Fortuna Mining Corp. (NYSE: FSM | TSX:
FVI) (“Fortuna” or the “Company”) today
reported its financial and operating results for the second quarter
of 2024.
Second Quarter 2024
highlights
Financial
- Attributable net income of $40.6
million or $0.13 per share, compared to a $26.3 million or $0.09
per share in Q1 2024
- Adjusted attributable net income1
of $30.4 million or $0.10 per share, compared to $26.7 million or
$0.09 per share in Q1 2024
- Generated $93.0 million (or $0.30
per share) of cash flow from operations before working capital
changes, and free cash flow from ongoing operations1 of $38.6
million, compared to $84.3 million (or $0.28 per share) and $12.1
million, respectively, in Q1 2024
- The Company issued Convertible
Notes (the “2024 Notes”) for gross proceeds of $172.5 million which
were partially used to pay in full the outstanding $125.0 million
under its revolving credit facility. As at the end of the quarter
total net debt1 was $66.5 million and the total net debt to
adjusted EBITDA ratio1 was 0.2:1
- Liquidity as of June 30, 2024 was
$355.6 million, compared to $212.7 million at the end of Q1
2024
Operational
- Gold equivalent3 production of
116,570 ounces, compared to 112,543 ounces in Q1 2024
- Gold production of 92,716 ounces,
compared to 89,678 ounces in Q1 2024
- Silver production of 990,574
ounces, compared to 1,074,571 ounces in Q1 2024
- Consolidated cash costs1 per ounce
of gold equivalent sold of $988, compared to $879 in Q1 2024;
adjusting for San Jose, which is mining its last year of Mineral
Reserves, consolidated cash costs was $858
- Consolidated all-in sustaining cash
costs (AISC)1 per ounce of gold equivalent sold of $1,656, compared
to $1,495 in Q1 2024; adjusting for San Jose, consolidated AISC was
$1,584
- The Company recorded zero lost time
injuries and zero total recordable injuries in the quarter
Growth and Development
- At the newly discovered Kingfisher
prospect at the Séguéla Mine the Company intersected 23.7 g/t gold
over 17.8 meters. For full details refer to the News Release
“Fortuna intersects 23.7 g/t gold over 17.8 meters from the
Kingfisher Prospect at the Séguéla Mine” dated June 20, 2024
- Exploration continued at the Diamba
Sud exploration project with an intersect of 31.3 g/t gold over
12.0 meters at the Karakara prospect. For full details refer to the
News Release “Fortuna intersects 31.3 g/t gold over 12.0 meters
from the Karakara Prospect at the Diamba Sud Gold Project” dated
June 25, 2024
"Our business performed well in the quarter,
generating strong net cash flow from operations of $93.0 million
before working capital changes and free cash flow after sustaining
capital of $38.6 million.” said Jorge Ganoza, Fortuna’s President
and CEO. Mr. Ganoza continued, “We anticipate our free cash flow to
increase further in the second half of the year as we conclude a
heavy sustaining capex phase in the third quarter with the
completion of the Lindero leach pad expansion project.” Mr. Ganoza
added, “With the issue of $172.5 million of convertible notes we
have significantly strengthened our balance sheet and liquidity
while lowering our cost of capital. This added financial
flexibility places the Company in an advantageous position to
pursue strategic initiatives and emerging opportunities in our
established regions.” Mr. Ganoza concluded “On the exploration
front we continue creating value through discovery. At the recently
identified Kingfisher prospect, at the Séguéla mine, we have drill
defined gold mineralization over a strike length of two kilometers.
Our drill program will continue non-stop with the aim of delivering
a first resource for this exciting new discovery by year end.”
________________________1 Refer to Non-IFRS
Financial Measures section at the end of this news release and to
the MD&A accompanying the Company’s financial statements filed
on SEDAR+ at www.sedarplus.ca for a description of the calculation
of these measures. 2 Excluding letters of credit 3 Au Eq includes
gold, silver, lead and zinc and is calculated using the following
metal prices: $2,334/oz Au, $29.1/oz Ag, $2,157/t Pb and $2,835/t
Zn or Au:Ag = 1:80.19, Au:Pb = 1:1.08, Au:Zn = 1:0.82 for Q2 2024,
and the following metal prices $2,087/oz Au, $23.4/oz Ag, $2,084/t
Pb and $2,450/t Zn or Au:Ag = 1:89.8, Au:Pb = 1:1.0, Au:Zn = 0.85
for Q1 2024.
Second Quarter 2024 Consolidated Results
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
(Expressed in millions) |
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Sales |
|
260.0 |
|
158.4 |
|
64 |
% |
|
484.9 |
|
334.1 |
|
45 |
% |
| Mine operating income |
|
79.9 |
|
31.9 |
|
150 |
% |
|
149.8 |
|
72.3 |
|
107 |
% |
| Operating income |
|
55.4 |
|
7.7 |
|
619 |
% |
|
102.6 |
|
31.6 |
|
225 |
% |
| Attributable net income |
|
40.6 |
|
3.1 |
|
1,210 |
% |
|
66.9 |
|
14.0 |
|
378 |
% |
| Attributable income per share
- basic |
|
0.13 |
|
0.01 |
|
1,200 |
% |
|
0.22 |
|
0.05 |
|
340 |
% |
| Adjusted attributable net
income1 |
|
30.4 |
|
2.5 |
|
1,116 |
% |
|
57.1 |
|
14.7 |
|
288 |
% |
| Adjusted EBITDA1 |
|
112.7 |
|
44.4 |
|
154 |
% |
|
207.8 |
|
109.5 |
|
90 |
% |
| Net cash provided by operating
activities |
|
73.5 |
|
44.2 |
|
66 |
% |
|
122.5 |
|
85.4 |
|
43 |
% |
| Free cash flow from ongoing
operations1 |
|
38.6 |
|
9.5 |
|
306 |
% |
|
50.7 |
|
17.6 |
|
188 |
% |
| Cash cost ($/oz Au Eq)1 |
|
988 |
|
968 |
|
2 |
% |
|
934 |
|
940 |
|
(1 |
%) |
| All-in sustaining cash cost
($/oz Au Eq)1 |
|
1,656 |
|
1,799 |
|
(8 |
%) |
|
1,577 |
|
1,648 |
|
(4 |
%) |
| Capital expenditures2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
29.9 |
|
34.2 |
|
(13 |
%) |
|
55.7 |
|
62.1 |
|
(10 |
%) |
|
Non-sustaining3 |
|
17.6 |
|
0.9 |
|
1,856 |
% |
|
26.5 |
|
2.0 |
|
1,225 |
% |
|
Séguéla construction |
|
- |
|
23.0 |
|
(100 |
%) |
|
- |
|
48.1 |
|
(100 |
%) |
|
Brownfields |
|
2.9 |
|
2.4 |
|
21 |
% |
|
9.5 |
|
7.3 |
|
30 |
% |
| As at |
|
|
|
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
|
% Change |
| Cash and cash
equivalents |
|
|
|
105.6 |
|
128.1 |
|
(18 |
%) |
| Net liquidity position
(excluding letters of credit) |
|
|
|
|
|
|
|
355.6 |
|
213.1 |
|
67 |
% |
|
Shareholder's equity attributable to Fortuna shareholders |
|
|
|
|
|
|
|
1,334.9 |
|
1,238.4 |
|
8 |
% |
| 1 Refer to
Non-IFRS Financial Measures section at the end of this news release
and to the MD&A accompanying the Company’s financial statements
filed on SEDAR+ at www.sedarplus.ca for a description of the
calculation of these measures. |
| 2 Capital
expenditures are presented on a cash basis |
|
| 3 Non-sustaining
expenditures include greenfields exploration |
|
| Figures may not
add due to rounding |
|
Second Quarter 2024 Results
Attributable Net Income and Adjusted
Attributable Net IncomeNet income attributable to Fortuna for the
quarter was $40.6 million compared to $3.1 million in Q2 2023.
After adjusting for non-cash and non-recurring items, adjusted
attributable net income for the quarter was $30.4 million compared
to $2.5 million in Q2 2023. The large change between net income and
adjusted net income for the quarter was primarily the result of a
$12.0 million deferred tax recovery that was removed from adjusted
attributable net income related to the issuance of the 2024
Notes.
The increase in net income and adjusted net
income is explained mainly by increased gold sales volume and
higher realized gold and silver prices. Higher gold sales volume
was primarily due to contributions from Séguéla which was under
construction in the comparable period. This was partially offset by
lower silver production at San Jose as the mine exhausts its
Mineral Reserves. The realized gold and silver prices were $2,334
and $29.10 per ounce respectively compared to $1,975 and $24.10 per
ounce, respectively, for the comparable period in the prior
year.
Adjusted net income for the quarter was also
impacted by higher G&A of $7.8 million, primarily due to an
increase of $4.7 million in share based compensation related to the
increase of our share price in the period and the addition of
Séguéla’s G&A. The higher interest expense of $3.4 million for
the quarter is explained by $3.7 million of capitalized interest in
the comparative period vs nil in Q2 2024.
Depreciation and DepletionDepreciation and
depletion for the second quarter of 2024 was $57.3 million compared
to $39.9 million in the comparable period. The increase in
depreciation and depletion was primarily the result of higher sales
volume and the inclusion of $17.5 million in depletion of the
purchase price related to the acquisition of Roxgold Inc in 2021.
