UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 2025
Commission File Number 001-35297
Fortuna Mining Corp.
(Translation of registrant’s name into English)
1111 Melville Street, Suite 820, Vancouver,
British Columbia, Canada V6E 3V6
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
Fortuna Mining Corp. |
| |
(Registrant) |
| |
|
| Date: January 21, 2025 |
By: |
/s/ "Jorge Ganoza Durant" |
| |
|
Jorge Ganoza Durant |
| |
|
President and CEO |
Exhibits:
99.1 News release dated January 21, 2025
Exhibit 99.1
NEWS
RELEASE
Fortuna reports record production of
455,958 Au Eq ounces for 2024 and provides 2025 outlook.
Vancouver,
January 21, 2025 – 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
| · | Gold
equivalent production of 116,358 oz; compared to 110,820 oz Au Eq in Q3 20243 and
136,154 oz Au Eq in Q4 20232 |
| · | Gold
production of 95,993 oz; compared to 91,251 oz Au in Q3 20243 and 107,376
oz Au in Q4 20232 |
| · | Silver
production of 843,611 oz; compared to 816,187 oz in Q3 20243 and 1,354,003
oz in Q4 20232 |
| · | Repurchased
6,402,640 common shares at an average price of $4.77 per share for a total of $30,529,066;
representing 41.88 percent of the 15,287,201 shares under the Company’s normal course
issuer bid6 |
Full year 2024
highlights
| · | Record
gold equivalent production of 455,958 oz1, in line with low end of guidance; compared
to 452,389 oz Au Eq in 20232 |
| · | Record
gold production of 369,637 oz, achieving midpoint of guidance; compared to 326,638 oz
Au in 20232 |
| · | Silver
production of 3.7 Moz, below guidance; compared to 5.9 Moz in 20232 |
| · | By-product
lead and zinc production of 39.6 and 51.9 Mlbs, respectively |
| · | 2024 Total Recordable Injury Frequency Rate (TRIFR) of 1.36 compared to
1.22 in 2023; Lost Time Injury Frequency Rate (LTIFR) of 0.48 compared to 0.36 in 2023 |
2025 consolidated
production and cost guidance highlights
| · | Gold
equivalent production of between 380,000 and 422,000 oz; a projected decrease of between
17 and 7 percent, respectively, compared to 2024 production4 |
| · | Gold
production of between 334,000 and 373,000 oz; a projected decrease of 10 percent and
an increase of 1 percent, compared to 20242 |
| · | Silver
production of between 0.9 and 1.0 million oz; a projected decrease of between 76 and
73 percent, respectively, compared to 20242 |
| · | Cash
cost of between $895 and $1,015/oz Au Eq 5 |
| · | AISC
of between $1,550 and $1,680/oz Au Eq 5 |
Notes:
| 1. | Au
Eq includes gold, silver, lead and zinc and is calculated using the following metal prices:
$2,401/oz Au, $28.04/oz Ag, $2,072/t Pb and $2,786/t Zn or Au:Ag = 1:85.6, Au:Pb
= 1:1.16, Au:Zn = 1:0.86 |
| 2. | Refer
to Fortuna news release dated January 18, 2024, “Fortuna
reports record 2023 production of 452 koz Au Eq and 2024 annual guidance of 457 to 497 koz
Au Eq.” |
| 3. | Refer
to Fortuna news release dated October 10, 2024, “Fortuna
reports solid production of 110,820 gold equivalent ounces for the third quarter of 2024.” |
| 4. | Au
Eq includes gold, silver, lead, and zinc and is calculated using the following metal prices:
$2,500/oz Au, $30.0/oz Ag, $2,100/t Pb and $2,700/t Zn or Au:Ag = 1:83.30, Au:Pb = 1:1.19,
Au:Zn = 1:0.93 |
| 5. | Refer
to Appendix |
| 6. | Refer
to Fortuna news release dated December 3, 2024, “Fortuna
reports progress on its share buyback program” |
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 |
| 1. | Production
includes doré only |
Highlight
| · | Achieved
1.56 million tonnes of annual production as an outcome of optimization work; 25 percent above
