outlook
Séguéla’s mine plan considers mining the Antenna, Ancien, and Koula pits, with plans to process
1.70 million tonnes of ore averaging 2.8 g/t Au, and capital investments estimated at $91 million, including $67 million for sustaining capital expenditures and $13.5 million for Brownfields exploration programs.
Major sustaining capital investments include:
Capitalized stripping | $47 million |
Tailings storage facility (TSF) lift | $6 million |
Other equipment and infrastructure | $14 million |
Cash cost and AISC:
Cash cost is expected to be between $680 and $750 per ounce of gold. This represents an increase over 2024 mainly due to higher waste movement as the mine’s stripping ratio rises from 5.7:1 to 14.6:1, in accordance with the mine plan and life of mine average of 13.8:1.
AISC is expected to be between $1,500 and $1,600 per ounce of gold, reflecting higher cash cost over 2024 as described above, higher capitalized stripping and an increase in government royalties of 2 percent enacted in January 2025.
2026 Outlook
Séguéla’s mine plan considers a production range of between 160,000 and 180,000 ounces, mining in the Antenna, Ancien, Koula, and Sunbird pits, with plans to process 1.70 million tonnes of ore. Processed gold average head grade is expected to increase 18 percent to 3.3 g/t Au in 2026. The stripping ratio is planned to peak at 17:1. Capital investments are estimated at $48 million, including $38 million for sustaining capital expenditures and $10 million for Brownfields exploration programs.
Major sustaining capital investments include:
Capitalized stripping | $31 million |
Equipment and infrastructure | $7 million |
AISC is expected to be between $1,260 and $1,390 per ounce of gold. The improvement in AISC over 2025 is anticipated to be driven by the 18 percent higher grade referenced above and corresponding higher gold production, and lower projected capital expenditures in equipment and infrastructure.
Yaramoko Mine, Burkina Faso
Continued strong gold production
The Yaramoko Mine is scheduled to process 481,000 tonnes of ore averaging 7.7 g/t Au. Capital investment decreases substantially compared to previous years due to the completion of development operations at the 55 Zone.
Total sustaining capital expenditure is expected to be $2.5 million, predominantly comprising of the final TSF lift and land compensation. Due to the limited life of mine at Yaramoko, all sustaining capital expenditure has been included in opex costs. Yaramoko has been operating with a short life of mineral reserves for the last three years, and through successful exploration and mine development has been able to expand its mine life year-over-year. Currently, the life of mine is scheduled to end in 2026.
Cash cost and AISC:
Cash cost is expected to be between $880 and $1,000 per ounce of gold.
AISC is expected to improve in 2025 to between $1,165 and $1,320 per ounce of gold, as a result of 60 percent lower capex year over year.
Lindero Mine, Argentina
Capitalizing on optimization initiatives
The Lindero Mine is expected to place 7.2 million tonnes of ore on the leach pad averaging 0.58 g/t Au, containing an estimated 133,776 ounces of gold. Capital investments are estimated at $42.9 million, including $17.4 million in capital projects, $3.4 million in Brownfields exploration and $22.1 million in capitalized stripping costs. The stripping ratio is expected to increase from 1.1 in 2024 to 2.2 in 2025; the peak in the life of mine strip ratio.
Major sustaining capital investments include:
Capitalized stripping | $22.1 million |
Completion of leach pad expansion project | $6.0 million |
Heavy equipment replacement and overhaul | $2.5 million |
Plant and mine critical spare parts | $4.0 million |
Cash cost and AISC:
Cash cost is expected to increase in 2025 to between $1,060 and $1,235 per ounce of gold, reflecting a higher stripping ratio, the appreciation of the Argentine peso, and lower head grade compared to 2024.
AISC is expected to improve in 2025 to between $1,600 and $1,770 per ounce of gold, reflecting lower capital investments in equipment and infrastructure of 67 percent compared to 2024, partially offset by the increase in the cash cost described above. The Company plans to close final leach pad project activities and demobilize contractors in the first quarter of 2025 leading to a higher AISC in the first quarter compared to the average for the year. The Company anticipates the AISC to progressively decrease in the subsequent quarters of the year, aligned with guidance.