This was partially offset by lower depreciation and depletion at
San Jose as a result of an impairment charge in the fourth quarter
of 2023.
Adjusted EBITDA and Cash FlowAdjusted EBITDA for
the quarter was $112.7 million, a margin of 43% over sales,
compared to $44.4 million a margin over sales of 28%, reported in
the same period in 2023. The main driver for the increase in EBITDA
was the contribution from Séguéla with an EBITDA margin of 62% in
Q2 2024, partially offset by marginal EBITDA at San Jose. The prior
period was also impacted by an illegal blockade of the San Jose
Mine.
Net cash generated by operations for the quarter
was $73.5 million compared to $44.2 million in Q2 2023. The
increase of $29.3 million reflects higher adjusted EBITDA of $68.3
million offset by taxes paid of $17.4 million at Séguéla as two
installment payments were made in the second quarter, with a third
expected in September, and $19.4 million in negative working
capital movements.
The negative change in working capital of $19.4
million consisted of the following:
- An increase in receivables of $9.3
million driven by an increase in VAT receivables of $4.9 million at
Séguéla and $4.3 million at Yaramoko
- An increase of inventories of $13.5
million related to a $2.3 million increase in material and supplies
and $2.6 million in metals inventory at Séguéla and a $1.5 million
increase in materials and supplies and $4.5 million in metals
inventory at Lindero
In the second quarter of 2024 capital
expenditures on a cash basis were $50.4 million consisting
primarily of $32.8 million in sustaining capital and $17.6 million
of non-sustaining capital including $6.5 million to acquire one
half of the 1.2% NSR royalty that was held by Franco Nevada at
Séguéla.
Free cash flow from ongoing operations for the
quarter was $38.6 million, compared to $9.5 million in Q2 2023. The
increase in free cash flow from operations was primarily the result
of contributions from Séguéla which was under construction in Q2
2023 and was offset by negative working capital changes and higher
taxes paid as described above.
Cash Costs and AISCCash cost per equivalent gold
ounce was $988, compared to $968 in the second quarter of 2023. The
slightly higher cash cost per equivalent gold ounce was due to
higher costs at San Jose, Lindero, and Yaramoko, partially offset
by the contribution of low-cost production from Séguéla. Adjusting
for San Jose, where previously capitalized costs are now expensed
as the mine is in its last year of operations, cash costs per gold
equivalent ounces was $858 for the current quarter.
All-in sustaining costs per gold equivalent
ounce was $1,656 for the second quarter of 2024 compared to $1,799
for the second quarter of 2023. The decrease was primarily the
result of higher gold sales and lower sustaining capital. Adjusting
for San Jose, all-in sustaining cost per gold equivalent ounce was
$1,584 for the current quarter.
General and Administrative ExpensesGeneral and
administrative expenses for the current quarter of $22.4 million
were higher than the same period in 2023 as Séguéla transitioned to
operations and costs are no longer being capitalized, and higher
share-based compensation expenses due to an increase in the share
price and the impact on the valuation of restricted share units
expected to settle in cash. G&A is comprised of the following
items:
| |
|
Three months ended June 30, |
|
Six months ended June 30, |
|
(Expressed in millions) |
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Mine G&A |
|
|
9.9 |
|
|
6.2 |
|
60 |
% |
|
|
16.9 |
|
|
12.1 |
|
40 |
% |
| Corporate G&A |
|
|
6.6 |
|
|
7.2 |
|
(8 |
%) |
|
|
15.5 |
|
|
14.1 |
|
10 |
% |
| Share-based payments |
|
|
5.8 |
|
|
1.1 |
|
427 |
% |
|
|
8.0 |
|
|
3.3 |
|
142 |
% |
|
Workers' participation |
|
|
0.1 |
|
|
— |
|
0 |
% |
|
|
0.2 |
|
|
0.1 |
|
100 |
% |
|
Total |
|
|
22.4 |
|
|
14.5 |
|
54 |
% |
|
|
40.6 |
|
|
29.6 |
|
37 |
% |
Liquidity
The Company’s total liquidity available as of
June 30, 2024 was $355.6 million comprised of $105.6 million in
cash and cash equivalents, and the fully undrawn $250.0 million
revolving credit facility (excluding letters of credit).
Séguéla Mine, Côte d’Ivoire
| |
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
318,457 |
|
|
109,605 |
|
|
713,294 |
|
|
109,605 |
|
Average tonnes crushed per day |
|
|
3,461 |
|
|
1,611 |
|
|
3,898 |
|
|
1,611 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
3.47 |
|
|
1.56 |
|
|
3.09 |
|
|
1.32 |
|
Recovery (%) |
|
|
94 |
|
|
90 |
|
|
94 |
|
|
77 |
|
Production (oz) |
|
|
32,983 |
|
|
4,023 |
|
|
67,539 |
|
|
4,023 |
|
Metal sold (oz) |
|
|
33,102 |
|
|
- |
|
|
67,552 |
|
|
- |
|
Realized price ($/oz) |
|
|
2,332 |
|
|
- |
|
|
2,211 |
|
|
- |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
564 |
|
|
- |
|
|
511 |
|
|
- |
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
1,097 |
|
|
- |
|
|
1,021 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
5,779 |
|
|
- |
|
|
8,805 |
|
|
- |
|
Sustaining leases |
|
|
2,437 |
|
|
- |
|
|
4,702 |
|
|
- |
|
Non-sustaining |
|
|
8,605 |
|
|
- |
|
|
9,640 |
|
|
- |
|
Brownfields |
|
|
1,190 |
|
|
- |
|
|
6,086 |
|
|
- |
| 1 Cash cost and
All-in sustaining cash cost are non-IFRS financial measures. Refer
to Non-IFRS Financial Measures. |
| 2 Capital
expenditures are presented on a cash basis |
| |
In the second quarter of 2024, mined material
totaled 420,222 tonnes of ore, averaging 3.03g/t Au, and containing
an estimated 40,912 ounces of gold from the Antenna, Ancien and
Koula pits. Movement of waste during the quarter totaled 2,495,838
tonnes, for a strip ratio of 6:1.
Production was mainly focused on the Antenna pit
which produced 364,491 tonnes of ore to provide higher grade feed
to the processing plant during the power supply constraints
detailed below. Mining at the Ancien and Koula pits provided the
balance of ore production with 1,645,716 tonnes of the waste
stripping occurring there.
Séguéla processed 318,457 tonnes in the quarter,
producing 32,983 ounces of gold, at an average head grade of 3.47
g/t Au. During the quarter the mine experienced intermittent power
outages from April to early July which resulted in the loss of 19
days of operating time for the mill. The loss of power was the
result of power shedding from the national grid supplier due to
failures at two power plants in Côte d’Ivoire. Since early July the
mine has been receiving stable grid power. To guarantee mine power
supply in the event of future outages the Company is sourcing
expanded backup diesel power generation capabilities to support the
entire process operation.
The potential impact to gold production from the
intermittent power outages was largely mitigated by delivering
higher grade feed to the mill and the benefits of operating
efficiencies which have allowed the mill to operate at a throughput
rate of 208 tonnes per hour compared to a name place capacity of
154 tonnes per hour. Séguéla’s 2024 production guidance of 126,000
to 138,000 oz Au remains unaffected.
Cash cost per gold ounce sold was $564, and
all-in sustaining cash cost per gold ounce sold was $1,097 for Q2
2024. Both were below plan and guidance.
Yaramoko Mine, Burkina Faso
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
121,391 |
|
|
144,202 |
|
|
229,110 |
|
|
283,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
8.40 |
|
|
6.51 |
|
|
8.58 |
|
|
6.23 |
|
Recovery (%) |
|
|
98 |
|
|
98 |
|
|
98 |
|
|
98 |
|
Production (oz) |
|
|
31,447 |
|
|
29,002 |
|
|
58,624 |
|
|
55,439 |
|
Metal sold (oz) |
|
|
31,455 |
|
|
25,946 |
|
|
58,627 |
|
|
55,476 |
|
Realized price ($/oz) |
|
|
2,334 |
|
|
1,976 |
|
|
2,223 |
|
|
1,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
896 |
|
|
719 |
|
|
830 |
|
|
772 |
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
1,389 |
|
|
1,626 |
|
|
1,382 |
|
|
1,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures ($000's) 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
5,110 |
|
|
14,318 |
|
|
14,731 |
|
|
27,867 |
|
Sustaining leases |
|
|
1,018 |
|
|
1,161 |
|
|
2,067 |
|
|
2,520 |
|
Non-sustaining |
|
|
1,542 |
|
|
– |
|
|
1,542 |
|
|
– |
|
Brownfields |
|
|
1,397 |
|
|
1,019 |
|
|
2,760 |
|
|
2,210 |
| 1 Cash cost and
All-in sustaining cash cost are non-IFRS financial measures; refer
to non-IFRS financial measures section at the end of this news
release and to the MD&A accompanying the Company’s financial
statements filed on SEDAR+ at www.sedarplus.ca for a description of
the calculation of these measures. |
| 2 Capital
expenditures are presented on a cash basis. |
| |
In the second quarter of 2024, 121,391 tonnes of
ore were treated at an average head grade of 8.40 g/t, producing
31,447 ounces of gold. This represents a 29% increase in grade and
an 8% increase in production, when compared to the same period in
2023. Higher gold production in the second quarter of 2024 was a
result of higher head grades, offsetting lower tonnes milled.
