Q1 2025 Fortuna Mining Corp Earnings Call
<unk>, Chief Executive Officer, and co founder.
And also our chief financial.
Speaker Change: The officer safety readout.
David: Co Chief operating Officer of Latin America, David We don't Chief operating officer of West Africa.
Speaker Change: Today's earnings presentation is available on our website.
Speaker Change: <unk> Dot com before we begin please note that statements made during this call are subject to the REIT or advisory fee included in Yesterdays news release, the webcast presentation, our management discussion and analysis and the risk factors set out in our annual information form.
Speaker Change: Financial figures discussed today are in U S.
Speaker Change: Unless otherwise stated.
Eric: All information in our presentation has been reviewed and approved by Eric <unk> Senior.
Speaker Change: Senior Vice President Technical services.
Speaker Change: Vice versa that defined by National instrument 43 101.
Speaker Change: I'll now turn the call over to Jorge.
Jorge: <unk>, Chief Executive Officer, and cofounder of <unk>.
Jorge: Hello, everyone. Thanks for joining us today Q1 was another great quarter for us at Portola.
Jorge: Sales in Q4, we get the momentum going with a second straight quarter of record free cash flow from operations.
Jorge: We're making the most of our strong gold prices, keeping our costs under control and continuing to grow or margins.
Jorge: 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.
Jorge: That puts our free cash flow margin of 38% up from 31% in Q4.
Jorge: Net cash from operations before working capital changes was $138 million.
Jorge: Or 45 cents per share we adjust for the San Jose mine divestment.
Jorge: John's to 144 million or <unk> 48 cents per share.
Jorge: Another nice setup whats driving these simply pause disciplined on cost control and a strong oil price.
Jorge: We brought our cash cost per ounce dial $925 on a consolidated basis pro $1015 in Q4.
Jorge: Our consolidated all in sustaining costs came in at 6100, $40 well below last quarter's 1772.
Jorge: That kind of discipline is paying off.
Jorge: 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.
Jorge: It was mainly thanks to an 8% decrease in oil prices.
The lower effective tax rate as a result of the appreciation of the euro.
Jorge: We generated sales of $290 million or sub produced 103 gold equivalent ounces.
Jorge: In line with our plans.
Jorge: This includes the impact of the sale of our San Jose Mine, which has contributed about 11000 gold equivalent ounces in Q4.
Jorge: All of our mines state within production guidance at the border.
Jorge: Once again outperform coming in approximately 4000 dialysis above the midpoint of our guidance of previous quarter base, thanks to higher processed ore.
Jorge: Draw down of old inherent with inventory.
Jorge: 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 either fourth quarter.
Jorge: Financial strength gives us flexibility, whether that's for investing in growth returning capital to shareholders or navigating market shifts.
Jorge: On that note, we continued buying back shares in Q1, we repurchased and canceled just over 900000 shares at an average price of $4 up 53% U S.
Jorge: On growth capital and exploration, we're staying focused on high impact opportunities across the portfolio.
Jorge: We have budgeted.
Jorge: $1 million for 2025 for exploration of new brake programs.
Jorge: We're going strong with target didn't work at that.
Jorge: <unk> feature on Sunday in the fall.
Jorge: Instead, they together right.
Jorge: <unk> gone north prospect northern cause they want.
Jorge: <unk> advanced <unk> in Senegal.
Jorge: Inside of gold porphyry underneath their ore mine in Argentina.
Jorge: These are exciting projects and prospects with long term upside and we're putting capital to work.
Jorge: Yes.
Jorge: In 2025, we're also advancing with key capital projects that will enable us to scale up money to expand production in 'twenty to increase to approximately 180000 ounces of annual production.
Jorge: We though our chief operating officer for West Africa will expand on that later on the call.
Jorge: Okay.
Jorge: During the first quarter, we continue to actively optimize our asset portfolio divesting of assets with high costs are limited life of mine.
Jorge: The St. Louis I'll say 19, 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 these are the timely and strategic divestments.
Jorge: As for they get a multiple mining Martina Faisel, we announced a sale on April 11.
