Q1 2025 Fortuna Mining Corp Earnings Call
And also have pricing Chief Executive Officer and co founder.
And also our Chief Financial Officer, Vincent <unk>, Chief operating Officer of Latin America, David We don't Chief operating officer of West Africa.
Today's earnings call presentation is available on our website.
<unk> Dot com before we begin please note that statements made during this call are subject to the reader advisors, including Yesterdays news release, the webcast presentation, our management discussion and analysis and the risk factors set out in our annual information form.
All financial figures discussed today are in U S dollars.
Unless otherwise stated.
Speaker Change: All information in our presentation has been reviewed and approved by Eric Chapman.
Senior Vice President of payments will serve us well.
Speaker Change: Vice versa that defined by National instrument 43 101.
Jorge: Ill now turn the call over to Jorge.
Speaker Change: Brent <unk>, Chief Executive Officer, and co founder of <unk>.
Speaker Change: Hello, everyone. Thanks for joining us today Q1 was another great quarter for us at Portola.
Speaker Change: Sales in Q4, we get the momentum going with a second straight quarter of record free cash flow from operations.
Speaker Change: We're making the most of our strong gold prices, keeping our costs under control and continuing to grow or margins.
Speaker Change: Cash flow was a standout again this quarter free cash flow from ongoing operations hit a record 111 million, beating our Q4 record of 96 million.
Speaker Change: That puts our free cash flow margin of 38% up from 31% in Q4.
Speaker Change: Net cash from operations before working capital changes was $138 million.
Speaker Change: Or 45 cents per share we adjust for the San Jose mine divestment.
Speaker Change: John's to 144 million or <unk> 48 per share.
Speaker Change: Another nice setup whats driving these simply both disciplined on cost control and a strong gold price.
Speaker Change: We brought our cash cost per ounce down to $925 on a consolidated basis from $1015 in Q4.
Speaker Change: Our consolidated all in sustaining cost came in at 6100, $40 well below last quarter's 1772.
Speaker Change: That kind of discipline is paying off.
Speaker Change: Net income from continued operations came in at a strong $61 7 million or 20 cents per share a big jump from $11 million or four cents per share in Q4.
Speaker Change: It was mainly thanks to an 8% decrease in oil prices.
Speaker Change: The lower effective tax rate as a result of the appreciation of the euro.
Speaker Change: We generated sales of $290 million or sub produced 103 gold equivalent ounces.
Speaker Change: In line with our plans.
Speaker Change: This includes the impact of the sale of our San Jose Mine, which has contributed about 11000 gold equivalent ounces in Q4.
Speaker Change: All of our mines state within production guidance at the border.
Speaker Change: Once again outperform coming in approximately 4000 dialysis above the midpoint of our guidance of previous quarter base, thanks to higher processed ore.
Speaker Change: Draw down of old interiors with inventory.
Speaker Change: We continue to further improve our financial strength, our net cash position more than doubled to $137 million and total liquidity rose to 462 million up from $381 million in the fourth quarter.
Speaker Change: Financial strength gives us flexibility, whether that's for investing in growth returning capital to shareholders or navigating market shifts.
Speaker Change: On that note, we continued buying back shares in Q1, we repurchased and canceled just over 900000 shares at an average price of $4 53 ex U S.
Speaker Change: On growth capital and exploration, we're staying focused on high impact opportunities across the portfolio.
Speaker Change: We have budgeted.
Speaker Change: $1 million for 2025 for exploration of new brake programs.
Speaker Change: We're going strong with target didn't work out the key feature on Sunday in the fall.
Speaker Change: Instead, they forget about it.
Speaker Change: The ongoing north prospect northern cause they want.
Speaker Change: <unk> advanced <unk> in Senegal, and then inside of won't porphyry at the retailer mine in Argentina.
Speaker Change: These are exciting projects and prospects with long term upside and we're putting capital to work.
