Fortuna Mining Q2 2025 Earnings Report

Fortuna Mining EPS Results

• Actual EPS: $0.14
• Consensus EPS: $0.22
• Beat/Miss: Missed by -$0.08
• One Year Ago EPS: N/A

Fortuna Mining Revenue Results

• Actual Revenue: $230.42 million
• Expected Revenue: $220.00 million
• Beat/Miss: Beat by +$10.42 million
• YoY Revenue Growth: N/A

Fortuna Mining Announcement Details

• Quarter: Q2 2025
• Date: 8/6/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 12:00PM ET

Fortuna Mining (NYSE:FSM) engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d'Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d'Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.

Fortuna Mining Q2 2025 Earnings Call Transcript

Key Takeaways

• Neutral Sentiment: In Q2 Fortuna completed the sale of two short‐life mines for $84 million in gross proceeds, streamlining its portfolio but reducing near‐term production to about 330,000 oz annually.
• Positive Sentiment: Seguela is on track to deliver 140,000 oz in 2025 and 164,000–180,000 oz in 2026 under its expansion plan, highlighting growth fully under company control.
• Positive Sentiment: The D’Amba Sud project in Senegal saw its combined resource jump by 53% in indicated and 93% in inferred to one million ounces as drilling and permitting advance toward a 2026 construction decision.
• Positive Sentiment: Fortuna strengthened its balance sheet with $537 million in liquidity, $215 million in net cash and generated $57.5 million of free cash flow, driving record 55% EBITDA margins.
• Positive Sentiment: The company’s portfolio of optimization initiatives is expected to yield $50–70 million in savings over three years, supporting a target to normalize AISC to around $1,500/oz by year‐end.

Presentation

[Operator]

Good day, everyone, and welcome to the Fortuna Mining Corp. Second Quarter twenty twenty five Financial and Operational Results Call. It is now my pleasure to turn the floor over to your host, Carlos Baca, Vice President, Investor Relations. Sir, the floor is yours.

[Carlos Baca, VP - IR at Fortuna Mining]

Thank you, Matthew. Good morning, ladies and gentlemen, and welcome to Fortuna Mining's conference call to discuss our financial and operational results for the 2025. Hosting today's call on behalf of Fortuna are: Jorge Alberto Vanoza, President, Chief Executive Officer and Co Founder Luis Ario Vanoza, Chief Financial Officer Cesar Velasco, Chief Operating Officer, Latin America and David Widow, Chief Operating Officer, West Africa. Today's earnings call presentation is available on our website at fortunamining.com. Before we begin, please note that during the quarter, Fortuna completed the sale of the San Jose and Yaramoko mines.

[Carlos Baca, VP - IR at Fortuna Mining]

Accordingly, results from these mines have been excluded from continuing operations for the quarter and year to date along with comparative figures. Statements made during this call are subject to the reader advisories included in yesterday's news release, the webcast presentation, our management discussion and analysis and risk factors outlined in our annual information form. All financial figures discussed today are in U. S. Dollars unless otherwise indicated.

[Carlos Baca, VP - IR at Fortuna Mining]

Technical information presented has been reviewed and approved by Eric Chapman, Fortuna Senior Vice President of Technical Services and a qualified person as defined by National Instrument 40 three-one 101. I will now turn the call over to Jose Alberto Ganoza, President, Chief Executive Officer and Co Founder of Fortuna Mining.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Thank you, Carlos, and good morning, everyone, and thank you for joining us. The second quarter reflects the strategic streamlining of our portfolio of assets. Early in the quarter, we completed the sale of two mines with short life of mineral reserves, each with less each with less than a year in mining left. Naturally, this reduces our near term production. In 2024, we delivered a record 460,000 ounces of gold equivalent.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

With the sale of these mines, our annualized production is now roughly 330,000 ounces. But the key message today is this, rebuilding production to 5,000,000 ounces per year, which is strategically where we want to reposition, is fully under our control. And those ounces will be higher margin, longer life and lower risk than before. And here's why we're confident Seguela, our flagship asset, is on a clear growth path. 140,000 ounces of gold have been guided for 2025 and one hundred and 4464 to 180,000 ounces of gold have been guided for 2026 as our expansion plan comes online.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