Jorge: Lifestyle Jose get a multiple is approaching the end of its mine life with mineral reserves are expected to be depleted by early 2026.
Jorge: The decision to sell <unk>.
Jorge: Driven by our compelling offer.
Jorge: Gives us a permanent exit from a country, where we're no longer investing in mineral exploration.
Jorge: And where 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 to close in mid May.
Speaker Change: Taken together these two sales allow us to reallocate approximately $50 million in capital.
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: Okay.
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 improved.
Speaker Change: Improved two 0.98 down from 133 in the fourth.
Speaker Change: That's a strong result, I want to thank our team for their continued vigilance and dedication to safe work practices.
Speaker Change: This progress was overshadowed by a try easier in February.
Speaker Change: We're a subcontractor lost his life well performing at Cedar 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 manage floating exchange rate. These often say lower 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: In 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: Great position to keep delivering for our shareholders our people and the communities we operate in.
Speaker Change: We'll now move on to an update from our Chief operating officer, who will start with West Africa David.
Speaker Change: 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 diary maintained an excellent safety record with no major injuries and continues to operate more than four and a half years without a lost time incident.
Speaker Change: During the first quarter, so gallons 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: <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 what.
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 co locations.
Speaker Change: The processing plant operate as efficiently with an average throughput rate of 250 tons per hour.
Speaker Change: <unk> 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: The completion of this $8 $5 million project will provide tailings storage into 2029, allowing us to gather to fully capitalize on the increased throughput capacity.
Speaker Change: Our stated guidance of 160 to 190000 ounces of gold per year from 2026 and beyond.
Speaker Change: All of that all of our capital projects are advancing in line with schedule and budget.
Speaker Change: So again this performance resulted in a cash cost of $650 and an all in sustaining cost of $1290 per ounce.
Speaker Change: Continued exploration success at <unk> fascia somebody under grabbed another deposit supports long term production growth and strengthens the positive outlook beyond the feasibility study.
Speaker Change: Okay.
Speaker Change: At <unk> 144000 tonnes of ore mined at an average grade of seven one grams per tonne gold.
Speaker Change: All was primarily sourced from the 55 zone underground mine with 21000 tons from by the T cell at a grade of 899 grams per tonne.
Speaker Change: The one of our nine design open pit began contributing during the quarter with 31000 tonnes at a grade of one one grams per tonne.
Speaker Change: 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 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: The discussions concluded positively resulting has signed the agreement.
Speaker Change: Final golf ball by Fortuna occurred on April 14th.
Speaker Change: Closing is anticipated in early May.
This transaction represents a strategic steps aligned with our objectives and provide continuity for the web for such Dr. Marco.
Speaker Change: Back to you. Okay. Thank you we'll move on to Latin America. So I certainly wouldn't give us an opex sure. Thank you Jorge and good afternoon, everyone.
Speaker Change: Let's begin with auditing data mine in Argentina.
Speaker Change: In dental delivered strong production results with each quarter, we placed one point and 75 million tons of ore on the leach pad.
Speaker Change: With an average growth rate of zero point 55 grams per tonne.
Speaker Change: Containing 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.
Speaker Change: Mary just one 8% moderate reduced ore grade and the timing of the 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 least Dell was a highly successful completion of the leach pad expansion project.
Speaker Change: The expansion was delivered at a total cost of 51 8 million.
Speaker Change: And supports them more years of mine life.
Speaker Change: I would also like to provide an update on solar plant projects have been data as of today. The project is 97% complete and we have begun pre commissioning activities.
Speaker Change: <unk> continues to advance on schedule and well within budget.
Speaker Change: With full operations expected by the third quarter of 2025.
Speaker Change: <unk> solar plant will represent a significant 42% reduction in diesel consumption quarter power generation.
Speaker Change: We did a convenience capturing cost reduction from several initiatives such as the changing of the whole truck fleet from 90 tons Komatsu trucks to 45 tons Scania trucks and optimizations on the crushing.
Speaker Change: Plant reagent consumption and trailing equipment to mention a few.
Speaker Change: Turning to costs as we narrow 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.
Speaker Change: 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 well.
