Fortuna announces GHG emissions reduction target for 2030 and long-term objectives to 2050
NEWS RELEASE
Fortuna announces GHG emissions reduction target for 2030
and long-term objectives to 2050
Vancouver, February, 8, 2024: Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to announce
its objectives, metrics, and targets concerning its greenhouse gas (“GHG”) emissions reduction pathways
as part of the commitments contained in its Climate Change position statement disclosed in April 2022
(refer to Fortuna news release dated April 7, 2022).
To this end, Fortuna:
• Has set a target to reduce Scope 1 and Scope 2 GHG emissions by 15 percent in 2030, compared
to “business as usual” (“BAU”) forecast GHG emissions in 2030 if no intervention measures were
taken.
• Is committed to supporting the global ambition of net -zero GHG emissions by 2050 through
investing in technology, energy efficiency initiatives, and renewable energy over the long -term,
where such investments are reliable, affordable, and competitive.
2030 GHG emissions reduction target
Based on an assessment of existing activities, Fortuna has determined that a significant portion of its
current GHG emissions is attributable to the use of diesel to power its operations. Accordingly, Fortuna’s
biggest opportunities for reducing GHG emissions are related to electrification , and increased use of
renewable energy.
Fortuna expects to achieve its GHG emissions reduction target through the implementation of the
following projects:
Mine Initiative Outcome
Séguéla,
Côte d’Ivoire
Provide renewable energy to
the operation
• Construction and implementation of a solar power plant by 2025
• GHG emissions expected to decrease by approximately 3,700 tCO2 per year over the 8-year
LoM1
Lindero,
Argentina
Provide renewable energy to
the operation
• Construction and implementation of a solar power plant by 2025
• GHG emissions expected to decrease by approximately 10,820 tCO2 per year over the 11-year
LoM
Caylloma,
Peru
Provide low-carbon
electricity to the operation
• In 2022, Caylloma switched to an energy supplier that provides electricity from 100 percent
renewable energy sources
• GHG emissions expected to decrease by ~ 8,860 tCO2 per year over the 5-year LoM
Caylloma,
Peru
Optimization of mine paste
fill plant
• Construction and modernization of new paste fill plant will avoid use of truck haulage of
tailings for plant feed
• GHG emissions expected to decrease by ~ 420 tCO2 per year over the 5-year LoM
Note:
1. LoM: Life of mine based on Mineral Reserves
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Fortuna has set a BAU target to guide its GHG emissions reduction commitment. BAU is a metric defined
as a reduction of GHG emissions against a future forecast of unmitigated GHG emissions where no actions
are taken to reduce GHG emissions during the defined time-period. Fortuna has aligned on a BAU target
in recognition that its GHG emissions and energy profile will change over time with continued operational
and business growth. All of Fortuna’s operating mines are covered by this BAU target.
Based on Fortuna’s 2022 LoM estimates, the forecasted BAU Scope 1 and Scope 2 GHG emissions in
2030 would be 136,500 tonnes of carbon dioxide (“tCO2”). Fortuna is committing to reduce Scope 1 and
Scope 2 GHG emissions to at least 116,000 tCO2 in 2030, which represents 20,500 tCO2 or 15 percent less
emissions than the 2030 BAU forecast.
Through the implementation of its commitment to reduce the Company’s Scope 1 and Scope 2 GHG
emissions by 15 percent in 2030 with the four initiatives presented above, Fortuna expects to be able to
achieve a cumulative reduction in GHG emissions estimated at over 160,000 tCO 2 equivalents (“tCO2e”)
between 2022 and 2030 compared to its forecasted emissions.
Long-term objectives to 2050
Considering the current estimated LoM of its operations, Fortuna is committed to supporting the global
ambition of net-zero GHG emissions by 2050 through investing in technology, energy efficiency initiatives,
and renewable energy over the long -term, where such investments are reliable, affor dable, and
competitive. Examples include, where possible, enhancing its low-carbon power supply, fuel switching to
use more electricity and/or low carbon fuels, and incorporating demand management strategies and
battery storage.
Monitoring, reviewing, and reporting of GHG emissions
Fortuna is committed to monitoring the GHG emissions of each of its mines on a monthly basis and to
periodically review progress against its GHG emissions reduction target and its pathway , alongside the
monitoring of its other sustainability targets. The Company will also monitor and assess its exposure to
climate-related risks and opportunities considering the evolving voluntary and regulatory landscape.
The Company ’s progress towards reaching its GHG emissions reduction target and forecasts will be
reviewed at least annually to ensure the most up to date and accurate information is considered. This
includes potential internal factors such as operational changes and business growth , evolving climate-
related risks and opportunities, regulatory landscape and market expectations, and other external factors
impacting Fortuna’s climate change strategy and commitments.
Reporting on performance will be conducted on at least an annual basis in the Company’s sustainability
report and on its website.
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in
Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru. Sustainability is integral to all our operations and
relationships. We produce gold and silver and generate shared value over the long -term for our
stakeholders through efficient production, environmental protection, and social responsibility. For more
information, please visit our website.
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ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.