The Ambassador in Senegal is emerging as our next growth engine. In just six months, the indicated resource, as recently published, grew by 53% and inferred resources by 93% for a combined 1,000,000 ounce. We continue to drill to expand and upgrade the resource and advance permitting and engineering towards a 2026 construction decision. All the exploration work that we've been doing over the past eighteen months have really enhanced our understanding of the deposit and our drilling and exploration is really yielding fruit here. And importantly, our robust balance sheet with $537,000,000 in liquidity and $215,000,000 in net cash, de risk any growth decision we choose to make.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

So with that growth vision in mind, let's move to our q two results highlights. On health and safety first, safety of our personnel remains our top priority, and I am proud to report that we continue to improve. We recorded seven point two million work hours without any lost time injury. That's a record for the company, up from 6,700,000 work hours in the prior record. And our total recordable injury frequency rate was zero point eight seven for the second quarter, improving from zero point nine eight percent in the first quarter.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Some highlights from our financial performance. The second quarter was another quarter of strengthening even further the balance sheet of the company and delivering solid margins. Liquidity, again, at $537,000,000 up $76,000,000 from the previous quarter, driven by $84,000,000 in proceeds from the mine sales. Net cash was $215,000,000 at the end of the period, up from $137,000,000 at the end of Q1 twenty twenty five. Free cash flow from operations was a strong $57,500,000 compared to $66,000,000 in Q1, primarily due to the timing of tax payments.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Our margins expanded with higher gold prices. Average realized gold price was $3,306 per ounce, which is up 14% with respect to what we averaged in the first quarter. Our EBITDA margin grew to a record 55%, up from 50% in Q1, and our operating margin stood at 36%, up from 28% in Q1. Net earnings from continued operations were $41,000,000 or $0.14 per share compared to $33,000,000 or $0.11 per share in Q1. For adjusted EPS of $0.14 includes a $17,000,000 withholding tax accrual related to the inaugural full year dividend declared in Cote D'Ivoire or Seguela mine equivalent to $06 per share.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

In Q1, we achieved full payback on Seguela's construction in twenty one months, while also canceling all intercompany loans and therefore the dividend. Cash flow from operations before working capital changes was $97,000,000 or $0.32 per share. On operational performance, our consolidated gold equivalent production for the period was 75,950 ounces. When we look at it from continuing operations, gold production was 71,229 ounces, slightly above the previous quarter and aligned with our full year guidance. Cash cost was $929 per ounce, up marginally 7% from Q1, mainly due to the gold to base metal ratio at our Caylloma mine, which carries a significant base metal lead zinc component in its production.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Our consolidated AISC was $19.32 dollars per ounce, up from $17.50 dollars in Q1. Here, I want to reinforce that all our mines continue to track well to meet annual guidance. However, the elevated consolidated ASIC I just mentioned is a temporary and timing effect related to CapEx and waste stripping at Lindero and Seguela. These mines' ASICs will gravitate towards a range of $1,500 per ounce throughout the second half of the year and into 2026. Lindero's ASIC is trending downwards towards below $1,500 per ounce by Q4 following the completion of the Leach pad expansion.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

And Seguela's ASIC is expected to rise temporarily towards $1,800 per ounce in Q4, consistent with planned peak in waste stripping in the second half of the year and timing of its capital investments, but staying in the average for the year within annual guidance. Segela operated in the quarter with a very competitive cash cost per ounce of $670 and our 2025 capital budget of $78,000,000 at Segela enables the expansion of production guided for 2026. We have a series of operational excellence and productivity initiatives that aim to drive margin improvements and cost discipline across the business. Our portfolio of optimization and productivity initiatives is expected to generate between 50,000,000 and $70,000,000 in savings over the next three years. These programs span process optimization, equipment utilization, supply chain efficiencies and energy management at our mines.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

It will enhance cash flow, supporting our cost competitive half a million ounce strategic object of annual production. And, you know, on on closing of my comments, I wanna revisit the strategic developments and looking ahead. The sale of the San Jose and Yaramoco mines in the quarter was timely. It not only generated $84,000,000 in gross proceeds, but it also freed approximately $50,000,000 in capital and management bandwidth away from mine closure projects towards high value growth opportunities, which are better aligned with our strategy. And looking forward, the Seguel expansion position us for strong growth in 2026.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

The Amba suit continues to grow in scale and quality with a twenty twenty six construction decision on the horizon. With this, the future the near future growth of the company is within our control. With a robust balance sheet, expanding margins and clear growth pipeline, Fortuna is well positioned to rebuild and surpass 5,000,000 ounces per year target with higher margins, higher quality ounces and lower portfolio risk than ever before. In twenty years, I have never seen Fortuna as strong as it is today. With that, I will ask David Whittle, our Chief Operating Officer for West Africa, to discuss the results of his region. David?

