Fortuna Mining Corp. · TSX:FVI
Fortuna Mining — Q1 2023 Earnings Presentation
36 slides from Fortuna Mining's earnings presentation, May 16, 2023
Slide 1: Q1 2023 Financial and Operational Results Webcast
A diversified and growing global intermediate gold and silver producer NYSE: FSM | TSX: FVI Q1 2023 FINANCIAL AND OPERATIONAL RESULTS WEBCAST MAY 16, 2023
Slide 2: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS Yaramoko Mine, Burkina Faso 2
Slide 3: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS Production in line with guidance | Séguéla first gold pour in May 2023 PRODUCTION Gold Equivalent production1 Gold Silver 94.1 koz 60.1 koz 1.6 Moz Q1 2022: 103.1 koz Q1 2022: 66.8 koz Q1 2022: 1.7 Moz FINANCIAL EBITDA lower on higher input costs YoY Adjusted EBITDA2 EBITDA Margin
Slide 4: Financial Overview
FINANCIAL OVERVIEW Séguéla Project, Côte d’Ivoire 4
Slide 5: Q1 2023 Consolidated Sales
Q1 2023 CONSOLIDATED SALES Sales of $175.7 million largely in line YoY (Q1 2022: $182.3 million) Precious metals Realized Precious Metals Prices1 contribution2 28.00 88% 24.00 $22.52 20.00 16.00 Silver ($/oz) Silver 19% Net Sales of 12.00 $175.7 M 69% Gold Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q
Slide 6: Q1 2023 Financial Highlights
Q1 2023 FINANCIAL HIGHLIGHTS Free cash flow of $8.5 M; slightly lower YoY despite inflationary pressures % Change • Adjusted net income of $13.2 million ($ M, except in earnings per share figure) Q1 2023 Q1 2022 / Q1 2022 due to higher operating expenses Sales 175.7 182.3 (4%) related to input costs
Slide 7: Q1 2023 Financial Highlights: Liquidity
Q1 2023 FINANCIAL HIGHLIGHTS Liquidity expected to increase as Séguéla ramps up in Q2 2023 Quarterly Total Liquidity ($M) • Cash balance at the end of March reflects $60 million in Cash Undrawn credit facility capital expenditures, including $17.3 million of expended 150 150 capital construction cos
Slide 8: Latin America Q1 2023 Operations Highlights
LATIN AMERICA Q1 2023 OPERATIONS HIGHLIGHTS Caylloma Mine, Peru 8
Slide 9: Operations in Latin America
OPERATIONS IN LATIN AMERICA Q1 2023 Production and AISC in line with 2023 guidance Lindero Mine | ARGENTINA Gold Production (oz) Cash Cost1 ($/oz Au) AISC1 ($/oz Au) 25,258 $891 $1,424 Q1 2022: 30,068 Q1 2022: $692 Q1 2022: $1,038 San Jose Mine | MEXICO Gold Production (oz) Silver Production (oz) Ca
Slide 10: West Africa Q1 2023 Operations Highlights
WEST AFRICA Q1 2023 OPERATIONS HIGHLIGHTS Séguéla Mine, Côte d’Ivoire 10
Slide 11: Operations in West Africa
OPERATIONS IN WEST AFRICA Q1 2023 Highlights | Séguéla 99% complete, Yaramoko AISC on lower end of guidance Yaramoko Mine | BURKINA FASO Gold Production (oz) Cash Cost1 ($/oz Au) AISC1 ($/oz Au) 26,437 $819 $1,509 Q1 2022: 28,235 Q1 2022: $705 Q1 2022: $1,147 Séguéla Mine | CÔTE D’IVOIRE 2023 produc
Slide 12: Séguéla Mine: Antenna pit mining activities
SÉGUÉLA MINE, CÔTE D’IVOIRE Antenna pit mining activities 12
Slide 13: Séguéla Mine: Site overview
SÉGUÉLA MINE, CÔTE D’IVOIRE Site overview 13
Slide 14: Séguéla Mine: Crushing
SÉGUÉLA MINE, CÔTE D’IVOIRE Crushing 14
Slide 15: Séguéla Mine: Processing area
SÉGUÉLA MINE, CÔTE D’IVOIRE Processing area 15
Slide 16: Séguéla Mine: Gold room
SÉGUÉLA MINE, CÔTE D’IVOIRE Gold room 16
Slide 17: Séguéla Mine: Tailings storage facility
SÉGUÉLA MINE, CÔTE D’IVOIRE Tailings storage facility 17
Slide 18: Séguéla Mine: Water storage dam
SÉGUÉLA MINE, CÔTE D’IVOIRE Water storage dam 18
Slide 19: Chesser Resources Acquisition
CHESSER RESOURCES ACQUISITION Diamba Sud Gold Project, Senegal 19
Slide 20: Acquisition Highlights
ACQUISITION HIGHLIGHTS Fortuna to acquire 100% of fully-paid ordinary shares of Chesser Resources • Purchase price of A$0.1421 per Chesser share which values transaction at approximately A$89.0 million or CAD$80.6 million • Upon completion of acquisition, Fortuna expects to issue 15,545,682 Fortuna
Slide 21: Diamba Sud Gold Project, Senegal
DIAMBA SUD GOLD PROJECT, SENEGAL Located in a mining-friendly, prospective jurisdiction • Mining-friendly jurisdiction with several large-scale gold mines in the country • Well established Mining Code • Sealed highway access, 680 km from Dakar, a well-serviced major regional center and port • Low re
Slide 22: Diamba Sud: Prospective geology
DIAMBA SUD GOLD PROJECT, SENEGAL Prospective geology1 IAMGold/AngloGold Ashanti Sadoila IAMGold/AngloGold Ashanti Sadoila • 872 km2 of tenements over the highly prospective Kedougou-Kinieba Inlier (KKI), a world class mining district • Diamba Sud associated with fertile splays off the Senegal-Mali S
