2022 Consolidated Production Highlights
- Gold production of 259,427 ounces; 25 percent increase over 2021
- Silver production of 6,907,275 ounces; 8 percent decrease over 2021
- Lead production of 34,588,324 pounds; 5 percent increase over 2021
- Zinc production of 46,175,821 pounds; 3 percent decrease over 2021
All production results are in line with the mining sequence and Mineral Reserves estimates.
2023 Consolidated Production Guidance Highlights
- Gold production of between 282 to 320 thousand ounces; a projected increase of between 9 to 23 percent over 2022
- Silver production of between 6.3 to 6.9 million ounces; a projected decrease of up to 9 percent over 2022
- Gold equivalent production2 of between 412 to 463 thousand ounces; a projected increase of between 3 to 15 percent over 2022
Notes:
- Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices:
$1,802 /oz Au,$21.75 /oz Ag,$2,161 /t Pb and$3,468 /t Zn or Au:Ag = 1:82.89, Au:Pb = 1:0.83, Au:Zn = 1:0.52 - Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices:
$1,700 /oz Au,$21 /oz Ag,$2,000 /t Pb and$3,200 /t Zn or Au:Ag = 1:81.00, Au:Pb = 1:0.85, Au:Zn = 1:0.53
2022 Consolidated Operating Highlights
Fourth Quarter 2022 | Full Year 2022 | |||||||||||
Lindero, | Yaramoko, | Caylloma, | Consolidated | Lindero, | Yaramoko, | Caylloma, | Consolidated | |||||
OPERATIONAL FIGURES | ||||||||||||
Tonnes milled | 259,500 | 142,694 | 138,491 | 1,029,590 | 546,651 | 546,186 | ||||||
Average tpd milled | 2,883 | 1,568 | 1,556 | 2,925 | 1,523 | 1,539 | ||||||
Ore placed on pad (t) | 1,334,509 | 5,498,064 | ||||||||||
SILVER1 | ||||||||||||
Grade (g/t) | 194 | 75 | 191 | 80 | ||||||||
Recovery (%) | 91.1 | 81.4 | 91.4 | 81.3 | ||||||||
Production (oz) | 1,473,627 | 273,119 | 1,746,746 | 5,762,562 | 1,144,713 | 6,907,275 | ||||||
GOLD2 | ||||||||||||
Grade (g/t) | 0.80 | 1.13 | 6.45 | 0.12 | 0.81 | 1.14 | 6.37 | 0.14 | ||||
Recovery (%) | 89.8 | 97.6 | 22.0 | 90.4 | 97.5 | 31.8 | ||||||
Production (oz) | 29,301 | 8,499 | 26,190 | 122 | 64,112 | 118,418 | 34,124 | 106,108 | 777 | 259,427 | ||
LEAD | ||||||||||||
Grade (%) | 3.22 | 3.27 | ||||||||||
Recovery (%) | 88.9 | 87.8 | ||||||||||
Production (lbs) | 8,734,715 | 8,734,715 | 34,588,324 | 34,588,324 | ||||||||
ZINC | ||||||||||||
Grade (%) | 4.63 | 4.32 | ||||||||||
Recovery (%) | 89.0 | 88.8 | ||||||||||
Production (lbs) | 12,575,167 | 12,575,167 | 46,175,821 | 46,175,821 |
Notes:
- Metallurgical recovery for silver at the
Caylloma Mine is calculated based on silver content in lead concentrate - Lindero production includes doré and gold in carbon columns; Yaramoko production includes doré only
- Totals may not add due to rounding
The fourth quarter of 2022 was
Highlights
- Lindero continues capturing productivity gains and demonstrating a stable production performance delivering a 14 percent increase in gold production when compared to 2021
- Caylloma delivered higher annual silver and lead production due to higher throughput and head grades
San Jose delivered total silver production of 5.8 million ounces, hitting the upper range of annual guidance
Gold production for the fourth quarter of 2022 totaled 29,301 ounces, a 19 percent decrease year-over-year. Lower gold production is attributed to an 8 percent decrease in tonnes and a 23 percent decrease in gold grade for ore placed on the pad, compared to the fourth quarter of 2021. Gold grade for the quarter was in line with the mining plan and Mineral Reserve estimate.
Mine production for the quarter was according to management’s expectations, with a total of 1.9 million tonnes of ore mined in the fourth quarter, at a strip ratio of 0.54:1.