Processing operations at Yaramoko were also affected by
intermittent power supply from the grid, however, our backup diesel
generators mitigated the bulk of these constraints.
During the quarter, 89,991 tonnes of ore were
mined averaging 7.81 g/t Au from 55 Zone, and 21,361 tonnes of ore
averaging 8.89 g/t Au from QV Prime, totaling 111,352 tonnes
averaging 8.02 g/t Au. In May, a rock burst occurred in the deeper
levels of the 55 Zone, which interrupted production for a period of
10 days. No injuries or loss of property occurred as a result of
the seismic event. Changes to the stoping sequence and design of
underground excavations have been implemented based on a
geotechnical evaluation.
The cash cost per ounce of gold sold for the
quarter ended June 30, 2024, was $896, compared to $719 in the same
period in 2023. The increase for the quarter is mainly attributed
to the reallocation of fixed mining costs from capital to operating
expenses, lower processed ore and higher energy costs from the use
of diesel generators to offset constrained grid supply. This was
partially offset by higher ounces sold in the period.
During the quarter power sourced from the grid
was restricted to 45% with the balance coming from diesel power
generation. This increased the cost per kilowatt hour with diesel
generation costing $0.42/kwh compared to $0.24/kwh for grid power.
The impact on total cost was mostly offset by lower energy
consumption at the mine. Through the month of July availability of
power from the grid was at 95%.
The all-in sustaining cash cost per gold ounce
sold was $1,389 for the quarter ended June 30, 2024, compared to
$1,626 in the same period of 2023. The change in the quarter was
primarily due to higher volume of ounces sold, lower sustaining
capital expenditure and lower sustaining lease expenses in 2024.
This was partially offset higher by royalty costs due to higher
metal prices and a change in the royalty regime in Burkina Faso
which increased the royalty rate from 5% to 7% when the gold price
is over $2,000 per ounce.
Drilling and development operations continued to
extend the mining boundaries to the east and west of 55 Zone and
demonstrate wider mineable widths than expected. In the third
quarter, drilling will also focus on testing the potential for
further strike extensions of 55 Zone, as well as testing the strike
extensions that we currently see in QV Prime.
Lindero Mine, Argentina
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes placed on the leach pad |
|
|
1,408,791 |
|
|
1,503,323 |
|
|
2,956,114 |
|
|
2,981,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.61 |
|
|
0.62 |
|
|
0.60 |
|
|
0.83 |
|
Production (oz) |
|
|
22,874 |
|
|
25,456 |
|
|
46,136 |
|
|
50,714 |
|
Metal sold (oz) |
|
|
21,511 |
|
|
25,140 |
|
|
43,230 |
|
|
51,952 |
|
Realized price ($/oz) |
|
|
2,335 |
|
|
1,975 |
|
|
2,201 |
|
|
1,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
1,092 |
|
|
878 |
|
|
1,050 |
|
|
884 |
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
2,033 |
|
|
1,686 |
|
|
1,832 |
|
|
1,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures ($000's) 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
16,151 |
|
|
13,337 |
|
|
25,958 |
|
|
21,082 |
|
Sustaining leases |
|
|
587 |
|
|
599 |
|
|
1,185 |
|
|
1,197 |
|
Non-sustaining |
|
|
195 |
|
|
136 |
|
|
349 |
|
|
323 |
|
1 Cash cost and All-in sustaining cash cost are non-IFRS financial
measures; refer to non-IFRS financial measures section at the end
of this news release and to the MD&A accompanying the Company’s
financial statements filed on SEDAR+ at www.sedarplus.ca for a
description of the calculation of these measures. |
|
2 Capital expenditures are presented on a cash basis. |
|
|
Quarterly Operating and Financial
HighlightsDuring the second quarter of 2024, total mined ore was
1.8 million tonnes at a stripping ratio of 0.7:1. A total of
1,408,791 tonnes of ore was placed on the heap leach pad at an
average gold grade of 0.61 g/t, containing an estimated 27,663
ounces of gold. Gold production for Q2 2024 totaled 22,874 ounces,
a 10% decrease from the second quarter of 2023, primarily due to a
planned eight-day maintenance shutdown of the high-pressure
grinding rolls (HPGR) and the agglomeration plant, coupled with a
period of lower mechanical availability of front-end loaders.
The cash cost per ounce of gold for the quarter
ended June 30, 2024 was $1,092 compared to $878 in the same period
of 2023. The increase in cash cost per ounce of gold was primarily
related to low mechanical availability of front-end loaders, higher
maintenance costs due to the eight-day maintenance shutdown in the
quarter and higher ounces sold in the comparable period.
The all-in sustaining cash cost per gold ounce
sold during the second quarter of 2024 was $2,033, an increase from
$1,686 in the second quarter of 2023. The increase for the quarter
was primarily due to higher cash costs as described above and
higher sustaining capital to support the expansion of the heap
leach pad. The leach-pad project accounts for approximately $400
per ounce in the all-in sustaining cost for 2024.
As of June 30, 2024, the $51.8 million leach pad
expansion project ($41.7 million capital investment in 2024) was
approximately 58% complete. The construction of the project
commenced in January 2024, with contractors on site undertaking
earthworks and construction of the impulsion line, and liner
deployment. Procurement is 96% complete, with critical path items
onsite. Pump manufacturing for the new impulsion line was completed
on schedule and arrived on site in July. Liner installation has
commenced and contracts for the major mechanical works have been
executed. The Company expects to start placing ore on the leach pad
expansion in the fourth quarter of 2024.
San Jose Mine, Mexico
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
176,214 |
|
|
194,887 |
|
|
357,317 |
|
|
441,623 |
|
Average tonnes milled per day |
|
|
1,980 |
|
|
2,633 |
|
|
2,077 |
|
|
2,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
140 |
|
|
168 |
|
|
143 |
|
|
186 |
|
Recovery (%) |
|
|
87 |
|
|
91 |
|
|
88 |
|
|
91 |
|
Production (oz) |
|
|
684,176 |
|
|
957,265 |
|
|
1,443,287 |
|
|
2,260,577 |
|
Metal sold (oz) |
|
|
666,218 |
|
|
942,671 |
|
|
1,412,825 |
|
|
2,271,004 |
|
Realized price ($/oz) |
|
|
29.33 |
|
|
24.09 |
|
|
26.24 |
|
|
23.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
1.09 |
|
|
1.02 |
|
|
0.99 |
|
|
1.13 |
|
Recovery (%) |
|
|
85 |
|
|
90 |
|
|
86 |
|
|
90 |
|
Production (oz) |
|
|
5,269 |
|
|
5,778 |
|
|
9,802 |
|
|
14,009 |
|
Metal sold (oz) |
|
|
5,010 |
|
|
5,695 |
|
|
9,470 |
|
|
14,050 |
|
Realized price ($/oz) |
|
|
2,344 |
|
|
1,973 |
|
|
2,218 |
|
|
1,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Ag Eq)1,2 |
|
|
24.91 |
|
|
15.79 |
|
|
23.34 |
|
|
13.16 |
|
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
27.55 |
|
|
24.07 |
|
|
25.77 |
|
|
19.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures ($000's) 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
– |
|
|
3,593 |
|
|
– |
|
|
7,366 |
|
Sustaining leases |
|
|
216 |
|
|
214 |
|
|
477 |
|
|
376 |
|
Non-sustaining |
|
|
2,313 |
|
|
524 |
|
|
5,790 |
|
|
793 |
|
Brownfields |
|
|
– |
|
|
788 |
|
|
– |
|
|
1,875 |
| 1 Cash cost per
ounce of silver equivalent and All-in sustaining cash cost per
ounce of silver equivalent are calculated using realized metal
prices for each period respectively. |
| 2 Cash cost per
ounce of silver equivalent, and all-in sustaining cash cost per
ounce of silver equivalent are non-IFRS financial measures, refer
to non-IFRS financial measures section at the end of this news
release and to the MD&A accompanying the Company’s financial
statements filed on SEDAR+ at www.sedarplus.ca for a description of
the calculation of these measures. |
| 3 Capital
expenditures are presented on a cash basis |
| |
In the second quarter of 2024, San Jose produced
684,176 ounces of silver and 5,269 ounces of gold, 29% and 9%
decreases respectively, at average head grades for silver and gold
of 140 g/t and 1.09 g/t, a 17% decrease and 7% increase
respectively, when compared to the same period in 2023. The
decrease in silver and gold production, when compared to the first
quarter of 2023, is explained by lower tonnes extracted and lower
grades for silver, which is consistent with the annual plan and
guidance. During the second quarter, the processing plant milled
176,214 tonnes at an average of 1,980 tonnes per day, in line with
the plan for the period.
The cash cost per silver equivalent ounce sold
for the three months ending June 30, 2024, was $24.91, an increase
from $15.79 in the same period of 2023. The San Jose Mine has less
operational flexibility in 2024 compared to 2023, due to the
reduced and more dispersed Mineral Reserves associated with the
Trinidad deposit, which also increased mine costs. Ore processed
decreased by 10% due to lower tonnes mined.
