Past year: ▲ 25%(11.59 – 18.64 CAD)
Each one in plain English, with the numbers worked through for a shareholder.
15 Mar 2022drilling result▲ GoodMajor
A first resource for Sunbird put 3.4 million tonnes at 3.16 grams of gold a tonne for 350,000 inferred ounces - found after the decision to build Séguéla was already taken, and not yet counted in the mine plan. Fortuna said it would not materially change the project's existing resource or its construction plan, and the deposit remains open along strike and at depth.
4 Feb 2022regulatory community update▼ BadMajor
After SEMARNAT granted a 12-year extension of the San Jose permit in December 2021 (to October 2033), it sent a notice on 28 January 2022 saying that was a typo and the correct term is two years. This continues the San Jose permit dispute and largely resolves the earlier denial in Fortuna's favour, though the term is now contested. Fortuna says the notice was issued in error and has started federal court proceedings to reconfirm 12 years. It says the notice does not jeopardise operations.
26 Jan 2022drilling result▲ GoodMajor
Sunbird kept delivering ahead of a first resource estimate - 20.2 grams of gold a tonne over 18.2 metres true width and 13.4 grams over 18.9 metres - with coarse visible gold in core and a high-grade core traced over more than 250 metres of strike, still open along strike and at depth. Séguéla was already under construction as a 3,750 tonne a day mine for first gold in mid-2023.
9 Dec 2021drilling result▲ GoodMajor
Twelve rigs turning across the portfolio: 17.5 grams of gold a tonne over 6.3 metres true width at the Sunbird prospect at Séguéla, 0.6 grams of gold with 0.18% copper over 68 metres from surface next to the Arizaro project in Argentina, and, nearly 900 metres below surface at Caylloma, 93 grams of silver with 4.83% lead and 7.81% zinc over 20.48 metres true width in one of the deepest holes yet drilled there, still open at depth.
19 Nov 2021regulatory community update▼ BadMajor
Mexico's environmental regulator SEMARNAT denied the extension of the San Jose mine's environmental permit on 10 November 2021. Fortuna's Mexican subsidiary plans to appeal in the Mexican courts by the end of November; a decision could take up to a year. The mine is operating under court protection meanwhile, and the lenders waived until 18 February 2022 a credit facility requirement to hold permanent protection (it was due 20 November 2021), provided that protection is not lifted or stayed. This opens a risk to the Mexican mine that was later sold in 2025.
29 Sept 2021production update▲ GoodMajor
Three months after buying Roxgold, the board approved building Séguéla, a 3,750 tonne a day open pit in Côte d'Ivoire with a nine-year reserve life and about 130,000 ounces of gold a year in the first six years, for a remaining US$162 million of initial capital funded from existing resources. First gold was targeted for mid-2023, making it Fortuna's fifth mine.
8 Sept 2021asset acquisition disposition● Neutral
Sold 515,365 shares of Keon Capital, formerly Prospero Silver, to two private buyers at C$0.10 each for C$51,536 - an early warning disclosure on a legacy exploration equity stake, immaterial in itself.
7 Sept 2021drilling result▲ GoodMajor
First drill results from the West African ground two months after closing Roxgold, and they were strong: 17.2 grams of gold a tonne over 30 metres at Sunbird and 28.8 grams over 7 metres at Koula, both at Séguéla in Côte d'Ivoire, and 17.9 grams over 5.4 metres at Galgouli on the Boussoura project in Burkina Faso.
16 Aug 2021business combination● NeutralMajor
The formal acquisition report: the Roxgold deal closed on 2 July 2021, its holders taking 0.283 Fortuna shares plus C$0.001 each, so their equity carried into Fortuna rather than being cashed out. Roxgold became a wholly-owned subsidiary and was amalgamated into a Fortuna company under the same name.
21 June 2021business combination▲ Good
ISS and Glass Lewis both told shareholders of each company to vote for the Roxgold combination ahead of the 28 June meetings.
7 May 2021business combination● Neutral
The signed arrangement agreement with Roxgold dated 26 April 2021, covering meetings, court process, incentive award treatment and an acquiror loan facility. Mechanics rather than new commercial terms.
26 Apr 2021business combination● NeutralMajor
Agreed to buy Roxgold for 0.283 Fortuna shares plus C$0.001 per share, leaving Fortuna holders with 64.3% and Roxgold's with 35.7%. It takes Fortuna from Latin America into West Africa - the producing Yaramoko mine in Burkina Faso, the Séguéla project in Côte d'Ivoire and Boussoura exploration - and is put at about 450,000 gold-equivalent ounces a year at roughly US$950 an ounce all-in sustaining cost. Fortuna's stated reason for the deal includes funding Séguéla's construction.
13 Apr 2021regulatory community update● Neutral
Fortuna published its 2020 Sustainability Report, which it says follows the GRI and SASB standards and begins aligning climate disclosure with TCFD recommendations. It reports zero tailings dam incidents, zero work-related fatalities and women at 20% of employees. This is a routine report with no financial or operating figures.
29 Mar 2021resource reserve update▼ BadMajor
Combined Caylloma and San Jose reserves at end-2020 were 5.3 million tonnes with 28.8 million ounces of silver and 170,000 ounces of gold, both down 23% year on year, and inferred silver was 28.5 million ounces. Fortuna blamed depletion and the suspended 2020 exploration, and planned a US$16 million brownfields budget with over 53,000 metres of drilling.