Investor Relations:
Carlos Baca | [email protected] | www.fortunasilver.com | X | LinkedIn | YouTube
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Forward-looking Statements
This news release contains forward -looking statements which constitute “forward -looking information” within the meaning of
applicable Canadian securities legislation and “forward -looking statements” within the meaning of the “safe harbor” provisions
of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward-looking Statements”). All statements included herein,
other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks
and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward -looking
Statements. The Forward -looking Statements in this news release may include, without limitation, statements establishing
sustainability and environmental targets, goals, and strategies, including relating to GHG emissions, and the ability to meet the
same; the achievement and actionability of the Company’s climate change strategy; the expected timing and effectiveness of the
Company’s initiatives in achieving its GHG emissions reduction target; statements relating to the Company’s long-term objectives
in supporting the global ambition of net-zero emissions by 2050; statements about the Company’s plans for its mines and mineral
properties; statements regarding the Company’s expectations surrounding the construction and implementation of a solar power
plant at the Séguéla Mine and the Lindero Mine and the implementation of underground infrastructure to pump tailings at the
Caylloma Mine; changes in general economic conditions and financial markets ; timing of and possible outcome of litigation;
mineral resource and mineral reserve estimates; life of mine estimates ; the Company’s business strategy, plans and outlook; the
merit of the Company’s mines and mineral properties; and the future financial or operating performance of the Company. Often,
but not always, these Forward-looking Statements can be identified by the use of words such as “estimated”, “potential”, “open” ,
“future”, “assumed” , “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “anticipated”, “estimated”
“containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved a nd 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 uncertainties and factors include, among others, inability to meet
sustainability, environmental, diversity or safety targets, goals, and strategies (including GHG emissions reduction targets) ;
operational risks associated with mining and mineral processing; uncertainty relating to Mineral Resource and Mineral Reserve
estimates; uncertainty relating to capital and operating costs, production schedules and economic returns; uncertainties related
to new mining operations, including the possibility that actual capital and operating costs and economic returns will differ
significantly from those estimated for such projects prior to production; risks relating to the Company’s ability to replace its Mineral
Reserves; risks associated with mineral exploration and project development; uncertainty relating to the repatriation of fund s as
a result of currency controls; environmental matters including obtaining or renewing environmental permits and potential liability
claims; uncertainty relating to nature and climate conditions; risks associated with political instability and changes to the
regulations governing the Company’s business operations; chang es in national and local government legislation, taxation,
controls, regulations and political or economic developments in countries in which the Company does or may carry on business,
including relating to the newly elected government in Argentina; risks associated with war, hostilities or other conflicts, such as
the Ukrainian – Russian conflict, and the impact it may have on global economic activity; risks relating to the termination of the
Company’s mining concessions in certain circumstances; developing and maintaining relationships with local communities and
stakeholders; risks associated with losing control of public perception as a result of social media and other web-based applications;
potential opposition to the Company’s exploration, development and operational activities; risks related to the Company’s ability
to obtain adequate financing for planned exploration and development activities; property title matters; risks relating to th e
integration of businesses and assets acquired by the Company; impairments; risks associated with climate change legislation;
reliance on key personnel; adequacy of insurance coverage; operational safety and security risks; legal proceedings and potential
legal proceedings; t he possibility that the ruling in favor of Compania Minera Cuzcatlan S.A. de C.V. (“Minera Cuzcatlan”) to
reinstate the environmental impact authorization at the San Jose mine (the “EIA”) will be successfully appealed; uncertainties
relating to general economic conditions; risks relating to a globa l pandemic, which could impact the Company’s business,
operations, financial condition and share price; competition; fluctuations in metal prices; risks associated with entering in to
commodity forward and option contracts for base metals production; fluctu ations in currency exchange rates and interest rates;
tax audits and reassessments; risks related to hedging; uncertainty relating to concentrate treatment charges and transportation
costs; sufficiency of monies allotted by the Company for land reclamation ; risks associated with dependence upon information
technology systems, which are subject to disruption, damage, failure and risks with implementation and integration; risks
associated with climate change legislation; labor relations issues; as well as those factors discussed under “Risk Factors” in the
Company's Annual Information Form for the fiscal year ended December 31, 2022. Although the Company has attempted to
identify important factors that could cause actual actions, events, or results to differ materially from those described in Forward-
looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or
intended.
Forward-looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management,
including, but not limited to, the accuracy of the Company’s current mineral resource and reserve estimates; that the Company ’s
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activities will be conducted in accordance with the Company’s public statements and stated goals; that there will be no mater ial
adverse change affecting the Company, its properties or its production estimates (which assume accuracy of projected ore grade,
mining rates, recovery timing, and recovery rate estimates and may be impacted by unscheduled maintenance, labor and
contractor availability and other operating or technical difficulties); the duration and effect of global and local inflation ; the
duration and impacts of geo -political uncertainties on the Company’s production, workforce, business, operations and financial
condition; the expected trends in mineral prices, inflation and currency exchange rates; that any appeal in respect of the ruling in
favor of Minera Cuzcatlan to reinstate the EIA will not be successful; that all required approvals and permits will be obtained for
the Company’s business and operations on acceptable terms; that there will be no significant disruptions affecting the Company's
operations and such other assumptions as set out herein. Forward -looking Statements are made as of the date hereof and the
Company disclaims any obligation to update any Forward -looking Statements, whether as a result of new information, future
events, or results or otherwise, except as required by law. There can be no assurance that these Forward -looking Statements will
prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, investors should not place undue reliance on Forward-looking Statements.