The all-in sustaining cash cost per payable
silver equivalent ounce sold for the three months ended June 30,
2024, increased by 14% to $27.55. This compares to $24.07 per ounce
for the same period in 2023. These increases were mainly driven by
higher cash costs and lower production and partially offset by
lower capital expenditure. Management conducts regular assessments
and trade-offs between maintaining operations at the mine or
putting it on care and maintenance.
Sustaining capital expenditures have decreased
as we near the anticipated closure of the mine. Drilling in 2024
was higher due to the drilling campaign at the Yessi vein, which
was discovered in the third quarter of 2023. Exploration at the
Yessi vein is ongoing.
Caylloma Mine, Peru
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
136,543 |
|
|
137,004 |
|
|
273,639 |
|
|
262,999 |
|
Average tonnes milled per day |
|
|
1,552 |
|
|
1,539 |
|
|
1,546 |
|
|
1,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
83 |
|
|
84 |
|
|
85 |
|
|
83 |
|
Recovery (%) |
|
|
84 |
|
|
83 |
|
|
83 |
|
|
81 |
|
Production (oz) |
|
|
306,398 |
|
|
305,296 |
|
|
621,858 |
|
|
588,362 |
|
Metal sold (oz) |
|
|
267,569 |
|
|
336,086 |
|
|
593,051 |
|
|
599,656 |
|
Realized price ($/oz) |
|
|
28.55 |
|
|
24.13 |
|
|
25.69 |
|
|
23.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.11 |
|
|
0.12 |
|
|
0.11 |
|
|
0.16 |
|
Recovery (%) |
|
|
30 |
|
|
16 |
|
|
29 |
|
|
40 |
|
Production (oz) |
|
|
143 |
|
|
89 |
|
|
293 |
|
|
255 |
|
Metal sold (oz) |
|
|
60 |
|
|
- |
|
|
123 |
|
|
22 |
|
Realized price ($/oz) |
|
|
2,351 |
|
|
- |
|
|
2,179 |
|
|
1,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lead |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
3.83 |
|
|
3.72 |
|
|
3.66 |
|
|
3.27 |
|
Recovery (%) |
|
|
91 |
|
|
91 |
|
|
91 |
|
|
87 |
|
Production (000's lbs) |
|
|
10,525 |
|
|
10,207 |
|
|
20,055 |
|
|
19,716 |
|
Metal sold (000's lbs) |
|
|
9,422 |
|
|
11,419 |
|
|
19,247 |
|
|
20,201 |
|
Realized price ($/lb) |
|
|
0.98 |
|
|
0.96 |
|
|
0.96 |
|
|
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zinc |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
4.80 |
|
|
5.18 |
|
|
4.63 |
|
|
4.14 |
|
Recovery (%) |
|
|
90 |
|
|
90 |
|
|
90 |
|
|
89 |
|
Production (000's lbs) |
|
|
13,040 |
|
|
14,037 |
|
|
25,223 |
|
|
27,088 |
|
Metal sold (000's lbs) |
|
|
12,710 |
|
|
13,986 |
|
|
25,175 |
|
|
27,800 |
|
Realized price ($/lb) |
|
|
1.29 |
|
|
1.23 |
|
|
1.20 |
|
|
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Ag Eq)1,2 |
|
|
13.94 |
|
|
14.35 |
|
|
12.66 |
|
|
13.60 |
|
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
19.87 |
|
|
19.18 |
|
|
18.38 |
|
|
18.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures ($000's) 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
2,794 |
|
|
2,943 |
|
|
6,171 |
|
|
5,753 |
|
Sustaining leases |
|
|
974 |
|
|
957 |
|
|
1,880 |
|
|
1,813 |
|
Brownfields |
|
|
333 |
|
|
336 |
|
|
691 |
|
|
540 |
| 1 Cash cost per
ounce of silver equivalent and All-in sustaining cash cost per
ounce of silver equivalent are calculated using realized metal
prices for each period respectively. |
| 2 Cash cost per
ounce of silver equivalent, and all-in sustaining cash cost per
ounce of silver equivalent are non-IFRS financial measures, refer
to non-IFRS financial measures section at the end of this news
release and to the MD&A accompanying the Company’s financial
statements filed on SEDAR+ at www.sedarplus.ca for a description of
the calculation of these measures. |
| 3 Capital
expenditures are presented on a cash basis. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
In the second quarter, the Caylloma Mine
produced 306,398 ounces of silver, which was in line with the
second quarter of 2023, at an average head grade of 83 g/t Ag.
Lead and zinc production for the quarter were
10.5 million pounds of lead, and 13.0 million pounds of zinc. Lead
production increased 3% and zinc production decreased by 7%
compared to the same period in 2023. Head grades averaged 3.83%,
and 4.80%, a 3% increase and 7% decrease, respectively, when
compared to the second quarter of 2023. The cash cost per silver
equivalent ounce for the three months ended June 30, 2024 was
$13.94, a 3% decrease compared to the comparable period in 2023.
This was primarily due to lower energy and maintenance costs in the
plant.
The all-in sustaining cash cost per ounce of
payable silver equivalent for the three months ended June 30, 2024,
was $19.87 compared to $19.18 for the same period in 2023. The
higher all-in sustaining cash cost per ounce was the result of
higher silver prices on the calculation of silver equivalent
ounces.
Qualified Person
Eric Chapman, Senior Vice President of Technical
Services, is a Professional Geoscientist of the Engineers and
Geoscientists of British Columbia (Registration Number 36328), and
is the Company’s Qualified Person (as defined by National
Instrument 43-101). Mr. Chapman has reviewed and approved the
scientific and technical information contained in this news release
and has verified the underlying data.
Non-IFRS Financial Measures
The Company has disclosed certain financial
measures and ratios in this news release which are not defined
under the International Financial Reporting Standards (“IFRS”), as
issued by the International Accounting Standards Board, and are not
disclosed in the Company's financial statements, including but not
limited to: cash cost per ounce of gold sold; all-in sustaining
cash cost per ounce of gold sold; all-in sustaining cash cost per
ounce of gold equivalent sold; all-in cash cost per ounce of gold
sold; production cash cost per ounce of gold equivalent; cash cost
per payable ounce of silver equivalent sold; all-in sustaining cash
cost per payable ounce of silver equivalent sold; all-in cash cost
per payable ounce of silver equivalent sold; free cash flow from
ongoing operations; adjusted net income; adjusted attributable net
income; adjusted EBITDA and working capital.
These non-IFRS financial measures and non-IFRS
ratios are widely reported in the mining industry as benchmarks for
performance and are used by management to monitor and evaluate the
Company's operating performance and ability to generate cash. The
Company believes that, in addition to financial measures and ratios
prepared in accordance with IFRS, certain investors use these
non-IFRS financial measures and ratios to evaluate the Company’s
performance. However, the measures do not have a standardized
meaning under IFRS and may not be comparable to similar financial
measures disclosed by other companies. Accordingly, non-IFRS
financial measures and non-IFRS ratios should not be considered in
isolation or as a substitute for measures and ratios of the
Company’s performance prepared in accordance with IFRS. The Company
has calculated these measures consistently for all periods
presented.
To facilitate a better understanding of these
measures and ratios as calculated by the Company, descriptions are
provided below. In addition see “Non-IFRS Financial Measures” in
the Company’s management’s discussion and analysis for the three
and six months ended June 30, 2024 (“Q2 2024 MDA”), which section
is incorporated by reference in this news release, for additional
information regarding each non-IFRS financial measure and non-IFRS
ratio disclosed in this news release, including an explanation of
their composition; an explanation of how such measures and ratios
provide useful information to an investor; and the additional
purposes, if any, for which management of the Company uses such
measures and ratio. The Q2 2024 MD&A may be accessed on SEDAR+
at www.sedarplus.ca under the Company’s profile.
Except as otherwise described in the Q2 2024
MD&A, the Company has calculated these measures consistently
for all periods presented.
