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Toronto Star
5 days ago
- Business
- Toronto Star
Fortuna Reports Results for the Second Quarter of 2025
(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated) VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) — Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) ('Fortuna' or the 'Company') today reported its financial and operating results for the second quarter of 2025. (Results from the Company's San Jose and Yaramoko assets have been excluded from its Q2 2025 continuing results, along with the comparative figures, due to the classification of the assets as discontinued as at June 30, 2025.) ARTICLE CONTINUES BELOW Jorge A. Ganoza, President and CEO of Fortuna, commented, 'Fortuna completed the second quarter with liquidity of more than half a billion dollars. Our strong balance sheet positions the Company to pursue growth opportunities under our control including the guided production expansion at the Séguéla Mine in 2026 and advancing to a construction decision at the Diamba Sud project in Senegal by the first half of 2026 following the completion of a PEA later this year.' Mr. Ganoza continued, 'We delivered a total of 75,950 gold equivalent ounces1, keeping us firmly on track to meet annual production guidance. Higher realized gold prices in the quarter contributed to a record EBITDA1 margin of 55%. The higher consolidated AISC1 of $1,932 per ounce of gold in the quarter was primarily driven by the timing of capital expenditures and peak mine waste stripping at Séguéla during the second quarter and into the third. These investments are critical to achieving our annual target of 160 to 180 thousand gold ounces in 2026.' Mr. Ganoza concluded, 'Looking into the second half of the year, we expect our mines to remain within annual AISC1 guidance. At Séguéla, AISC1, is projected to trend higher through the year due to planned mine waste stripping to access higher-grade material, but the full-year average is expected to remain well within guidance. In contrast, Lindero's AISC1, is expected to trend lower in the second half of the year as the leach pad expansion is now complete and peak stripping is behind us.' Second Quarter 2025 Highlights Cash and Cashflow Free cash flow1 from ongoing operations of $57.4 million in Q2, and net cash from operating activities before working capital changes of $96.9 million or $0.32 per share Liquidity was $537.3 million, and the Company increased its positive net cash1 position to $214.8 million (including short-term investments), from $136.9 million in Q1 2025 Quarter-end cash and short-term investments of $387.3 million, a quarter over quarter ('QoQ') increase of $78.0 million Subsequent to June 30, 2025 the Company took advantage of the relaxing of capital controls and a favourable spread on exchange rates to repatriate $50.0 million from Argentina Profitability Attributable net income from continuing operations of $42.6 million or $0.14 per share, a QoQ increase of $0.03. Net Income was impacted by the recognition of $17.5 million in withholding taxes due to the timing of an annual dividend approval in Côte d'Ivoire Higher realized gold prices contributed to expanding Adjusted EBITDA1 margins to a record 55% compared to 50% in Q1 2025 Attributable adjusted net income1 of $44.7 million or $0.15 per share, a QoQ increase of $0.04 per share Operational Gold equivalent production ('GEO') of 71,229 from continuing operations ounces2 in Q2. GEO production was 75,950 including discontinued operations. Consolidated cash cost per GEO1 from continuing operations of $929 in Q2, compared to $866 in Q1 2025 Consolidated AISC per GEO1 from continuing operations of $1,932 for Q2 compared to $1,752 in Q1 2025. Safety performance indicator for TRIFR down to 0.87 compared to 0.98 in Q1 2025. The Company had zero lost time injuries in the quarter. Growth and Business Development On August 5th the Company published an updated in-pit mineral resource estimation for the Diamba Sud project in Senegal, reporting an Indicated Mineral Resource of 724,000 gold ounces, and an Inferred Mineral Resource of 285,000 gold ounces (Indicated Mineral Resource of 14.2 Mt averaging 1.59 g/t Au containing 724,000 gold ounces, and Inferred Mineral Resource of 6.2 Mt averaging 1.44 g/t Au containing 285,000 gold ounces), reflecting 53 and 93 percent increase in resources for the project respectively since year-end 2024. This estimate incorporates initial resources from the newly discovered mineralization at the Southern Arc prospect. The Company is advancing the Diamba Sud project with parallel activities on environmental permits, engineering studies, and continued mineral exploration working towards a preliminary economic assessment in the fourth quarter of 2025. Refer to our news release 'Fortuna Advances Diamba Sud Gold Project in Senegal with Updated Mineral Resources; PEA Completion Targeted for Q4 2025' dated August 5, 2025. The Company acquired 15% of Awale Resources who owns the Odienne project and other permits in a geologic corridor that is of interest to Fortuna in Côte d'Ivoire. Refer to our news release 'Fortuna Completes Strategic Investment in Awalé Resources Limited and Files Early Warning Report' dated June 11, 2025. Yaramoko and San Jose Divestment The Company received $83.8 million in gross proceeds during the quarter related to the divestment of our two short-life mines as part of an initiative to streamline the asset portfolio. Taken together, these two sales allow the Company to reallocate approximately $50.0 million in capital and management focus away from mine closures and toward higher-value opportunities that align more closely with our long-term strategy. 