Fortuna Mining Corp. reports operating and financial developments for a Canadian precious metals miner that produces gold and silver from three operating mines and a portfolio of exploration projects.
Recurring updates include quarterly production in gold-equivalent ounces, cash costs and all-in sustaining costs, cash flow, liquidity, safety performance and capital actions through normal course issuer bid activity. Company news also covers Mineral Reserve and Mineral Resource estimates, drilling at deposits such as Sunbird at Séguéla, exploration projects including Diamba Sud in Senegal, project agreements in the Guyana Shield, annual reporting and MD&A releases.
Fortuna Silver Mines has updated its mineral reserves and resources at the Yaramoko Mine in Burkina Faso following a brownfields exploration program and further evaluation. Significant changes include a reduction of 120,000 ounces of gold due to a surveying error and an additional 46,000 ounces deemed uneconomical to extract, shortening the mine's life from 5 years to 3 years. The 55 Zone now reflects a decreased gold content, while the 109 Zone saw minor gains. Overall, proven and probable reserves decreased by 43% in ounces during the first half of 2022, emphasizing the need for careful resource management.
Fortuna Silver Mines Inc. (NYSE: FSM) announced that the Mexican Federal Administrative Court has granted a provisional injunction allowing its subsidiary, Compañia Minera Cuzcatlan, to continue operations at the San Jose Mine, based on a 12-year environmental impact authorization (EIA). This decision follows a legal challenge to revoke the annulment of the EIA initiated by Minera Cuzcatlan. The Court will soon decide on a permanent injunction. The San Jose Mine is significant for the local economy, employing over 1,200 workers and fostering sustainable development with local communities.
Fortuna Silver Mines (NYSE: FSM) reported production results for Q4 and full year 2022, producing 259,427 ounces of gold and 6,907,275 ounces of silver, with gold output up 25% year-over-year and silver down 8%. 2023 guidance anticipates gold production between 282,000 to 320,000 ounces (up 9-23%) and silver between 6.3 to 6.9 million ounces (down up to 9%). Notably, the Lindero Mine achieved a record annual gold production of 118,418 ounces. An increase in cash costs and AISC is projected due to inflation and operational expenditure rises.
Fortuna Silver Mines (NYSE: FSM) reports that its Mexican subsidiary, Compania Minera Cuzcatlan, is facing a re-assessment of its environmental impact authorization for the San Jose Mine in Oaxaca, Mexico. This follows a resolution from SEMARNAT that annuls a previously granted 12-year extension. CEO Jorge A. Ganoza contends that the SEMARNAT Resolution lacks merit, citing successful audits and legal victories supporting their compliance with environmental regulations. The company intends to contest this decision legally while maintaining its operational compliance and community engagement.
Fortuna Silver Mines (NYSE: FSM) has released its position statement on the Global Industry Standard on Tailings Management (GISTM), outlining its commitments to responsible tailings management. The company operates three tailings storage facilities (TSFs) and is progressing towards GISTM compliance by 2027. Key commitments include adopting GISTM requirements for new TSFs and ensuring compliance across all facilities by 2027. Fortuna emphasizes the importance of safe tailings management for sustainable mining and aims to enhance stakeholder value through its rigorous implementation plan.
Fortuna Silver Mines Inc. (NYSE: FSM) announced significant progress in the construction of its Séguéla gold Project in Côte d’Ivoire, with 85% completion as of November 30, 2022. Key milestones include the energization of the high voltage substation and the initiation of SAG mill installation. The project remains on schedule and within budget, with first gold pour expected mid-2023. Mining activities are set to begin in Q1 2023, supported by ongoing preparations and a committed budget of $169 million.
Fortuna Silver Mines (NYSE: FSM) has announced an amendment to its senior secured revolving credit facility, increasing the maximum amount by US$50 million to US$250 million. The facility's maturity remains in November 2025. Key amendments include a US$50 million accordion option, a step-up level increase from US$150 million to US$175 million, and a transition from LIBOR to SOFR for interest rates. The changes also involve a 25 basis points increase in loan interest rate margins and higher commitment fee rates. This move aims to enhance liquidity and financial stability.
Fortuna Silver Mines Inc. (NYSE: FSM) has announced significant updates from its Séguéla gold Project in Côte d’Ivoire. The updated resource estimation indicates a total of 3.2 million tonnes in Indicated Mineral Resource at an average grade of 2.74 g/t gold, containing 279,000 ounces, along with 4.2 million tonnes in Inferred Mineral Resource at 3.74 g/t gold, containing 506,000 ounces. The drilling program highlighted high-grade intersections, including 10.2 g/t gold over 9.1 meters at the Sunbird Deposit. New regional discoveries at Badior and Barana reaffirm the project's exploration potential.
Fortuna Silver Mines reported Q3 2022 financial results with gold production at 66,344 ounces and silver at 1,837,506 ounces, reflecting increases of 1% and 7% year-over-year. Free cash flow rose to $34 million, up 17% from Q3 2021, while adjusted EBITDA decreased to $54.4 million. A net loss of $4.1 million was reported, impacted by inflation and operational costs. Séguéla construction is 83% complete and on track for mid-2023 operations. The company has $125.9 million in available liquidity and confirmed it will meet production targets.
Fortuna Silver Mines (NYSE: FSM) provides an update on the Séguéla gold Project in Côte d'Ivoire, reporting that construction is 83% complete as of October 31, 2022, with the first gold pour anticipated in mid-2023. The Chief Operating Officer noted construction is on time and budget despite challenges. Key milestones include ongoing recruitment for operational roles, completion of major civil works, and significant water collection for commissioning. The budget commitments total $166 million out of $173.5 million, with the project remaining on schedule for subsequent phases.