Fortuna Mining Corp.

Fortuna Mining Corp. is a mid-tier gold producer headquartered in Vancouver, Canada, operating primarily in South America and Africa. The company's portfolio consists of 4 projects, comprising 3 operating mines and 1 advanced exploration project. Key assets include Lindero and Séguéla. The business model centers on the exploration, extraction, and processing of precious and base metals. Operational capabilities are diverse, encompassing both open pit and underground mining techniques that utilize conventional drill, blast, load, and haul methods. The organization leverages a wide range of metallurgical processes to maximize recovery, including multi-stage crushing, heap leaching supported by sulfidization-acidification-recycle-thickening (SART) technology, and carbon-in-leach (CIL) extraction. Additionally, the company operates conventional milling and flotation circuits to produce separate lead and zinc concentrates. This technological flexibility allows for the processing of various ore types across its asset base. Products, which include both doré bars and metal concentrates, are sold to international traders and refining partners. The operational model also incorporates the use of outside contractors for specific mining services, providing flexibility in managing operational scale and costs. This integrated approach, from exploration through to final product sales, underpins the company's value creation process.

Strategic priorities focus on a combination of organic growth through exploration and disciplined operational optimization. A significant exploration budget is allocated between Brownfields programs, aimed at resource conversion and expansion at existing sites, and Greenfields initiatives, which advance generative programs and test new targets. Capital allocation is directed towards high-impact projects, including infrastructure expansions like leach pads and the construction of solar power plants and cyclone facilities designed to reduce long-term operating costs and improve environmental performance. The company's approach to operational excellence involves capitalizing on productivity and cost-efficiency initiatives and optimizing processing facilities to increase throughput. Portfolio management is an active component of the strategy, as evidenced by the ongoing process to divest a non-core asset to streamline the operational footprint. A forward-looking approach to guidance and planning is used to communicate long-term performance improvements and strategic objectives to investors.

Governance is overseen by an 8-member Board of Directors, with specialized oversight conducted through 5 committees: Audit, Compensation, Corporate Governance and Nominating, and Sustainability. The Audit Committee is composed of 3 independent and financially literate members who are responsible for the integrity of financial reporting, internal controls, and external auditor relationships, as detailed in a formal charter. Executive leadership includes a President & CEO with over 20 years of continuous service as a director, ensuring long-term strategic alignment and stability. The board maintains direct oversight of operations through regular management updates, risk assessments, and periodic site visits by directors to the company's foreign operations. This hands-on approach is complemented by reliance on local legal counsel and advisors to navigate complex regulatory and business environments. The governance framework also includes a formal Code of Business Conduct and Ethics and a Whistle-Blower Policy to ensure integrity and ethical conduct across the organization.

The organization's sustainability framework is guided by a board-level Sustainability Committee and supported by a suite of formal ESG policies covering human rights, health and safety, and environmental stewardship. A key climate action commitment is the target to reduce Scope 1 and 2 greenhouse gas emissions by 15% by 2030 compared to a business-as-usual forecast. This target is supported by specific capital projects, including the construction of photovoltaic solar plants to integrate renewable energy and a new cyclone plant to lower emissions from material handling. The company has conducted climate scenario analysis to assess physical and transition risks and publishes an annual sustainability report aligned with TCFD, SASB, and GRI frameworks. Water management is a critical focus, with initiatives to minimize consumption and enhance resiliency to climate impacts. The enterprise also adheres to a formal position statement on the Global Industry Standard on Tailings Management, reflecting a commitment to safe and responsible waste stewardship.

The corporate structure has been actively managed through strategic acquisitions and capital allocation. In 2023, the enterprise completed the acquisition of Chesser Resources Limited, which added a new exploration project to its portfolio. The company manages its capital structure through programs like its Normal Course Issuer Bid, under which it repurchased 7.4 million common shares in 2024. In June 2024, the organization issued $172.5 million in convertible senior notes and used the proceeds to redeem its outstanding debentures. A key feature of the ownership structure is direct state participation in certain operations; a foreign government holds a 10% interest in 2 of the company's principal operating subsidiaries, with an agreement in place to increase one of these holdings to 15% in 2025. The company's primary credit facility is secured by guarantees from its main operating subsidiaries. Strategic portfolio optimization is also underway, demonstrated by the formal process initiated in late 2024 to divest a non-core asset.