20 May 2020capital raising announcement● NeutralMajor
Raised US$69 million by issuing 23,000,000 shares at US$3.00, including the full over-allotment, through a Scotiabank and BMO-led syndicate, to finish building Lindero and for working capital. The 2017 promise to build the mine without touching equity markets did not survive the pandemic, and the price was well below the US$5.00 conversion price on the debentures sold eight months earlier.
6 May 2020debt default or forbearance● NeutralMajor
With Caylloma cut back and San Jose suspended under Peruvian and Mexican pandemic orders, Fortuna's lenders agreed in principle to loosen the covenants on its US$150 million facility: total net debt to earnings moves from 3:1 to 4.5:1 through the first quarter of 2021 before stepping back to 4:1, and a new senior secured test of 3:1 falling to 2:1. This is relief obtained before any breach - the ratio was 1.7:1 at the end of 2019 - not a tightening.
8 Oct 2019debt financing● Neutral
The underwriters - CIBC, Scotiabank and BMO - took up the full US$6 million over-allotment on the same 4.65% terms, bringing the debenture issue to US$46 million.
2 Oct 2019capital raising announcement● Neutral
Closed the US$40 million of 4.65% convertible debentures due 31 October 2024, convertible at US$5.00 a share, 200 shares per US$1,000. They cannot be called before October 2022 and then only subject to a share price test.
11 Sept 2019capital raising announcement● NeutralMajor
Agreed a bought deal of US$40 million of senior subordinated unsecured convertible debentures at 4.65%, maturing October 2024 and convertible at US$5.00 a share, with a US$6 million over-allotment option. Having said in 2017 it would build Lindero without touching equity markets, Fortuna was now raising money in a form that converts into shares if it works.
28 Mar 2019resource reserve update● Neutral
Technical report on the San Jose silver-gold mine in Oaxaca, Mexico, effective 22 February 2019.
28 Mar 2019resource reserve update● Neutral
Technical report on the Caylloma silver-lead-zinc mine in Peru, effective 8 March 2019, filed the same day as the San Jose report.
6 Sept 2018drilling progress report▲ Good
Infill drilling at Lindero to firm up the first year's ore met or beat the block model in 44 of 61 holes, and found gold in a diorite porphyry in the centre of the deposit previously mapped as barren. Fortuna said it would rework the mine plan but that the resource estimate would not change materially. Commercial production was still planned for late in the third quarter of 2019 at about 137,000 ounces in the first full year.
7 Nov 2017resource reserve update● Neutral
The technical report on the Lindero property, effective 31 October 2017, filed behind September's construction decision.
11 Oct 2017drilling progress report▲ Good
Further drilling on the Animas NE vein at Caylloma kept supporting a high-grade shoot still open in two directions - 235 grams of silver a tonne with 6.51% lead and 6.50% zinc over 6.6 metres true width, 160 grams with 4.98% lead and 7.19% zinc over 5.7 metres. The update also covered early-stage work in Argentina and Serbia, some of it through equity stakes and option agreements with Prospero Silver in Mexico and Medgold Resources in Serbia.
21 Sept 2017production update▲ GoodMajor
The board approved construction of the Lindero heap-leach gold mine in Salta, Argentina, the asset Fortuna picked up when it bought Goldrock Mines in July 2016, with all major permits already in hand. Initial capital of US$239 million was to come from about US$190 million of cash, existing credit lines and operating cash flow, with the company explicitly ruling out an equity raise or hedging. It is an 18,750 tonne a day open pit over 15 years, with a base-case 18% return and 3.6-year payback - modest economics that depend on the gold price.
21 July 2017auditor change● Neutral
Changed auditors effective July 2017, with Deloitte confirming it had no disagreement with the company's account of the change. Routine, with no reportable event.
18 May 2017drilling progress report▲ Good
Nineteen step-out holes below the current workings on the Animas NE vein at the Caylloma silver mine in Peru confirmed high-grade silver, lead and zinc continuing at depth - 566 grams of silver a tonne with 2.1% lead and 2.7% zinc over 3.6 metres true width, 220 grams with 16.8% lead over 5.2 metres - across 400 metres of strike and 250 metres down dip beyond the estimated resource. The vein is still open at depth and to the north-east.
2 May 2017regulatory community update▲ GoodMajor
The SEC has verbally said it will accept Fortuna's use of inferred resources for depletion, provided the company adds more disclosure. This largely resolves the dispute, but the review is not formally closed: the SEC still has to comment on the added disclosure. The filing date slips from May 5 to no later than May 30, 2017, and will cover the Q1 2017 interim statements as well; the officer trading ban stays until then.
17 Apr 2017regulatory community update● Neutral
Fortuna's update says the SEC review of its 2015 filings is still ongoing, so the late 2016 annual filings and the officer trading ban remain in place. The company still expects to file by May 5, 2017 and reports no other material changes.
4 Apr 2017regulatory community update▼ BadMajor
Fortuna said its 2016 annual financial statements are late because the US SEC is still reviewing its 2015 filings, specifically its use of inferred resources to calculate depletion expense. Canadian regulators issued a management cease trade order that bars certain executive officers from trading company shares until the filings are made; other shareholders can still trade. The company expects to file by May 5, 2017.