original design capacity |
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:
| 1. | Production
includes doré only |
Highlights
| · | One-million-ounce
gold pour milestone in May 20241 |
| · | Fourth
consecutive year free of lost time injuries |
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:
| 1. | Refer to Fortuna
news release dated May 22, 2024: “Fortuna’s Yaramoko Mine reaches one-million-ounce
gold pour milestone” |
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:
| 1. | Gold
production includes doré, gold in carbon, and gold in copper concentrate |
Highlight
| · | Leach
pad expansion entered operation in the fourth quarter of 2024; delivered into operation on
time and on budget. |
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
| · | Optimized
the drill bit diameter for production drilling, resulting in a 38 percent improvement in
productivity per meter drilled. |
| · | Commenced
project to change the loading and haulage fleet from 100-tonne trucks and shovels to 40-tonne
trucks and excavators. This project is expected to reduce capital expenditures, diesel consumption,
improve supply options for spare parts, and reduce inventory levels over the life of mine. |
| · | Optimization
of the primary and secondary crushers achieved a 13 percent increase in hourly throughput
compared to the previous year. |
| · | HPGR
attained a 12 percent reduction in average particle size, aiming to improve gold recovery. |
| · | The
SART plant achieved a 20 percent reduction in consumption of key reagents when compared to
design KPIs. |
| · | Cyanide
consumption was reduced by 10 percent compared to the previous year, bringing the current
consumption down to 0.28 kg/t. |
| · | Optimization
of the adsorption columns and pressure vessels increased flow by 10 percent, leading to improved
gold extraction. |
| · | Once
completed, the solar power plant is expected to generate annual savings of approximately
$1.8 million by replacing an estimated 40 percent of diesel consumption with solar power
generation, whilst reducing the carbon footprint by approximately 10,630 t/year of CO2
emissions. |
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
| · | Subsequent
to the end of the quarter, the Company announced the sale of the non-core San Jose Mine1,2 |
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:
| 1. | Refer to Fortuna
news release dated January 15, 2025: “Fortuna announces sale of non-core San Jose
Mine, Mexico” |
| 2. | Au Eq includes
gold, silver, lead and zinc and is calculated using the following metal prices: $2,661/oz
Au, $31.26/oz Ag, $2,009/t Pb and $3,046/t Zn or Au:Ag = 1:85.1, Au:Pb = 1:1.32, Au:Zn =
1:0.87 |
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 |
| 1. | Metallurgical
recovery for silver is calculated based on silver content in lead concentrate |
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:
| 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. |
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.
ON BEHALF OF THE
BOARD
Jorge A. Ganoza
President, CEO,
and Director
Fortuna Mining
Corp.
Investor Relations:
Carlos Baca
| info@fmcmail.com | fortunamining.com | X
| LinkedIn | YouTube
Forward-looking
Statements
This news release
contains forward-looking statements which constitute “forward-looking information” within the meaning of applicable Canadian
securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 (collectively, “Forward-looking Statements”). All statements included
herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks
and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements.
