Fortuna Mining Targets 500,000 Gold Ounces With West Africa Expansion

Key Points

• Fortuna Mining aims to raise annual gold production from about 300,000 ounces to more than 500,000 ounces through the Séguéla expansion in Côte d’Ivoire and development of the Diamba Sud project in Senegal, without relying on a new discovery, acquisition or equity issuance.
• The Séguéla expansion has board approval and requires approximately $100 million in capital; it is expected to increase output above 200,000 ounces annually, with first gold targeted for mid-2028. Diamba Sud is nearing its exploitation permit and is designed to produce roughly 160,000 ounces per year.
• Fortuna reported strong cash generation, including $260 million in free cash flow during the first half of the year, and returned more than $100 million through share repurchases. The company also completed the $200 million acquisition of the Bambadji project to expand its West African growth pipeline.

Fortuna Mining NYSE: FSM outlined plans to increase annual gold production from roughly 300,000 ounces to more than 500,000 ounces through the expansion of its Séguéla mine in Côte d’Ivoire and the development of its Diamba Sud project in Senegal.

Jorge Ganoza, the company’s CEO and director, said the planned growth is supported by assets already in Fortuna’s portfolio, existing mineral inventories and cash on its balance sheet. He said the company does not expect the production increase to depend on a new discovery, acquisition or equity issuance.

Fortuna operates three mines and has two development projects across South America and West Africa. Ganoza said the company has total gold mineral inventories of about 7 million ounces, including 4 million ounces in mineral reserves.

Financial performance and capital allocation

Ganoza said Fortuna is tracking toward annual production guidance of approximately 300,000 ounces of gold this year. He cited a 55% year-over-year increase in sales, an almost 80% rise in net cash from operations and free cash flow from ongoing operations of $260 million in the first half of the year, up 110% from the prior-year period.

At the current gold-price environment, he said Fortuna is generating annual free cash flow from operations of approximately $500 million to $600 million. Operating cash flow totaled $620 million over the previous four quarters, according to Ganoza.

The company returned more than $100 million to shareholders through share repurchases during the first six months of the year, he said. Fortuna reported liquidity of $750 million as of the end of the prior quarter.

Ganoza said the company divested the Yaramoko mine in Burkina Faso and the San Jose mine in Mexico in 2025 because the assets did not fit its longer-term strategy. Both mines had reserves and resource bases that did not support projecting a decade of mining, he said, prompting Fortuna to redirect financial and human resources toward growth opportunities.

Séguéla expansion targets mid-2028 first gold

Fortuna’s Séguéla mine currently produces about 160,000 ounces of gold annually. The company plans a 30% throughput expansion that is expected to lift production above 200,000 ounces per year.

The expansion has received board approval and carries estimated capital expenditures of $100 million, Ganoza said. Fortuna expects first gold from the expanded operation by mid-2028.

The Séguéla camp contains eight mineral deposits hosting reserves, and Fortuna is also pursuing underground mining at the Sunbird deposit. Ganoza said Sunbird contains close to 1 million ounces of gold and that the company is in the late stages of permitting for underground mining. The underground component is expected to contribute higher-grade material, with grades above 4 grams of gold, as the expansion comes online in 2028.

He also highlighted the Kingfisher discovery, which contains an estimated 500,000 to 600,000 ounces of gold in the latest inventory, with mineralization remaining open.

Diamba Sud permitting advances alongside Bambadji acquisition

Fortuna recently completed a feasibility study for Diamba Sud and is in the late stages of obtaining its exploitation permit in Senegal. Ganoza said the company obtained environmental and social approval in less than 12 months and anticipates receiving the exploitation permit within days or weeks.

Diamba Sud is expected to produce about 160,000 ounces of gold annually during its initial years and has a projected mine life of close to a decade. The project has more than 1 million ounces of reserves, and its feasibility study showed a 60% internal rate of return using a gold price of $3,500 per ounce, with an estimated payback period of roughly 11 to 12 months.

The company also closed its $200 million cash acquisition of the Bambadji project from Barrick and IAMGOLD. Fortuna will refer to Diamba Sud and Bambadji as one area, Ganoza said. The company has deployed six drill rigs at Bambadji, where it controls a land position spanning more than 50 kilometers along what it described as a productive West African gold belt.

Fortuna invests about $60 million annually in exploration and conducts more than 250,000 meters of drilling across Côte d’Ivoire, Senegal, Argentina, Guyana and Peru.

Tax and regional investment outlook

During a question-and-answer session, Ganoza said higher gold prices have prompted discussions in several West African countries about increasing government revenue from mining. Côte d’Ivoire and Senegal are discussing potential changes involving royalty structures, he said, though he added that host governments appear mindful of maintaining competitive tax burdens.

He said Fortuna is currently focused on deploying capital in Côte d’Ivoire, Senegal and Guinea rather than Mali. In South America, the company remains committed to its Lindero mine in Argentina and is investing prudently in the country, including at the Arizaro project in Salta and an optioned epithermal system in Río Negro.

Fortuna is also advancing exploration in Guyana and expects to begin drilling there in October, Ganoza said.

About Fortuna Mining (NYSE:FSM)

Fortuna Mining Corp. is a precious metals mining company that explores, develops and operates mines in the Americas and West Africa. The company produces gold, silver, lead and zinc, with gold representing an important part of its current operating portfolio.

Fortuna's principal assets include the Séguéla gold mine in Côte d'Ivoire, the Lindero gold mine in Argentina and the Caylloma polymetallic mine in Peru. The company also maintains exploration and development activities in the regions surrounding its operations.

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