Speaker Change: In 2025, we're also advancing with key capital projects that will enable <unk> to expand production in 2013 seeks to approximately 180000 ounces of annual growth.
Speaker Change: Maybe we will our chief operating officer for West Africa will expand on that later on the call.
Speaker Change: Yeah.
Speaker Change: During the first quarter, we continued to actively optimize our asset portfolio divesting of assets with high costs are limited life of mine.
Speaker Change: St. Louis I'll say 90, Mexico closed in April marking a key step in streamlining our operations San Jose has become our highest cost mine and was nearing the end of its mineral reserves. So he was a timely and strategic divestment.
Speaker Change: As far as they get a multiple mining or Kina Faso, We announced the sale on April 11.
Speaker Change: Lifecycle say get a multiple is approaching the end of its mine life with mineral reserves are expected to be depleted by early 2026.
Speaker Change: A decision to sell was driven by our compelling offer and gives us a permanent exit from a country, where we're no longer investing in mineral exploration.
Speaker Change: The business and security environment continues to present challenges.
Speaker Change: The sale provides for a cash consideration of $70 million and is subject to the payment of cash dividends by Russell Sigler owner of the bromine to foresee doing that in the amount of $57 5 million prior to close we expect expect the sale.
Speaker Change: In mid May.
Speaker Change: Taken together these two sales allow us to reallocate approximately $18 million in capital management.
Speaker Change: Management focus away from mine closures and towards higher value opportunities that better aligned with our long term strategic objectives.
Speaker Change: Yeah.
Speaker Change: On the safety front I am pleased to report that we had zero lost time injuries in Q1, and our total recordable injury frequency rate improve.
Speaker Change: Improved two 0.98 down from 133 in the fourth.
Speaker Change: That's a strong result, but I want to thank our team for their continued vigilance and dedication to safe work practices.
Speaker Change: This progress was overshadowed by a <unk> February.
Speaker Change: We're a subcontractor lost his life well performing FC their activities.
Speaker Change: Reagan reminder, that safety must remain our highest priority always our commitment to zero harm workplace is unwavering.
Speaker Change: In Argentina, I would like to comment that we continue to see positive economic policy changes and <unk>.
Speaker Change: Oregon has started easing.
Speaker Change: Exchange rate controls and introduced a managed floating exchange rates. These opens the door for us to repatriate 2025 dividends plus about $38 million quarterly country, and we're targeting the second half of the year to begin that process.
Speaker Change: When closing Q1 2025 was a strong quarter on all fronts, we hit back to back free cash flow records improved margins strengthened further our balance sheet and continue to optimize the portfolio.
Speaker Change: A great position to keep delivering for our shareholders our people and the communities we operate in.
Speaker Change: Well now move on to an update from our Chief operating officer, who will start with West Africa David.
David: Thanks Jorge.
Speaker Change: Together <unk> limited a successful first quarter with strong results from our production and operational perspective.
Speaker Change: Safety remains a core priority and we continue to advance our goal of achieving zero harm across all operations.
Speaker Change: Yes, My Guy maintained an excellent safety record with no major injuries and continues to operate more than Florida half years without a lost time incident.
Speaker Change: During the first quarter Seguela produced 38500 ounces of gold.
Speaker Change: Representing a 9% improvement compared to the previous quarter.
Speaker Change: This exceeded the mine plan and supports our expectations to achieve annual production at the higher end of guidance.
Speaker Change: <unk> also delivered strong performance with gold production of 33073 ounces.
Speaker Change: Reflecting a 12% improvement over the prior quarter.
Speaker Change: And so <unk> 477000 tons of all the mined at an average gold grade of 2.53 grams per tonne.
Speaker Change: Along with 547 million tons of additional material, resulting in a strip ratio of 11.5 to one.
Speaker Change: The plant processed 444000 tons of oil and an average grade of 276 grams per tonne gold.
Speaker Change: Production was sourced primarily from the antenna and.