Reconciliation of Debt to total net debt
and net debt to adjusted EBITDA ratio for June 30,
2024
|
(Expressed in millions except Total net debt to Adjusted EBITDA
ratio) |
|
|
As at June 30, 2024 |
|
Convertible senior note |
|
$ |
172.5 |
|
|
Convertible debenture |
|
|
45.7 |
|
|
Debt |
|
|
218.2 |
|
|
Less: Cash and Cash Equivalents |
|
|
(105.6 |
) |
|
Less: Restricted cash |
|
|
(46.1 |
) |
|
Total net debt1 |
|
$ |
66.5 |
|
|
Adjusted EBITDA (last four quarters) |
|
$ |
432.8 |
|
|
Total net debt to adjusted EBITDA ratio |
|
|
0.2:1 |
|
|
1 Excluding letters of credit |
|
|
|
Reconciliation of net income to adjusted
attributable net income for the three and six months ended June 30,
2024 and 2023
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
(Expressed in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Net income attributable to shareholders |
|
|
40.6 |
|
|
|
3.2 |
|
|
|
66.9 |
|
|
|
14.0 |
|
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Community support provision and accruals1 |
|
|
(0.1 |
) |
|
|
- |
|
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
Unrealized loss (gain) on derivatives |
|
|
- |
|
|
|
(1.3 |
) |
|
|
- |
|
|
|
(0.3 |
) |
|
Income tax, convertible debentures |
|
|
(12.0 |
) |
|
|
- |
|
|
|
(12.0 |
) |
|
|
- |
|
|
Inventory adjustment |
|
|
1.9 |
|
|
|
0.7 |
|
|
|
1.9 |
|
|
|
0.7 |
|
|
Accretion on right of use assets |
|
|
0.9 |
|
|
|
0.5 |
|
|
|
1.8 |
|
|
|
1.1 |
|
|
Other non-cash/non-recurring items |
|
|
(0.9 |
) |
|
|
(0.6 |
) |
|
|
(1.2 |
) |
|
|
(0.7 |
) |
|
Adjusted attributable net income |
|
|
30.4 |
|
|
|
2.5 |
|
|
|
57.1 |
|
|
|
14.7 |
|
|
1 Amounts are recorded in Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to adjusted
EBITDA for the three and six months ended June 30, 2024 and
2023
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
Consolidated (in millions of US dollars) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income |
|
43.3 |
|
|
|
3.5 |
|
|
|
72.4 |
|
|
|
15.3 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Community support provision and accruals |
|
(0.1 |
) |
|
|
- |
|
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
Inventory adjustment |
|
2.6 |
|
|
|
1.0 |
|
|
|
2.6 |
|
|
|
0.9 |
|
|
Foreign exchange loss, Séguéla Mine |
|
- |
|
|
|
(0.2 |
) |
|
|
- |
|
|
|
(0.1 |
) |
|
Net finance items |
|
6.9 |
|
|
|
3.5 |
|
|
|
13.1 |
|
|
|
6.1 |
|
|
Depreciation, depletion, and amortization |
|
57.2 |
|
|
|
39.8 |
|
|
|
107.5 |
|
|
|
84.2 |
|
|
Income taxes |
|
7.7 |
|
|
|
1.0 |
|
|
|
22.2 |
|
|
|
9.0 |
|
|
Other non-cash/non-recurring items |
|
(4.9 |
) |
|
|
(4.2 |
) |
|
|
(9.6 |
) |
|
|
(5.8 |
) |
|
Adjusted EBITDA |
|
112.7 |
|
|
|
44.4 |
|
|
|
207.8 |
|
|
|
109.5 |
|
|
Figures may not add due to rounding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash from
operating activities to free cash flow from ongoing operations for
the three and six months ended June 30, 2024 and 2023
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
(Expressed in millions) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
73.5 |
|
|
|
44.2 |
|
|
|
122.5 |
|
|
|
85.4 |
|
|
Séguéla, working capital |
|
- |
|
|
|
4.4 |
|
|
|
- |
|
|
|
4.4 |
|
|
Additions to mineral properties, plant and equipment |
|
(32.8 |
) |
|
|
(36.2 |
) |
|
|
(65.2 |
) |
|
|
(66.5 |
) |
|
Gain on blue chip swap investments |
|
2.5 |
|
|
|
- |
|
|
|
5.1 |
|
|
|
- |
|
|
Right of use payments |
|
(5.6 |
) |
|
|
(2.9 |
) |
|
|
(10.6 |
) |
|
|
(5.8 |
) |
|
Other adjustments |
|
1.0 |
|
|
|
- |
|
|
|
(1.1 |
) |
|
|
0.1 |
|
|
Free cash flow from ongoing operations |
|
38.6 |
|
|
|
9.5 |
|
|
|
50.7 |
|
|
|
17.6 |
|
|
Figures may not add due to rounding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cost of sales to cash
cost per ounce of gold equivalent sold for the three and six months
ended June 30, 2024 and 2023
|
Cash Cost Per Gold Equivalent Ounce Sold - Q2
2024 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
GEO Cash Costs |
|
Cost of sales |
|
36,010 |
|
|
50,839 |
|
|
51,430 |
|
|
25,524 |
|
|
16,239 |
|
|
180,044 |
|
|
Inventory adjustment |
|
(228 |
) |
|
(2,852 |
) |
|
— |
|
|
443 |
|
|
— |
|
|
(2,637 |
) |
|
Depletion, depreciation, and amortization |
|
(11,580 |
) |
|
(13,784 |
) |
|
(27,130 |
) |
|
(573 |
) |
|
(3,358 |
) |
|
(56,425 |
) |
|
Royalties and taxes |
|
(116 |
) |
|
(6,009 |
) |
|
(5,629 |
) |
|
(867 |
) |
|
(229 |
) |
|
(12,850 |
) |
|
By-product credits |
|
(704 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(704 |
) |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
6 |
|
|
(350 |
) |
|
(344 |
) |
|
Treatment and refining charges |
|
— |
|
|
— |
|
|
— |
|
|
743 |
|
|
2,287 |
|
|
3,030 |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
23,382 |
|
|
28,194 |
|
|
18,671 |
|
|
25,276 |
|
|
14,589 |
|
|
110,112 |
|
|
Ounces of gold equivalent sold |
|
21,409 |
|
|
31,455 |
|
|
33,102 |
|
|
12,670 |
|
|
12,858 |
|
|
111,495 |
|
|
Cash cost per ounce of gold equivalent sold ($/oz) |
|
1,092 |
|
|
896 |
|
|
564 |
|
|
1,995 |
|
|
1,135 |
|
|
988 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $2,334/oz Au, $29.1/oz Ag, $2,157/t Pb, and $2,835/t Zn for Q2
2024. |
|
Figures may not add due to rounding |
|
Cash Cost Per Gold Equivalent Ounce Sold - Q2
2023 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
|
San Jose |
|
Caylloma |
|
GEO Cash Costs |
|
Cost of sales |
|
40,280 |
|
|
38,353 |
|
|
— |
|
|
29,366 |
|
|
18,543 |
|
|
126,542 |
|
|
Inventory adjustment |
|
— |
|
|
(827 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(827 |
) |
|
Depletion, depreciation, and amortization |
|
(11,873 |
) |
|
(15,788 |
) |
|
— |
|
|
(8,532 |
) |
|
(3,405 |
) |
|
(39,598 |
) |
|
Royalties and taxes |
|
(3,850 |
) |
|
(3,086 |
) |
|
— |
|
|
(1,040 |
) |
|
(519 |
) |
|
(8,495 |
) |
|
By-product credits |
|
(2,486 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,486 |
) |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
267 |
|
|
(483 |
) |
|
(216 |
) |
|
Treatment and refining charges |
|
— |
|
|
— |
|
|
— |
|
|
1,113 |
|
|
5,257 |
|
|
6,370 |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
22,071 |
|
|
18,652 |
|
|
— |
|
|
21,174 |
|
|
19,393 |
|
|
81,290 |
|
|
Ounces of gold equivalent sold |
|
25,130 |
|
|
25,946 |
|
|
— |
|
|
16,382 |
|
|
16,536 |
|
|
83,994 |
|
|
Cash cost per ounce of gold equivalent sold ($/oz) |
|
878 |
|
|
719 |
|
|
— |
|
|
1,293 |
|
|
1,173 |
|
|
968 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $1,973/oz Au, $24.1/oz Ag, $2,115/t Pb, and $2,713/t Zn for Q2
2023 |
|
Figures may not add due to rounding |
|
Cash Cost Per Gold Equivalent Ounce Sold - Year to Date
2024 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
GEO Cash Costs |
|
Cost of sales |
|
70,059 |
|
|
85,790 |
|
|
96,640 |
|
|
49,248 |
|
|
33,344 |
|
|
335,083 |
|
|
Inventory adjustment |
|
(228 |
) |
|
(2,852 |
) |
|
— |
|
|
455 |
|
|
— |
|
|
(2,625 |
) |
|
Depletion, depreciation, and amortization |
|
(23,160 |
) |
|
(23,999 |
) |
|
(51,046 |
) |
|
(964 |
) |
|
(7,182 |
) |
|
(106,351 |
) |
|
Royalties and taxes |
|
(369 |
) |
|
(10,302 |
) |
|
(11,101 |
) |
|
(1,571 |
) |
|
(583 |
) |
|
(23,926 |
) |
|
By-product credits |
|
(1,127 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,127 |
) |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(681 |
) |
|
(681 |
) |
|
Treatment and refining charges |
|
— |
|
|
— |
|
|
— |
|
|
1,717 |
|
|
3,518 |
|
|
5,235 |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
45,175 |
|
|
48,637 |
|
|
34,493 |
|
|
48,885 |
|
|
28,416 |
|
|
205,606 |
|
|
Ounces of gold equivalent sold |
|
43,037 |
|
|
58,627 |
|
|
67,552 |
|
|
24,719 |
|
|
26,156 |
|
|
220,091 |
|
|
Cash cost per ounce of gold equivalent sold ($/oz) |
|
1,050 |
|
|
830 |
|
|
511 |
|
|
1,978 |
|
|
1,086 |
|
|
934 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $2,213/oz Au, $26.1/oz Ag, $2,120/t Pb, and $2,644/t Zn for Year
to Date 2024. |
|
Figures may not add due to rounding |
|
Cash Cost Per Gold Equivalent Ounce Sold - Year to Date