[David Whittle, COO - West Africa at Fortuna Mining]

Thanks, Jorge. Seguela and Yaramoko delivered a strong second quarter, achieving solid results in both production and safety. Our commitment to safety and environment performance remains unwavering and we are steadily progressing towards our goal of zero harm across all our operations. I'm delighted to report that no injuries occurred at any of our West African operations during the quarter. During this period, we successfully completed the divestiture of our Yaramoko mine to Soleil Resources, a privately owned Mauritius domicile resources company, thereby concluding our operations in Burkina Faso.

[David Whittle, COO - West Africa at Fortuna Mining]

Fortuna operated Yaramoko up until April 14, producing 4,721 ounces during this time. The decision to divest followed a compelling economic offer and aligned with our strategic priorities. At Seguela, we produced 38,186 ounces of gold consistent with the prior quarter and exceeding the mine plan, reinforcing our expectations to achieve annual production at the higher end of guidance. Mining during the quarter totaled 340,000 tonnes of ore at an average grade of 3.33 grams per ton gold, along with 5,190,000 tons of waste, resulting in a strip ratio of 15.3 to one. The processing plant treated 429,000 tons at an average grade of three grams per ton gold, with all primarily sourced from the antenna, anteons and cooler pits.

[David Whittle, COO - West Africa at Fortuna Mining]

The plant operates at an average throughput rate of two ten tons per hour. Throughput in June was temporarily reduced due to a major SAG mill reline and other scheduled maintenance, which are now complete. This ensuring smooth operations through the end of the year. The third lift of the tailings storage facility, an $8,500,000 project, remains on track for completion in the third quarter. This will enhance our storage capacity through to 2029, supporting increased throughput and positioning Seagalha to achieve the higher end of its 160,000 to 180,000 ounces of annual production, from 2026 onward.

[David Whittle, COO - West Africa at Fortuna Mining]

All of the capital projects are progressing and are within budget. Seagala's performance resulted in a cash cost of $670 per ounce and an all in sustaining cost of $16.34 dollars per ounce, both aligning with our budget. The AISC reflecting higher royalty expenses driven by the increase in gold prices. Exploration drilling of the Sunbird and Kingfisher deposits yielded encouraging results. Our technical teams are actively working to incorporate these deposits into reserves and mine plans with both remaining open, indicating potential for further resource expansion and bolstering our confidence in Sagalha's long term potential.

[David Whittle, COO - West Africa at Fortuna Mining]

At our D'Amba Sud project in Senegal, exploration, environmental permitting and feasibility activities made significant progress during the quarter. In addition to our $19,000,000.20 25 budget, we approved an additional $17,000,000 for early works, including ancillary facilities and infrastructure. Infill and extension drilling continued at the main deposit with success, prompting an expansion of the exploration program further to the south and Southeast of the Southern Arc prospect, where newly discovered mineralization remains open. These results enhance our confidence in the Ambersug's potential and we look forward to resuming drilling after the wet season in the second half of the year. Back to you, Jorge.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Thank you, David. Now Cesar Velasco, Chief Operating Officer for Latin America, will provide us with the highlights of his region. Cesar?

[Cesar Velasco, Chief Operating Officer, Latin America at Fortuna Mining]

Thank you, Jorge, and good morning everyone. I am pleased to report a robust quarter for our Latin American operations with both of our Lindero and Caylloma mines demonstrating the strong safety, production and financial performance. These bolsters our confidence in the strength and resilience of our regional portfolio. At our Lindero mine in Argentina, we achieved remarkable progress on all fronts. Lindero's operational performance has been a significant success with costs decreasing and stable production leading to higher margins and strong free cash flow.