The Forward-looking Statements in this news release may include, without limitation, statements about the Company’s plans for its
mines and mineral properties; changes in general economic conditions and financial markets; the impact of inflationary pressures on the
Company’s business and operations; estimates of production in 2024 that remain subject to verification and adjustment; the Company’s
anticipated financial and operational performance in 2025 as well as anticipated financial and operational performance at the Séguéla
Mine in 2026; estimated production forecasts for 2025 as well for 2026 at the Séguéla Mine; estimated costs; estimated
cash costs and all-in sustaining cash costs and expenditures for 2025 and for 2026 in respect of the Séguéla Mine; estimated
capital expenditures in 2025 as well as in 2026 for the Séguéla Mine; estimated Brownfields and Greenfields expenditures
in 2025 as well as estimated Brownfields expenditures in 2026 for the Séguéla Mine; exploration plans; the future results
of exploration activities; the timing of the implementation and completion of sustaining capital investment projects at the Company’s
mines; expectations with respect to metal grade estimates and the impact of any variations relative to metals grades experienced; metal
prices, currency exchange rates and interest rates in 2025; statements about the ability of the Company to complete the sale of the San
Jose Mine and the expected timing thereof; timing of and possible outcome of litigation; mineral resource and mineral reserve estimates;
life of mine estimates; the Company’s expectation that the leach pad expansion project at the Lindero Mine will be completed on
budget and expectations with respect to the completion of the solar power plant project at the Lindero Mine; statements regarding operational
efficiency initiatives as the Company’s properties and the anticipated benefits thereof; the Company’s business strategy,
plans and outlook; the merit of the Company’s mines and mineral properties; and the future financial or operating performance of
the Company. Often, but not always, these Forward-looking Statements can be identified by the use of words such as “estimated”,
“potential”, “open”, “future”, “assumed”, “projected”, “used”,
“detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”,
“anticipated”, “estimated” “containing”, “remaining”, “to be”, or statements
that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
The forward-looking
statements in this news release also include financial outlooks and other forward-looking metrics relating to the Company and its business,
including references to financial and business prospects and future results of operations, including production, and cost guidance, anticipated
future financial performance and anticipated production, costs and other metrics. Such information, which may be considered future oriented
financial information or financial outlooks within the meaning of applicable Canadian securities legislation (collectively, “FOFI”),
has been approved by management of the Company and is based on assumptions which management believes were reasonable on the date such
FOFI was prepared, having regard to the industry, business, financial conditions, plans and prospects of the Company and its business
and properties. These projections are provided to describe the prospective performance of the Company's business and operations. Nevertheless,
readers are cautioned that such information is highly subjective and should not be relied on as necessarily indicative of future results
and that actual results may differ significantly from such projections. FOFI constitutes forward-looking statements and is subject to
the same assumptions, uncertainties, risk factors and qualifications as set forth below.
Forward-looking
Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements
of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements.
Such uncertainties and factors include, among others, operational risks associated with mining and mineral processing; uncertainty relating
to Mineral Resource and Mineral Reserve estimates; uncertainty relating to capital and operating costs, production schedules and economic
returns; uncertainties related to new mining operations, including the possibility that actual capital and operating costs and economic
returns will differ significantly from those estimated for such projects prior to production; risks relating to the Company’s ability
to replace its Mineral Reserves; capital and currency controls in foreign jurisdictions; risks associated with mineral exploration and
project development; uncertainty relating to the repatriation of funds as a result of currency controls; environmental matters including
obtaining or renewing environmental permits and potential liability claims; uncertainty relating to nature and climate conditions; risks
associated with political instability and changes to the regulations governing the Company’s business operations; changes in national
and local government legislation, taxation, controls, regulations and political or economic developments in countries in which the Company
does or may carry on business, including relating to the newly elected government in Argentina; risks associated with war, hostilities
or other conflicts, such as the Ukrainian – Russian conflict and the Israel – Hamas war, and the impact they may have on
global economic activity; risks relating to the termination of the Company’s mining concessions in certain circumstances; developing
and maintaining relationships with local communities and stakeholders; risks associated with losing control of public perception as a
result of social media and other web-based applications; potential opposition to the Company’s exploration, development and operational
activities; risks related to the Company’s ability to obtain adequate financing for planned exploration and development activities;
property title matters; risks relating to the integration of businesses and assets acquired by the Company; assessment of the carrying
value of the Company’s assets, including the ongoing potential for material impairment and/or write downs of such assets; risks
associated with climate change legislation; reliance on key personnel; adequacy of insurance coverage; operational safety and security
risks; legal proceedings and potential legal proceedings; expectations regarding the Company completing the sale of the San Jose Mine;
uncertainties relating to general economic conditions; risks relating to a global pandemic, which could impact the Company’s business,
operations, financial condition and share price; competition; fluctuations in metal prices; risks associated with entering into commodity
forward and option contracts for base metals production; fluctuations in currency exchange rates and interest rates; tax audits and reassessments;
risks related to hedging; uncertainty relating to concentrate treatment charges and transportation costs; sufficiency of monies allotted
by the Company for land reclamation; risks associated with dependence upon information technology systems, which are subject to disruption,
damage, failure and risks with implementation and integration; risks associated with climate change legislation; laws and regulations
regarding the protection of the environment (including greenhouse gas emission reduction and other decarbonization requirements and the
uncertainty surrounding the interpretation of omnibus Bill C-59 and the related amendments to the Competition Act (Canada); labor relations
issues; as well as those factors discussed under “Risk Factors” in the Company's Annual Information Form for the fiscal year
ended December 31, 2023. Although the Company has attempted to identify important factors that could cause actual actions, events, or
results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events
or results to differ from those anticipated, estimated or intended.
