A Canadian miner that is truly international
Interview with Jorge A. Ganoza, president, CEO, and director of Fortuna Mining on growth and combating political instability
The Séguéla open pit mine in Côte d’Ivoire consists of the Antenna,
Koula, Agouti, Boulder, Ancien, and Sunbird deposits, with a mine life
of eight years, based on reserves reported as of Dec. 31, 2023. It is
located near existing infrastructure, including grid power, transport,
and water resources. CREDIT: FORTUNA MINING
Recently, I had a conversation with Jorge A. Ganoza (JG), president, CEO, and director of Fortuna Mining to discuss the company’s transformation into a renowned mid-tier precious metals producer, and how it is continuing to grow its portfolio in premier international mining regions.
CMJ: As a conversation starter, let’s talk a bit about history: Can you please talk to us about the history of Fortuna Mining and its current portfolio?
JG: Fortuna Mining is a Canadian-based precious metals mining company, with five operating mines and an advanced exploration project located in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, Peru, and Senegal. We produce gold and silver and generate shared value over the long term for our stakeholders through efficient production, environmental stewardship, and social responsibility.
Fortuna is a public company, with its shares listed on the New York Stock Exchange (NYSE: FSM), Toronto Stock Exchange (TSX: FVI), and Frankfurt Stock Exchange (Frankfurt: F4S). Our corporate office is in Vancouver, B.C., and our regional head offices are located in Lima, Peru and in Abidjan, Côte d’Ivoire.
Fortuna was founded in 2005. Initially, focused on silver opportunities in Latin America, the company acquired the Caylloma silver-lead-zinc mine located in Arequipa, Peru. A year later, we re-initiated production at Caylloma mine, and acquired 76% stake in the San Jose silver-gold project located in Oaxaca, Mexico. In 2009, we acquired 100% interest in San Jose project, and construction began in 2010. In 2016, we acquired the Lindero gold project in Salta, Argentina, and started construction on the project in 2017. In 2021, Fortuna expanded into West Africa by acquiring the Yaramoko mine in Burkina Faso, and the advanced Séguéla gold project in Côte d’Ivoire, and immediately started construction on the Séguéla project; a 3,750 t/d open pit gold mine. The Séguéla mine poured first gold in May, 2023. We also strengthened our presence in West Africa by acquiring the Diamba Sud gold project in Senegal. Today, Fortuna is a seasoned, mid-tier precious metals producer that continues to grow its portfolio in premier mining regions.
CMJ: Effective June 20, 2024, Fortuna Silver Mines Inc. changed its name to Fortuna Mining Corp. Can you please explain the reason for the rebranding?
JG: In the early days of the company, we did not have much money, but we had big ideas, and the company was not well-known. At that time, silver was trading at a good price, and it made sense to focus on it and on our operations in Peru and Mexico, which were two of the largest silver producing countries. It made sense to use “Silver” as an identifier in alignment with that strategy.
Today, Fortuna is a very different company from what it was 20 years ago. With more than US$1 billion in sales and more than 500,000 oz. of gold targeted in annual production for 2024, gold accounts for 80% of our total sales, and silver accounts for only 10%. The remaining 10% comes from lead and zinc sales. We employ over 5,000 people, with a diverse workforce that includes 16% women.
We believe the old name does not represent who we are anymore, nor it aligns with the future vision of the company. We continue to grow our portfolio in premier mining jurisdictions, and we are pursuing more opportunities in gold, but we have not given up on silver. We remain enthusiastic about both of them, but we have achieved more success in gold; hence, the name change.
CMJ: Last year, I attended the commissioning of the new Séguéla mine in Côte d’Ivoire. How does Côte d’Ivoire fare as a mining jurisdiction? How do you compare it to other jurisdictions in, for example, Latin America?
JG: Côte d’Ivoire is an extremely welcoming jurisdiction for responsible mining investment, and we rate it very highly. The country has a competitive mining code and a strong vision to become a leader in gold production in West Africa and is making significant strides toward this goal. The leaders and government officials are well-educated and have a good technical background and understanding of the industry. Compared to other regions where we operate, Côte d’Ivoire certainly ranks among the most welcoming and supportive jurisdictions.