[Cesar Velasco, Chief Operating Officer, Latin America at Fortuna Mining]

Lindero produced 23,450 ounces of gold, marking a 16% increase over Q1. This aligns with our mining plan and keep us on track to meet our annual guidance. Our efficiency initiatives are yielding positive results. Our all in sustaining cost was $17.83 dollars per ounce, a notable reduction of 6.7% from the previous quarter. This improvement resulted from lower sustaining capital expenditures as the leach pad expansion was under construction in the previous quarter.

[Cesar Velasco, Chief Operating Officer, Latin America at Fortuna Mining]

As Jorge mentioned, Lindero's ASIC is steadily progressing towards our target of $1,400 per ounce by year end. Our operational efficiencies are also leading to strong outcomes with crushing reaching a new record in June, averaging 1,100 tons per hour and stacking achieving a monthly record of 642,000 tons. As such Lindero's cash cost for the second quarter was $11.48 dollars per ounce. Financially, Lindero's net sales were $75,700,000 a 42% increase from Q1 supported by a strong gold price of $3,293 per ounce. Operating income for the quarter was $29,100,000 nearly 66% higher than the previous quarter and an adjusted EBITDA of $37,900,000 up 34% versus the previous quarter.

[Cesar Velasco, Chief Operating Officer, Latin America at Fortuna Mining]

We generated free cash flow of $35,700,000 reflecting strong operational execution and disciplined capital management. On the sustainability front, we commissioned our photovoltaic plant in Q2, which generated 1,000,000 watts per hour in June. This supplied approximately 26% of Lindero's power needs, saved nearly $270,000 in diesel costs and avoided an estimated seven twenty tons of CO2 emissions. This marks a significant advancement in our sustainability strategy. Moving to our Caylloma mine in Peru, it continued to perform reliably and efficiently.

[Cesar Velasco, Chief Operating Officer, Latin America at Fortuna Mining]

Caylloma exemplifies an operational excellence, disciplined capital expenditure and effective project execution. We successfully completed the new hydraulic paste backfill plant in April with a total investment of $5,400,000 The new plant enables a more efficient and automated process at a lower cost per ton. It also reduces CO2 emissions by eliminating the need to transport the tritic material outside of the underground mine, thus eliminating related diesel consumption. Caylloma's financial results reflect these operational consistency. Net sales were $28,400,000 with operating income of $8,700,000 and adjusted EBITDA of 11,300,000 Free cash flow was a notable $9,000,000 driven by cost discipline and operational consistency.

[Cesar Velasco, Chief Operating Officer, Latin America at Fortuna Mining]

The cash cost per silver equivalent ounce was $15.16 and AISC of $21.73 per ounce, both within the lower range of our annual guidance. Overall, our Latin American operations continue to deliver strong and consistent results. We're firmly on track to meet our full year guidance and continue generating long term value for our stakeholders. Back to you Jorge.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Thank you, Cesar. Luis Villarreal, CFO will share the highlights of the quarter on the financial side of things.

[Luis Ganoza, CFO at Fortuna Mining]

Thank you, Jorge. I'll be discussing our financial results and all corresponding figures will be from our continuing operations only unless explicitly stated. We are pleased to report a net income attributable to Fortuna of $42,600,000,000 or zero one four dollars per share. After adjusting for non cash, non recurring items, this figure rises to $44,700,000 or $0.15 per share. Our adjusted results represent a remarkable 380% increase over Q2 twenty twenty four, driven primarily by higher metal prices and an increase in gold sold.

[Luis Ganoza, CFO at Fortuna Mining]

Specifically, we realized gold prices that were nearly $1,000 per ounce higher than the prior year and sold 13% more gold. Our cash cost per ounce for the quarter was $929 about $88 higher than Q2 twenty twenty four. This is consistent with our mine plans, which contemplate higher stripping ratio at both Lindero and Seguela. Comparing our results to the 2025, our adjusted net income grew by 25%. This was driven by gold prices that were four twenty dollars per ounce higher and an 8% increase in gold sold.