Forward-looking
Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including, but not limited
to, the accuracy of the Company’s current mineral resource and reserve estimates; that the Company’s activities will be conducted
in accordance with the Company’s public statements and stated goals; exchange rate and annual inflation rate assumptions in respect
of cash cost and AISC guidance; that there will be no material adverse change affecting the Company, its properties or its production
estimates (which assume accuracy of projected ore grade, mining rates, recovery timing, and recovery rate estimates and may be impacted
by unscheduled maintenance, labor and contractor availability and other operating or technical difficulties); the duration and effect
of global and local inflation; the duration and impacts of geo-political uncertainties on the Company’s production, workforce,
business, operations and financial condition; the expected trends in mineral prices, inflation and currency exchange rates; that all
required approvals and permits will be obtained for the Company’s business and operations on acceptable terms; that there will
be no significant disruptions affecting the Company's operations and such other assumptions as set out herein. Forward-looking Statements
are made as of the date hereof and the Company disclaims any obligation to update any Forward-looking Statements, whether as a result
of new information, future events, or results or otherwise, except as required by law. There can be no assurance that these Forward-looking
Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, investors should not place undue reliance on Forward-looking Statements.
Cautionary
Note to United States Investors Concerning Estimates of Reserves and Resources
Reserve and
resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on
Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards
for public disclosure by a Canadian company of scientific and technical information concerning mineral projects. Unless otherwise indicated,
all mineral reserve and mineral resource estimates contained in the technical disclosure have been prepared in accordance with NI 43-101
and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Reserves. Canadian standards,
including NI 43-101, differ significantly from the requirements of the Securities and Exchange Commission, and mineral reserve and resource
information included in this news release may not be comparable to similar information disclosed by U.S. companies.
Non-IFRS
Financial Measures
This news release
also refers to non-IFRS financial measures, including cash costs and all-in sustaining costs. These measures are not standardized financial
measures under International Financial Reporting Standards (IFRS), the financial reporting framework used to prepare the financial statements
of the Company and therefore may not be comparable to similar financial measures disclosed by other mining companies. These Non-IFRS
Measures include cash costs and all-in sustaining cash costs.
Readers should
refer to the “Non-IFRS Financial Measures” section in the Company’s 2023 MD&A, which section is incorporated herein
by reference, for an explanation of these measures and reconciliations to the Company’s reported financial results in accordance
with IFRS. The MD&A 2023 is available on SEDAR+ at www.sedarplus.ca.
Appendix
2025 cash cost
and consolidated AISC guidance
| Cash
cost guidance ($/Au Eq Oz) |
2025
Guidance |
| Lindero |
1,060 |
- |
1,235 |
| Caylloma |
1,250 |
- |
1,385 |
| Yaramoko |
880 |
- |
1,000 |
| Séguéla |
680 |
- |
750 |
| Consolidated
cash cost |
895 |
- |
1,015 |
| |
|
| AISC
Guidance ($/Au Eq Oz) |
2025
Guidance |
| Lindero |
1,600 |
- |
1,770 |
| Caylloma |
1,810 |
- |
2,060 |
| Yaramoko |
1,165 |
- |
1,320 |
| Séguéla |
1,500 |
- |
1,600 |
| Corporate
G&A |
|
86 |
|
| Consolidated
AISC |
1,550 |
- |
1,680 |
Note:
| 1. | 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. |
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