Fortuna Completes Divestiture of Yaramoko Mine and Provides Updated 2025 Production and Cost Guidance
NEWS RELEASE
Fortuna Completes Divestiture of Yaramoko Mine and Provides
Updated 2025 Production and Cost Guidance
Vancouver, May 13, 2025: Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) (“Fortuna” or the
“Company”) is pleased to announce the successful completion of the sale of its interest in Roxgold
Sanu SA (“ Roxgold Sanu ”), together with the Company’s three other wholly -owned Burkina Faso
subsidiaries (together with Roxgold Sanu, the “ Acquired Companies ”) to Soleil Resources
International Ltd. (“ SRI”), a private Mauritius company (the “Transaction”). Roxgold Sanu owns and
operates the Yaramoko Mine in the Balé Province, Burkina Faso. The Transaction closed pursuant to
the terms of a definitive share purchase agreement (the “ Share Purchase Agreement ”). All
references to dollar amounts in this news release are expressed in US dollars.
Jorge A. Ganoza, President and CEO, commented , “We’re taking the opportunit ies a strong gold
market provides to streamline our asset portfolio. The recent closings of the high-cost San Jose Mine
sale in April and the Yaramoko Mine sale in May represent the divestment of two operations with
limited reserve life.” Mr. Ganoza continued, “In the case of Yaramoko, we received a compelling offer
that provided a prudent exit from a jurisdiction where we are no longer pursuing exploration activities
and where the operating and security landscape remains challenging.”
Mr. Ganoza concluded, “Collectively, these transactions enable us to shift our focus away from mine
closures - reallocating approximately $50 million in capital and free ing up management capacit y - to
pursue higher-value opportunities aligned with our strategic objectives.”
The proceeds from the sale increase the Company´s first quarter cash and short term investments to
over $380 million and liquidity to over $530 million.
Details of the Transaction
Under the terms of the Share Purchase Agreement, SRI acquired all of the issued and outstanding
shares of the Acquired Companies held by Fortuna’s subsidiaries in consideration for the payment of
$70 million in cash. Prior to the closing of the Transaction, Roxgold Sanu paid to the Company a cash
dividend in the amount of $53.8 million plus $3.7 million in withholding tax . The agreement also
provides that the Company has the right to receive up to approximately $53 million of value added tax
receivables upon the completion of certain conditions.
The Company has now ceased all operations in Burkina Faso.
Updated 2025 Production and Cost Guidance Reflects Streamlining of the Portfolio
Following the divestiture of the Yaramoko Mine, Fortuna has updated its consolidated production and
cost guidance for 2025.
• Gold equivalent production guidance has been updated to 309,000 to 339,000 ounces,
down from the original range of 380,000 to 422,000 ounces; an 18 percent reduction at the
midpoint.
Consolidated cash cost guidance remains unchanged in the original range of $895 to
$1,015 per gold equivalent ounce (“GEO”).
• All-in Sustaining Cost (AISC) guidance has been updated to a range of $1,670 to $1,765
per GEO, up from the previous estimate of $1,550 to $1,680 per GEO. This adjustment
indicates a 6% increase over the midpoint of original guidance and primarily reflects the net
impact of the exclusion of the Yaramoko Mine's contribution, and a reduction in the AISC
estimate for the Lindero Mine.
The updated AISC guidance continues to account for expenditures totaling approximately $45
per GEO, including:
• $5.3 M for the upgrade of the Company’s enterprise resource planning (“ERP”)
system to SAP S/4HANA
• $2 M in land compensation payments at Séguéla
• $7 M in incremental government royalty payments at the Séguéla Mine
2025 Updated Annual GEO Production and AISC Guidance by Mine
Mines
2025
Original
(000 oz)
2025
Updated
(000 oz)
AISC
Original1,2,5
(US$/oz)
AISC
Updated1,2,5
(US$/oz)
Silver
Caylloma, Peru3 3,670 – 4,080 3,670 – 4,080 21.7 - 24.7 21.7 - 24.7
Gold
Séguéla, Côte d’Ivoire 134 - 147 134 - 147 1,500 - 1,600 1,500 - 1,600
Lindero, Argentina4 93 – 105 93 - 105 1,600 - 1,770 1,600 - 1,720
Yaramoko, Burkina Faso6 107 - 121 38 1,165 - 1,320 1,410
Consolidated GEO Total 380 - 422 309 - 339 $1,550 - 1,6807 $1,670 - 1,7657
Notes:
1. Cash Cost and all -in sustaining cost (AISC) are non -IFRS financial measures which are not standardized financial measures under the financial reporting
framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers.
Refer to the note under “Non-IFRS Financial Measures” below
2. AISC includes sustaining capital expenditures, worker’s participation (as applicable) commercial and government royalties min ing tax, export duties (as
applicable), subsidiary G&A and Brownfields exploration and is estimated at metal prices of $2,500/oz Au, $30.0/oz Ag, $2,100/t Pb, and $2,700/t Zn. AISC
excludes government mining royalty recognized as income tax within the scope of IAS -12.