Speaker Change: And co locations.
Speaker Change: The processing plant operate as efficiently with an average throughput rate of 250 tons per hour.
Speaker Change: Exceeding nameplate capacity by 40%.
Speaker Change: So as it relates to the tailing storage facility is on schedule for completion in the second quarter.
Speaker Change: Completion of this $8 $5 million project will provide tailing storage into 2029.
Speaker Change: Allowing us to gather to fully capitalize on the increased throughput capacity and achieve our stated guidance of 160 to 190000 ounces of gold per year from 2026 and beyond.
Speaker Change: All of the IP all of our capital projects are advancing in line with scheduled on budget.
Speaker Change: So Yale as performance resulted in a cash cost of $650 and an all in sustaining cost of $1290 per ounce.
Speaker Change: Continued exploration success at the Kingfisher somebody on the ground and other deposits supports long term production growth and strengthens the positive outlook beyond the feasibility study targets.
Speaker Change: At <unk> 144000 tonnes of ore were mined at an average grade of seven one grams per tonne.
Speaker Change: All was primarily sourced from the 55 zone underground mine.
Speaker Change: 21000 tons from <unk>, South had a grade of 899 grams per tonne.
Speaker Change: The one of our nine Zion opened eight began contributing during the quarter with 31000 tonnes at a grade of one one grams per tonne.
The plant processed 135000 tons at an average grade of seven eight grams per tonne gold.
Speaker Change: Yeah, Mike I recorded a cash cost of 1059, and all in sustaining cost of $1411 per ounce.
Speaker Change: Aligned with guidance expectations.
Speaker Change: In the first quarter for Qunar entered into successful discussions with July resources regarding the potential sale of the <unk> mine and exploration assets in Burkina Faso.
Speaker Change: These discussions concluded positively resulting has signed the agreement.
Speaker Change: Final golf ball by Fortuna occurred on April 14th with closing anticipated in early May.
Speaker Change: Transaction represents a strategic steps aligned with our objectives and provide continuity for the web for such Dr. Marco.
Back to you. Okay. Thank you we'll move on to Latin America. So I think you're going to give us an opex sure. Thank you Jorge and good afternoon, everyone.
Speaker Change: Speaking with auditing data mine in Argentina.
Speaker Change: <unk> delivered strong production results. This quarter, we placed one point and 75 million tons of ore on the leach pad with an average growth rate of zero point 55 grams per tonne gold.
Speaker Change: Gaining approximately 330943 ounces of gold.
Speaker Change: Our mining operations extracted 146 million tons support achieving an efficient stripping ratio of one eight to one which positively influenced our cost management.
Speaker Change: Gold production for the quarter reached 20320 ounces.
Speaker Change: While these reflect a decrease of 24% compared to the previous quarter of 2024, primarily due to one 8% moderate reduced ore grade and the timing of Leach kinetics is important to note that these production levels aligns with our planned mining sequence for the year.
Speaker Change: A major highlight at retail was a highly successful completion of the leach pad expansion project.
Speaker Change: This expansion was delivered at a total cost of 51 8 million.
Speaker Change: To support stem more years of mine life.
Speaker Change: I would also like to provide an update on solar plant project as in dental.
Speaker Change: As of today, the project is 97% complete and we havent begun pre commissioning activities.
Speaker Change: The project continues to advance on schedule and well within budget with full operations expected by the third quarter of 2025.
Speaker Change: The solar plant will represent a significant 42% reduction in diesel consumption quarter power generation.
Speaker Change: I mean, there are convenience capturing cost reduction from several initiatives such as the changing of the whole truck fleet from 90 tons Komatsu trucks to fortify tons, Scania trucks and optimizations on the crushing plant.
Speaker Change: Plant reagent consumption and trailing equipment to mention a few.
Speaker Change: Turning to costs.
Speaker Change: The cash cost per ounce of gold was $1147 compared to 1063 in the fourth quarter of 2024.