1 Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at for a description of the calculation of these measures 2 Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $3,306/oz Au, $33.8/oz Ag, $1,945/t Pb, and $2,640/t Zn for Q2 2025.; $2,333/oz Au, $28.5/oz Ag, $2,157/t Pb, and $2,835/t Zn for Q2 2024; $2,882/oz Au, $31.8/oz Ag, $1,971/t Pb, and $2,841/t Zn for Q1 2025 ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Second Quarter 2025 Consolidated Results Second Quarter 2025 Results Q2 2025 vs Q1 2025 Cash cost per ounce and AISC Cash cost per GEO sold from continuing operations was $929 in Q2 2025, an increase compared to $866 in Q1 2025. The increase in cash costs was mostly related to lower gold equivalent ounces at Caylloma due to an increase in the gold price and the impact on the GEO calculation. All-in sustaining costs per GEO from continuing operations was $1,932 in Q2 2025 compared to $1,752 in Q1 2025. The higher AISC is explained by the increase in cash cost as described above, higher capitalized stripping at Séguéla and timing of capital expenditure payments. Attributable Net Income and Adjusted Net Income Attributable net income from continuing operations for the period was $42.6 million compared to $35.4 million in Q1 2025. After adjusting for impairment charges and other non-recurring items, adjusted attributable net income was $44.7 million or $0.15 per share compared to $35.7 million or $0.11 per share in Q1 2025. The increase was explained mainly by higher gold prices and higher gold sales volume. The realized gold price in Q2 2025 was $3,307 per ounce compared to $2,880 in Q1 2025. The increase in gold sales volume was due to higher gold production at Lindero. This was partially offset by the recognition of $17.5 million in withholding taxes related to the timing of local Board approvals for the repatriation of funds out of Côte d'Ivoire Cash flow Net cash generated by operations before working capital adjustments was $96.9 million or $0.32 per share. After adjusting for changes in working capital, net cash generated by operations for the quarter was $92.7 million compared to $89.0 million in Q1 2025, as higher sales in Q2 2025 as described above were partially offset by income tax payments of $36.4 million compared to $9.4 million in Q1 2025. Free cash flow from ongoing operations in Q2 2025 was $57.4 million, a decrease of $9.3 million over the $66.7 million reported in Q1 2025. The decrease was due to higher tax payments described above and higher sustaining capital expenditures of $7.6 million. Q2 2025 vs Q2 2024 Cash cost per ounce and AISC Consolidated cash cost per GEO increased to $929, compared to $842 in Q2 2024. This increase was mainly driven by higher cash costs at Séguéla and lower gold equivalent ounces at Caylloma due to an increase in the gold price and the impact on gold equivalent ounces. The increase in cash cost at Séguéla was primarily due to lower head grade and higher stripping costs, consistent with the mine plan. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW All-in sustaining costs per gold equivalent ounce from continuing operations increased to $1,932 in Q2 2025 from $1,641 in Q2 2024. This increase primarily resulted from the higher cash cost per ounce discussed above, increased royalties due to the higher gold price and higher sustaining capital expenditures. Attributable Net Income and Adjusted Net Income Attributable net income from continuing operations for the period was $42.6 million or $0.14 per share, compared to $21.3 million or $0.07 per share in Q2 2024. After adjusting for impairment charges and other non-recurring items, adjusted attributable net income was $44.7 million or $0.15 per share compared to $9.3 million or $0.03 per share in Q2 2024. The increase was primarily due to higher realized gold prices, which averaged $3,307 per ounce in Q2 2025 compared to $2,334 per ounce in Q2 2024, and higher sales volumes at Séguéla (up 15%) and Lindero (up 9%), driven by increased processed ore at both mines. Other factors influencing adjusted net income compared to Q2 2024 included the recognition of $17.5 million in withholding taxes related to the timing of local board approvals for the repatriation of funds from Côte d'Ivoire. Depreciation and Depletion Depreciation and depletion increased by $5.4 million to $48.3 million compared to $42.9 million in the comparable period of 2024. The increase was primarily due to higher ounces sold at Séguéla. Depreciation and depletion in the period included $18.1 million related to the purchase price allocation from the Roxgold acquisition. Cash Flow Net cash generated by operations for the quarter was $92.7 million compared to $37.4 million in Q2 2024. The increase is mainly explained by higher gold prices and higher gold volume sold at Séguéla and Lindero, and a lower negative change in working capital in Q2 2025 compared to Q2 2024. Free cash flow from ongoing operations in Q2 2025 was $57.4 million, compared to $10.2 million reported in Q2 2024. The increase was mainly due to higher prices and metal sold as discussed above. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Séguéla Mine, Côte d'Ivoire Quarterly Operating and Financial Highlights During the second quarter of 2025, mine production totaled 340,426 tonnes of ore, averaging 3.33 g/t Au, and containing an estimated 36,482 ounces of gold from the Antenna, Ancien, and Koula pits. Movement of waste during the quarter totaled 5,194,192 tonnes, for a strip ratio of 15.3:1. Mining continued to be focused on the Antenna, Koula, and Ancien pits. In the second quarter of 2025, Séguéla processed 429,184 tonnes of ore, producing 38,186 ounces of gold, at an average head grade of 3.00 g/t Au, a 16% increase and a 13.5% decrease, respectively, compared to the second quarter of 2024. Higher gold production was the result of higher tonnes processed due to, in part, intermittent power outages from April to early-July 2024, which resulted in the loss of 19 days of operating time for the mill. Mill throughput during the second quarter of 2025 averaged 210 t/hr, 36% above name plate capacity. Cash cost per gold ounce sold was $670 for the second quarter of 2025 compared to $564 for the second quarter of 2024. The increase in cash costs was a result of higher mining costs due to higher stripping requirements in line with the mine plan, and higher processing costs incurred. All-in sustaining cash cost per gold ounce sold was $1,634 for