CMJ: The company has two mines in West Africa. With the acquisition of Chesser in Senegal, what is the current portfolio and your growth strategy in West Africa?
JG: We first ventured into West Africa in mid-2021 through the acquisition of Roxgold and have pursued steady growth in the region. Since the acquisition, we have grown from one operating mine to two (Yaramoko mine in Burkina Faso and Séguéla mine in Côte d’Ivoire) and added an advanced exploration and development project, Diamba Sud gold project in Senegal, through our acquisition of Chesser Resources.
West Africa offers a prime landscape for the gold mining industry, and we are actively pursuing strategic opportunities as they arise. While major players like Newmont and Barrick are well-established, we see significant potential in the mid-sized producer segment, where competition is less intense. Fortuna has established itself as a strong player within this segment, and we intend to continue building on that strategic advantage.
CMJ: There is an ongoing nationalization pattern of African governments, especially those under military juntas, attempting to exert greater control over their natural resources. Yaramoko mine in Burkina Faso is Fortuna’s highest-grade gold mine, and the government recently nationalized two gold mines, ending legal dispute between rival companies. How does this affect your operations in the West African country?
JG: In the case of the dispute between Endeavour Mining and Lilium, my understanding is that the government intervention yielded a positive outcome. In response to comments by Burkina Faso’s President Ibrahim Traoré in October regarding mining companies operating in Burkina Faso and the possible withdrawal of existing mining permits, we sought direct clarification from the Ministry of Mines and received confirmation that the government has no plans to withdraw existing mining permits which are in compliance with Burkina Faso’s laws. The Yaramoko mine is in compliance with all material laws, and operations continue to be conducted normally.
While the mining environment in Burkina Faso has become more complex in recent years, we continue to find government officials responsive and open to engagement. We are currently focusing investment only within the fence of Yaramoko mine.
CMJ: Moving from Africa to Latin America, how much does the political instability affect Fortuna Mining’s operations?
JG: Operating in developing economies means the rule of law is not necessarily stable. The success of a mining project is dependent on government support. When countries with long mining traditions, like Mexico, are changing the mining concessions law and are making permitting difficult, project developments are hindered. In addition, all these new laws prevent us from using our mineral titles, so we are not able to sustain the capital-intensive construction phase anymore. Finally, Mexico has reserved all open ground mineral operations for the state, so there will be no more private explorations there in the predictable future.
CMJ: How does Fortuna work with local communities as part of the company’s social responsibility?
JG: Our approach to social responsibility starts with understanding the unique development goals of each region where we operate. We aim to become a strategic partner by working collaboratively with local stakeholders to help achieve these goals. Our initiatives are typically focused on key areas such as education, healthcare, and infrastructure.
In 2023, we invested approximately US$8 million in social responsibility and support programs, and we expect to maintain similar levels of investment this year. We are deeply engaged in each of the communities where we operate, ensuring we listen to their needs and strive to align ourselves as true partners to both our host communities and governments.
In Côte d’Ivoire, for example, we have partnered with the central government to combat cataract-related blindness. To date, we have supported surgeries for nearly 2,000 individuals, making a tangible difference in the lives of those in need.
CMJ: Finally, what are the future priorities for Fortuna?
JG: Looking ahead, our focus is not on reaching the symbolic milestone of one million oz. of annual production in the immediate term. Instead, we are committed to solidifying our position as a leading mid-sized gold producer. We are targeting a production range of approximately 500,000 oz./y, with a strong emphasis on keeping our all-in-sustaining costs highly competitive — at or below the industry median of US$1,500 per oz.
Fortuna’s current reserves amount to just over three million oz. of gold equivalent in reserves and approximately 1.7 million oz. in inferred resources across our portfolio.
While we currently lack the long-life mines that would allow us to project operations for a decade or more, we are actively working to build a portfolio that supports this vision. Over the coming years, we will focus on deploying capital to pursue high-value opportunities as they arise.