Fortuna Silver Mines

Fortuna Silver Mines Inc. ("Fortuna") is a Canada-based precious metals mining company with operations in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, Peru, and Senegal. The Company is primarily engaged in producing gold and silver with by-products lead and zinc. Fortuna’s operating mines are the Séguéla Mine, Yaramoko Mine, Lindero Mine, San Jose Mine, and Caylloma Mine. In 2023, Fortuna produced 326,638 ounces of gold, 5.9 million ounces of silver, or 452,389 gold equivalent ounces.

History
Fortuna was founded in 2005 by Simon Ridgway, Mario Szotlender, and Jorge Ganoza. Ganoza is a fourth-generation miner from a Peruvian family that has owned and operated several gold, silver, and base metals mines.

Fortuna acquired its underground Caylloma silver-lead-zinc mine in 2005, which started production in 2006. Also in 2006, it acquired a 76 percent stake in the San Jose silver-gold Project in Oaxaca, Mexico, which would become the San Jose Mine. Construction on the underground mine began in 2010, with production starting in 2011.

In 2010, Fortuna migrated from the TSX Venture Exchange to the Toronto Stock Exchange (TSX: FVI). The following year, Fortuna began trading on the New York Stock Exchange (NYSE: FSM).

In 2016, Fortuna acquired Goldrock Mines, an acquisition that included the open pit Lindero Gold Project in Argentina. In September 2017, the company announced it would move forward with construction, and in 2020, the Lindero Mine poured first gold.

In 2021, Fortuna expanded its reach beyond the Americas by acquiring West Africa-focused mining company Roxgold, including the underground Yaramoko Gold Mine in Burkina Faso and the advanced open-pit Séguéla Gold Project in Côte d'Ivoire, which became Fortuna’s fifth operating mine when it poured its first gold in May 2023.

In September 2023, Fortuna acquired Chesser Resources, including the Diamba Sud Gold Project in Senegal, one of the new and emerging gold discoveries in the region, further expanding Fortuna’s presence in West Africa.

Operations
Fortuna has five operating mines.

The Séguéla Mine in Côte d’Ivoire is an open-pit gold mine that poured its first gold in May 2023. In 2023, Séguéla produced 78,617 ounces of gold.

The Company’s underground Yaramoko gold mine has been producing since 2016 with mining currently taking place at Zone 55. Yaramoko is located in the Hounde greenstone belt region in the Province of Bale in southwestern Burkina Faso. In 2023, Yaramoko produced 117,711 ounces of gold.

The Lindero Mine is an open-pit gold mine located in the province of Salta, Argentina. In 2016, Fortuna acquired the development-stage project, and poured first gold in October 2020. In 2023, the mine produced 101,238 ounces of gold.

The San Jose Mine is an underground silver-gold mine located in the state of Oaxaca in southern Mexico and began commercial production in September 2011. In 2023, the mine produced 4.7 million ounces of silver and 28,559 ounces of gold.

In January 2010, Fortuna signed a 15-year renewable agreement with the Municipality of Ocotlan to refurbish and operate an idle grey water treatment plant in exchange for use of residual grey water at the San Jose Mine. Fortuna modernized the facility, including replacing pumps and motors with more energy efficient equipment. In October 2010, the plant became fully operational, and it is now one of only two wastewater treatment plants in the State of Oaxaca that produce water of sufficient quality for reuse. 80 percent of the treated water is used for the San Jose mine. The remaining 20 percent is reused for public services, including irrigation of the local community’s green areas, and supplying toilet tanks in the local municipal market.

The Caylloma Mine is an underground silver, gold, lead, and zinc mine located approximately 220 kilometers northwest of the Arequipa Department in southern Peru. Its commercial products are silver-lead and zinc concentrates. Fortuna acquired the Caylloma Mine in 2005 and relaunched operations in 2006 after modernizing the processing plant. In 2023, the mine produced 1.2 million ounces of silver, 40.9 million pounds of lead and 55.1 million pounds of zinc.

Controversy
Fortuna was involved in an ongoing dispute with opponents of its San Jose mine. In 2009, there was a two-month long blockade at the company's San Jose mine, with protesters worried about industrial contamination. The blockade lasted from March to May, and was eventually broken up by state police, leading to 19 arrests. In January 2012, opposition increased, due to concerns that the mine was improperly accessing the local water supply. In March 2012, Bernardo Vasquez, the leader of an opposition group to the mine, was shot and killed. One other anti-mine activist was killed in the same year, with three others injured by gunfire. The company denies responsibility for the violence, saying that it was the result of pre-existing social divisions.