the second quarter of 2025 compared to $1,097 in the same period of the previous year. The increase for the quarter was primarily the result of higher cash costs and higher sustaining capital from higher capitalized stripping, higher sustaining leases from an increase in the mine fleet under contract, and advancement of the stage 3 tailings lift to support higher production at Séguéla, as well as higher royalties due to higher gold prices and a 2% increase in the royalty rate effective January 10, 2025. Lindero Mine, Argentina Quarterly Operating and Financial Highlights In the second quarter of 2025, a total of 1,828,520 tonnes of ore were placed on the heap leach pad, with an average gold grade of 0.57 g/t, containing an estimated 33,219 ounces of gold. Ore mined was 1.32 million tonnes, with a stripping ratio of 2.3:1. Lindero's gold production for the quarter was 23,550 ounces, comprised of 21,153 ounces in doré bars, 1,214 ounces contained in rich fine carbon, 72 ounces contained in copper precipitate, and 1,111 ounces contained in precipitated sludge. The increase in production during the second quarter of 2025 compared to the same period in 2024 was due to increase in ore placed on the pad; partially offset by lower grades. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The cash cost per ounce of gold for the quarter was $1,148 compared to $1,092 in the same period of 2024. The increase in cash costs was primarily due to higher fuel and explosive costs and additional rehandling to increase the tonnes placed on the pad. AISC per gold ounce sold during Q2 2025 was $1,783 compared to $1,916 in Q2 2024. Lower AISC was primarily due to lower sustaining capital expenditures as the leach pad expansion was under construction in the previous quarter. The previous quarter also benefited from $2.5 million of investment gains from cross border Argentine pesos denominated bond trades compared to $nil in the current quarter. As of June 30, 2025, the leach pad expansion project was completed, with minor close-out activities and demobilization now taking place. Caylloma Mine, Peru Quarterly Operating and Financial Highlights In the second quarter of 2025, the Caylloma Mine produced 240,621 ounces of silver at an average head grade of 64 g/t, a 21% decrease when compared to the same period in 2024. Lead and zinc production for the quarter was 8.9 million pounds and 12.9 million pounds, respectively. Head grades averaged 3.23% and 4.63%, a 16% decrease and a 3.5% decrease, respectively, when compared to the same quarter in 2024. Production was lower due to lower head grades and was in line with the mine plan. The cash cost per silver equivalent ounce sold in the first quarter of 2025, was $15.16 compared to $13.94 in the same period in 2024. The higher cost per ounce for the quarter was primarily the result of lower silver production and the impact of higher realized silver prices on the calculation of silver equivalent ounce sold. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The all-in sustaining cash cost per ounce of payable silver equivalent in the second quarter of 2025, increased 9% to $21.73, compared to $19.87 for the same period in 2024. The increase for the quarter was the result of higher cash costs per ounce and lower silver equivalent ounces due to higher silver prices and higher workers' participation costs. Qualified Person Eric Chapman, Senior Vice President of Technical Services, is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328), and is the Company's Qualified Person (as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data. Non-IFRS Financial Measures The Company has disclosed certain financial measures and ratios in this news release which are not defined under the International Financial Reporting Standards ('IFRS'), as issued by the International Accounting Standards Board, and are not disclosed in the Company's financial statements, including but not limited to: all-in costs; cash cost per ounce of gold sold; all-in sustaining costs; all-in sustaining cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold equivalent sold; all-in cash cost per ounce of gold sold; production cash cost per ounce of gold equivalent; cash cost per payable ounce of silver equivalent sold; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; sustaining capital; growth capital; free cash flow from ongoing operations; adjusted net income; adjusted attributable net income; adjusted EBITDA and working capital. These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company's performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company's performance prepared in accordance with IFRS. To facilitate a better understanding of these measures and ratios as calculated by the Company, descriptions are provided below. In addition see 'Non-IFRS Financial Measures' in the Company's management's discussion and analysis for the three months and six ended June 30, 2025 ('Q2 2025 MDA'), which section is incorporated by reference in this news release, for additional information regarding each non-IFRS financial measure and non-IFRS ratio disclosed in this news release, including an explanation of their composition; an explanation of how such measures and ratios provide useful information to an investor. The Q2 2025 MD&A may be accessed on SEDAR+ at and on EDGAR at under the Company's profile. The Company has calculated these measures consistently for all periods presented with the exception of the following: ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The calculation of All-in Sustaining Costs was adjusted in Q4 2024 to include blue-chip swaps in Argentina. Please refer to pages 28 and 29 of the Company's management's discussion and analysis for the year ended December 31, 2024 for details of the change. The calculations of Adjusted Net Income and Adjusted Attributable Net Income were revised to no longer remove the income statement impact of right of use amortization and accretion and add back the right of use payments from the cash flow statement. Management elected to make this change to simplify the