Caylloma Mine, Peru
Track record of solid performance
The Caylloma Mine is scheduled to process 0.55 million tonnes of ore averaging 64 g/t Ag,
2.8 % Pb, and 4.4 % Zn. Capital investments are estimated at $20.3 million, including $14.6 million for sustaining capital and $4.8 million for Brownfields exploration programs.
Sustaining capital investments include:
Mine development and infill | $5.2 million |
Equipment acquisition and energy | $3.7 million |
Operating permits and tailings management | $1.3 million |
Cash cost and AISC:
Cash cost is expected to be between $15.0 and $16.6 per ounce of silver equivalent. AISC is expected to be between $21.7 and $24.7 per ounce of silver equivalent. This represents an increase over 2024 explained by the impact of relative metal prices on silver equivalent production. Higher metal prices for silver relative to zinc and lead, result in lower silver equivalent production. The effect of relative prices used for 2025 guidance, compared to metal prices used in 2024 guidance, represents an estimated impact on AISC of approximately $4 per ounce.
2025 Exploration Outlook
The Company has a total mineral exploration budget of $41.0 million for 2025, compared to an estimated $44.0 million invested in 2024. Brownfields represents 53 percent, and greenfield initiatives, including $8.3 million for Diamba Sud, represents 47 percent of this year’s budget.
Brownfields Exploration
Fortuna’s consolidated Brownfields exploration budget for 2025 totals $21.6 million, which includes 84,000 meters of reverse circulation, diamond core, and air core exploration drilling. The larger portion of the planned drilling is reserved for high value opportunities at the Séguéla Mine.
Séguéla Mine, Côte d’Ivoire
The Brownfields exploration program budget for 2025 at Séguéla is $13.5 million, which includes
73,000 meters of exploration drilling, supporting resource upgrade drilling primarily at the Sunbird underground project, and infill and expansion of the Kingfisher deposit, along with continued target generation.
Lindero Mine, Argentina
The Brownfields exploration budget for Lindero is $3.4 million, which includes 5,000 meters of exploration drilling at Arizaro, following up on recent reinterpretations driven by additional geochemical sampling, and alteration mapping completed in 2024.
Caylloma Mine, Peru
The Brownfields exploration program budget for 2025 at Caylloma is $4.8 million which includes
$2.2 million for 9,000 meters of resource extension drilling, in addition to $2.6 million for 1,600 meters of drill testing regional targets.
Burkina Faso
The Brownfields exploration program budget for 2025 at Yaramoko is $0.2 million, reflecting reduced exploration activities. However, the Company will continue to pursue opportunities for extensions of mineralization through underground development in the deeper levels of the 55 Zone and the QVP deposits.
Greenfields Exploration
Greenfields exploration will continue in Mexico, Côte d’Ivoire and Senegal advancing generative programs across several projects supported by a budget of $19.3 million, including continued active corporate development.
Mexico
Exploration activities in Mexico will focus on project generation and target testing across several emerging projects, with a total of $4.9 million budgeted, which includes 8,000 meters of planned drilling.
Côte d’Ivoire
The exploration budget for Côte d’Ivoire is $3.6 million, the majority of which will be spent on advancing exploration activities at Tongon North with 12,000 meters of drilling planned, as well as $1.2 million for early-stage target generation at the Guiglo project.
Senegal
The Greenfields exploration budget for Senegal is $10.5 million, including $8.3 million at the Diamba Sud Gold Project, which includes 35,000 meters of drilling for continuing target generation and testing as well as further resource infill and extension drilling. A budget of $2.1 million will be used to support exploration at the Bondala and Morichou projects.
Qualified Person
Eric Chapman, Senior Vice President of Technical Services for Fortuna Mining Corp., is a Professional Geoscientist registered with Engineers and Geoscientists British Columbia (Registration Number 36328) and a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.
Paul Weedon, Senior Vice President of Exploration for Fortuna Mining Corp., is a Qualified Person as defined by National Instrument 43-101 being a member of the Australian Institute of Geoscientists (Membership Number 6001). Mr. Weedon has reviewed and approved the scientific and technical information relating to exploration contained in this news release.
About Fortuna Mining Corp.
Fortuna Mining Corp. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru, as well as the preliminary economic assessment stage Diamba Sud Gold Project located in Senegal. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility. For more information, please visit our website.
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