Fortuna reports record 2023 production of 452 koz Au Eq and 2024 annual guidance of 457 to 497 koz Au Eq
Fortuna reports record 2023 production of 452 koz Au Eq
and 2024 annual guidance of 457 to 497 koz Au Eq
Vancouver, January 18, 202 4 – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reports production
results for the fourth quarter and full year 2023 from its five operating mines in Latin America and West
Africa. For the full year 2023, Fortuna produced a record 326,638 ounces of gold and 5,883,691 ounces of
silver or a record 452,389 gold equivalent ounces, including lead and zinc by-products1. All references to
dollar amounts in this news release are expressed in US dollars.
Fourth quarter 2023 highlights
• Record gold equivalent production of 136,154 ounces1; a 6 percent increase compared to Q3 2023
(128,671 oz Au Eq)2
• Record gold production of 107,376 ounces; a 13 percent increase compared to Q 3 2023
(94,821 oz Au)2
• Silver production of 1,354,003 ounces; a 19 percent decrease compared to Q3 2023
(1,680,751 oz Ag)2
Full year 2023 highlights
• Record gold equivalent production of 452,389 ounces1; a 13 percent increase compared to 2022
(401,878 oz Au Eq)3
• Record gold production of 326,638 ounces; a 26 percent increase compared to 202 2
(259,427 oz Au)3
• Silver production of 5,883,691 ounces; a 15 percent decrease compared to 2022 (6.9 Moz Ag)3
• Record lead production of 40,851,657 pounds; an 18 percent increase over 2022 (34.6 Mlbs Pb)3
• Record zinc production of 55,060,450 pounds; a 19 percent increase over 2022 (46.2 Mlbs Zn)3
• Continuous trend of improvement in annual safety performance across the business with a
Total Recordable Injury Frequency Rate (TRIFR) of 1.22 , and a Lost Time Injury Frequency Rate
(LTIFR) of 0.36, compared to 2.32 and 0.35 in 2022
2024 consolidated production and cost guidance highlights
• Gold equivalent production4 of between 457 and 497 thousand ounces; a projected increase of
between 1 and 10 percent, respectively, compared to 2023
• Gold production of between 343 and 385 thousand ounces; a projected increase of between
5 and 18 percent, respectively, compared to 2023
• Silver production of between 4.0 and 4.7 million ounces; a projected decrease of between 32 and
21 percent, respectively, compared to 2023
• Cash Cost of between $935 and $1,055/oz Au Eq5; an approximate projected increase of between
6 and 20 percent, respectively, compared to 2023
NEWS RELEASE
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• AISC of between $1,485 and $1,640/oz Au Eq5; an approximate projected decrease of 1 percent
and an increase of 9 percent, respectively, compared to 2023
Notes:
1. Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $1,948/oz Au, $23.37/oz Ag, $2,155/t Pb and $2,706/t Zn or Au:Ag = 1:83.38,
Au:Pb = 1:0.90, Au:Zn = 1:0.72
2. Refer to Fortuna news release dated October 5, 2023, “Séguéla drives Fortuna to record gold equivalent production of 128,671 ounces in the third quarter 2023”
3. Refer to Fortuna news release dated January 17, 2023, “Fortuna reports 2022 full year record production of 401,878 gold equivalent ounces and issues 2023 annual
guidance”
4. Au Eq includes gold, silver, lead, and zinc and is calculated using the following metal prices: $1,800/oz Au, $22/oz Ag, $2,000/t Pb and $2,500/t Zn or Au:Ag = 1:81.82,
Au:Pb = 1:1.11, Au:Zn = 1:1.39
5. Refer to Appendix
2023 consolidated operating results
Gold production (oz) Silver production (oz)
Mines Q4 2023 FY 2023 2023 Guidance Q4 2023 FY 2023 2023 Guidance
Séguéla, Côte d’Ivoire1 43,096 78,617 60,000 - 75,000 - - -
Yaramoko, Burkina Faso2 28,235 117,711 110,000 - 120,000 - - -
Lindero, Argentina 29,591 101,238 96,000 - 106,000 - - -
San Jose, Mexico 6,345 28,559 34,000 - 37,000 1,023,525 4,656,631 5,300,000 - 5,800,000
Caylloma, Peru 109 513 - 330,478 1,227,060 1,000,000 - 1,100,000
Total 107,376 326,638 282,000 - 320,000 1,354,003 5,883,691 6,300,000 - 6,900,000
Notes:
1. Séguéla Mine production from June to December 2023
2. Yaramoko annual gold production guidance revised upwards. Refer to Fortuna news release dated October 5, 2023, “Séguéla drives Fortuna to record gold equivalent
production of 128,671 ounces in the third quarter 2023”
In 2023, record gold production was mainly driven by Séguéla contributing 78,617 ounces in the second
half of the year , exceeding the upper range of guidance . Yaramoko also contributed 117,711 ounces,
achieving the upper end of production guidance as a result of higher head grades. Consolidated silver
production of 5.9 million ounces was 7 percent below the lower end of guidance, due to decreased
production at San Jose as a result of the illegal union blockade in the second quarter and operational
challenges thereafter.