reconciliation from net income to adjusted net income to improve transparency and because the net impact was immaterial. Where applicable the impact of discontinued operations have been removed from the comparable figures. The method of calculation has not been changed except as described above. Reconciliation of Debt to total net debt and net debt to adjusted EBITDA ratio for June 30, 2025 Reconciliation of net income to adjusted attributable net income for the three months ended March 31, 2025, and for the three and six months ended June 30, 2025 and 2024 Reconciliation of net income to adjusted EBITDA for the three months ended March 31, 2025 and the three and six months ended June 30, 2025 and 2024 Reconciliation of net cash from operating activities to free cash flow from ongoing operations for the three months ended March 31, 2025 and the three and six months ended June 30, 2025 and 2024 Reconciliation of cost of sales to cash cost per ounce of gold equivalent sold for the three months ended March 31, 2025 and the three and six months ended June 30, 2025 and 2024 Reconciliation of cost of sales to all-in sustaining cash cost per ounce of gold equivalent sold from continuing operations for the three months ended March 31, 2025 and the three and six months ended June 30, 2025 and 2024 ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW For Q2 2025 and year to date 2025 AISC reflects production and costs for Yaramoko from April 1 to April 14, 2025, being the date that the Company agreed to the assumed handover of operations to the purchaser. AISC per ounce of gold equivalent sold for the aforementioned period has been estimated at $1,410 which is comparable to the AISC per ounce of gold equivalent sold at Yaramoko for Q1 2025 of $1,411. Reconciliation of cost of sales to cash cost per payable ounce of silver equivalent sold for the three months ended March 31, 2025 and for the three and six months ended June 30, 2025 and 2024 Reconciliation of all-in sustaining cash cost and all-in cash cost per payable ounce of silver equivalent sold for the three months ended March 31, 2025 and for the three and six months ended June 30, 2025 and 2024 Additional information regarding the Company's financial results and ongoing activities is available in the unaudited condensed interim financial statements for the three and six months ended June 30, 2025 and 2024 and accompanying Q2 2025 MD&A. These documents can be accessed on Fortuna's website at on SEDAR+ at and on EDGAR at Conference Call and Webcast A conference call to discuss the financial and operational results will be held on Thursday, August 7, 2025, at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chief Financial Officer, David Whittle, Chief Operating Officer – West Africa and Cesar Velasco, Chief Operating Officer – Latin America. Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast at: or over the phone by dialing in just prior to the starting time. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Conference call details: Date: Thursday, August 7, 2025 Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern time Dial in number (Toll Free): +1.888.506.0062 Dial in number (International): +1.973.528.0011 Access code: 238089 Replay number (Toll Free): +1.877.481.4010 Replay number (International): +1.919.882.2331 Replay passcode: 52740 Playback of the earnings call will be available until Thursday, August 21, 2025. Playback of the webcast will be available until Friday, August 7, 2026. In addition, a transcript of the call will be archived on the Company's website at About Fortuna Mining Corp. Fortuna Mining Corp. is a Canadian precious metals mining company with three operating mines and a portfolio of exploration projects in Argentina, Côte d'Ivoire, Mexico, and Peru, as well as the Diamba Sud Gold Project in Senegal. Sustainability is at the core of our operations and stakeholder relationships. We produce gold and silver while creating long-term shared value through efficient production, environmental stewardship, and social responsibility. For more information, please visit our website at ON BEHALF OF THE BOARD Jorge A. Ganoza President, CEO, and Director Fortuna Mining Corp. Investor Relations: Carlos Baca | info@ | | 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 include, without limitation, statements about the Company's plans for its mines and mineral properties, including the proposed timing of a construction decision and the completion of a preliminary economic assessment in respect of the Diamba Sud project; the Company's expectations regarding meeting annual production guidance and annual AISC guidance; statements that Lindero Mine's AISC is expected to continue trending downward into H2; the Company's expectation of submitting an EIA for approval in respect of Diamba Sud later in the year; the Company's business strategy, plans and outlook; the merit of the Company's mines and mineral properties; mineral resource and reserve estimates, metal recovery rates, concentrate grade and quality; changes in tax rates and tax laws, requirements for permits, anticipated approvals and other matters. Often, but not always, these Forward-looking Statements can be identified by the use of words such as 'estimated', 'expected', 'anticipated', 'potential', 'open', 'future', 'assumed', 'projected', 'used', 'detailed', 'has been', 'gain', 'planned', 'reflecting', 'will', '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 and anticipated future financial performance. 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. 