Mohamed Sidibe

Mohamed Sidibé from National Bank Financial asked about the implications of the positive resource update for Diamba Sud, specifically whether it would extend mine life or improve the production profile. He also inquired about the key drivers behind the updated gold price assumption for Diamba Sud's resource and reserve estimates. Additionally, he asked for color on the production cadence for Séguéla and Lindero in the first half versus the second half of the year, and expected variations in All-In Sustaining Costs (AISC).

Answer

Jorge A. Ganoza, President, CEO, and Co-founder of Fortuna Mining, clarified that the Diamba Sud resource update is not expected to change throughput but will extend the mine life and improve the annual production profile due to higher-grade new resources like Southern Arc. He explained that the $3,300 gold price was used for the resource estimate based on their methodology, noting that a lower price ($2,600 for resources, $2,300 for reserves) would be used for the reserve estimate. Regarding production cadence, Mr. Ganoza stated that production should be generally steady, with Lindero expected to be softer in Q1/Q2 due to primary crusher foundation repairs, picking up in the second half. He also noted that AISC is expected to be higher in the first half due to heavier capital expenditures.

Mohamed Sidibé inquired about the implications of the recent Diamba Sud resource update on mine life and initial production profile, the rationale behind the updated gold price assumption for Diamba Sud's resource estimate, the expected production and All-in Sustaining Cost (AISC) cadence for Fortuna Mining's portfolio in 2026, particularly for Séguéla and Lindero, and the development timeline for the Sunbird underground project at Séguéla, including when initial ore production is anticipated.

Answer

Jorge Alberto Ganoza (President, CEO and Co-founder) clarified that the Diamba Sud resource update is expected to extend mine life and improve the annual production profile due to higher-grade Southern Arc deposits. He explained that the $3,300 gold price was used for the resource estimate, noting a lower price (e.g., $2,300) would be used for reserve estimates. Ganoza also detailed that 2026 production should be generally steady, with Lindero being softer in Q1/Q2 due to crusher foundation repairs, and AISC expected to be higher in H1 due to capital expenditures. Regarding Sunbird, Ganoza outlined a $14 million budget for 2026 for box cut and equipment, projecting initial ore production in late 2027 or early 2028, contingent on permitting expected by late 2026.

The analyst asked for a detailed timeline of key milestones for the D'Amba Sud project, including the PEA, feasibility study, and construction decision. He also inquired about the CapEx spending cadence for the second half of the year and sought clarification on the AISC outlook for Q4 2025 and for 2026.

Answer

The CEO outlined the D'Amba Sud timeline: a PEA in late October/early November 2025, environmental permit approval in early 2026, a feasibility study in H1 2026, and a subsequent construction decision. The CFO noted that CapEx would be slightly more weighted to Q3. It was clarified that the consolidated AISC would remain elevated in Q3 before decreasing in Q4, and the target of ~$17.50/oz was for 2026, representing a decrease from the 2025 guided levels.

Mohamed Sidibé from National Bank Financial asked for a detailed timeline of upcoming milestones for the Diamba Sud project and questioned the expected cadence of capital expenditures for the second half of the year.

Answer

President and CEO Jorge Ganoza outlined an accelerated timeline for Diamba Sud, including a PEA by late October 2025 and a fast-track to a feasibility study in H1 2026, leading to a construction decision. CFO Luis Ganoza explained that CapEx would be slightly more weighted to Q3 before decreasing in Q4, which is expected to help lower the consolidated AISC. Mr. Ganoza added this reflects the planned investment and stripping timing at the Seguela mine to enable its production expansion.

Mohamed Sidibe inquired about Fortuna's capital allocation priorities following the divestment of the San Jose and Yaramoko mines, specifically asking about criteria for inorganic growth and the potential rationalization of the existing portfolio, including the Caylloma mine.

Answer

Jorge Durant, President & CEO, emphasized that the company's primary focus is on high-impact organic growth, such as the Seguela mine expansion and the Diamba Sud project. For M&A, he stated Fortuna is targeting value-accretive opportunities in West Africa and Latin America that offer long mine lives, low costs, and production above 150,000 ounces. He affirmed that the Caylloma mine remains a strategic asset, consistently generating free cash flow and providing a strong presence in Peru.