[Luis Ganoza, CFO at Fortuna Mining]

On a quarter over quarter basis, our cash cost per ounce increased by $63 which is mainly attributable to the planned progression of waste stripping at our mines. One item to note that impacted our Q2 results, as Jorge mentioned, was the recognition of the $17,000,000 charge for withholding taxes. This relates to the first dividend declared at our CDI subsidiary. These taxes will be paid over the next few months and as repatriate funds. And again, as Jorge emphasized, this represents zero six dollars per share impact to our quarterly results.

[Luis Ganoza, CFO at Fortuna Mining]

Moving to our cash flow statement, we generated $92,700,000 in net cash from operating activities. It is important to highlight that a large portion of our annual tax payments are concentrated in the second quarter. We paid $36,000,000 which represent over 40% of what we anticipate paying for all of 2025. Our capital expenditures for the quarter totaled $47,000,000 Of this, we classify $15,000,000 as growth CapEx, which primarily consists of investments in the Dambasad project and our exploration activities. Our anticipated capital expenditures for the full year are $180,000,000 consisting of $120,000,000 for sustaining and $60,000,000 for growth CapEx.

[Luis Ganoza, CFO at Fortuna Mining]

This includes close to $30,000,000 allocated to the Ambassad. In terms of free cash flow, we generated $57,400,000 from ongoing operations. This is a slight decrease from Q1 twenty twenty five due to the timing of tax payments and higher sustaining CapEx on a quarter over quarter basis. With respect to our discontinued operations, the cash flow statement discloses a net cash contribution of $70,600,000 for the full year across the operating, investing and financing sections. This figure includes gross proceeds of $83,800,000 from asset sales.

[Luis Ganoza, CFO at Fortuna Mining]

Turning to the balance sheet, we've been experiencing delays in collecting our VAT at our Ivory Coast operations. At this stage, we believe this is an issue related to the electoral cycle and expect collections to start normalizing toward the end of the year. At the end of the quarter, we held $37,000,000 in VAT receivables, which represent approximately seventeen months outstanding. On a very positive note regarding repatriation related matters in Argentina, a favorable change in local prevailing conditions has allowed us to restart repatriation with over $40,000,000 in the month of July, subsequent to the end of the quarter, without any significant friction on foreign exchange costs. Finally, I want to reinforce Jorge's message regarding our all in sustaining costs with the exception of factors tied to metal prices such as royalties and fair value adjustments to share based payments, we are maintaining a revised guidance range for the year.

[Luis Ganoza, CFO at Fortuna Mining]

For the second half of the year, we expect Q3 ASIC to remain at similar levels to Q2 before coming down in the fourth quarter. Looking beyond 2025 and considering our expanded production guidance for Seguela, we are targeting consolidated AISC levels in the range of $17.5 per ounce in the current metal price environment. Back to you, Jorge.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Thank you. And with that, we can open the floor for questions. Carlos?

[Carlos Baca, VP - IR at Fortuna Mining]

Thank you, Jorge. Please, Matthew, go ahead and and prompt our our audience for questions.

[Operator]

Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press Your first question is coming from Thomas Bislonovitz. Your line is live.

[Analyst]

Yes. Today, I see the stock really has gotten hammered pretty good. But I stepped up to the plate, and I bought quite a bit. I bought roughly $50,000 worth. I I would assume that everything is running exactly the way you just want, and I hope you should do the same thing and support the stock price. Thank you very much for your time.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Thank you for your comments, there, sir. And, as stated, through the call and and, as you can see in our financial results, the company has never been stronger. The fact that we have a headline EPS miss against analyst consensus is related to the timing of our withholding taxes. If we adjust for those $06 we're above analyst consensus for earnings per share. And with respect to our elevated ASIC, for example, which has been an issue of topic of discussion, it has to do with the fact that we are investing in the business.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Our Seguela mine, our flagship asset, carries today about $78,000,000 worth of capital that enables the mine to expand production into the next year. So all of those are positive. There is no free lunch. You need to invest the money to capture the opportunities and that's what we're doing. All of these with a very strong balance sheet that backs the company, right?

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

We have been very careful in putting together a fortress balance sheet, and we are very comfortable that we can move our business forward, capture the growth opportunities that we have in our portfolio. So as I said in the call, I never seen Fortuna as strong and better positioned as I see it today, sir.

[Operator]

Thank you. Your next question is coming from Eric Windmill from Scotiabank. Your line is live.