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, changes in general economic conditions and financial markets; risks associated with war or other geo-political hostilities, such as the Ukrainian – Russian and the Israel – Hamas conflicts, any of which could continue to cause a disruption in global economic activity; fluctuation in currencies and foreign exchange rates; increases in the rate of inflation; the imposition or any extension of capital controls in countries in which the Company operates; any changes in tax laws in Argentina and the other countries in which we operate; changes in the prices of key supplies; uncertainty relating to nature and climate change conditions; 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); our ability to manage physical and transition risks related to climate change and successfully adapt our business strategy to a low carbon global economy; technological and operational hazards in Fortuna's mining and mine development activities; risks related to water and power availability; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; changes to current estimates of mineral reserves and resources; changes to production and cost estimates; changes in the position of regulatory authorities with respect to the granting of approvals or permits; governmental and other approvals; changes in government, political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under 'Risk Factors' in the Company's Annual Information Form for the financial year ended December 31, 2024 filed with the Canadian Securities Administrators and available at and filed with the U.S. Securities and Exchange Commission as part of the Company's Form 40-F and available at 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 not to be as 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; that there will be no material adverse change affecting the Company, its properties or changes to 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); geo-political uncertainties that may affect the Company's production, workforce, business, operations and financial condition; the expected trends in mineral prices and currency exchange rates; that the Company will be successful in mitigating the impact of inflation on its business and operations; 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, the ability to meet current and future obligations 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. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 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. PDF available:
Yahoo
27-05-2025
- Business
- Yahoo
Atico Reports Consolidated Financial Results for First Quarter of 2025
(All amounts expressed in US dollars, unless otherwise stated) VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the 'Company' or 'Atico') (TSX.V: ATY | OTC: ATCMF) today announced its financial results for the three months ended March 31, 2025, posting income from mining operations of $3.7 million and a net loss of $0.8 million for the quarter. Production for the quarter at Atico's El Roble mine totaled 2.2 million pounds ('lbs') of copper and 1,578 ounces ('oz') of gold in concentrate at a cash cost (1) of $3.00 per payable pound of copper (2). Fernando E. Ganoza, CEO and Director, commented, 'during this period, the mine's operational performance was below schedule due to unexpected challenging rock quality conditions resulting in slower than planned mine development. Nevertheless, we achieved financial results in line with budget, driven by strong metal prices and additional revenue from selling down a portion of our pledged concentrate inventory.' Mr. Ganoza continued, 'for the remainder of the year, we anticipate gradual improvements in the second and third quarters of this year to regain the planned development and preparation pace, which we expect will enable us to recover most of the lost production for the year. In parallel, we are progressing with the engineering and permitting for the La Plata project while conducting the near-mine drilling program at El Roble to replenish resources and extend the mine's life.'Sales for the quarter increased 11% to $19.9 million when compared with $17.8 million in Q1-2024. Copper ('Cu') and gold ('Au') accounted for 72% and 28% of the 8,468 (Q1-2024 – 9,383) dry metric tonnes ('DMT') sold during Q1-2025. The average realized price per metal was $4.44 (Q1-2024 - $3.97) per pound of copper and $2,987 (Q1-2024 - $2,180) per ounce of gold. Net loss for the quarter amounted to $0.8 million, compared with $0.4 million for the comparative quarter of last year, while cash flows from operations, before changes in working capital, was $5.3 million (Q1-2024 – $5.8 million). Cash used for investing activities amounted to $1.7 million (Q1-2024 – $3.2 million). Ending working capital deficit was $10.1 million (December 31, 2024 – $11.3 million), while the Company had $6.1 million (December 31, 2024 – $7.1 million) in long-term loans payable and $8.8 million (December 31, 2024 – $8.5 million) payable to the National Mining Agency that is due beyond one year. Cash costs (1) were $176.98 per tonne of processed ore and $3.00 per pound of payable copper produced (2), which was an increase of 11% and 17% over Q1-2024, respectively. The increase in cash cost per tonne was primarily driven by lower ore production in Q1-2025, which led to underutilization of capacity (as fixed costs were spread over fewer tonnes). The transition to the new zones in the El Roble mine experienced delayed by unforeseen rock quality challenges, which affected both tonnage and head grade as access to stopes was slowed down. Also, inflation, and the increase in ground support activities and stope preparation, impacted costs. Cash costs per pound of payable copper produced also increased due to lower copper output due to the lower grade. The Company anticipates a gradual improvement in tonnage and grade in the following quarters as planned development and preparation pace recovers. Cash margin was $1.44 per pound of payable copper produced(1), which was an increase of 2% over Q1-2024, due to the increase in realized copper price which more than offset the increase in cash cost per pound mentioned above. All-in sustaining cash cost per payable pound of copper produced(1) was $4.65, up from $3.41 in Q1-2024 (refer to non-GAAP Financial Measures). This increase was primarily due to lower copper output and higher sustaining capital expenditures on mine development, mine infrastructure, and ramp construction, necessary to maintain production capacity. On March 7, 2025, the arbitration tribunal at the Center for Arbitration