Fortuna reports record production of 455,958 Au Eq ounces for 2024 and provides 2025 outlook.

VANCOUVER, British Columbia, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI) reports production results for the fourth quarter and full year 2024 from its five operating mines in Latin America and West Africa. For the full year 2024, Fortuna produced a record 369,637 ounces of gold and 3,724,945 ounces of silver for a record 455,958 gold equivalent ounces¹, including lead and zinc by-products. All references to dollar amounts in this news release are expressed in US dollars.

Fourth quarter 2024 highlights

• Gold equivalent production of 116,358 oz; compared to 110,820 oz Au Eq in Q3 2024³ and 136,154 oz Au Eq in Q4 2023²
• Gold production of 95,993 oz; compared to 91,251 oz Au in Q3 2024³ and 107,376 oz Au in Q4 2023²
• Silver production of 843,611 oz; compared to 816,187 oz in Q3 2024³ and 1,354,003 oz in

  Q4 2023²

• Repurchased 6,402,640 common shares at an average price of $4.77 per share for a total of $30,529,066; representing 41.88 percent of the 15,287,201 shares under the Company's normal course issuer bid⁶

Full year 2024 highlights

• Record gold equivalent production of 455,958 oz¹, in line with low end of guidance; compared to 452,389 oz Au Eq in 2023²
• Record gold production of 369,637 oz, achieving midpoint of guidance; compared to

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  326,638 oz Au in 2023²

• Silver production of 3.7 Moz, below guidance; compared to 5.9 Moz in 2023²
• By-product lead and zinc production of 39.6 and 51.9 Mlbs, respectively
• 2024 Total Recordable Injury Frequency Rate (TRIFR) of 1.36 compared to 1.22 in 2023;

  Lost Time Injury Frequency Rate (LTIFR) of 0.48 compared to 0.36 in 2023

2025 consolidated production and cost guidance highlights

• Gold equivalent production of between 380,000 and 422,000 oz; a projected decrease of between 17 and 7 percent, respectively, compared to 2024 production⁴
• Gold production of between 334,000 and 373,000 oz; a projected decrease of

  10 percent and an increase of 1 percent, compared to 2024²

• Silver production of between 0.9 and 1.0 million oz; a projected decrease of between

  76 and 73 percent, respectively, compared to 2024²

• Cash cost of between $895 and $1,015/oz Au Eq ⁵
• AISC of between $1,550 and $1,680/oz Au Eq ⁵

Notes:

1. Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $2,401/oz Au, $28.04/oz Ag, $2,072/t Pb and $2,786/t Zn or Au:Ag = 1:85.6, Au:Pb = 1:1.16, Au:Zn = 1:0.86
2. Refer to Fortuna news release dated January 18, 2024, "Fortuna reports record 2023 production of 452 koz Au Eq and 2024 annual guidance of 457 to 497 koz Au Eq.”
3. Refer to Fortuna news release dated October 10, 2024, "Fortuna reports solid production of 110,820 gold equivalent ounces for the third quarter of 2024.”

1. Au Eq includes gold, silver, lead, and zinc and is calculated using the following metal prices: $2,500/oz Au, $30.0/oz Ag, $2,100/t Pb and $2,700/t Zn or Au:Ag = 1:83.30, Au:Pb = 1:1.19, Au:Zn = 1:0.93
2. Refer to Appendix
3. Refer to Fortuna news release dated December 3, 2024, "Fortuna reports progress on its share buyback program”

2024 consolidated operating results

Séguéla Mine, Côte d'Ivoire

Achieves top end of guidance for gold production

Note:

1. Production includes doré only

Highlight

• Achieved 1.56 million tonnes of annual production as an outcome of optimization work;

  25 percent above original design capacity

In the fourth quarter, mine production totaled 715,008 tonnes of ore, averaging 2.34 g/t Au, and containing an estimated 53,796 ounces of gold from the Antenna, Ancien, and Koula pits. Movement of waste totaled 3,670,138 tonnes, for a strip ratio of 5.1:1. The Antenna pit was the primary source of production, yielding 530,651 tonnes of ore, with the Koula and Ancien pits contributing the remainder.

Séguéla produced 35,244 ounces of gold at an average head grade of 2.95 g/t Au, a 0.7 and

9.7 percent increase, respectively, compared to the third quarter in 2024. Despite higher grades in the fourth quarter, production remained essentially unchanged quarter over quarter due to inventory movements in the plant circuit. The higher gold grade is in line with the planned mining sequence and is representative of the life of mine grade. Plant throughput for the quarter averaged 208 tonnes per hour (tph), which is 35 percent higher than name plate design capacity of 154 tph.