Speaker Change: This increase is largely attributable to the appreciation of the Argentine peso and the volume of ounces sold.
Speaker Change: The all in sustaining cash cost per gold.
Pounds sold was 1911 slightly up from 1833 in the previous quarter.
Speaker Change: This reflects the capital investment associated with the completion of the Leach pad expansion and the bulk of the vehicles stripping taking place during the first half of 2025.
Speaker Change: However, we anticipate the AC to progressively improve in the next quarter as we expect to gravitate towards a mine with a native peak of $1400 by the end of the year.
Speaker Change: Now, let's move to our Chorioma mine in Peru.
Speaker Change: The team there also delivered outstanding results Silver production reached 243000 ounces from 137000 tons mill men.
Speaker Change: Maintaining a consistent average head grade of 67 grams per ton. We also achieved significant production of lead and zinc with eight 8 million pounds and $13 8 million pounds produced respectively.
Speaker Change: The average head grades were $3 21 per cent for legg and 5% zinc.
Speaker Change: The production of all three metals remained consistent when compared to the fourth quarter of 2024 in line with our mine plan for the year.
Speaker Change: Regarding caused societal yamana, which are reported on a silver equivalent basis.
Speaker Change: Cash cost per silver equivalent ounce sold was $12.80 compared to $16 53 in the fourth quarter of 2024.
Speaker Change: All in sustaining cash cost per ounce of payable silver equivalent decreased to 18 point $74 down from $28 10 in the previous quarter. These cost adjustments reflect consistent cost savings and lower capital investments for the period.
Speaker Change: Offset primarily by slightly lower silver production in the period and the benefit from the higher realized silver price on the silver equivalent calculation.
Speaker Change: In conclusion our.
Speaker Change: Latin American operations demonstrated a strong first quarter in 2025.
Speaker Change: We maintain our focus on excellent safety performance achieved key production targets and successfully completed strategic projects like Desi narrow leach pad expansion.
Speaker Change: We remain committed to optimizing our operational efficiency and delivering sustainable value to our stakeholders.
After you Jorge.
Jorge: Thank you.
Speaker Change: Now I'll go through that.
Speaker Change: See the call reports.
Speaker Change: Thank you.
Speaker Change: I will be mostly making reference to Q1 2024 out of the comparison periods, where we have excluded San Jose for comparability purposes.
Speaker Change: As Jorge mentioned attributable net income from continuing operations for the quarter was $61 $7 million or 20 cents per share. This compares with 90% in Q1 'twenty 'twenty four.
Speaker Change: Our strong financial performance in the quarter was the result of a record high of enterprises and Hot high cause I'm, sorry, I caused spirit hours align with our guidance for the year.
Speaker Change: Our average realized gold price in the theory was $2880 per ounce compared to $2087 per ounce in Q1 of 'twenty 'twenty four.
Speaker Change: Our cash cost for gold equivalent ounce was $929 and all in sustaining cost was $1640 per ounce again, both in line with management expectations.
Speaker Change: A few comments on the financials depreciation depletion in the quarter was 61 million lawyers, which relate to remind includes $18 $5 million in depletion of the purchase price related to the acquisition was wrong sold in 2021.
Speaker Change: General and administration expenses were $25 $3 million, an increase of $8 $5 million year over year as shown in the breakdown. We provided in page 10 of our MD&A. The increase comes mainly from stock based compensation associated with a 42% rise in our share price.
Speaker Change: In the quarter.
Speaker Change: Our effective tax rate was 25% for the quarter compared to 34% in Q1 'twenty 'twenty four the decrease is a function of the appreciation of the euro versus the U S dollar in the quarter.
Speaker Change: At current metal prices, we expect our effective tax rate to be in the 28% to 30% range.
Speaker Change: And now were apparent tax rate to be in the 30% to 35% range.
Speaker Change: Moving onto our cash flow statement, we reported $111 $3 million of free cash flow from ongoing operations, which excludes newer development projects.