and Conciliation of the Bogota Chamber of Commerce ruled in favor of the National Mining Agency regarding the royalties' dispute of Minera El Roble S.A. Q12025 Q12024 %Change Sales $ 19,855,914 $ 17,818,115 11 % Cost of sales (16,113,098 ) (15,016,252 ) 7 % Income from mining operations 3,742,816 2,801,863 34 % As a % of revenue 19 % 16 % General and administrative expenses (1,218,814 ) (1,331,172 ) (8 %) Income from operations 2,515,347 1,292,845 95 % As a % of revenue 13 % 7 % Income (loss) before income taxes 1,038,480 (257,271 ) (504 %) Net income (loss) (844,316 ) (365,933 ) 131 % As a % of revenue (4 %) (2 %) Operating cash flow before changes in non-cash operating working capital items(1) $ 5,327,944 $ 5,847,701 (9 %) In Q1-2025, the Company produced 2.2 million lbs of copper, 1,578 oz of gold, and 4,988 oz of silver. Copper production decreased by 34% and gold production by 28% for gold, when compared to Q1-2024, due to lower ore throughput and lower copper and gold head-grades. Q12025 Q12024 %Change Production (Contained metals)(3) Copper (000s lbs) 2,220 3,349 (34 %) Gold (oz) 1,578 2,185 (28 %) Silver (oz) 4,988 8,174 (39 %) Mine Tonnes of material mined 56,467 64,873 (13 %) Mill Tonnes processed 54,978 65,787 (16 %) Tonnes processed per day 773 811 (5 %) Copper grade (%) 1.96 2.52 (22 %) Gold grade (g/t) 1.44 1.67 (14 %) Silver grade (g/t) 10.26 8.49 21 % Q12025 Q12024 %Change Recoveries Copper (%) 93.3 91.8 2 % Gold (%) 62.0 61.7 1 % Silver (%) 39.3 46.3 (15 %) Concentrates Copper Concentrates (DMT) 5,763 8,274 (30 %) Copper (%) 17.5 18.4 (5 %) Gold (g/t) 8.5 8.2 4 % Silver (g/t) 38.5 30.7 25 % Payable copper produced (000s lbs) 2,080 3,148 (34 %) Cash cost per pound of payable copper ($/lbs)(1)(2) 3.00 2.57 17 % The financial statements and MD&A are available on SEDAR+ and have also been posted on the company's website at (1) Alternative performance measures; please refer to 'Non-GAAP Financial Measures' at the end of this release.(2) Net of by-product credits(3) Subject to adjustments on final settlementMr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by is a growth-oriented Company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company generates significant cash flow through the operation of the El Roble mine and is developing it's high-grade La Plata VMS project in Ecuador. The Company is also pursuing additional acquisition of advanced stage opportunities. For more information, please visit ON BEHALF OF THE BOARD Fernando E. GanozaCEOAtico Mining Corporation Trading symbols: TSX.V: ATY | OTC: ATCMF Investor RelationsIgor DutinaTel: +1.604.633.9022 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ''U.S. Securities Act''), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. This announcement includes certain 'forward-looking statements' within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, including without limitation statements regarding improving cost efficiencies at El Roble, taking advantage of the favorable metal price environment, and possible outcomes of any pending arbitration, consultation, litigation, negotiation or regulatory investigation, and the timing and amount of the future construction of the La Plata project, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The assumptions upon which the forward-looking statements herein are based, include, but are not limited to, that all required third party contractual, regulatory and governmental approvals will be obtained for the development, construction and production of its properties, there being no significant disruptions affecting operation, permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations, currency exchange rates being approximately consistent with current levels, certain price assumptions for copper, gold and silver, prices for and availability of fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels, production forecasts meeting expectations, the accuracy of the Company's current mineral resource and reserves estimates, labor and materials costs increasing on a basis consistent with the Company's current expectations, assumptions made and judgments used in engineering and geological interpretation, the outcome of the Arbitration with the National Mining Agency in Colombia for the royalty dispute and that additional financing sources will be available on reasonable commercial terms in order for the Company to make scheduled repayments of principal, interest, and any applicable premiums on its outstanding indebtedness. Important risk factors that could cause actual results to differ materially from the Company's expectations include uncertainties as to the timing and process for renewal of title to the El Roble claims; risks associated with the Company's outstanding debt, including the Company's ability to successfully secure additional funds through debt or equity issuances to meet these obligations, including amounts due and payable to Trafigura PTE. LTD. on or before June 30, 2025, or successfully negotiate to amend or extend their terms uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs of the Company's projects; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company's mineral projects; uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading 'Risk Factors' in the Company's Management's Discussion and Analysis for the year ended December 31, 2024 and in the Company's Annual Information Form ('AIF') dated September 4, 2024, filed with the Canadian securities regulatory authorities on the SEDAR+ website at and as available on the Company's website for further details. Except as required by law, the Company does not assume the obligation to revise or update these forward-looking statements after the date of this announcement or to revise them to reflect the occurrence of future unanticipated items marked with a "(1)" are alternative performance measures and readers should refer to Non-GAAP Financial Measures in the Company's Management's Discussion and Analysis for the year ended December 31, 2024, as filed on SEDAR+ and as available on the Company's website for further details.