Slide 23: Diamba Sud: Exploration potential
DIAMBA SUD GOLD PROJECT, SENEGAL Exploration potential: Wider regional package yet to be tested • Diamba Sud: Extensive mineralized system – part of larger 15 x 15 km gold anomaly • Multiple gold discoveries to date: • Resources defined at Area D, Area A, Karakara, and Bougouda • 3 new mineralized t
Slide 24: Diamba Sud: Historical Resources
DIAMBA SUD GOLD PROJECT, SENEGAL Historical Resources1 Tonnes Au Contained Metal Au Area (Mt) (g/t) (koz) Oblique view 0.5 g/t Au cut off Mineral Resources – Indicated (JORC) Area A Area D 4.3 2.1 286 Area A 4.9 1.7 271 Karakara 0.8 2.6 68 Bougouda - - - Total 10.0 1.9 625 Area D Mineral Resources –
Slide 25: Historical Estimates
Historical Estimates Disclosure of the historical estimate in this presentation is derived from Joint Ore Reserves Committee of The Australasian Institute of Mining and the Diamba Sud Scoping Study completed in March 2022 by Chesser and Metallurgy, Australian Institute of Geoscientists and Minerals
Slide 26: Appendix
APPENDIX San Jose Mine, Mexico 26
Slide 27: Notes
Notes Slide 3 1. Refer to Fortuna news release dated April 12, 2023, “Fortuna reports production of 94,110 gold equivalent ounces for the first quarter of 2023”. First quarter gold equivalent production is calculated using the following metal prices: $1,893/oz Au, $22.52/oz Ag, $2,256/t Pb and $3,19
Slide 28: 2023 Annual Guidance
2023 ANNUAL GUIDANCE 412 to 463 koz Au Eq; a projected increase of 3% to 15% over 20221 CONSOLIDATED PRODUCTION1 Silver Gold Zinc Lead 6.3 - 6.9 Moz 282 - 320 koz 43 - 48 Mlbs 29 - 32 Mlbs AISC1,3,4 Lindero Mine Yaramoko Mine Séguéla Mine San Jose Mine Caylloma Mine ARGENTINA BURKINA FASO CÔTE D’IVO
Slide 29: Q1 2023 ESG Corporate KPIs Performance
APPENDIX Q1 2023 ESG CORPORATE KPIs PERFORMANCE Prioritized corporate KPIs1 Q1 2023 2023 Targets Fatalities 0 0 LTIFR2 0.56 0.79 Significant spills 0 0 Energy efficiency3 0.20 0.25 Freshwater use intensity4 0.22 0.28 5 GHG emissions intensity 15.90 21.34 Significant disputes with communities 0 0 Emp
Slide 30: Consolidated Sales Metrics
APPENDIX CONSOLIDATED SALES METRICS Q1 2023 Q1 2022 % Change Metal Sold Ag (oz) 1,593,945 1,614,295 (1%) Au (oz) 64,719 66,426 (3%) Pb ('000 lb) 8,782 8,575 2% Zn ('000 lb) 13,815 10,546 31% Realized Price Ag ($/oz) 22.52 24.18 (7%) Au ($/oz) 1,893 1,884 0% Pb ($/lb) 1.02 1.06 (3%) Zn ($/lb) 1.45 1.
Slide 31: Board of Directors
APPENDIX BOARD OF DIRECTORS DAVID LAING MARIO SZOTLENDER Board Chair | Independent Director Director Mining engineer with 40 years of experience in the industry. David is an independent mining Co-founder of Fortuna. Financier, businessman and Director of Atico consultant. He was formerly the COO of
Slide 32: Executive Leadership Team
APPENDIX EXECUTIVE LEADERSHIP TEAM DAVID WHITTLE JORGE A. GANOZA Chief Operating Officer – West Africa President, CEO and Director David joined Fortuna in July 2021 and held the position of Vice President Operations Co-founder of Fortuna. Peruvian geological engineer with over 25 years of – West Afr
Slide 33: Cautionary Statement on Forward Looking Statements
CAUTIONARY STATEMENT ON FORWARD LOOKING STATEMENTS This corporate presentation contains forward looking statements which constitute “forward-looking information” within the meaning of applicable exchange rates; the imposition of capital controls in countries in which the Company operates; government
Slide 34: Non-IFRS Measures
APPENDIX NON-IFRS MEASURES Fortuna's consolidated financial statements of the Company for the three months March 31, 2023 (the uses such measures and ratios; and a qualitative reconciliation of each non-IFRS financial measure to the “Q1 2023 Financial Statements") which are referred to in this corpo
Slide 35: Non-IFRS Measures
APPENDIX NON-IFRS MEASURES Total debt Total Net Debt to Adjusted EBITDA Ratio Total debt is a non-IFRS measure which is calculated as debt consisting of credit facilities and convertible Total net debt is a non-IFRS measure which is calculated as Total net debt divided by Adjusted EBITDA. debentures
Slide 36: Contact: Carlos Baca, Director, Investor Relations
Lindero Mine, Argentina CONTACT CARLOS BACA | Director, Investor Relations [email protected] | fortunasilver.com NYSE: FSM | TSX: FVI @fortuna_silver fortunasilvermines @fortunasilver 36