Speaker Change: And growth initiatives.
Speaker Change: We should note that we expect to pay over at $60 million of taxes in 2024 of which the board will be paid in Q2 and Q3 as a result of this timing effect and everything else being equal we should expect somewhat lower free cash flow in the next two quarters.
Speaker Change: In the investing section of our cash flow statement, we recorded $39 $5 million and their additions to appropriately plan and equipment consisting of approximately $33 $3 million of <unk>.
Speaker Change: Mine site capital, which includes $6 million of brownfields exploration.
Speaker Change: And $6 $2 million related to the <unk> project and Greenfields exploration.
Speaker Change: Moving onto the balance sheet, we closed the quarter with a cash position of $309 million and the net cash position after financial debt of $137 million or so.
Speaker Change: Liquidity was $459 million and bring the full undrawn amount of our 150 million dollar revolving credit facility. Thank you my view.
Speaker Change: Carlos questions, we would now like to open the call to any questions that you may have Jamie. Please go ahead.
Speaker Change: Thank you very much we will now be conducting a question and answer session. If you would like to ask a question you can press star one on your telephone keypad, a confirmation tone will indicate that your line is in Mckee you May Press star two if you would like to remove your question from Nicky So any participants using speaker equipment. It.
Speaker Change: Might be necessary to pick up your handset before you press the keys.
Speaker Change: Please wait a moment, whilst we poll for questions.
Speaker Change: Okay.
Speaker Change: Thank you very much. Your first question is coming from Mohammed <unk> of National Bank Financial Mohammed Your line is life.
Speaker Change: Thank you operator, hi, Jorge.
Speaker Change: A question on capital allocation priorities following the sale.
Speaker Change: San Jose mine and Euromarket why that is.
Speaker Change: No.
Speaker Change: As it relates to potentially inorganic opportunities that you may be looking at what are some of the criteria that you're looking at in terms of size jurisdiction stage up asset. Thank you.
Speaker Change: Yeah.
Speaker Change: First.
Speaker Change: Let me stress before I.
Speaker Change: Speaking about inorganic growth.
Speaker Change: We believe we have a strong opportunities to fuel growth organically.
Speaker Change: Which are high impact one is the expansion we're right there at the expansion of the cellular mine, which today is our lowest cost mines.
Speaker Change: On this.
Speaker Change: First approach towards an expansion, we're moving from about 140000 ounces of annual gold they're leery to.
Speaker Change: Okay.
Speaker Change: A range of 160 to 180000 ounces, we opportunities for more.
Speaker Change: We continued to see a lot of continued exploration success there.
Speaker Change: As evidenced by the discoveries of the Sunbury deposit the kingfisher deposit.
Speaker Change: And the extension of Sandburg deep for underground mining. So we're very encouraged by that and they continued opportunities for growth at our lowest cost operation.
Speaker Change: Is it together then the episode project in Senegal.
Speaker Change: <unk> is in advanced stage.
Speaker Change: Exploration late state exploration advanced stage of development, that's how I would read it.
Speaker Change: There were however, a well funded program in 2025.
Speaker Change: We're advancing exploration concurrent with permitting environmental studies.
Speaker Change: And the engineering studies as well so we continue to approach the advance of singular sorry of the embassy suite on a on a fast track approach.
Speaker Change: That's organic.
Speaker Change: Yeah.
Speaker Change: Then when we think of opportunities outside of the car.
Speaker Change: We are very focused on the two regions, where we're already established where we have a istar.
Speaker Change: Established management teams strong local expertise.
Speaker Change: So you will see us active in West Africa.
Speaker Change: The general a region in Latin America.
Speaker Change: We favor primarily countries, where we already have operations within these two readers of courts.
Speaker Change: We will move within the regions and the.
Speaker Change: No.
Speaker Change: Projects that are coming to the pipeline or a preferred.