Hamilton Spectator
21-05-2025
- Business
- Hamilton Spectator
Fortuna publishes its 2024 Sustainability Report
VANCOUVER, British Columbia, May 21, 2025 (GLOBE NEWSWIRE) — Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) is pleased to announce the publication of its seventh annual Sustainability Report, highlighting key developments in 2024 related to governance, corporate strategy, risk management, and performance. The report also outlines Fortuna's commitments and progress on the environmental, social, and governance (ESG) factors most material to our business and stakeholders. Jorge A. Ganoza, President, and CEO, stated, 'Sustainability is not just a responsibility - it is a strategic imperative that underpins our success as an efficient business and a trusted partner to our investors and stakeholders in the countries where we operate, now and in the future. We take pride in our 2024 performance, while acknowledging that continuous improvement is essential in the areas that matter most.' Mr. Ganoza added, 'Our leadership team is fully committed to embedding sustainability—particularly the prioritization of health and safety—into every aspect of our decision-making, from daily operations to long-term strategic planning.' Julien Baudrand, Senior Vice President of Sustainability, commented, 'This report outlines Fortuna's progress in aligning with leading industry practices, including Critical Risk Management, the Global Industry Standard on Tailings Management (GISTM), and ISO 14001 and 45001 certifications. It also highlights our 2024 achievements, such as top-tier performance in health and safety, industry-leading greenhouse gas emissions intensity per ounce of gold produced, and no significant negative impacts on the environment or our host communities.' Mr. Baudrand concluded, 'Striving for sustainability excellence - by achieving zero harm, minimizing our environmental footprint, and meeting stakeholder expectations - strengthens our relationships with shareholders, lenders, local authorities, communities, and employees, while creating lasting value for Fortuna.' Key facts and figures from the 2024 Sustainability Report: Governance Workforce Health and Safety Community Relations Environment Human Capital, Human Rights, and Business Ethics The report also highlights the transformative projects that we are leading across our host countries in Latin America and West Africa, demonstrating how our initiatives create lasting social and environmental value that extends beyond financial performance. As part of our ongoing commitment to transparency and stakeholder engagement, we have introduced a new companion resource: the Sustainability Data Booklet. This document is aligned with the 2023 SASB Metals & Mining Standard, TCFD recommendations, and GRI Standards 2021, including the newly released GRI 14: Mining Sector Standard (2024). It is complemented by our Interactive Analyst Center , which offers downloadable, site-specific ESG data for enhanced accessibility and insight. Fortuna's 2024 Sustainability Report is available on our website: We welcome questions and feedback at: sustainability@ About Fortuna Mining Corp. Fortuna Mining Corp. is a Canadian precious metals mining company with three operating mines and exploration activities in Argentina, Côte d'Ivoire, Mexico, and Peru, as well as the 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 ON BEHALF OF THE BOARD Jorge A. Ganoza President, CEO, and Director Fortuna Mining Corp. Investor Relations: Carlos Baca | info@ | | 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, including, without limitation, statements pertaining to the Company's sustainability plans, targets, strategies, and goals, such as working towards a zero harm workplace, implementing the Global Industry Standard for Tailings Management, and minimizing our environmental footprint. Often, but not always, these forward-looking statements can be identified by the use of words such as 'believe', 'expect', 'anticipate', 'contemplate', 'target', 'plan', 'goal', 'budget', 'aim', 'intent', 'estimate', 'may', 'should', 'could', 'future' and similar expressions, including negative variations. 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 risks, uncertainties, and factors include, among others, risks associated with climate change; risks associated with mining regime changes in the Company's operating jurisdictions, including those related to permitting and approvals, environmental and tailings management, labour, trade relations, and transportation, other factors including accidents, equipment breakdown, environmental risks; as well as those factors discussed under 'Description of the Business - Risk Factors' in the Company's Annual Information Form, a copy of which can be found on the Company's profile on the SEDAR+ website at . 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, continued availability of water and power resources at the Company's operations; financial and physical impacts of climate change and climate change initiatives on markets and the Company's operations; the availability and effectiveness of technologies needed to achieve the Company's sustainability goals and strategies; the accuracy of the Company's current mineral resource and reserve estimates; that the Company's activities will be in accordance with the Company's public statements and stated goals; and that there will be no material adverse change affecting the Company or its properties. 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 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.
Yahoo
21-05-2025
- Business
- Yahoo
Fortuna publishes its 2024 Sustainability Report
VANCOUVER, British Columbia, May 21, 2025 (GLOBE NEWSWIRE) -- Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) is pleased to announce the publication of its seventh annual Sustainability Report, highlighting key developments in 2024 related to governance, corporate strategy, risk management, and performance. The report also outlines Fortuna's commitments and progress on the environmental, social, and governance (ESG) factors most material to our business and stakeholders. Jorge A. Ganoza, President, and CEO, stated, 'Sustainability is not just a responsibility - it is a strategic imperative that underpins our success as an efficient business and a trusted partner to our investors and stakeholders in the countries where we operate, now and in the future. We take pride in our 2024 performance, while acknowledging that continuous improvement is essential in the areas that matter most.' Mr. Ganoza added, 'Our leadership team is fully committed to embedding sustainability—particularly the prioritization of health and safety—into every aspect of our decision-making, from daily operations to long-term strategic planning.' Julien Baudrand, Senior Vice President of Sustainability, commented, 'This report outlines Fortuna's progress in aligning with leading industry practices, including Critical Risk Management, the Global Industry Standard on Tailings Management (GISTM), and ISO 14001 and 45001 certifications. It also highlights our 2024 achievements, such as top-tier performance in health and safety, industry-leading greenhouse gas emissions intensity per ounce of gold produced, and no significant negative impacts on the environment or our host communities.' Mr. Baudrand concluded, 'Striving for sustainability excellence - by achieving zero harm, minimizing our environmental footprint, and meeting stakeholder expectations - strengthens our