For the full year, mine production totaled 8.6 million tonnes of ore, at a strip ratio of 0.73:1, with 5.5 million tonnes of ore placed on the pad averaging 0.81 g/t Au containing an estimated 143,203 ounces of gold, in line with the management’s mining and production plan. Throughout 2022, management implemented various high impact optimization initiatives to capture efficiencies, allowing the operation to offset some of the cost increases in primary consumables. Initiatives included improving the efficiency of the SART plant, subsequently decreasing consumption of fresh make-up cyanide and sulfuric acid; and the optimization of the mine fleet´s trucking distance, reducing diesel consumption and improving productivity. In the fourth quarter of 2022, the operation commenced a project to improve the recirculation circuit of the HPGR with the aim of reducing granulometry and improving gold recovery from ore placed on the leach pad.
Gold production for the year totaled a record 118,418 ounces, comprised of 116,191 ounces in doré and 2,227 ounces of gold-in-carbon (GIC), meeting annual guidance (refer to Fortuna news release dated
In the fourth quarter of 2022,
Material mined using sublevel stopping (SLS) methods was increased in 2022, representing 35 percent of ore sent to the plant. The operation plans for the SLS contribution to reach 60 percent of total ore production in 2023. In the second quarter of 2022, a new underground shotcrete plant was commissioned which reduced mining cycles and partially offset some of the cost increases due to higher haulage distances as the mine deepens.
Silver and gold production for 2022 totaled 5.8 million ounces, the upper end of annual guidance, and 34,124 ounces, the mid-point of annual guidance, respectively. Average head grades for silver and gold for the year were 191 g/t Ag and 1.14 g/t Au, respectively.
In the fourth quarter of 2022, Caylloma produced 273,119 ounces of silver, a 4 percent increase year-over-year primarily due to higher grades mined during the period.
Silver production in 2022 totaled 1.14 million ounces, exceeding the upper end of annual guidance range.
In the fourth quarter of 2022, zinc production was 12.6 million pounds, a 10 percent increase over the comparable period in 2021. Production was mainly impacted by higher head grades and improved plant recovery. Lead production in the fourth quarter of 2022 was 8.7 million pounds, a 4 percent increase year-over-year, also attributable to higher plant recovery.
Zinc and lead production in 2022 totaled 46.2 and 34.6 million pounds, respectively; both exceeding the upper range of annual guidance. Base metal production benefitted from material mined at level 16 of the Animas vein allowing for a significant improvement in ore grade and oxide-sulfide ratios hence boosting plant recovery.
In the fourth quarter of 2022, the West African operations continued their solid performance. Gold production at the
At the Séguéla
Gold production in 2022 totaled 106,108 ounces achieving the mid-point of the annual guidance range.
2023 Consolidated Production and Cost Guidance
Mine | Silver (Moz) | Gold (koz) | Lead (Mlbs) | Zinc (Mlbs) | Cash Cost1,3,5,6 | AISC1,2,3,5,6 |
SILVER | ($/oz Ag Eq) | ($/oz Ag Eq) | ||||
5.3 - 5.8 | 34 - 37 | - | - | 10.2 - 11.3 | 14.7 - 16.2 | |
Caylloma, | 1.0 - 1.1 | - | 29 - 32 | 43 - 48 | 10.4 - 11.5 | 19.0 - 21.0 |
GOLD | ($/oz Au) | ($/oz Au) | ||||
Lindero, | - | 96 - 106 | - | - | 820 - 920 | 1,430 - 1,580 |
Yaramoko, | - | 92 - 102 | - | - | 960 - 1,060 | 1,550 - 1,710 |
Séguéla4, Côte d´Ivoire | - | 60 - 75 | - | - | 450 - 580 | 880 - 1,080 |
CONSOLIDATED TOTAL | 6.3 - 6.9 | 282 - 320 | 29 - 32 | 43 - 48 |
Notes:
- Cash Cost and all-in sustaining cost (AISC) are non-IFRS financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers. Refer to the note under “Non-IFRS Financial Measures” below
- AISC includes production cash cost, commercial and government royalties, mining tax, export duties (as applicable), worker’s participation (as applicable), subsidiary G&A, sustaining capital expenditures, and Brownfields exploration and is estimated at metal prices of
$1,700 /oz Au,$21 /oz Ag,$2,000 /t Pb, and$3,200 /t Zn. AISC excludes government mining royalty recognized as income tax within the scope of IAS-12 - Silver equivalent is calculated at metal prices of
$1,700 /oz Au,$21 /oz Ag,$2,000 /t Pb and$3,200 /t Zn - Séguéla’s production and cost guidance is based on first gold pour in mid-2023. Any material changes to the construction or commissioning schedule may have a material impact on Séguéla’s production and cost guidance.