Séguéla Mine, Côte d’Ivoire
Exceeds annual production guidance by 5 percent; operating 20 percent above nameplate capacity
Q4 2023 FY 2023 2023 Guidance
Tonnes milled 387,624 807,617 -
Average tpd milled 4,123 3,146 -
Gold grade (g/t) 3.62 3.42 -
Gold recovery (%) 94.9 93.9 -
Gold production (oz)1 43,096 78,6172 60,000 - 75,000
Notes:
1. Production includes doré only
2. Séguéla Mine production from June to December 2023
Highlights
• Q4 2023 gold production: 43,096 ounces
• FY 2023 gold production: 78,617 ounces, exceeds annual production guidance
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In the fourth quarter of 2023, mined material totaled 409,293 tonnes of ore, averaging 3.34 g/t Au, and
containing an estimated 43,913 ounces of gold from the Antenna pit. Movement of waste during the
quarter totaled 2,110,209 tonnes from Antenna and 104,472 tonnes from the Ancien pit, for a strip ratio
of 5.4:1.
In the fourth quarter of 2023, Séguéla produced 43,096 ounces of gold at an average head grade of
3.62 g/t Au, a 37 percent increase and a 5 percent decrease, respectively, compared to the previous
quarter. The increase in gold production is directly related to the mill achieving consistently higher
throughput, processing 387,624 tonnes, a 25 percent increase over the previous quarter.
Mine reconciliation to reserve model
Reconciliation of tonnes, grade , and gold ounces mined for the fourth quarter from Antenna show a
positive correlation when compared to the long -term reserve model with 6 percent higher ore tonnes
mined at 16 percent higher grades resulting in 24 percent more gold ounces extracted than predicted in
the model.
Processing
Process plant performance continued to improve as feed characteristics were stabilized and initial
bottlenecks addressed. Recovery in the fourth quarter increased to 94.9 %, ahead of feasibility study
assumptions. Plant productivity also continued to improve with throughput in the fourth quarter being
186 t/hr, a 20 percent increase on the 154 t/hr nameplate capacity.
Yaramoko Mine, Burkina Faso
Strong performance, achieves higher end of annual production guidance
Based on Yaramoko’s strong performance during the year, management increased guidance in the third
quarter of 2023 from 96 to 102 thousand ounces of gold to 110 to 120 thousand ounces of gold (refer to
Fortuna news release dated October 5, 2023).
Q4 2023 FY 2023 2023 Guidance
Tonnes milled 110,445 531,579 -
Average tpd milled 1,200 1,456 -
Gold grade (g/t) 7.16 6.81 -
Gold recovery (%) 98.3 98.0 -
Gold production1 (oz) 28,235 117,711 110,000 - 120,000
Note:
1. Production includes doré only
Highlights
• Q4 2023 gold production: 28,235 ounces
• FY 2023 gold production: 117,711 ounces, achieving higher end of annual production guidance
• 3 years LTI-free as of September 2023
• Obtained ISO 14001 and 45001 certification
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In the fourth quarter of 2023, Yaramoko produced 28,235 ounces of gold at an average head grade of
7.16 g/t Au, a 17 and 7 percent decrease, respectively, compared to the previous quarter . Reduced
production was due to lower mill throughput in the fourth quarter, the depletion of low-grade stockpiles,
and a planned maintenance shutdown in December.
