Fortuna is a rapidly growing precious metals producer, operating two low-cost mines in Peru and Mexico and holding commanding land positions in Peru, Mexico and Argentina. Established in 2005, the company is focused on acquiring precious metals exploration projects and producing mines in Latin America. Management has established a reputation as efficient mine builders and operators by driving operational excellence and organic growth since the company's formation.
In July 2016, Fortuna acquired the open pit, heap leach development stage Lindero gold Project in Salta, Argentina; a positive construction decision was made in September 2017. Lindero has been designed as an 18,750 tonnes per day owner operated open pit mine with a pit life of 13 years based on current Mineral Reserves. Crushed ore will be placed on a leach pad with the pregnant solution pumped to SART and ADR plants prior to electrowinning and refining where gold will be poured to doré bars. Placement of ore on the leach pad and first doré pour is scheduled for the second quarter of 2020.
Consolidated annual production guidance for 2020 is 7.5 to 8.3 million ounces of silver, 101 to 125 thousand ounces of gold, 27.2 to 30.1 million pounds of lead, and 44.0 to 48.6 million pounds of zinc. The San Jose Mine, in Mexico, is scheduled to produce between 6.6 to 7.3 Moz Ag and between 41 to 45 koz Au at a cash cost between $65.6 to $72.5/t and an AISC1 between $9.6 to $11.7/oz Ag Eq. The Caylloma Mine, in Peru, is scheduled to produce between 0.9 to 1.0 Moz Ag, between 27.2 to 30.1 Mlbs Pb, and between 44.0 to 48.6 Mlbs Zn at a cash cost between $81.4 to $89.9/t and an AISC1 between $14.8 to $18.1/oz Ag Eq. The Lindero Mine2, in Argentina, is scheduled to produce between 60,000 to 80,000 ounces of gold at a cash cost between $10.2 to $11.4/t and an AISC1 between US$520 to US$620/oz Au. Production and cost estimates are based on Mineral Reserves and Mineral Resources as at December 31, 2019.
Management is committed to operating safely and profitability and to maintaining industry best practices in employee relations, community outreach and environmental safeguards.
Fortuna is financially stable and does not hedge its silver or gold production. Shares of the company trade mainly on the New York Stock Exchange (NYSE: FSM) and Toronto Stock Exchange (TSX: FVI).
- All-in sustaining cost (AISC) is a non-GAAP financial measure (refer to a description of non-GAAP financial measures in our Management’s Discussion and Analysis); AISC includes production cash cost, commercial and government royalties, mining tax, export duties (as applicable), worker’s participation (as applicable), subsidiary G&A, sustaining capital expenditures, and Brownfields exploration and is estimated at metal prices of US$1,450/oz Au, US$17/oz Ag, US$2,100/t Pb, and US$2,500/t Zn.
- Lindero’s production and cost guidance is based on the updated construction and commissioning schedule, as detailed in Fortuna’s news release dated February 13, 2020, “Fortuna issues 2020 production and cost guidance”, with ore to be placed on the leach pad and first doré pour scheduled in the second quarter of 2020. Any material changes to the construction or commissioning schedule may have a material impact on Lindero’s production and cost guidance. | Lindero’s all-in sustaining cost is based on commercial production and includes an export duty of 5% of revenue.