[Eric Winmill, Equity Research Analyst at Scotiabank]

Hi. Good morning, Jorge and team. Thanks for taking my question. Just wondering if there's anything additional you can share on some of the investments that you've made in Huawei and some of the others. And maybe just sort of strategically, do you see yourself making some more of these investments and ultimately, maybe as a way of, you know, gaining additional projects for the pipeline? Thanks.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Yes. Thank you, Eric. Here, what I would like to say first is that, you know, the investments that we have been making over the past, you know, twenty four months are rendering fruit. Right? We have been able to advance the Ambassador.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

You've seen the recent publication of our resources. And the near future of the company with respect to expanding ounces is under our control. And that's a key message. We have clear opportunities at Segela and we're delivering clear opportunities at the Amba suit for growth. On top of that, we are very active across the regions where we work, the Awale investment.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Awale sits on a regional structural trend, a base in margin in the Viremium that is very intriguing to us. We like the team at Huawei. They are frugal and they are technically capable. They are steadily advancing with their work, and and and we like their approach. And so, you know, and and their position in in an area that is, again, intriguing to us.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

So we've been we we have invested in the company and and look forward to to see how their their progress advances. We have other initiatives in Argentina as well for early stage projects. So we're populating the pipeline of earlier stage opportunities. We see a lot of value there. Some of these opportunities might bear higher geologic risk in exchange for lower financial risk to the company because some of them, a lot of them are early stage.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

But again, that's where we are finding a lot of value and we're actively putting together either investments like Awale or auction agreements that might lead to joint ventures. And we're active there in in Cote D'Ivoire, in in Mexico, and in Argentina as well. Yeah.

[Eric Winmill, Equity Research Analyst at Scotiabank]

Okay. Great. Thank you for that. Really appreciate it. Maybe just one more if you don't mind shifting gears.

[Eric Winmill, Equity Research Analyst at Scotiabank]

But in Senegal, what's your experience to date in permitting? And, you know, as that project moves forward, I assume you feel pretty confident being able to get the necessary for development.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Yes.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Yes. You know, I have met personally with the the minister of mines and and and his team on on several occasions by now. And what I see is a government that's quite supportive of of new developments. And we recently hosted hosted a government officials from the Ministry of Mines and local authorities from, Senegal and around the Angasud at our Seguela mine in Cote D'Ivoire. It was a very good visit.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

I think, the project is being, has been, is being, continues to be well socialized with the authorities and key stakeholders, and we're finding a lot of support. We're finding a lot of support. And yeah. So so far, we are well advanced with our environmental impact statement approval. We're ready to submit in the month of September, and we expect to have an environmental approval early next year. Yeah.

[Eric Winmill, Equity Research Analyst at Scotiabank]

Alright. Fantastic. Thank you. Really appreciate that. I'll hop back in the queue. Cheers.

[Operator]

Thank you. Your next question is coming from Mohammed Siddh from National Bank Financial. Your line is live.

[Mohamed Sidibé, Equity Research Analyst at National Bank Financial]

Hi, Jorge and Tim, and thanks for taking my question. Maybe just to follow-up on Senegal and the experience in permitting there. For the Ambassador specifically, with the expectation of the environmental approval early next year. Could you maybe walk us through the key milestone for the ambassador in terms of PEA by the end of the year, then you get the environmental approval? And then what are the next steps?

[Mohamed Sidibé, Equity Research Analyst at National Bank Financial]

Do we go towards a PFS, or do you start assessing the the potential to to take this into construction if you have the right permits in place? Thank you.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Yes. Let me start by saying that this recent publication of a million ounce resource between indicated and and inferred, it's a it's a, say, a game changer for for review of the project. Right? Just as a big a small recap, when we acquired Chesser, they had a historic resource of about 800,000 ounces. We saw some risks there, and we decided to go in, drill, and rebuild the geologic model.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

As an outcome of that, the resource shrunk to 600,000 ounces. So we went back and we've been bringing, enhancing our knowledge of the deposit. Our original expectation is that we would be where we're standing today by year end 2025. So these result, these million ounces that we've been able to produce with clear opportunities to continue expanding it is a significant change in our approach to the project. So to go straight to your question, we are aiming to submit we we along with exploration, we've been carrying a lot of parallel activities on permitting engineering.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