Exploration and grade control drilling success in conjunction with underground development extended
mineralization on the western side of the Zone 55 mineralized structure. This provided additional mining
areas which demonstrated wider and higher-grade extensions of mineralization within and beyond the
existing resource boundary.
Lindero Mine, Argentina
Achieved midpoint of annual production guidance
Q4 2023 FY 2023 2023 Guidance
Ore placed on pad (t) 1,556,000 6,005,049 -
Gold grade (g/t) 0.63 0.64 -
Gold production (oz)1 29,591 101,238 96,000 - 106,000
Note:
1. Gold production includes doré, gold in carbon, and gold in copper concentrate
Highlights
• Q4 2023 gold production: 29,591 ounces
• FY 2023 gold production: 101,238 ounces, achieving midpoint of annual production guidance
During the fourth quarter of 202 3, ore mined was 2.1 million tonnes , with a strip ping ratio of
0.6:1, 45 percent lower than the previous quarter. The stripping ratio for 2023 was 1.14:1, aligned with
the mining plan for the year. A total of 1.6 million tonnes of ore were placed on the leach pad at an average
gold grade of 0.63 g/t, containing an estimated 31,665 ounces.
Lindero’s gold production in the fourth quarter of 2023 was 29,591 ounces, a 41 percent increase
compared to the previous quarter. Gold production was comprised of 24,977 ounces in doré bars,
4,443 ounces of gold contained in fine carbon, and 171 ounces contained in copper concentrate.
Gold production for 2023 totaled 101,238 ounces, comprised of 94,905 ounces in doré bars, 6,015 ounces
in gold contained in fine carbon, and 319 ounces contained in copper concentrate.
As of December 31, 2023, the leach pad expansion project is approximately 23 percent complete.
Mobilization of the civil contractor’s personnel and equipment has advanced with earth moving activities
having commenced in January. Deliveries of geomembrane and geosynthetic clay liner are
on-track, with the remaining materials expected to arrive on site in the first quarter of 2024 . The leach
pad expansion remains on schedule for completion during the second half of 2024.
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San Jose Mine, Mexico
Illegal blockade and operational challenges lead to shortfall in annual production guidance
Q4 2023 FY 2023 2023 Guidance
Tonnes milled 241,035 930,200 -
Average tpd milled 2,678 2,643 -
Silver grade (g/t) 145 171 -
Silver recovery (%) 90.78 90.96 -
Silver production (oz) 1,023,525 4,656,631 5,300,000 - 5,800,000
Gold grade (g/t) 0.91 1.06 -
Gold recovery (%) 89.64 90.18 -
Gold production (oz) 6,345 28,559 34,000 - 37,000
Highlights
• Q4 2023 production: 1,023,525 ounces of silver and 6,345 ounces of gold
• FY 2023 production: 4,656,631 ounces of silver, and 28,559 ounces of gold
During the fourth quarter of 2023, t he San Jose Mine produced 1.02 million ounces of silver , and
6,345 ounces of gold, a 25 and 23 percent decrease, respectively, with average head grades for silver and
gold of 145 g/t and 0.91 g/t, a 23 and 20 percent decrease, respectively, when compared to the previous
quarter.
The decrease in silver and gold production for the quarter is explained by the declining grade profile of
Mineral Reserves in the mine plan, as well as lower tonnage extracted from the mine. The reduction in
tonnage is due to operational challenges leading to delays in backfilling and blasting operations in stopes
P and Q during December 2023. During the fourth quarter, the processing plant milled 241,035 tonnes at
an average of 2,678 tonnes per day.