relationships with shareholders, lenders, local authorities, communities, and employees, while creating lasting value for Fortuna.' Key facts and figures from the 2024 Sustainability Report: Governance 63 percent of our directors possess expertise in safety, sustainability, and ESG 30 percent of executive short-term incentive compensation is tied to ESG performance Enterprise Risk Management (ERM) incorporates sustainability-related factors Workforce Health and Safety Zero fatal incidents Lost Time Injury Frequency Rate (LTIFR): 0.48 Total Recordable Incident Frequency Rate (TRIFR): 1.36 93 percent of employees received training in Critical Risk Management (CRM) Community Relations Zero significant community grievances US$103 million contributed in government payments US$9.2 million allocated to community development programs and funds 41 percent of employees are from local communities Environment Zero significant environmental spills Zero non-compliances associated with water quality permits, standards, or regulations Carbon intensity: 0.38 tonnes of carbon dioxide equivalent emitted per gold equivalent ounce 14 percent of total energy consumption sourced from renewables Freshwater consumption intensity: 0.23 m3 per tonne of processed ore 58 percent of water is recycled or reused Human Capital, Human Rights, and Business Ethics Zero recorded cases of human rights violations Zero recorded incidents of corruption 5,099 full-time workers, including contractors 16 percent of the workforce are women The report also highlights the transformative projects that we are leading across our host countries in Latin America and West Africa, demonstrating how our initiatives create lasting social and environmental value that extends beyond financial performance. As part of our ongoing commitment to transparency and stakeholder engagement, we have introduced a new companion resource: the Sustainability Data Booklet. This document is aligned with the 2023 SASB Metals & Mining Standard, TCFD recommendations, and GRI Standards 2021, including the newly released GRI 14: Mining Sector Standard (2024). It is complemented by our Interactive Analyst Center, which offers downloadable, site-specific ESG data for enhanced accessibility and insight. Fortuna's 2024 Sustainability Report is available on our website: welcome questions and feedback at: sustainability@ About Fortuna Mining Corp. Fortuna Mining Corp. is a Canadian precious metals mining company with three operating mines and exploration activities in Argentina, Côte d'Ivoire, Mexico, and Peru, as well as the 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 ON BEHALF OF THE BOARD Jorge A. Ganoza President, CEO, and DirectorFortuna Mining Corp. Investor Relations: Carlos Baca | info@ | | X | LinkedIn | YouTubeThis 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, including, without limitation, statements pertaining to the Company's sustainability plans, targets, strategies, and goals, such as working towards a zero harm workplace, implementing the Global Industry Standard for Tailings Management, and minimizing our environmental footprint. Often, but not always, these forward-looking statements can be identified by the use of words such as 'believe', 'expect', 'anticipate', 'contemplate', 'target', 'plan', 'goal', 'budget', 'aim', 'intent', 'estimate', 'may', 'should', 'could', 'future' and similar expressions, including negative variations. 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 risks, uncertainties, and factors include, among others, risks associated with climate change; risks associated with mining regime changes in the Company's operating jurisdictions, including those related to permitting and approvals, environmental and tailings management, labour, trade relations, and transportation, other factors including accidents, equipment breakdown, environmental risks; as well as those factors discussed under 'Description of the Business - Risk Factors' in the Company's Annual Information Form, a copy of which can be found on the Company's profile on the SEDAR+ website at 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, continued availability of water and power resources at the Company's operations; financial and physical impacts of climate change and climate change initiatives on markets and the Company's operations; the availability and effectiveness of technologies needed to achieve the Company's sustainability goals and strategies; the accuracy of the Company's current mineral resource and reserve estimates; that the Company's activities will be in accordance with the Company's public statements and stated goals; and that there will be no material adverse change affecting the Company or its properties. 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 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 in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Fortuna Mining explores investments in Guinea for gold mining opportunities
Fortuna Mining is reportedly exploring new opportunities in Guinea following its strategic exit from Burkina Faso, where it faced regulatory instability and high security costs. The Canadian mining company, currently not established in Guinea, is actively conducting site visits and engaging with local authorities to seek gold mining prospects, according to a report by Reuters. Fortuna CEO Jorge Ganoza was quoted by the news agency as saying: "We find Guinea to be a place we would invest today.' A portion of the company's increasing exploration budget is earmarked for Guinea, where Ganoza sees 'a lot of room for discovery'. This move underscores the shifting dynamics in West Africa's mining landscape, where military-led governments are revising mining codes and grappling with jihadist threats. Burkina Faso, along with Mali and Niger, has experienced military coups since 2020, leading to new mining codes aimed at bolstering local control. These countries have also taken assertive measures against foreign mining companies, including arrests and asset seizures. In contrast, Guinea, under military rule since a 2021 coup, has not revised its mining code but has exerted pressure on foreign companies regarding project timelines. "We don't see the same situations as we see today in Mali or Burkina Faso or Niger," Ganoza added. Fortuna's recent departure from Burkina Faso involved selling the Yaramoko gold mine for $130m (C$179.32m), despite losing an estimated 70,000oz of gold production. Ganoza described the sale as 'a very compelling offer', given the mine's dwindling reserves and the $7m annual security costs incurred due to jihadist threats. The company had to adopt a 'complete fly-in, fly-out basis for all personnel' in Burkina Faso, with ground transportation deemed too risky. Moreover, Ganoza criticised the Burkinabe Government's demand for up to 30% state participation in mining companies as part of the new mining code implemented in July 2024, which he believes is not competitive, the report said. Fortuna's withdrawal from Burkina Faso follows a similar move by Endeavour Mining last year. Globally, Fortuna is boosting its exploration and project development investment to $51m this year, up from $41m in 2024. Besides Guinea, the company is focusing on Senegal's Diamba Sud gold project and expanding its operations in Ivory Coast, where its flagship Seguela gold mine is situated. "Fortuna Mining explores investments in Guinea for gold mining opportunities" was originally created and published by Mining Technology, a GlobalData owned brand.