2023 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
|
San Jose |
|
Caylloma |
|
GEO Cash Costs |
|
Cost of sales |
|
82,005 |
|
|
83,216 |
|
|
— |
|
|
61,889 |
|
|
34,651 |
|
|
261,761 |
|
|
Inventory adjustment |
|
15 |
|
|
(827 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(812 |
) |
|
Depletion, depreciation, and amortization |
|
(25,065 |
) |
|
(33,156 |
) |
|
— |
|
|
(18,444 |
) |
|
(6,888 |
) |
|
(83,553 |
) |
|
Royalties and taxes |
|
(7,776 |
) |
|
(6,448 |
) |
|
— |
|
|
(2,297 |
) |
|
(685 |
) |
|
(17,206 |
) |
|
By-product credits |
|
(3,284 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,284 |
) |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
250 |
|
|
(955 |
) |
|
(705 |
) |
|
Treatment and refining charges |
|
— |
|
|
— |
|
|
— |
|
|
1,837 |
|
|
10,762 |
|
|
12,599 |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
45,895 |
|
|
42,785 |
|
|
— |
|
|
43,235 |
|
|
36,885 |
|
|
168,800 |
|
|
Ounces of gold equivalent sold |
|
51,893 |
|
|
55,418 |
|
|
— |
|
|
39,511 |
|
|
32,712 |
|
|
179,535 |
|
|
Cash cost per ounce of gold equivalent sold ($/oz) |
|
884 |
|
|
772 |
|
|
— |
|
|
1,094 |
|
|
1,128 |
|
|
940 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $1,930/oz Au, $23.2/oz Ag, $2,174/t Pb, and $2,954/t Zn for YTD
2023 |
|
Figures may not add due to rounding |
Reconciliation of cost of sales to all-in
sustaining cash cost per ounce of gold equivalent sold for the
three and six months ended June 30, 2024 and 2023
|
AISC Per Gold Equivalent Ounce Sold - Q2 2024 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
Corporate |
|
GEO AISC |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
23,382 |
|
28,194 |
|
18,671 |
|
25,276 |
|
14,589 |
|
— |
|
110,112 |
|
|
Inventory net realizable value adjustment |
|
— |
|
1,777 |
|
— |
|
— |
|
— |
|
— |
|
1,777 |
|
|
Royalties and taxes |
|
116 |
|
6,009 |
|
5,629 |
|
867 |
|
229 |
|
— |
|
12,850 |
|
|
Worker's participation |
|
— |
|
— |
|
— |
|
— |
|
472 |
|
— |
|
472 |
|
|
General and administration |
|
3,281 |
|
182 |
|
2,603 |
|
1,590 |
|
1,406 |
|
12,338 |
|
21,400 |
|
|
Stand-by |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total cash costs |
|
26,779 |
|
36,162 |
|
26,903 |
|
27,733 |
|
16,696 |
|
12,338 |
|
146,611 |
|
|
Sustaining capital1 |
|
16,738 |
|
7,525 |
|
9,406 |
|
216 |
|
4,101 |
|
— |
|
37,986 |
|
|
All-in sustaining costs |
|
43,517 |
|
43,687 |
|
36,309 |
|
27,949 |
|
20,797 |
|
12,338 |
|
184,597 |
|
|
Gold equivalent ounces sold |
|
21,409 |
|
31,455 |
|
33,102 |
|
12,670 |
|
12,858 |
|
— |
|
111,495 |
|
|
All-in sustaining costs per ounce |
|
2,033 |
|
1,389 |
|
1,097 |
|
2,206 |
|
1,617 |
|
— |
|
1,656 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $2,334/oz Au, $29.1/oz Ag, $2,157/t Pb, and $2,835/t Zn for Q2
2024. |
|
Figures may not add due to rounding |
|
1 Presented on a cash basis |
|
AISC Per Gold Equivalent Ounce Sold - Q2 2023 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
Corporate |
|
GEO AISC |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
22,071 |
|
18,652 |
|
— |
|
21,174 |
|
|
19,393 |
|
— |
|
81,290 |
|
|
Inventory net realizable value adjustment |
|
— |
|
334 |
|
— |
|
— |
|
|
— |
|
— |
|
334 |
|
|
Royalties and taxes |
|
3,850 |
|
3,086 |
|
— |
|
1,040 |
|
|
519 |
|
— |
|
8,495 |
|
|
Worker's participation |
|
— |
|
— |
|
— |
|
(333 |
) |
|
501 |
|
— |
|
168 |
|
|
General and administration |
|
2,507 |
|
609 |
|
— |
|
1,722 |
|
|
1,290 |
|
8,312 |
|
14,440 |
|
|
Stand-by |
|
— |
|
2,999 |
|
— |
|
4,084 |
|
|
— |
|
— |
|
7,083 |
|
|
Total cash costs |
|
28,428 |
|
25,680 |
|
— |
|
27,687 |
|
|
21,703 |
|
8,312 |
|
111,810 |
|
|
Sustaining capital1 |
|
13,936 |
|
16,498 |
|
— |
|
4,595 |
|
|
4,236 |
|
— |
|
39,265 |
|
|
All-in sustaining costs |
|
42,364 |
|
42,178 |
|
— |
|
32,282 |
|
|
25,939 |
|
8,312 |
|
151,075 |
|
|
Gold equivalent ounces sold |
|
25,130 |
|
25,946 |
|
— |
|
16,382 |
|
|
16,536 |
|
— |
|
83,994 |
|
|
All-in sustaining costs per ounce |
|
1,686 |
|
1,626 |
|
— |
|
1,971 |
|
|
1,569 |
|
— |
|
1,799 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $1,973/oz Au, $24.1/oz Ag, $2,115/t Pb, and $2,713/t Zn for Q2
2023 |
|
Figures may not add due to rounding |
|
1 Presented on a cash basis |
|
AISC Per Gold Equivalent Ounce Sold - Year to Date
2024 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
Corporate |
|
GEO AISC |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
45,175 |
|
48,637 |
|
34,493 |
|
48,885 |
|
28,416 |
|
— |
|
205,606 |
|
|
Inventory net realizable value adjustment |
|
— |
|
1,777 |
|
— |
|
— |
|
— |
|
— |
|
1,777 |
|
|
Royalties and taxes |
|
369 |
|
10,302 |
|
11,101 |
|
1,571 |
|
583 |
|
— |
|
23,926 |
|
|
Worker's participation |
|
— |
|
— |
|
— |
|
— |
|
889 |
|
— |
|
889 |
|
|
General and administration |
|
6,160 |
|
732 |
|
3,771 |
|
3,048 |
|
2,625 |
|
22,987 |
|
39,323 |
|
|
Stand-by |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total cash costs |
|
51,704 |
|
61,448 |
|
49,365 |
|
53,504 |
|
32,513 |
|
22,987 |
|
271,521 |
|
|
Sustaining capital1 |
|
27,143 |
|
19,558 |
|
19,593 |
|
477 |
|
8,742 |
|
— |
|
75,513 |
|
|
All-in sustaining costs |
|
78,847 |
|
81,006 |
|
68,958 |
|
53,981 |
|
41,255 |
|
22,987 |
|
347,034 |
|
|
Gold equivalent ounces sold |
|
43,037 |
|
58,627 |
|
67,552 |
|
24,719 |
|
26,156 |
|
— |
|
220,091 |
|
|
All-in sustaining costs per ounce |
|
1,832 |
|
1,382 |
|
1,021 |
|
2,184 |
|
1,577 |
|
— |
|
1,577 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $2,213/oz Au, $26.1/oz Ag, $2,120/t Pb, and $2,644/t Zn for Year
to Date 2024. |
|
Figures may not add due to rounding |
|
1 Presented on a cash basis |
|
AISC Per Gold Equivalent Ounce Sold - Year to Date
2023 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
Corporate |
|
GEO AISC |
|
|
Cash cost applicable per gold equivalent ounce sold |
|
45,895 |
|
42,785 |
|
— |
|
43,235 |
|
|
36,885 |
|
— |
|
168,800 |
|
|
Inventory net realizable value adjustment |
|
— |
|
334 |
|
— |
|
— |
|
|
— |
|
— |
|
334 |
|
|
Royalties and taxes |
|
7,776 |
|
6,448 |
|
— |
|
2,297 |
|
|
685 |
|
— |
|
17,206 |
|
|
Worker's participation |
|
— |
|
— |
|
— |
|
(312 |
) |
|
1,018 |
|
— |
|
706 |
|
|
General and administration |
|
4,499 |
|
1,498 |
|
— |
|
3,524 |
|
|
2,434 |
|
17,081 |
|
29,036 |
|
|
Stand-by |
|
— |
|
2,999 |
|
— |
|
4,084 |
|
|
— |
|
— |
|
7,083 |
|
|
Total cash costs |
|
58,170 |
|
54,064 |
|
— |
|
52,828 |
|
|
41,022 |
|
17,081 |
|
223,165 |
|
|
Sustaining capital1 |
|
22,279 |
|
32,597 |
|
— |
|
9,617 |
|
|
8,106 |
|
— |
|
72,599 |
|
|
All-in sustaining costs |
|
80,449 |
|
86,661 |
|
— |
|
62,445 |
|
|
49,128 |
|
17,081 |
|
295,764 |
|
|
Gold equivalent ounces sold |
|
51,893 |
|
55,418 |
|
— |
|
39,511 |
|
|
32,712 |
|
— |
|
179,535 |
|
|
All-in sustaining costs per ounce |
|
1,550 |
|
1,564 |
|
— |
|
1,580 |
|
|
1,502 |
|
— |
|
1,648 |
|
|
Gold equivalent was calculated using the realized prices for gold
of $1,930/oz Au, $23.2/oz Ag, $2,174/t Pb, and $2,954/t Zn for YTD
2023 |
|
Figures may not add due to rounding |
|
1 Presented on a cash basis |
Reconciliation of cost of sales to cash
cost per payable ounce of silver equivalent sold for the three and
six months ended June 30, 2024 and 2023
|
Cash Cost Per Silver Equivalent Ounce Sold - Q2
2024 |
|
San Jose |
|
Caylloma |
|
SEO Cash Costs |
|
Cost of sales |
|
25,524 |
|
|
16,239 |
|
|
41,763 |
|
|
Inventory adjustment |
|
443 |
|
|
— |
|
|
443 |
|
|
Depletion, depreciation, and amortization |
|
(573 |
) |
|
(3,358 |
) |
|
(3,931 |
) |
|
Royalties and taxes |
|
(867 |
) |
|
(229 |
) |
|
(1,096 |
) |
|
Other |
|
6 |
|
|
(350 |
) |
|
(344 |
) |
|
Treatment and refining charges |
|
743 |
|
|
2,287 |
|
|
3,030 |
|
|
Cash cost applicable per silver equivalent sold |
|
25,276 |
|
|
14,589 |
|
|
39,865 |
|
|
Ounces of silver equivalent sold1 |
|
1,014,526 |
|
|
1,046,393 |
|
|
2,060,919 |
|
|
Cash cost per ounce of silver equivalent sold ($/oz) |
|
24.91 |
|
|
13.94 |
|
|
19.34 |
|
|
1 Silver equivalent sold for Q2 2024 for San Jose is calculated