- Totals may not add due to rounding
- Historical non-IFRS measure cost comparatives: The following table provides the historical cash costs and historical AISC for the four operating mines for the year ended
December 31, 2021 as follows:
Mine | Cash Costa,b,c | AISCa,b,c |
SILVER | ($/oz Ag Eq) | ($/oz Ag Eq) |
9.30 | 14.38 | |
Caylloma, | 13.46 | 18.94 |
GOLD | ($/oz Au) | ($/oz Au) |
Lindero, | 617 | 1,116 |
Yaramoko, | 739 | 1,317 |
- Cash cost and AISC are non-IFRS financial measures; refer to the note under “Non-IFRS Financial Measures” below
- Silver equivalent was calculated at metal prices of
$1,789 /oz Au,$25.16 /oz Ag,$2,205 /t Pb and$2,998 /t Zn for the year endedDecember 31, 2021 - Further details on the cash costs and AISC for the year ended
December 31, 2021 are disclosed on pages 34, 35, 36, 38, and 39 (with respect to cash costs) and pages 34, 35, 37, and 40 (with respect to AISC) of the Company’s management discussion and analysis (“MD&A”) for the year endedDecember 31, 2021 dated as ofMarch 23, 2022 (“2021 MD&A”) which is available under Fortuna's SEDAR profile at www.sedar.com and is incorporated by reference into this news release, and the note under “Non-IFRS Financial Measures” below
2023 Guidance Outlook
Major sustaining capital investment projects include:
| |
| |
|
Cash cost and AISC:
- Cash cost per ounce of gold at Lindero is expected to increase approximately 25 percent over 2022 at the upper range of guidance and 12 percent at the lower range. The increase is explained mainly due to lower production related to changes in the grade profile as per the life of mine plan, and the impact of higher projected operational expenditures reflecting incremental inflation pressures throughout 2022.
- AISC per ounce of gold at Lindero is expected to increase 41 percent over 2022 at the upper range of guidance and 28 percent at the lower range. The increase is explained by higher capital expenditures related to the leach pad Phase II expansion and higher capitalized stripping costs and higher cash cost per ounce.
At the
Major sustaining capital investment projects include:
| $8.4 million |
| $1.7 million |
Cash cost and AISC are expected to remain in line with 2022.
At the
Major sustaining capital investment projects include:
| |
| |
| |
|
Cash cost and AISC:
- Cash cost per ounce of gold at Yaramoko is expected to increase approximately 20 percent over 2022 at the upper range of guidance and 8 percent at the lower range. The increase is explained due to lower production and the impact of higher projected operational expenditures reflecting incremental inflation pressures throughout 2022 as well as higher mining costs at QV Prime and 109 Zone open pit.
- AISC per ounce of gold at Yaramoko is expected to increase 12 percent over 2022 at the upper range of guidance and remain in line with respect to the lower range. The increase is explained by higher cash cost per ounce.
At the
Major sustaining capital investment projects include:
| |
| |
| |
| |
|
Cash cost and AISC are expected to remain in line with 2022.
Séguéla
The main construction goals/milestones to be achieved towards first gold pour include:
Q1 2023:
- Mining activities commence
- Energize processing plant
Q2 2023:
- Construction practical completion
- First ore to the crusher / dry circuit
- First ore to the SAG mill / wet plant
- First gold pour
Q3 2023:
- Ramp-up to design capacity
Once production commences in mid-2023, Séguéla is expected to process 739,466 tonnes of ore averaging 3.3 g/t Au, with capital investments estimated at
Major sustaining capital investment projects include:
| $10.0 million |
| $2.8 million |
| $1.7 million |
2023 Exploration Outlook
Fortuna continues to advance its robust pipeline of Brownfields and Greenfields exploration projects in
Brownfields Exploration
Fortuna´s consolidated Brownfields exploration budget for 2023 for its four mines and Séguéla totals
Séguéla Project, Côte d’Ivoire
The Brownfields exploration program budget for 2023 at the Séguéla Project is
The Brownfields exploration program budget for 2023 at the
The Brownfields exploration program budget for 2023 at the
The Brownfields exploration program budget for 2023 at the
The Brownfields exploration program for 2023 at the
Greenfields Exploration
Reconnaissance exploration and evaluation of potential new projects will continue to be actively pursued during 2023, with a focus on new project generation and corporate growth in our active operating regions, supported by a budget of
Qualified Person
About
ON BEHALF OF THE BOARD
President, CEO, and Director
Investor Relations:
Forward-looking Statements
This news release contains forward-looking statements which constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward-looking Statements”). All statements included herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements. The Forward-looking Statements in this news release may include, without limitation, statements about the Company’s plans for its mines and mineral properties; changes in general economic conditions and financial markets; the impact of inflationary pressures on the Company’s business and operations; estimates of production in 2022 that remain subject to verification and adjustment; the Company’s anticipated financial and operational performance in 2023; estimated production forecasts and sales for 2023; estimated costs; estimated cash costs and all-in sustaining cash costs and expenditures for 2023; estimated capital expenditures in 2023; estimated Brownfields and Greenfields expenditures in 2023; exploration plans; the future