Fortuna Mining Corp.

This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

Well it looks like I threw off Mr. Lewin's too early since the next speaker is not here, so I apologize to ah to John. We're waiting for Funa Mining Corporation. It's we'll we'll we'll give Fortuna Mining Corporation a few more minutes, otherwise I'll tell you a little bit about my life. I was born in 1960, I well, let's wait for the company. If some of the organizers would like to go and chase. the ladies on the desk, please, that would be appreciated, thank you. Otherwise, feel free to stand up, stretch your legs. I know these can be long sessions. Sitting down for several hours, so please feel free to get up and stretch. Hello ladies, sorry, ladies and gentlemen, thank you again. may I introduce Mr. Jorge Ganoza? She's my Spanish pronunciation, who's the president, CEO and director of Fortuna Mining Corp. Thank you. Thank you and sorry for running on Peruvian time rather than Swiss time. So why investing for tuna? We are strategically positioned to deliver over the next 24 months. High value growth opportunities. I'm gonna to be telling you about that. We have two key projects that are gonna drive significant growth for us. We're currently producing gold at an annual rate of about 300,000 ounces of, Annually and we, plan to drive that and reclaim half a million ounces of annual production which is what we were producing back in 2024. we're returning capital to our shareholders. We have a high margin business today. we have about $130 million allocated for, shareholder returns. We, we, we repurchased about $12 million back in, the fourth quarter of 2025. And, $20 million this first quarter of 2026 we have one of the strongest balance sheets in our peer group of mid-size producers with over $700 million of of liquidity and a net cash position of in excess of $380 million. one of the legs that supports our growth, ambition over the next 24 months is the Diambaut project where we just published. an expansion of resources of 73%. I'm gonna be telling you more about that. We're a proven team in the jurisdictions where we operate, which are West Africa and Latin America. Collectively we have built in those regions, as for tuna, 5, mines and operate them successfully and, This growth ambition again of going up to 500,000 ounces of gold production is supported by about 7 million ounces of gold and growing in our total mineral inventory within reserves and resources, which is significant. So we don't need to discover or go acquire ounces in order to drive this to to this target of half a million ounces of annual production. Or jurisdictions or regions of choice for business are LTA and, and, West Africa, two premier mining regions. These are regions that have a higher perceived, geopolitical risk. And in exchange for that, geopolitical risk associated to operating in developing nations, young democracies is we ask for higher returns in the projects we, we acquire and, and we develop. we're about to enter into a construction of for, Segela or Diammbass mine in, in, in the, in Senegal, and that's a project that currently exhibits an internal rate of return of 73% using $2750 per ounce of gold, no, on, on, on price. So, and we do not have a concentration of NAV in any one project, so we have a good distribution in different countries. So our NAV is not concentrated in one country or in one single asset. So that's how we manage your political risk. So we have 3 operating mines today, and a developing project. So I draw your attention to the, the last line where we talk about life of mines. We're driving. operations or or business with mines that each one supports a decade plus in, in, in reserves in, in life of mine. So, based solely on reserves we show at the Segela M 9 years if you include resources you're looking beyond a decade. The same thing at Lindero and Cayoma is a bit of a the odd duck here. Cayoma has been operating for 500 years. With 3 years of life of reserves, it is one of those underground mines in the high Andes. It is our first mine. It's our smallest mine, but a steady free cash flow contributor, and, as I tell everybody, that mine is not gonna close in my watch. It's been operating for 500 years, right? And our newest project, the Ambassut, I'm gonna be telling you more about that. So I, I started the conversation, the presentation, saying. We have this ambition to get to half a million ounces. How are we gonna do that? Developing these two projects, the expansion of our Segela mine in Cote d'Ivoire, that's today I would say our flagship asset. it's been operating since mid-2023. This year it is gonna deliver about 170,000 ounces of gold and Expanding, sorry, expanding the Segela mine and building the Ambassut where we expect to make a construction decision this year. For us, the construction is imminent. We have allocated in our 2026 budget $100 million towards the Aba suit. And 60 million of those $100 million allocated to the AMA are for early works. So, we started camp construction, road access. We are advancing, engineering front-end engineering design. We're placing purchase orders for equipment packages that are on the critical path. We expect we could be in a position to deliver gold. first gold in, mid 2028, right? So, and the same thing with Segela, we are expecting to deliver the expansion study for the mine in, this coming month of May. our plan is to expand the processing capacity of this mine by 30%, taking it from, let's say 5000 tons per day to 6000, 6500 tons per day. That's going from 1.75 million tons per year of annual throughput to 2.3 million