Speaker Change: Although we will see.
Speaker Change: We're more than chasing ounces will be chasing value. We're chasing value. So you will see us keep disciplined if we see will we look at the full spectrum of opportunities from earlier stage two.
Speaker Change: Plus discovery pre development.
Speaker Change: We see a lot of opportunity there, we still see as identified value in some of the opportunities that we track.
Speaker Change: Yeah.
Speaker Change: What are we looking for.
Speaker Change: Projects that can deliver over a decade in the logs.
Speaker Change: At costs that seat or opportunities to go below the average cost.
Speaker Change: Cost curve.
Speaker Change: And the meaningful production that for us means anything north of 120, <unk> hundred 50000 ounces of gold production, we believe that we have a clear path.
Speaker Change: To support production in the range of four to 500000 ounces between what we have in the portfolio of opportunities that we see out there.
Speaker Change: Thanks, a lot for that and then if I could just maybe follow up on that.
Speaker Change: You look at your current portfolio right now should we expect maybe any potential rationalization I'm just looking at I think that gorilla is very very you have a ton of excitement and we're working through them in narrow you asked about what can you do that well, but payroll by maybe.
Speaker Change: Like how do you think about that asset and how do you think about your current portfolio.
Speaker Change: Yeah <unk>.
Speaker Change: Certainly the smallest mining the portfolio. It was our first mine and I always say there is no headache free mind or if there is one mine that gets close to that is carryover.
Speaker Change: Team there does an excellent job today, if you have gone for resources and reserves we can.
Speaker Change: Is he a mine operating for close to a decade.
Speaker Change: It's a mine that every year generates free cash flow for us. So it gives us a strong presence in the in the.
Speaker Change: <unk> mining jurisdiction with a deep rooted mining drive Asia like Peru.
Speaker Change: So we see the ku.
Speaker Change: <unk>.
Speaker Change: As upbeat in our portfolio today.
Speaker Change: Okay.
Speaker Change: Great. Thank you and thanks for taking my question.
Speaker Change: Thank you very much. Your next question is coming from David <unk>, a private investor David Your line is life.
Speaker Change: Yes My question is.
Speaker Change: With an excellent quarter of results.
Speaker Change: Hitting 20 cents.
Speaker Change: Profit per share.
Speaker Change: I just wanted to know how is it that.
Speaker Change: Financial analysts can have an influence over the stock price, which is presently trading down just shy of 12%.
Speaker Change: And.
Speaker Change: You missed their expectations by a penny a share.
Speaker Change: And it's created a 12% deficit for today I just don't understand.
Speaker Change: Perhaps a question for the analysts.
Speaker Change: But we focus on what we control we believe as I have stressed in the call that this is a record quarter, where delivery where it matters. The most in free cash flow works, we're controlling our cost and were fully capturing the benefit of higher prices.
Speaker Change: I believe that for tuna is put together a rock solid balance sheet is generating.
Speaker Change: The very strong free cash flow.
Speaker Change: It's managing the operations controlling the rig.
Speaker Change: And.
Speaker Change: We are set to continue benefiting from this price environment.
Speaker Change: For precious metals price swings in the stock.
Speaker Change: Difficult to comment on.
Speaker Change: We're looking at it then we also have the maintenance got her head of it but markets Donlin gold prices go up and come down the important thing to me is the fundamentals of the business and Fortuna has never been as strong as it is today the balance sheet.
Speaker Change: Brokered the portfolio the cost management execution operational excellence. So again I would have never received 20 years for tuna as strong as it is today with the capabilities to continue delivering for shareholders right.
Speaker Change: Oh. Thank you I appreciate that I don't disagree with you I just don't understand and now they are able to you know that but thank you very much.
Thank you.
Adrian Day: Thank you very much. Your next question is coming from Adrian day of Adrian Day asset management. Your line is life.
Adrian Day: Thank you.
Speaker Change: Good afternoon, everyone.