AISC for the full year is expected to be within the 2024 guidance range of between $1,110 and

$1,230 per ounce sold, with AISC in the fourth quarter above the average for the year, reflecting higher capex execution in the last quarter of 2024.

Yaramoko Mine, Burkina Faso

Achieves top end of guidance for gold production

Note:

1. Production includes doré only

Highlights

• One-million-ounce gold pour milestone in May 2024¹
• Fourth consecutive year free of lost time injuries

In the fourth quarter, 102,105 tonnes of ore were treated at an average head grade of

9.18 g/t Au, producing 29,576 ounces of gold. This represents a 37 percent increase in grade, and a 6 percent increase in ounces, compared to the third quarter in 2024. The reduced tonnage milled was primarily due to the failure of the mill variable speed drive circuit breaker which resulted in approximately 16 days of lost milling time. The increased head grade is attributable to ore being mainly sourced from stoping operations in the 55 Zone and QVP as development operations decrease. In 55 Zone, ore development was completed during the quarter, and waste development operations are scheduled to be completed in the first quarter of 2025. At the 109 Zone, open pit mobilization operations commenced, with mining due to start later in the first quarter of 2025.

During the quarter, 117,817 tonnes of ore were mined averaging 8.5 g/t Au from the 55 Zone and QVP.

AISC for the full year is expected to be slightly above the 2024 guidance range of between $1,220 and $1,320 per ounce sold. This was driven by successful exploration results and the required additional mine development, consistent with the extension of the life of mine into 2025.

Note:

1. Refer to Fortuna news release dated May 22, 2024: "Fortuna's Yaramoko Mine reaches one-million-ounce gold pour milestone”

Lindero Mine, Argentina

Achieves guidance for gold production

Note:

1. Gold production includes doré, gold in carbon, and gold in copper concentrate

Highlight

• Leach pad expansion entered operation in the fourth quarter of 2024; delivered into operation on time and on budget.

In the fourth quarter, 2.05 million tonnes of ore were mined, with a stripping ratio of 1.54:1.

A total of 1.76 million tonnes of ore were placed on the leach pad averaging 0.60 g/t Au, containing an estimated 34,151 ounces of gold.

Gold production for the quarter was 26,806 ounces of gold, comprised of 24,679 ounces in doré bars, 2,086 ounces contained in rich fine carbon, and 41 ounces contained in copper precipitate. The

10 percent increase in production, when compared to the previous quarter, is due to a higher rate of pregnant solution percolation related to the first lift of ore placed on the new leach pad expansion area. The mine began placing ore on the expanded leach pad in the second half of October 2024. By year end, the $51.8 million leach pad expansion project was approximately 88 percent complete, with

$6 million remaining to be spent in the first quarter of 2025. This will be used to finalize minor construction activities, demobilize construction contractors, and close out the project. The leach pad expansion is expected to be completed on budget.

Lindero's energy supplier commenced work on a 14.5 MWh solar power plant project in September of 2024. Currently, the project is 41 percent complete, and a 1 MWh battery energy storage system has already been installed and linked to the existing power plant. The project is expected to be complete by the third quarter of 2025.

AISC for the full year is expected to be towards the higher end of the 2024 guidance range between $1,730 and $1,950 per ounce sold, principally due to the appreciation of the Argentine peso throughout the year. However, AISC is expected to improve in 2025 as disclosed in the Lindero outlook section.

Operational efficiency initiatives related to mine, plant capacity, and gold recovery

• Optimized the drill bit diameter for production drilling, resulting in a 38 percent improvement in productivity per meter drilled.
• Commenced project to change the loading and haulage fleet from 100-tonne trucks and shovels to 40-tonne trucks and excavators. This project is expected to reduce capital expenditures, diesel consumption, improve supply options for spare parts, and reduce inventory levels over the life of mine.
• Optimization of the primary and secondary crushers achieved a 13 percent increase in hourly throughput compared to the previous year.
• HPGR attained a 12 percent reduction in average particle size, aiming to improve gold recovery.
• The SART plant achieved a 20 percent reduction in consumption of key reagents when compared to design KPIs.
• Cyanide consumption was reduced by 10 percent compared to the previous year, bringing the current consumption down to 0.28 kg/t.
• Optimization of the adsorption columns and pressure vessels increased flow by 10 percent, leading to improved gold extraction.
• Once completed, the solar power plant is expected to generate annual savings of approximately $1.8 million by replacing an estimated 40 percent of diesel consumption with solar power generation, whilst reducing the carbon footprint by approximately 10,630 t/year of CO₂ emissions.

These initiatives are aligned with Fortuna's continuous improvement strategy, and the operation continues to identify opportunities to improve its competitiveness.