So we're ready to present our our environmental permits for review and approval in the coming month, and we expect to have an approval of that environmental document early in 2026. We expect we're planning to publish a a PEA in the month of October, probably late October, early November, have a PEA out. But all of the process design, ancillary facilities of that PA really carry by now feasibility level, no, are at the feasibility level. So our view is that we will transition quickly into a feasibility study early in in 2026. So that's where we are setting our our sights into a feasibility study in early twenty twenty six and consistent with that, a construction decision.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

And we are advancing capital for early works right now. We have approved $17,000,000 budget already for some early works because, you know, as the project advances and we are breaching this million ounce threshold with clear opportunities to continue expanding the resource. We're getting as well more courageous on our view of viable project. Right? So that is the timeline for us now, I would say.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Environmental approval early next year, submission this year, early next year approval, PA by late October, feasibility study in H1, middle of H1, twenty twenty six. Those are roughly the timelines we're seeing for the AMBA.

[Mohamed Sidibé, Equity Research Analyst at National Bank Financial]

Thanks a lot for that color, Jorge. That's very helpful. And then my second question relates to, I guess, the cadence for CapEx and maybe more for Luis into the second half of the year. Could you maybe help us know if there's a the CapEx spend between Q3 and Q4 will likely be equal or if it's more weighted to Q3 or Q4?

[Luis Ganoza, CFO at Fortuna Mining]

There should be there should be a slightly more weighing into the second half of the year, particularly we expect in Q3. And again, coming slightly down in Q4, which is part of the driver for the projected lower ASIC in latter part of the year.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

The key message here is that we have one of our mines, Lindero, trending down on ASIC from a high ASIC at the beginning of the year towards a low ASIC at the end of the year, and Seguela trending in the opposite. Or ASIC at the beginning of the year at Seguela was a low, you know, under $1,200 sorry. And it under $1,300 per ounce. And it you know, as investments are picking up and stripping is picking up according to plan, that ASIC is gonna gravitate higher.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Right? So and, again, Seguela is the man that the mine that is expanding into next year. It's expanding production into next year. So therefore, the capital buildup throughout the year. Right?

[Mohamed Sidibé, Equity Research Analyst at National Bank Financial]

Yeah. No. That's great. And and just to clarify that Q4 ASIC that Luis talked about, was that the $17.50 dollars per ounce level? Or was that just more of a comment on the overall year?

[Luis Ganoza, CFO at Fortuna Mining]

So the comment on the $17.50 dollars was related to 2026, and it would represent a decrease in ASIC with respect to our guidance for 2025. So the key message is ASIC is going to be somewhat higher in Q2 and Q3 of this year, coming down towards Q4, and we anticipate even a lower ASIC into 2020

[Mohamed Sidibé, Equity Research Analyst at National Bank Financial]

At these levels. Okay. That's great. Thank you so much.

[Operator]

Thank you. Your next question is coming from Adrian Day from Adrian Day Asset Management. Your line is live.

[Adrian Day, Chairman & CEO at Adrian Day Asset Management]

Thank you. Yes, good afternoon. Yes, you discussed your pipeline quite a bit. That was interesting. But I wonder if you could quantify a little more the specifically the greenfields, the number of projects, the geographies, how much you're spending, you know, this year, next year, and and how how the spend compares on a historic basis to your greenfields exploration.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Hello, Adrian.

[Adrian Day, Chairman & CEO at Adrian Day Asset Management]

Hello.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

And first, geography. We currently have on the greenfield site three opportunities being pursued. One, of course, is Awali through our investment.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

I'm not sure if you follow Awali, but they have a commanding land position in a most intriguing geologic setting. They already have made a significant discovery. They have a joint venture on that discovery with Newmont. But outside of that joint venture, there is a significant land package that continues to offer, we believe, very good potential and that's what's intriguing to us. In the North, North of Barrick's Tongon mine, we have a joint venture also, an option agreement for a joint venture in Northern Cote D'Ivoire.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

That's a Tongon North project. It's a project where we're currently we've been drilling this first half of the year. Drilling has stopped due to rains, and we look to resume in the second half of the year. But we're testing major structures in the Epidemium with the identified gold in in order and big structures, long trends, we're drilling, you know, and we look forward to report when we find something that merits reporting. Right?