Mohamed Sidibe inquired about Fortuna's capital allocation priorities following recent asset sales, focusing on criteria for inorganic growth opportunities such as size, jurisdiction, and asset stage. He also asked for the company's view on its current portfolio, specifically the long-term fit of the Caylloma mine.

Answer

President and CEO Jorge Durant emphasized that the company prioritizes high-impact organic growth, including the expansion of the Seguela mine and the development of the Diamba Sud project. For M&A, he stated the focus is on West Africa and Latin America, seeking value with projects that offer over a decade of mine life and production above 120,000-150,000 ounces. Regarding the portfolio, Durant affirmed that the Caylloma mine remains a good fit, as it consistently generates free cash flow, has a long operational outlook, and maintains a strategic presence in Peru.

Mohamed Sidibé from National Bank inquired about Essakane's strategic position within IAMGOLD's portfolio, specifically regarding the increase in Measured & Indicated (M&I) resources, the potential extension of its mine life beyond the 2029 license expiry, and the expected unit costs for Côté Gold, including milling and mining costs, for the remainder of 2026.

Answer

Renaud Adams, President and CEO, highlighted Essakane's steady operations and successful cash repatriation strategies. Bruno Lemelin, Chief Operating Officer, detailed the discovery of additional resources within the existing mine fence, including phases 8, 9, and 10, and the Lao pit, which could extend the mine life by another five years to 2032. For Côté Gold, Mr. Lemelin projected mining costs to be around $370-$380 per ton for 2026, noting that ongoing adjustments, new equipment, and pushback activities would influence costs. Mr. Adams added that capital investments are aimed at optimizing overall performance and reducing Côté's unit costs over the next 2-3 years.

Mohamed Sidibé inquired about Essakane's strategic position within IAMGOLD's portfolio, considering its increased Measured & Indicated (M&I) resources, potential mine life extension, and the upcoming license expiration in 2029. He also asked for clarification on Côté Gold's unit costs, specifically milling and mining, and the expected improvements for 2026.

Answer

Bruno Lemelin, Chief Operating Officer, and Renaud Adams, President and CEO, explained that Essakane has operated steadily with no interruptions for nearly three years, and creative cash flow repatriation methods are rewarding shareholders. Renaud Adams detailed the discovery of additional resources (Phase 8, 9, 10, Lao pit) within the existing fence, which could extend the mine life by another 5 years to 2032, with government engagement planned. Regarding Côté Gold, Bruno Lemelin stated that mining costs for 2026 are expected to be around $370-$380 per ton due to ongoing adjustments, new equipment, and pushback activities. Renaud Adams added that full cost optimization for Côté is a 2-3 year process, aiming to position it as a leading low-cost, large-scale Canadian mine.

Mohamed Sidibé of National Bank Financial requested more detail on the second-half outlook for Essakane, specifically regarding expected grades from Phase 7, and asked for clarification on the cadence of tax payments in Q3 and Q4.

Answer

COO Bruno Lemelin explained that grades at Essakane are expected to increase in the second half as mining moves deeper into Phase 7, a typical pattern for new phases. CFO Maarten Theunissen clarified that a significant withholding tax payment was made in July (Q3), with the remaining tax payments for the period expected to be spread out evenly.

Mohamed Sidibe of National Bank Financial followed up on Essakane's unit costs, asking if lower diesel prices were a contributing factor. He also requested more color on the grade outlook for the Westwood mine in Q2 following recent challenges and asked for an update on the security situation in Burkina Faso.

Answer

CFO Marthinus Theunissen clarified that market fuel price reductions have not yet impacted costs in Burkina Faso, and the cost performance was driven by throughput. COO Bruno Lemelin stated that Westwood's underground grade is expected to return to a range of 8 to 12 g/t. CEO Renaud Adams commented on Burkina Faso, expressing confidence in operations and their relationship with the government, stating they do not see an increased risk.

Mohamed Sidibe sought clarity on Westinghouse's core business segment, asking if the past guidance of 6%-8% revenue growth remains applicable for the next couple of years. He also inquired about plans to bring fuel services unit costs of sales back within the 2025 range, given the year-over-year guidance increase.