San Jose Mine, Mexico

Production from the tail end of reserves

Highlight

• Subsequent to the end of the quarter, the Company announced the sale of the non-core

  San Jose Mine^1,2

In the fourth quarter, the San Jose Mine produced 594,373 ounces of silver and 4,239 ounces of gold at average head grades of 118 g/t Ag and 0.85 g/t Au, an increase of 16 and 12 percent, respectively, when compared to the third quarter of 2024. The positive results were due to higher grades being mined, with the processing plant milling 190,063 tonnes at an average rate of 2,437 tonnes per day. Metallurgical recoveries continued to be impacted by higher iron oxide material from the upper levels.

Annual production of silver and gold were 18 and 6 percent below the lower end of annual guidance, respectively. Approximately 5 percent of the lower production for both metals was due to the effect of the iron oxide in the metallurgical recovery. Head grades for the year were aligned with the geological model, albeit slightly lower than expected.

As the mine was operating at the tail end of reserves, lower tonnes than expected were mined in areas which included old adits and stopes with high geologic uncertainty. As a result, the largest impact on annual silver production was due to lower tonnage extracted than anticipated.

Notes:

1. Refer to Fortuna news release dated January 15, 2025: "Fortuna announces sale of non-core San Jose Mine, Mexico”
2. Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $2,661/oz Au, $31.26/oz Ag, $2,009/t Pb and $3,046/t Zn or Au:Ag = 1:85.1, Au:Pb = 1:1.32, Au:Zn = 1:0.87

Caylloma Mine, Peru

Strong performance, exceeding top end of annual production guidance for all metals

Note:

1. Metallurgical recovery for silver is calculated based on silver content in lead concentrate

In the fourth quarter, the Caylloma Mine produced 249,238 ounces of silver at an average head grade of 67 g/t Ag. While silver production was 18 percent lower than the previous quarter, it was in line with the production sequence for the period. Total silver production for the year was 7 percent higher than the upper end of annual guidance.

Zinc and lead production was 13.87 Mlbs and 9.50 Mlbs, respectively for the fourth quarter, with average head grades of 4.94 % Zn and 3.36 % Pb, an increase of 6 percent for zinc and a decrease of 7 percent for lead, when compared to the third quarter of 2024. Zinc and lead production was above the higher end of annual guidance by 33 percent and 16 percent respectively. Increased production is the result of positive grade reconciliation to the reserve model in the lower levels of the underground mine.

AISC for 2024 is expected to be towards the high end of annual guidance range between $18 and

$21 per ounce sold, due to the impact of a higher silver price relative to zinc and lead in the silver equivalency calculation, resulting in lower equivalent ounces.

2025 consolidated production and cost guidance

Production guidance for 2025 is lower than 2024, due to the anticipated completion of the sale of the non-core San Jose Mine in the first quarter of 2025, and the impact resulting from a higher silver price relative to zinc and lead in the calculation of silver equivalent production at the Caylloma Mine.

Cash cost and AISC are guided to be in line with 2024, despite increases in the stripping ratio for both the Lindero and Séguéla mines, which for Lindero is anticipated to peak in 2025 and for Séguéla in 2026. This is expected to be offset by lower capex at both the Lindero and Yaramoko mines. Lindero's capital investments in equipment and infrastructure are expected to decrease by approximately

67 percent, while capital expenditures at Yaramoko are expected to decrease by approximately

60 percent.

The Company is also capitalizing on various productivity and cost efficiency initiatives in 2025. Several of the main projects already reflected in our AISC projections amount to $16 million in incremental cash flow (pre-tax) at Lindero, and the optimization of the Séguéla processing facility to treat 1.7 million tonnes per year.  

In addition, the Company is providing 2-year guidance for the Séguéla Mine to reflect the significant improvement in gold production and AISC expected for 2026 at our flagship asset.

2025 consolidated production and cost guidance table

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 $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 assumes an exchange rate of 0.89 USD/EUR. For Argentina, it assumes an annual inflation rate of 29% 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 national 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 five mines which were operating during the year ended December 31, 2023, 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 $1,902/oz Au, $23.37/oz Ag, $2,155/t Pb and $2,706/t Zn for the year ended December 31, 2023.

(c)  Further details on the cash costs and AISC for the year ended December 31, 2023 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, 2023 dated as of March 16, 2024 ("2023 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

2025 Guidance Outlook

Séguéla Mine, Côte d'Ivoire

Optimizing Séguéla's potential through 2026 and beyond

The Company is providing 2-year guidance for the Séguéla Mine to reflect the significant improvement in gold production and AISC planned for 2026.