3. Silver equivalent is calculated at metal prices of $2,500/oz Au, $30.0/oz Ag, $2,100/t Pb and $2,700/t Zn. The guidance assum es an exchange rate of
0.89 USD/EUR. For Argentina, it assumes an annual inflation rate of 29 percent and an annual devaluation of 18 percent.
4. The cost guidance for the Lindero Mine does not take into account potential changes by the new Argentine Government to nation al macroeconomic
policies, the taxation system and import and export duties which, if implemented, may have a material impact on co sts
5. Historical non-IFRS measure cost comparatives: The following table provides the historical cash costs and historical AISC for the Company’s four mines
which were operating during the year ended December 31, 2024, as follows:
a. Cash cost and AISC are non-IFRS financial measures; refer to the note under “Non-IFRS Financial Measures” below.
b. Silver equivalent was calculated at metal prices of $ 2,401/oz Au, $2 8.00/oz Ag, $2, 072/t Pb and $2,7 86/t Zn for the year ended December 31,
2024.
c. Further details on the cash costs and AISC for the year ended December 31, 2024 are disclosed on pages 31, 33 and 35 (with respect to cash costs)
and page 37 (with respect to AISC) of the Company’s management discussion and analysis (“MD&A”) for the year ended December 31, 2024
dated as of March 5, 2025 (“2024 MD&A”) which is available under Fortuna's SEDAR+ profile at www.sedarplus.ca and is incorporated by reference
into this news release, and the note under “Non-IFRS Financial Measures” below
6. Yaramoko production reported as of April 14, 2025; AISC reported as of March 31, 2025
7. Refer to Appendix
Mine Cash Costa,b,c AISCa,b,c
Silver ($/oz Ag Eq) ($/oz Ag Eq)
Caylloma, Peru 14.12 21.72
Gold ($/oz Au) ($/oz Au)
Lindero, Argentina 1,051 1,793
Yaramoko, Burkina Faso 860 1,359
Séguéla, Côte d’Ivoire 584 1,153
Qualified Person
Eric Chapman, Senior Vice President of Technical Services for Fortuna Mining Corp., is a
Professional Geoscientist registered with Engineers and Geoscientists British Columbia (Registration
Number 36328) and a Qualified Person as defined by National Instrument 43 -101 Standards of
Disclosure for Mineral Projects. Mr. Chapman has reviewed and approved the scientific and technical
information contained in this news release and has verified the underlying data.
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
www.fortunamining.com
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO, and Director
Fortuna Mining Corp.
Investor Relations:
Carlos Baca | [email protected] | fortunamining.com | 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, Fortuna's right to receive certain additional payments upon the
completion of certain conditions post-closing; estimated production forecasts for 2025; estimated cash
costs and all -in sustaining cash costs for 2025; and the Company’s business strategy, plans and
outlook. 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”, “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, inclu ding production, and cost guidance,
anticipated future financial performance and anticipated production, costs and other metrics. 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, busines s, 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 and operations.
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
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 o r implied by the Forward -looking
Statements. Such uncertainties and factors include, among others, 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 estimate d for such projects
prior to production; risks relating to the Company’s ability to replace its Mineral Reserves; capital and
currency controls in foreign jurisdictions; risks associated with mineral exploration and project
development; uncertainty relatin g to the repatriation of funds 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 politi cal instability
and changes to the regulations governing the Company’s business operations; changes 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 Israel – Hamas war, and the impact they may have on
global economic activity; risks relating to the termi nation 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 the integration of
businesses and assets acquired by the Company; assessment of the carrying value of the Company’s
assets, including the ongoing potential for material impairment and/or write downs of such assets; 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;
uncertainties relating to general economic conditions; risks relating to a global pandemic, which could
impact the Company’s business, operations, financial condition and share price; competition;
fluctuations in metal prices; risks associated with entering into commodity forward and option contracts
for base metals production; fluctuations 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; risk s
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; laws and regulations regarding the protectio n 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); 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, 2024. 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 activities will be conducted in accordance
with the Company’s public statements and stated goals; exchange rate and annual inflation rate
assumptions in respect of cash cost and AISC guidance; that there will be no material 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 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.
Non-IFRS Financial Measures
This news release also refers to non -IFRS financial measures, including cash costs and all -in
sustaining costs. These measures are not standardized financial measures under International
Financial Reporting Standards (IFRS), the financial reporting framework used to prepare the financial
statements of the Company and therefore may not be comparable to similar financial measures
disclosed by other mining companies. These Non -IFRS Measures include cash costs and all -in
sustaining cash costs. Readers should refer to the “Non -IFRS Financial Measures” section in the
Company’s 2024 MD&A, which section is incorporated herein by reference, for an explanation of these
measures and reconciliations to the Company’s reported financial results in accordance with IFRS.
The MD&A 2024 is available on SEDAR+ at www.sedarplus.ca.
Appendix
2025 updated consolidated AISC guidance
Note:
1. AISC includes sustaining capital expenditures, worker’s participation (as applicable) commercial and government royalties
mining tax, export duties (as applicable), subsidiary G&A and Brownfields exploration and is estimated at metal prices of
$2,500/oz Au, $30.0/oz Ag, $2,100/t Pb, and $2,700/t Zn. AISC excludes government mining royalty recognized as income
tax within the scope of IAS-12.
2. 4936-4920-5059, v. 1
AISC Guidance ($/GEO) 2025 Guidance
Lindero 1,600 - 1,720
Caylloma 1,810 - 2,060
Yaramoko 1,410
Séguéla 1,500 - 1,600
Corporate G&A 116
Consolidated AISC 1,670 - 1,765