Answer

Grant Isaac, President and Chief Operating Officer, reiterated excitement for Westinghouse's core business (fuel fabrication, reactor services), driven by restarted, life-extended, and uprated reactors, and potential upside from projects like Springfields in the UK, as well as the long-term core business generated by new AP1000 builds. Regarding fuel services unit costs, Mr. Isaac attributed the increase to general inflationary pressures and noted that future costs would depend on production levels and the mix of various products within that segment.

Mohamed Sidibé from National Bank Financial inquired about the confidence in receiving Inkai deliveries in H2 given transportation risks and asked if market developments could trigger a restart of the Springfield's facility.

Answer

Executive VP & CFO Grant Isaac stated that confidence in H2 deliveries from Inkai has increased as the Trans-Caspian route has become more predictable, though alternatives exist if needed. Regarding Springfield's, he explained that a restart requires long-term contracts from utilities, not just short-term offers at premium prices, as the current situation benefits the Port Hope facility.

Mohamed Sidibe asked how delayed shipments from Inkai affect inventory balances and inquired about the cost drivers in the Fuel Services segment, where costs were flat despite higher sales.

Answer

Executive VP and CFO Grant Isaac explained that shipping delays from Inkai are managed by using multiple supply levers, including inventory, to meet all commitments. Senior VP and Deputy CFO Heidi Shockey noted that Fuel Services costs vary based on the mix of products sold in a given quarter, which accounts for the flat cost profile despite higher revenue.

Inquired about the geopolitical considerations of the alternative Sadiola sale proposal, the timeline for a decision on the sale, and the operational outlook for Sadiola regarding grade and throughput in the upcoming quarters.

Answer

The alternative proposal is also considered geopolitically supportive, and the company is encouraged by Mali's interest in private investment. A decision on the Sadiola deal is hoped for by mid-June. Operationally, mining from Korali-Sud was in line with the plan and does not negatively impact Q2 guidance; throughput is expected to remain on track with the budget.

Requested an update on discussions with the state mining company (Sam) regarding exploration opportunities near Sadiola and the potential timing for an update in 2025.

Answer

The company is assisting the state mining company with due diligence on several opportunities, including one near Sadiola that could provide oxide ounces. After sharing the due diligence, they are now in discussions on mutually beneficial terms and hope to provide an update in 2025.

Mohamed Sidibe of CIBC followed up on New Afton's grade profile, asking if the guidance for 45% of annual production in H1 2025 implies a weaker Q2. He also questioned the company's capital allocation priorities, particularly regarding the potential for capital returns to shareholders.

Answer

CFO Keith Murphy confirmed that Q2 would be a transitional quarter as the high-grade B3 cave is depleted and the lower-grade C-zone ramps up, consistent with the full-year guidance profile. President and CEO Patrick Godin elaborated that the initial ore from the C-zone is planned to be lower grade. On capital allocation, Godin stated the immediate priority is paying down the revolver used for the New Afton interest acquisition. He mentioned that returning capital to shareholders is something the Board will consider in the medium term, after funding projects and ensuring a healthy cash balance.

Asked for the drivers behind the Q/Q production increase, the breakdown of costs between labor and reagents, and for any color on the GM share lockup expiration and their conversations with GM.

Answer

Sam Pigott attributed the production increase to the team learning to operate the plant better, improving uptime, and reliability. Alex Shulga addressed the cost question, stating that reagents are the most substantial part (referencing the technical report's 30-40% figure) but declined to give specific guidance until next year. Regarding GM, Sam Pigott confirmed the lockup has expired and that they maintain an open dialogue with GM, but could not speculate on GM's strategic view of their shares.

Asked for modeling help to reconcile production and sales figures, a clear definition of 'commercial production,' and details on the repayment schedule for near-term debt at the project level.

Answer

The company explained that sales are primarily to Ganfeng (80%) and there's a lag between production and sales during ramp-up. 'Commercial production' is an accounting determination based on achieving and sustaining certain production levels and quality. The near-term debt is spread across the remainder of 2024 and 2025, and the company is actively working on refinancing to gain more flexibility.