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

We're finding gold. We're finding gold in the structures. We need to see where those structures blow up, right, and offer opportunity for size and tonnage and grade. And we have an early discovery, I would say, in our Guiglio property in Cote D'Ivoire as well in the South where we have identified a very large five kilometer golden soil anomaly in a concession that's owned a 100% by us. And that is one, no?

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Cote D'Ivoire. And you see we're very active, not only in Brownfields, but in Greenfields. We're looking at opportunities in Guinea, right, as well. Moving on to at at in Senegal, we're right now very much focused on the land package we control around the Amba suit, which is sizable. So we have a program where we're drilling the main core property of the Amba suit, but also within the larger property package, we're doing a lot of generative work.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Across The Atlantic in Mexico, we have currently two, three active joint ventures for early stage opportunities. And in Argentina, we just did an option agreement with a local party to explore what I would categorize as one of the largest in heated anomalies in the province of Salta up there close to the Chilean border. And that's early stage. It's an option agreement. And after the winter, we look forward to initiate our first drilling campaigns.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

So our exploration budget for greenfields right now sits at about $11,000,000, and that does not include any of the work we're doing No. That's excluding the Amba suit. The the budget is 11,000,000. Our global exploration budget, including now, the Amba suit, stands at about $51,000,000, total exploration budget.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

That's up from $41,000,000 in 2024. So we have increased our budget our global budget for brownfields, greenfields, all that is under the concept of exploration and new project development has gone up from 20 41,000,000 in 2024 up to 51,000,000 in 2025. But we feel we're well funded, and, we have clear opportunities in front of us.

[Adrian Day, Chairman & CEO at Adrian Day Asset Management]

That's excellent. Thank you.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

We do not talk a lot about this early or talk enough. Perhaps we don't talk enough about these early stage opportunities because, again, what we expect is to produce something that we can meaningfully share with the market. You know how it is with early stage opportunities. We're testing ideas, testing anomalies. It's a bit of a hit and miss.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

But, you know, we're going through the process, generating the ideas, testing the targets. Right?

[Adrian Day, Chairman & CEO at Adrian Day Asset Management]

Okay. Super. Thank you.

[Operator]

Thank you. Your next question is coming from Thomas Beslanovitz. Your line is live.

[Analyst]

Yes. I was wondering if you're actively looking to buy another company or possibly merge. Maybe you can't talk about that stuff now, but I was just curious.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

Yes. The answer to that, sir, is that when we think of acquisitions, they are answering the needs for for growth mainly. Right? And we are very comfortable and calm that we have a very robust, clear opportunity for growth within our control, in our portfolio. So and that would be growth that we can deliver at the lowest cost and dilution to our shareholders, Right?

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

The most accretive growth we can provide our shareholders is organic growth, and that's under our control. And as I spoke during the call already, the Ambassador and Segela right now offer clear opportunities for that. And we're always paying attention for value opportunities, but I would characterize it as this. We have no need to chase ounces. We are chasing value.

[Jorge Ganoza, Director, President, CEO & Co-Founder at Fortuna Mining]

And if we see value out there, you'll see us very aggressively. We have the balance sheet to pursue big opportunities. Our search is for value, not ounces. We can produce the ounces organically, and that's the cheapest most value we can deliver to our shareholders is advancing what's already in the portfolio. And that is our primary focus.

[Analyst]

Thank you very much.

[Operator]

Thank you. There are no further questions in the queue.

[Carlos Baca, VP - IR at Fortuna Mining]

Thank you, Matthew. If there are no further questions, I'd like to thank everyone for joining us today. We appreciate your continued support and interest in Fortuna Mining. Have a great day.

[Operator]

Thank you. Everyone, this concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

Participants

Executives

• Carlos Baca, VP - IR
• Jorge Ganoza, Director, President, CEO & Co-Founder
• David Whittle, COO - West Africa
• Cesar Velasco, Chief Operating Officer, Latin America
• Luis Ganoza, CFO

Analysts

• Analyst
• Eric Winmill, Equity Research Analyst at Scotiabank
• Mohamed Sidibé, Equity Research Analyst at National Bank Financial
• Adrian Day, Chairman & CEO at Adrian Day Asset Management