Speaker Change: Just had a quick question Mohammed.
Speaker Change: Earlier as part of the question, but I was also wondering how greenfields exploration.
Cynthia: Cynthia picture, both solo Greenfield civil so partnerships.
Speaker Change: Okay.
Speaker Change: I did not quite get the very beginning of the question, it's about I'm sorry, yes.
Speaker Change: Greenfields exploration, how does that fit into the way you look at growth yes, yes.
Speaker Change: Let me first give you a refresher on our growth initiatives. This year, we have increased or exploration and new projects.
Speaker Change: Budget to 40 $51 million.
Speaker Change: Up from $41 million in 2024.
Speaker Change: We're expanding our exploration initiatives.
Speaker Change: Well you know Adrian we are quite active with exploration in our key project to keep appropriate this and.
Speaker Change: To the point of your question the Greenfield, sometimes we don't speak about or speak enough about our early stage exploration initiatives and let me.
Speaker Change: Go into some of them right now we have an active drilling program in northern got divides the Doggone project. We have a 5000 metered sorry, a 10000 meter drill program ongoing there is it's a large land package.
Speaker Change: North of the battery Stan gone mine in northern Cote d'ivoire and.
Speaker Change: Peter It's early stage exploration of the right rocks on the REIT structures.
Speaker Change: With strong Youll give me go signatures on surface from Auger and soil work. So we are excited about that program is advancing we are I would say we're at third advanced with the with the drilling there.
Speaker Change: And.
Speaker Change: We look forward to report on that in the coming weeks start reporting on sungard and being able to talk more about ongoing in the coming weeks in Mexico.
Speaker Change: We have currently three.
Speaker Change: We're entering or looking to enter into three three joint venture opportunities auction agreements or joint venture opportunities. So we continue to seek over communities in Mexico.
Speaker Change: Those are greenfields in each of these early stage projects.
Speaker Change: Yeah.
In Peru, even though or work centers, mainly in the human mind in the vein system around the carryover mine, we have within are appropriately package too.
Speaker Change: I would say.
Speaker Change: Different type products for disseminated the targets are disseminated silver disseminated goals are the antibacterial Santa Rosa projects, so even though there within the Guyana land package, which is quite extensive.
Speaker Change: These are these are break that wouldn't be new would nuts.
Speaker Change: Necessarily peak they Caleb Brett these are disseminated.
Speaker Change: Gold and silver type targets.
Speaker Change: So so we are gearing to start drilling and testing those targets towards midyear second half of the year.
Speaker Change: And we also have initiatives in the.
Speaker Change: Argentina.
Speaker Change: Yeah.
Speaker Change: In Senegal going back to West Africa, we talk about the about soon.
Speaker Change: And we speak of the episode as a project, but we have a very large land package and say.
Speaker Change: In around say Gayla and we.
Speaker Change: We are also or work has focused initially at the project level at the embassy suite, but now we're starting to move out into the dirty for eastern boundaries or port concession packages.
Speaker Change: So all in all my message is we're very active across the jurisdictions on or a greenfield initiatives.
Speaker Change: And.
Speaker Change: Sometimes we don't speak a lot about them.
Speaker Change: But as work progresses and those mature some of them will mature we will start communicating more right.
Speaker Change: Okay. No that's excellent that's a lot a lot of projects. Thank you.
Speaker Change: Thank you very much and stay will be any remaining questions. You can join the queue now by pressing star one on your phone.
Speaker Change: Okay. We appear to have reached the end of our question.
Speaker Change: We do have a question just come in if you'd like to take it.
Speaker Change: It's from David <unk> of the mining stocks channel David Your line is life.
David: Thank you Hi, Jorge I say a few later on Christmas podcast Arkady Economics, I think the market right now is kind of a misunderstanding.
Speaker Change: The results that you released I just have a couple of questions here.
Speaker Change: How much will fortuna save and closure costs from the sale of <unk> and San Jose.