Production in 2023 totaled 4,656,631 ounces of silver and 28,559 ounces of gold , 12 percent and
16 percent below annual guidance range, respectively. The decrease in production is attributed primarily
to the 15-day illegal union blockade in the second quarter (refer to Fortuna news release dated May 2,
2023), the associated disruption to operations thereafter, and a silver and gold head grade reconciliation
to reserves at the lower end of guidance range.
Exploration continues at the newly discovered Yessi vein with encouraging results (refer to Fortuna news
release dated December 12, 2023).
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Caylloma Mine, Peru
Outperformer, exceeds annual production guidance for all metals
Q4 2023 FY 2023 2023 Guidance
Tonnes milled 140,800 543,876 -
Average tpd milled 1,564 1,528 -
Silver grade (g/t) 88 85 -
Silver recovery (%) 83.40 82.57 -
Silver production (oz)1 330,478 1,227,060 1,000,000 - 1,100,000
Lead grade (%) 3.84 3.74 -
Lead recovery (%) 90.58 91.14 -
Lead production (lbs) 10,798,242 40,851,657 29,000,000 - 32,000,000
Zinc grade (%) 5.00 5.11 -
Zinc recovery (%) 89.86 89.83 -
Zinc production (lbs) 13,933,215 55,060,450 43,000,000 - 48,000,000
Note:
1. Metallurgical recovery for silver is calculated based on silver content in lead concentrate
Highlights
• Q4 2023 production: 330,478 oz silver, 10.8 Mlbs lead, and 14.0 Mlbs zinc
• FY 2023 production: 1,227,060 oz silver, exceeds annual production guidance
• FY 2023 record base metal production : 40.9 Mlbs lead, 55.1 Mlbs zinc, exceeding annual
production guidance by 28 and 15 percent, respectively
In the fourth quarter, the Caylloma Mine produced 330,478 ounces of silver at an average head grade of
88 g/t, a 7 and 6 percent increase, respectively, when compared to the previous quarter. Silver production
for 2023 totaled 1,227,060 ounces, exceeding the upper end of annual guidance range by 10 percent.
Lead and zinc production for the quarter was 10.8 and 14.0 million pounds, respectively, a 4 percent
increase for lead, with no variation for zinc, when compared to the previous quarter. Head grades
averaged 3.84 %, and 5.00 %, a 5 percent increase, and 1 percent decrease, respectively, when compared
to the previous quarter. Record lead and zinc production for 2023 totaled 40.9 and 55.1 million pounds,
respectively. Increased production is the result of positive grade reconciliation to the reserve model in
levels 16 and 18 of the Animas vein.
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2024 consolidated production and cost guidance
Mine Silver (Moz) Gold (koz) Lead (Mlbs) Zinc (Mlbs) Cash Cost1,3 AISC1,2,3,5
Silver ($/oz Ag Eq) ($/oz Ag Eq)
San Jose, Mexico 3.1 - 3.6 19 - 23 - - 20.3 - 22.3 22.8 - 24.0
Caylloma, Peru 0.9 - 1.1 - 29 - 34 36 - 39 12.7 - 14.0 18.0 - 21.0
Gold ($/oz Au) ($/oz Au)
Lindero, Argentina4 - 93 - 105 - - 850 - 950 1,730 - 1,950
Yaramoko, Burkina Faso - 105 - 119 - - 865 - 965 1,220 - 1,320
Séguéla, Côte d´Ivoire - 126 - 138 - - 630 - 730 1,110 - 1,230
Consolidated Total 4.0 - 4.7 343 - 385 29 - 34 36 - 39 $935 - 1,0556 $1,485 - 1,6406
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. Cash cost includes production cash cost and for Lindero, is net of copper by-product credit. 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 $ 1,800/oz Au,
$22/oz Ag, $2,000/t Pb, and $2,500/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 $1,800/oz Au, $22/oz Ag, $2,000/t Pb and $2,500/t Zn.
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 costs.