tons per year of annual throughput. We have the resources, the reserves to support that expansion. We believe the capex for the Seal expansion will be in the range of $75 million and, the capex for the Ambass will be in the range of $300 million. Those projects are low risk. Technically are supported by a sound base of reserves and resources that we currently have in our inventories, socially are very viable. And financially are the risk by the strength of our balance sheet. So for us it's focusing on execution. And at a time where everybody wants to build a gold mine, just make sure that we, you know, put our money to work, get first on the queue with the best engineers, with the best service providers, with the best contractors, the, the, the equipment manufacturers or sack mills and all of those, equipment packages that can be a long lead. Get first in the queue, put the money to work. And get ready to get those deliveries in a reasonable time frame, right? We were close to delivering half a million ounces back in 2024. And we decided to divest of two mines we had in the portfolio, the Yarramoco mine in Burkina Faso and the San Jose mine in Mexico. Those were mines that were contributing to our production. But where those mines were running short on reserves. So they didn't really meet our strategic objective of production from mines with a decade in reserves, a decade in the life of mines. So we decided back in 2020, early 2025 to go and divest of those assets, so. Because this year 2026 we would be entering into mine closures, and I want my team to be playing offense, not defense, going into mine closure projects distracting capital and management attention. So we took the, we made the decision to take the hit on, reduced production but focus on these two projects that I'm telling you about that will drive growth back to half a million ounces of gold annual production and we're focused on that. So, just to give you a sense of, you know, our financial performance and our business, 2025, we delivered a revenue of close to a billion dollars. Our net cash from operations was a strong $455 million in 2025. Free cash flow from ongoing operations for the year $330 million. And or adjusted attributable net income 200 million for the year. Of course the fourth quarter of the year was very strong when we look at production in Q1. We just reported production a few weeks ago, a few days ago for the first quarter of this year. Our, our gold equivalent production was close to 73,000 ounces of gold. That is an improvement on the previous quarter where we did about 70,000 ounces and an improvement with respect to a year ago when we delivered about 65,000 ounces. So the business is running strong. We're delivering the ounces, capturing. The benefit of prices. All of this is transferring to, you know, our balance sheet, and, we came out of a capital intensive phase after the construction of the Segela mine back in 2023. We had debt, we, we had a, a net debt position. So we said first let's look at our balance sheet and let's put, make sure we can put together a fortress balance sheet and we've been working on that and we have achieved that. And I hear a lot of companies working towards that right now. Well, we have been working on that for some time and we currently talk from a position of strength. So we have a net net cash position that today travels north of $400 million. Liquidity today north of $800 million. These are figures as of year end. Right? But not everything is the gold price running up and taking all our problems away. We operate with a lot of. Operational discipline. So what we aim to show in this graph is that yes, gold prices are going higher, driving net cash from operations, but if you see our cash cost is staying relatively flat. No, so we remain very focused on operational discipline. Our exploration budget for 2026 is $55 million. For 2025 it was $45 million so we continue investing heavily on mineral exploration and harvesting a lot of success there. We currently have active exploration programs in Senegal, Argentina, the Ivory Coast, and Mexico. I'm gonna touch on some of those. one minute please. Sorry, one minute, one minute. And I don't know. I'll use it for questions. Sorry to cut you off, I am, I can be ruthless at times. interesting portfolio you have, and I love your cash balance of $380 million. ladies and gentlemen, any questions from the floor, please? Don't be shy. Otherwise. As adjudicator here, I will ask the question. your capex is fairly low for Diamba, so, and, and so on. you still, as I mentioned, you have $380 million in cash. You're being very conservative or you think you will actually need to use all of that cash? in other words, are you thinking about returning some of that to the shareholders? As I said, our capital allocation priorities one, we have to fund our growth. No, it's low risk growth and we control our growth, so, we can easily fund that. We can continue funding aggressively our exploration programs and at the same time we can sustain the, the returns to our shareholders via the buyback. No, so, yeah, we, we are planning to, to continue funding our growth organically internally through cash flows, you know, we expect to generate free cash flow this year if prices stay where they are of around free cash flow from operations around $400 million or or even that should be traveling at around $800 million this year. Right, so we're more than adequately funded to meet all our capital needs and shareholder returns. Thank you, ladies and gentlemen. Please join me in thanking the presenter. Thank you. Thank you.