Speaker Change: Okay.
Speaker Change: Hello, Dave and I look forward to our conversation later today.
Speaker Change: The $50 million on aggregate is what we would estimate is.
Speaker Change: The capital that would need to be allocated to phase the mine closures of both get a more core in San Jose.
Speaker Change: And the bulk of that.
Speaker Change: Those are $50 million that would be.
Speaker Change: Invested allocated towards mine closure.
Speaker Change: Or.
Speaker Change: Over a period of years no.
Speaker Change: Five six years right because he is the closure of glass monitoring activities that go so the savings I believe are significant.
Speaker Change: Equally important is.
Speaker Change: Those are long term projects that need to be managed and managed well elsewhere. So our management's attention I believe is key here and we're not only saving on the $50 million, but we're also being able to reallocate management.
Speaker Change: Human capital and human resources towards those.
Speaker Change: Higher value opportunities than we have in the portfolio and across the other things that we're looking at.
Speaker Change: Okay and then my next.
Speaker Change: Question is do you have a timeline for the advancement of beyond the suite to a construction decision.
Speaker Change: Yes.
Speaker Change: No.
Speaker Change: We as I explained earlier in the call we're advancing.
Speaker Change: Three tracks.
Speaker Change: We aim to migrate the.
Speaker Change: Exploration concession we have at the embassy suite.
Speaker Change: Into an exploitation concession.
Speaker Change: By mid year 2026.
Speaker Change: So in order to do that we are advancing our environmental studies.
Speaker Change: Or engineering studies.
Speaker Change: And concurrent with that we can train and continue drilling like out here.
Speaker Change: So the objective is that by mid 2026, we are in a position to be able to call. A construction decision mid 2026, probably a construction decision will follow shortly after gaining their exploitation concession.
Speaker Change: Towards I would say second half of 2026.
Speaker Change: We should be in a position to consider.
Speaker Change: A construction decision.
Speaker Change: Okay, and then one last question.
Speaker Change: Do you have a timeline yet for incorporating the kingfisher into the life of mine plan at Zscaler.
Speaker Change: I would expect that to increase share can be incorporated by end of this year. So we will be releasing our.
Speaker Change: Our consolidated resource and reserve statement mineral resource and mineral reserve statement in early 2026.
Speaker Change: Should the kingfisher in those mine plans in the reserve. So we all of this year. We are drilling aggressively. These first half of the year, we've been drilling aggressively infield drilling.
Speaker Change: And we continue with that program and now we are.
Speaker Change: We're close to completion with the infield program and now we're also working on opportunities that we identified through the infield program to continue extending mineralization. So we're doing those two empire, the infield plus growth within the kingfisher that bus.
Speaker Change: But the.
Speaker Change: To go back to the basic question you should seek increased their reserves in the mine plans by year end reported early next year.
Speaker Change: Okay. Thank you that's all I've got and I will talk to you later on your Cat KDA economics podcast.
Speaker Change: Thank you look forward to that.
Speaker Change: Thank you very much.
Speaker Change: Next question is coming from Thomas.
Speaker Change: He is a private investor Thomas Your line is live.
Speaker Change: Yes Jorge.
Speaker Change: Been buying all the way down on the sell off and I really don't understand why.
Speaker Change:
Speaker Change: My comment is I hope.
Speaker Change: You're buying.
Speaker Change: With me.
Speaker Change: Because this is a fantastic deal example, so that's all I have to say.
Speaker Change: Thank you for the comment and well noted.
Speaker Change: Thank you very much.
Speaker Change: We have reached the end of our question and answer session.
Speaker Change: I will now hand back over to the management team for any final comments.
Speaker Change: There are no further questions I'd like to thank everyone for joining us on today's earnings call. We appreciate your continued support and interest in 14, and Miami have a great day.
Speaker Change: Thank you very much that does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful rest of the day. We thank you for your participation.