using a silver to gold ratio of 79.9:1. Silver equivalent sold for
Q2 2024 for Caylloma is calculated using a silver to gold ratio of
82.4:1, silver to lead ratio of 1:29.2 pounds, and silver to zinc
ratio of 1:22.2 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
Figures may not add due to rounding |
|
Cash Cost Per Silver Equivalent Ounce Sold - Q2
2023 |
|
San Jose |
|
Caylloma |
|
SEO Cash Costs |
|
Cost of sales |
|
29,366 |
|
|
18,543 |
|
|
47,909 |
|
|
Inventory adjustment |
|
— |
|
|
— |
|
|
— |
|
|
Depletion, depreciation, and amortization |
|
(8,532 |
) |
|
(3,405 |
) |
|
(11,937 |
) |
|
Royalties and taxes |
|
(1,040 |
) |
|
(519 |
) |
|
(1,559 |
) |
|
Other |
|
267 |
|
|
(483 |
) |
|
(216 |
) |
|
Treatment and refining charges |
|
1,113 |
|
|
5,257 |
|
|
6,370 |
|
|
Cash cost applicable per silver equivalent sold |
|
21,174 |
|
|
19,393 |
|
|
40,567 |
|
|
Ounces of silver equivalent sold1 |
|
1,341,320 |
|
|
1,352,522 |
|
|
2,693,842 |
|
|
Cash cost per ounce of silver equivalent sold ($/oz) |
|
15.79 |
|
|
14.35 |
|
|
15.06 |
|
|
1 Silver equivalent sold for San Jose for Q2 2023 is 81.9:1.Silver
equivalent sold for Caylloma for Q2 2023 is calculated using a
silver to gold ratio of 0.0:1, silver to lead ratio of 1:28.2
pounds, and silver to zinc ratio 1:19.6. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
Figures have been restated to remove Right of Use |
|
Figures may not add due to rounding |
|
Cash Cost Per Silver Equivalent Ounce Sold - Year to Date
2024 |
|
San Jose |
|
Caylloma |
|
SEO Cash Costs |
|
Cost of sales |
|
49,248 |
|
|
33,344 |
|
|
82,592 |
|
|
Inventory adjustment |
|
455 |
|
|
— |
|
|
455 |
|
|
Depletion, depreciation, and amortization |
|
(964 |
) |
|
(7,182 |
) |
|
(8,146 |
) |
|
Royalties and taxes |
|
(1,571 |
) |
|
(583 |
) |
|
(2,154 |
) |
|
Other |
|
— |
|
|
(681 |
) |
|
(681 |
) |
|
Treatment and refining charges |
|
1,717 |
|
|
3,518 |
|
|
5,235 |
|
|
Cash cost applicable per silver equivalent sold |
|
48,885 |
|
|
28,416 |
|
|
77,301 |
|
|
Ounces of silver equivalent sold1 |
|
2,094,621 |
|
|
2,244,876 |
|
|
4,339,497 |
|
|
Cash cost per ounce of silver equivalent sold ($/oz) |
|
23.34 |
|
|
12.66 |
|
|
17.81 |
|
|
1 Silver equivalent sold for Year to Date 2024 for San Jose is
calculated using a silver to gold ratio of 84.5:1. Silver
equivalent sold for Year to Date 2024 for Caylloma is calculated
using a silver to gold ratio of 84.8:1, silver to lead ratio of
1:26.7 pounds, and silver to zinc ratio of 1:21.4 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
Figures may not add due to rounding |
|
Cash Cost Per Silver Equivalent Ounce Sold - Year to Date
2023 |
|
San Jose |
|
Caylloma |
|
SEO Cash Costs |
|
Cost of sales |
|
61,889 |
|
|
34,651 |
|
|
96,540 |
|
|
Inventory adjustment |
|
— |
|
|
— |
|
|
— |
|
|
Depletion, depreciation, and amortization |
|
(18,444 |
) |
|
(6,888 |
) |
|
(25,332 |
) |
|
Royalties and taxes |
|
(2,297 |
) |
|
(685 |
) |
|
(2,982 |
) |
|
Other |
|
250 |
|
|
(955 |
) |
|
(705 |
) |
|
Treatment and refining charges |
|
1,837 |
|
|
10,762 |
|
|
12,599 |
|
|
Cash cost applicable per silver equivalent sold |
|
43,235 |
|
|
36,885 |
|
|
80,120 |
|
|
Ounces of silver equivalent sold1 |
|
3,284,402 |
|
|
2,711,988 |
|
|
5,996,390 |
|
|
Cash cost per ounce of silver equivalent sold ($/oz) |
|
13.16 |
|
|
13.60 |
|
|
13.36 |
|
|
1 Silver equivalent sold for Year to Date 2023 for San Jose is
calculated using a silver to gold ratio of 83.1:1. Silver
equivalent sold for Year to Date 2023 for Caylloma is calculated
using a silver to gold ratio of 81.3:1, silver to lead ratio of
1:23.6 pounds, and silver to zinc ratio of 1:17.4 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
Figures have been restated to remove Right of Use |
|
Figures may not add due to rounding |
Reconciliation of all-in sustaining cash
cost and all-in cash cost per payable ounce of silver equivalent
sold for the three and six months ended June 30, 2024 and
2023
|
AISC Per Silver Equivalent Ounce Sold - Q2
2024 |
|
San Jose |
|
Caylloma |
|
SEO AISC |
| Cash cost
applicable per silver equivalent ounce sold |
|
25,276 |
|
14,589 |
|
39,865 |
| Royalties
and taxes |
|
867 |
|
229 |
|
1,096 |
| Worker's
participation |
|
— |
|
472 |
|
472 |
| General and
administration |
|
1,590 |
|
1,406 |
|
2,996 |
|
Stand-by |
|
— |
|
— |
|
— |
| Total cash
costs |
|
27,733 |
|
16,696 |
|
44,429 |
|
Sustaining capital3 |
|
216 |
|
4,101 |
|
4,317 |
| All-in
sustaining costs |
|
27,949 |
|
20,797 |
|
48,746 |
|
Silver equivalent ounces sold1 |
|
1,014,526 |
|
1,046,393 |
|
2,060,919 |
|
All-in sustaining costs per ounce2 |
|
27.55 |
|
19.87 |
|
23.65 |
|
1 Silver equivalent sold for Q2 2024 for San Jose is calculated
using a silver to gold ratio of 79.9:1. Silver equivalent sold for
Q2 2024 for Caylloma is calculated using a silver to gold ratio of
82.4:1, silver to lead ratio of 1:29.2 pounds, and silver to zinc
ratio of 1:22.2 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
3 Presented on a cash basis |
|
AISC Per Silver Equivalent Ounce Sold - Q2
2023 |
|
San Jose |
|
Caylloma |
|
SEO AISC |
|
Cash cost applicable per silver equivalent ounce sold |
|
21,174 |
|
|
19,393 |
|
40,567 |
|
Royalties and taxes |
|
1,040 |
|
|
519 |
|
1,559 |
|
Worker's participation |
|
(333 |
) |
|
501 |
|
168 |
|
General and administration |
|
1,722 |
|
|
1,290 |
|
3,012 |
|
Stand-by |
|
4,084 |
|
|
— |
|
4,084 |
|
Total cash costs |
|
27,687 |
|
|
21,703 |
|
49,390 |
|
Sustaining capital3 |
|
4,595 |
|
|
4,236 |
|
8,831 |
|
All-in sustaining costs |
|
32,282 |
|
|
25,939 |
|
58,221 |
|
Silver equivalent ounces sold1 |
|
1,341,320 |
|
|
1,352,522 |
|
2,693,842 |
|
All-in sustaining costs per ounce2 |
|
24.07 |
|
|
19.18 |
|
21.61 |
|
1 Silver equivalent sold for San Jose for Q2 2023 is 81.9:1.Silver
equivalent sold for Caylloma for Q2 2023 is calculated using a
silver to gold ratio of 0.0:1, silver to lead ratio of 1:28.2
pounds, and silver to zinc ratio 1:19.6. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
3 Presented on a cash basis |
|
AISC Per Silver Equivalent Ounce Sold - Year to Date
2024 |
|
San Jose |
|
Caylloma |
|
SEO AISC |
|
Cash cost applicable per silver equivalent ounce sold |
|
48,885 |
|
28,416 |
|
77,301 |
|
Royalties and taxes |
|
1,571 |
|
583 |
|
2,154 |
|
Worker's participation |
|
— |
|
889 |
|
889 |
|
General and administration |
|
3,048 |
|
2,625 |
|
5,673 |
|
Stand-by |
|
— |
|
— |
|
— |
|
Total cash costs |
|
53,504 |
|
32,513 |
|
86,017 |
|
Sustaining capital3 |
|
477 |
|
8,742 |
|
9,219 |
|
All-in sustaining costs |
|
53,981 |
|
41,255 |
|
95,236 |
|
Silver equivalent ounces sold1 |
|
2,094,621 |
|
2,244,876 |
|
4,339,497 |
|
All-in sustaining costs per ounce2 |
|
25.77 |
|
18.38 |
|
21.95 |
|
1 Silver equivalent sold for Year to Date 2024 for San Jose is
calculated using a silver to gold ratio of 84.5:1. Silver
equivalent sold for Year to Date 2024 for Caylloma is calculated
using a silver to gold ratio of 84.8:1, silver to lead ratio of
1:26.7 pounds, and silver to zinc ratio of 1:21.4 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
3 Presented on a cash basis |
|
AISC Per Silver Equivalent Ounce Sold - Year to Date
2023 |
|
San Jose |
|
Caylloma |
|
SEO AISC |
|
Cash cost applicable per silver equivalent ounce sold |
|
43,235 |
|
|
36,885 |
|
80,120 |
|
Royalties and taxes |
|
2,297 |
|
|
685 |
|
2,982 |
|
Worker's participation |
|
(312 |
) |
|
1,018 |
|
706 |
|
General and administration |
|
3,524 |
|
|
2,434 |
|
5,958 |
|
Stand-by |
|
4,084 |
|
|
— |
|
4,084 |
|
Total cash costs |
|
52,828 |
|
|
41,022 |
|
93,850 |
|
Sustaining capital3 |
|
9,617 |
|
|
8,106 |
|
17,723 |
|
All-in sustaining costs |
|
62,445 |
|
|
49,128 |
|
111,573 |
|
Silver equivalent ounces sold1 |
|
3,284,402 |
|
|
2,711,988 |
|
5,996,390 |
|
All-in sustaining costs per ounce2 |
|
19.01 |
|
|
18.12 |
|
18.61 |
|
1 Silver equivalent sold for Year to Date 2023 for San Jose is
calculated using a silver to gold ratio of 83.1:1. Silver