results of exploration activities; the timing of the implementation and completion of sustaining capital investment projects at the Company’s mines; the timing of the commencement of production at Séguéla; expectations with respect to metal grade estimates and the impact of any variations relative to metals grades experienced; metal prices, currency exchange rates and interest rates in 2023; timing of and possible outcome of litigation; mineral resource and mineral reserve estimates; life of mine estimates; the Company’s business strategy, plans and outlook; the merit of the Company’s mines and mineral properties; the future financial or operating performance of the Company; the Company’s ability to comply with contractual and permitting or other regulatory requirements; approvals and other matters. Often, but not always, these Forward-looking Statements can be identified by the use of words such as “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “anticipated”, “estimated” “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements. Such uncertainties and factors include, among others, operational risks associated with mining and mineral processing; uncertainty relating to Mineral Resource and Mineral Reserve estimates; uncertainty relating to capital and operating costs, production schedules and economic returns; uncertainties related to new mining operations and development projects such as the Séguéla Project, including the possibility that actual capital and operating costs and economic returns will differ significantly from those estimated for such projects prior to production; uncertainty relating to the costs of the construction, the financing of construction and timing for the completion of the Séguéla Project; risks relating to the Company’s ability to replace its Mineral Reserves; risks associated with mineral exploration and project development; uncertainty relating to the repatriation of funds as a result of currency controls; environmental matters including obtaining or renewing environmental permits and potential liability claims; uncertainty relating to nature and climate conditions; risks associated with political instability and changes to the regulations governing the Company’s business operations; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in countries in which the Company does or may carry on business; risks associated with war, hostilities or other conflicts, such as the Ukrainian – Russian conflict, and the impact it may have on global economic activity; risks relating to the termination of the Company’s mining concessions in certain circumstances; developing and maintaining relationships with local communities and stakeholders; risks associated with losing control of public perception as a result of social media and other web-based applications; potential opposition to the Company’s exploration, development and operational activities; risks related to the Company’s ability to obtain adequate financing for planned exploration and development activities; property title matters; risks relating to the integration of businesses and assets acquired by the Company; impairments; risks associated with climate change legislation; reliance on key personnel; adequacy of insurance coverage; operational safety and security risks; legal proceedings and potential legal proceedings; the ability of the Company to successfully contest and revoke the resolution issued by SEMARNAT which annuls the extension of the environmental impact authorization for the
Forward-looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to the accuracy of the Company’s current mineral resource and reserve estimates; that the Company’s activities will be conducted in accordance with the Company’s public statements and stated goals; that there will be no material adverse change affecting the Company, its properties or its production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing, and recovery rate estimates and may be impacted by unscheduled maintenance, labour and contractor availability and other operating or technical difficulties); the duration and effect of global and local inflation; the duration and impacts of COVID-19 and geo-political uncertainties on the Company’s production, workforce, business, operations and financial condition; the expected trends in mineral prices, inflation and currency exchange rates; that the Company will be successful in challenging the annulment of the extension to the
Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources
Reserve and resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Canadian standards, including NI 43-101, differ significantly from the requirements of the
Non-IFRS Financial Measures
This news release also refers to non-IFRS financial measures, including cash costs and all-in sustaining costs. These measures are not standardized financial measures under International Financial Reporting Standards (IFRS), the financial reporting framework used to prepare the financial statements of the Company, and therefore may not be comparable to similar financial measures disclosed by other mining companies. These Non-IFRS Measures include cash costs and all-in sustaining cash costs.
Readers should refer to the “Non-IFRS Financial Measures” section in the Company’s 2021 MD&A, which section is incorporated herein by reference, for an explanation of these measures and reconciliations to the Company’s reported financial results in accordance with IFRS. The MD&A 2021 is available on SEDAR at www.sedar.com.
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