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, 2022, 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 $1,802/oz Au, $21.75/oz Ag, $2,161/t Pb and $3,468/t Zn for the year ende d December 31, 2022.
(c) Further details on the cash costs and AISC for the year ended December 31, 2022 are disclosed on pages 38, 40, and 41 (with respect to cash costs) and pages 39 and 42
(with respect to AISC) of the Company’s management discussion and analysis (“MD&A”) for the year ended December 31, 2022 dated as of March 15, 2023 (“2022 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. Refer to Appendix.
2024 Guidance Outlook
Séguéla Mine, Côte d’Ivoire
Mill throughput expanded to 1.46 Mta, achieving 70% of mill expansion scheduled for 2026
The 2024 mine plan considers mining in the Antenna, Ancien , and Koula pits, with plans to process
1.46 million tonnes of ore averaging 3.0 g/t Au, and capital investments estimated at $ 39.8 million,
including $32 million for sustaining capital expenditures and $7. 8 million for Brownfields exploration
programs.
Feasibility and optimization work is underway to realize the opportunity to incorporate underground
mineable resources at the Sunbird, Ancien, and Koula deposits.
Major sustaining capital investments include:
• Capitalized stripping $17.1 million
• Tailings storage facility (TSF) lift $4.8 million
• Other miscellaneous $10.1 million
Mine Cash Costa,b,c AISCa,b,c
Silver ($/oz Ag Eq) ($/oz Ag Eq)
San Jose, Mexico 10.56 15.11
Caylloma, Peru 12.34 17.97
Gold ($/oz Au) ($/oz Au)
Lindero, Argentina 740 1,142
Yaramoko, Burkina Faso 840 1,529
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Capitalized stripping at Séguéla corresponds to further mining of the Antenna pit and development and
mining of the Ancien and Koula pits. The overall stripping ratio for 2024 is planned to be 8.2:1 . AISC for
2024 reflects the ongoing TSF expansion project, which will add tailings holding capacity for the next
two years and is expected to be completed in the first half of 2024.
In 2024, annual ore processing is expanded to 1.46 million tonnes, 17 percent above tonnage scheduled
for year 1 in the 2021 Technical Report, and close to the expansion target of 1.57 million tonnes scheduled
for year 3. Process plant de -bottlenecking initiatives in 2024 still present upside opportunities for
throughput capacity.
Cash cost and AISC:
• The Company expects a 2024 cash cost between $630 and $730 per ounce of gold, an increase of
approximately 113 percent over 2023 at the upper range, and 84 percent at the lower range of
guidance. The increase is mainly due to the mine’s stripping ratio rising from 3.7:1 to 8.2:1, in
accordance with the mine plan. In addition, higher costs are anticipated for processing, which
include milling, energy consumption, freight, transportation, and overhead.
• The Company expects a 2024 AISC between $1,110 and $1,230 per ounce of gold, an increase of
approximately 54 percent over 2023 at the upper range, and 39 percent at the lower range of
guidance. The increase is explained by higher cash cost per ounce and higher capex per ounce of
approximately $120 related to capitalized stripping costs.
Yaramoko Mine, Burkina Faso
Grade and tonnages benefit from exploration success in 2023
At the Yaramoko Mine, the Company plans to process 435,000 tonnes of ore averaging 8.3 g/t Au. Capital
investment decreases substantially compared to previous years and in 2024 mainly comprises of
development and exploration activities.
Major sustaining capital investment projects include:
• Mine development $13.9 million
• Brownfields exploration $6.1 million
Cash cost and AISC:
• The Company expects a 2024 cash cost between $865 and $965 per ounce of gold, an increase of
approximately 29 percent over 2023 at the upper range, and 16 percent at the lower range of
guidance. The increase is due primarily to the reallocation of fixed mining costs from capex to
opex and lower processed ore.
• The Company expects a 2024 AISC between $1,220 and $1,320 per ounce of gold, a decrease of
approximately 7 percent under 2023 at the upper range, and 14 percent at the lower range of
guidance. The decrease is explained by lower capex year over year of approximately $250 per
ounce of gold.