equivalent sold for Year to Date 2023 for Caylloma is calculated
using a silver to gold ratio of 81.3:1, silver to lead ratio of
1:23.6 pounds, and silver to zinc ratio of 1:17.4 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
|
3 Presented on a cash basis |
|
|
|
|
|
|
|
|
Additional information regarding the Company’s
financial results and activities underway are available in the
Company’s unaudited condensed interim consolidated financial
statements for the three and six months ended June 30, 2024 and
2023 and accompanying Q2 2024 MD&A, which are available for
download on the Company’s website, www.fortunamining.com, on SEDAR+
at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.
Conference Call and Webcast
A conference call to discuss the financial and
operational results will be held on Thursday, August 8, 2024, at
9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call
will be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chief
Financial Officer, Cesar Velasco, Chief Operating Officer - Latin
America, and David Whittle, Chief Operating Officer - West
Africa.
Shareholders, analysts, media and interested
investors are invited to listen to the live conference call by
logging onto the webcast at:
https://www.webcaster4.com/Webcast/Page/1696/50903 or over the
phone by dialing in just prior to the starting time.
Conference call details:
Date: Thursday, August 8, 2024
Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern
time
Dial in number (Toll Free):
+1.888.506.0062 Dial in number (International):
+1.973.528.0011 Access code: 793245
Replay number (Toll Free):
+1.877.481.4010 Replay number (International):
+1.919.882.2331 Replay passcode: 50903
Playback of the earnings call will be available
until Thursday, August 22, 2024. Playback of the webcast will be
available until Friday, August 8, 2025. In addition, a transcript
of the call will be archived on the Company’s website.
About Fortuna Mining Corp.
Fortuna Mining Corp. is a Canadian precious
metals mining company with five operating mines in Argentina,
Burkina Faso, Côte d’Ivoire, Mexico, and Peru. 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 our website.
ON BEHALF OF THE BOARD
Jorge A. Ganoza President, CEO,
and Director Fortuna Mining Corp.
Investor Relations:
Carlos Baca | info@fmcmail.com |
www.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, statements about
the Company's plans for its mines and mineral properties; the
Company’s anticipated financial and operational performance in
2024; estimated production and costs of production for 2024,
including grade and volume of metal produced and sales, revenues
and cashflows, and capital costs (sustaining and non-sustaining),
and operating costs, including projected production cash costs and
all-in sustaining costs; the Company’s expectations and proposed
timing for the delivery of a first resource for the Kingfisher
prospect; the ability of the Company to mitigate the inflationary
pressures on supplies used in its operations; estimated capital
expenditures and estimated exploration spending in 2024, including
amounts for exploration activities at its properties; statements
regarding the Company's liquidity, access to capital; the impact of
high inflation on the costs of production and the supply
chain; the Company’s expectation regarding the timing for the
completion of the leach pad expansion project at the Lindero Mine;
statements regarding the anticipated closure of the San Jose Mine
and statements relating to exploration at the Yessi Vein; the
Company’s plans regarding the mill at the Séguéla Mine; the
Company’s expectations for its performance in the second half of
2024; the Company’s expectations regarding the power plant failures
in Côte D’Ivoire and that Séguéla’s 2024 production guidance
remains unchanged; the Company's business strategy, plans and
outlook; the merit of the Company's mines and mineral properties;
mineral resource and reserve estimates, metal recovery rates,
concentrate grade and quality; changes in tax rates and tax laws,
requirements for permits, anticipated approvals and other matters.
Often, but not always, these Forward-looking Statements can be
identified by the use of words such as "estimated", “expected”,
“anticipated”, "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.
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 Statements. Such
uncertainties and factors include, among others, changes in general
economic conditions and financial markets; uncertainty relating to
new mining operations such as the Séguéla Mine, including the
possibility that actual capital and operating costs and economic
returns will differ significantly from those estimated for such
projects prior to production; risks associated with war or other
geo-political hostilities, such as the Ukrainian – Russian and the
Israel – Hamas conflicts, any of which could continue to cause a
disruption in global economic activity; fluctuation in currencies
and foreign exchange rates; increases in the rate of inflation; the
imposition or any extension of capital controls in countries in
which the Company operates; any changes in tax laws in Argentina
and the other countries in which we operate; changes in the prices
of key supplies; technological and operational hazards in Fortuna’s
mining and mine development activities; risks related to water and
power availability; risks inherent in mineral exploration;
uncertainties inherent in the estimation of mineral reserves,
mineral resources, and metal recoveries; changes to current
estimates of mineral reserves and resources; changes to production
and cost estimates; the possibility that the appeal in respect of
the ruling in favor of Compania Minera Cuzcatlan S.A. de C.V.
reinstating the environmental impact authorization at the San Jose
Mine (the “EIA”) will be successful; changes in the position of
regulatory authorities with respect to the granting of approvals or
permits; governmental and other approvals; changes in government,
political unrest or instability in countries where Fortuna is
active; labor relations issues; as well as those factors discussed
under “Risk Factors” in the Company's Annual Information Form.
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; that there will be no
material adverse change affecting the Company, its properties or
changes to 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); geo-political uncertainties that may affect the
Company’s production, workforce, business, operations and financial
condition; the expected trends in mineral prices and currency
exchange rates; that the Company will be successful in mitigating
the impact of inflation on its business and operations; that the
appeal filed in the Mexican Collegiate Court challenging the
reinstatement of the EIA will be unsuccessful; 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, the
ability to meet current and future obligations 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.
Cautionary Note to United States Investors
Concerning Estimates of Reserves and Resources
Reserve and resource estimates included in this
news release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral
Reserves. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for public disclosure by
a Canadian company of scientific and technical information
concerning mineral projects. Unless otherwise indicated, all
mineral reserve and mineral resource estimates contained in the
technical disclosure have been prepared in accordance with NI
43-101 and the Canadian Institute of Mining, Metallurgy and
Petroleum Definition Standards on Mineral Resources and Reserves.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the Securities and Exchange Commission, and
mineral reserve and resource information included in this news
release may not be comparable to similar information disclosed by
U.S. companies.
Fortuna Mining (NYSE:FSM)
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