Speaker Change: We expect to gravitate towards a mine with a native of $1400 by the end of the year.
Speaker Change: Yeah.
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 maintained.
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 lead 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 causes sidecar 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 point than 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 project slightly narrow leach pad expansion.
We remain committed to optimizing our operational efficiency and delivering sustainable value to our stakeholders.
Speaker Change: Back to you.
Speaker Change: Thank you.
Speaker Change: Now I'll go through them.
Speaker Change: See the call reports.
Speaker Change: Thank you.
Speaker Change: It will be mostly making reference to Q1 'twenty 'twenty four out of the comparison periods, where we have excluded San Jose for comparability purposes.
Jorge: As Jorge.
Jorge: How does the mansion attributable net income from continuing operations for the quarter was $61 $7 million or 28 cents per share. This compares to 90% in Q1 'twenty 'twenty four.
Jorge: Our strong financial performance in the quarter was the result of record higher metal prices and hot high cause I'm, sorry cost per ounce align with our guidance for the year.
Jorge: Our average realized gold price in the theory was $2880 per ounce compared to $2087 per ounce in Q1 of 'twenty 'twenty four.
Jorge: 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.
Jorge: A few comments on the financials depreciation depletion in the quarter was 61 million lawyers, which.
Jorge: We'd like to remind goods $18 $5 million in depletion of the bridges, Brian related to the acquisition. It was wrong sold in 2021.
Jorge: 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.
Jorge: During the quarter.
Jorge: Yeah.
Jorge: 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 US dollar in the quarter at current metal prices, we expect our effective tax rate to be in the 28% to 30% range.
Jorge: <unk>.
Jorge: And our current tax rate through the in the 30% to 35% range.
Jorge: Moving onto our casual statement, we reported $111 $3 million of free cash flow from ongoing operations, which excludes newer development projects.
Jorge: And growth initiatives.
Jorge: We should note that we expect to be over $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.
Jorge: And then investing section of our cash flow statement, we recorded $39 $5 million and their additions to property plant and equipment, consisting of approximately $33 $3 million of <unk>.
Jorge: <unk> capital, which includes $6 million of brownfields exploration.
Jorge: And $6 $2 million related to the <unk> project and Greenfields exploration.
Jorge: 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 total liquidity was $459 million and bring the full undrawn amount of our 102.
Chris: 50 million dollar revolving credit facility. Thank you bye for you or Chris.
Chris: Carlos questions, we would now like to open the call to any questions that you may have Jenny. Please go ahead.
Chris: Thank you very much we will now be conducting a question and answer session. If you would like to ask a question.
Chris: Press Star one on your telephone keypad now a confirmation tone will indicate that your line is in mckean.
Speaker Change: May press Star two if you would like to remove your question from Nicky So any participants using speaker equipment it might be necessary to pick up your handset before you press the keys.
Chris: Please wait a moment, whilst we poll for questions.
Mohammed: Thank you very much. Your first question is coming from Mohammed <unk> of National Bank Financial Mohammed Your line is life.
Mohammed: Thank you operator.
Mohammed: A question on capital allocation priorities following the sale of the San Jose mine.
Mohammed: From Akamai.
Mohammed: And specifically as it relates to potentially inorganic opportunities.
Speaker Change: What are some of the criteria that you are looking at in terms of size jurisdiction stage up asset. Thank you.
Mohammed: Yeah.
Mohammed: First.
Mohammed: Let me stress before I speak about inorganic growth.
Mohammed: We believe we have a.
Mohammed: Strong opportunities to fuel growth organically.
Mohammed: Which are high impact one is the expansion. We're right. There is the expansion of the cellular mine, which today is our lowest cost mine.
Mohammed: On this first approach towards an expansion, we're moving from about 140000 ounces of annual gold there Larry too.
Mohammed: Okay.
Mohammed: A range of 160 to 180000 ounces, we opportunities for more.
Mohammed: And we continue to see a lot of continued exploration success there.
Mohammed: As evidenced by the discoveries of the Sunbury deposit that kingfisher deposit.
Mohammed: 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.
Mohammed: Second is the fact that the episode project in Senegal.
Mohammed: The other facilities in advance stage.
