Fortuna Mining is directing record free cash flow toward expanding its West African operations, highlighting brownfield growth at its Séguéla mine and advancing a new project in Senegal. The company says its strengthened balance sheet gives it flexibility to fund low-risk expansion over the next two years.
BNN Bloomberg spoke with Jorge Ganoza, CEO of Fortuna Mining, about capital allocation priorities, resource growth at Diamba Sud and the timeline toward a final investment decision as the company prepares for its next phase of production growth.
Key Takeaways
- Fortuna generated record free cash flow of US$132 million in Q4 and US$330 million for the year, strengthening liquidity and supporting growth spending.
- The company plans to deploy capital toward brownfield expansion at Séguéla, targeting annual production of 200,000 ounces from about 160,000 ounces currently.
- Indicated resources at Diamba Sud rose 73 per cent to 1.25 million ounces, forming the basis of a feasibility study due in May.
- A 2024 preliminary economic assessment outlined a 72 per cent internal rate of return and net present value of roughly US$600 million at a US$2,750 gold price.
- Management expects to make a final investment decision on Diamba Sud by mid-year while continuing early works and permitting in Senegal.
Read the full transcript below:
ROGER: Fortuna Mining is out with its Q4 results. The Vancouver company posted record free cash flow in both Q4 and the full year, as well as improved profitability despite costs moving higher. We’re joined now by Jorge Ganoza, CEO of Fortuna Mining, for more on this. Jorge, thank you very much for joining us.
JORGE: Pleasure to be here, Roger.
ROGER: OK, I guess let’s start with what we mentioned first — free cash flow. What’s that money going to do for you? Where are you looking?
JORGE: As you mentioned, we released results yesterday after the close that have been well received by the market, with record free cash flow for the quarter of US$132 million and record free cash flow for the year as well, US$330 million. But the bigger story here is that over the next 24 months, we are delivering on low-risk brownfield projects. So a lot of that money is going towards that growth. We have one of the better balance sheets in our peer group of mid-sized producers, with over US$700 million in liquidity, a net cash position of close to US$400 million as well. So all this cash flow that we’re generating is going towards more growth that we have in the pipeline.
ROGER: And those brownfields you mentioned, where are they and where are they in the process?
JORGE: This is low-risk growth. One is the expansion of the Séguéla mine, which is our flagship asset in Côte d’Ivoire. Séguéla is a highly profitable operation producing gold, annual gold production in the range of 160,000 ounces. Our aim is to take it to 200,000 ounces. We clearly have a life of mine supported by reserves of close to a decade. And if we account for resources, we exceed a decade of projected mine life. So we’re looking to expand it.
The second leg of this growth story for us is our new mine, which we’re going to start building this year in Senegal. It’s called Diamba Sud, and it’s a project where this year we’re investing US$100 million initiating early works and permitting, and we’re preparing to make a final investment decision by mid-year. Backed and underpinned by these solid financial results from our existing operations and the growth profile that we rate as low risk, technically and financially, I believe that’s what’s causing some excitement in the market.
ROGER: And at Diamba, the indicated gold resource increased by 75 per cent to about 1.25 million ounces. Is that right?
JORGE: Yes. This is a resource that’s been growing rapidly over the last 12 months. We have a much improved understanding of the geology and, as an outcome of that and aggressive drilling, we have been able to publish the updated resource you pointed out — a 73 per cent increase in indicated resources that today stand at 1.25 million ounces, very profitable ounces.
This resource is the foundation for the feasibility study that we are planning to conclude in May and, concurrent with the publication of that feasibility study, we aim to take the final investment decision. As I said, we are already advancing with early works, excavations and camp construction. This is a project where we published a preliminary economic assessment in October of last year, and the PEA showed, using US$2,750 gold, an internal rate of return of 72 per cent and a net present value of close to US$600 million. And that was with a much smaller resource.
ROGER: I just want to jump in and get a couple of other questions before we run out of time. Any geopolitical concerns with any of the locations right now?
JORGE: Côte d’Ivoire is the premier mining jurisdiction in that part of West Africa. Senegal as well — we’re finding a lot of support from government. We are expecting our environmental impact approval to be granted in six to seven months. That’s difficult to match anywhere else. We’re getting a lot of support from government. The security situation in those coastal West African countries is good, and the political support we’re getting is also very good.
ROGER: OK, Jorge, thank you very much for joining us today. We appreciate it.
JORGE: A pleasure to be here.
ROGER: Jorge Ganoza is the CEO of Fortuna Mining.
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This BNN Bloomberg summary and transcript of the Feb. 19, 2026 interview with Jorge Ganoza are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