Mohammed: Exploration late state exploration advanced stage of development, that's how I would read it.
Mohammed: We're.
Mohammed: Sure.
Mohammed: Well funded program in 2025.
Mohammed: We're we're advancing exploration concurrent with permitting environmental studies.
Mohammed: And the engineering studies as well.
Mohammed: So we continue to approach the advance of singular sorry of the embassy suite on a fast track.
Mohammed: Approach.
Mohammed: That's organic.
Mohammed: Yeah.
Mohammed: Then when we think of opportunities outside of that bar.
Mohammed: We are very focused on the two regions, where we're already established where we have.
Mohammed: Established management teams strong local expertise. So you will see us active in West Africa.
Mohammed: The general a region in Latin America.
Mohammed: We favor primarily countries, where we already have operations within these two readers of courts.
Mohammed: We will move within the regions and the.
Mohammed: No.
Mohammed: Projects that are coming to the pipeline or preferred.
Mohammed: Although we will see.
Mohammed: 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.
Mohammed: Both discovery and pre development.
Mohammed: We see a lot of opportunity there, we still see that identified value in some of the new opportunities.
Mohammed: We track.
Mohammed: Yeah.
Mohammed: What are we looking for.
Mohammed: Projects that can deliver over a decade in the lungs.
Mohammed: At costs that seat or opportunities to go below the average cost.
Mohammed: Cost curve.
Mohammed: And.
Mohammed: 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.
Mohammed: 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.
Mohammed: Could you maybe follow up on that.
Mohammed: As you look at your current portfolio right now should we expect maybe any potential rationalization I'm, just looking and I think that it's fair Mary you have a ton of excitement and we're working through them in narrow your house and what we can do that well, but payroll by maybe.
Mohammed: How do you think about that asset and how do you think about your current portfolio.
Speaker Change: Yeah, certainly the smallest mine in the portfolio. It was our first Mike and I always say there is no headache free mind, but if there is one mine that gets.
Mohammed: Close to there is carryover.
Mohammed: Team there does an excellent job today, if you have gone for resources and reserves we can.
Mohammed: Is he a mine operating for close to a decade.
Mohammed: It is a mine that every year generates free cash flow for us. So it gives us a strong presence in the in the exciting.
Mohammed: Exciting mining jurisdiction with a deep rooted mining drive Asia like Peru.
Mohammed: So we see the.
Mohammed: <unk>.
Mohammed: As upbeat in our portfolio today.
Okay.
Mohammed: Great. Thank you thanks for taking my question.
Speaker Change: Thank you very much. Your next question is coming from David Feeney.
Speaker Change: David Your line is life.
David Feeney: Yes. My question is 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 addressed in the call that this is a record quarter, where delivery where it matters. The most and free cash flow works, we're controlling our cost and we're 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.
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 come on gold prices go up and come down. The important thing is the fundamentals of the business and Fortuna has never been as strong as it is today the balance sheet.
Speaker Change: Broker the portfolio at cost management execution operational excellence. So again I have never seen the 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 how they're able to you know that but thank you very much.
Speaker Change: Thank you.
Speaker Change: Thank you very much. Your next question is coming from Adrian day of Adrian Day asset management. Your line is live.
Adrian Day: Thank you.
Adrian Day: Good afternoon, everyone.
Adrian Day: Just had a quick question Mohammed.
Adrian Day: Earlier as part of the question, but I was also wondering how.
Adrian Day: Greenfields exploration.
Adrian Day: It's into your picture both solo Greenfield civil so partnerships.
Adrian Day: Hey.
Adrian Day: I did not quite get the very beginning of the question, it's about I'm sorry, yeah.
Adrian Day: Greenfields exploration, how does that fit into the way you look at growth yes, yes.
Adrian Day: Let me first give you a refresher on our growth initiatives. This year, we have increased or exploration and new projects.
Adrian Day: Budget to 40 $51 million.
Adrian Day: Up from $41 million in 2024.
Adrian Day: We're expanding our exploration initiatives.
Adrian Day: Well you know Adrian we're quite active with exploration in our keep drawing it to keep properties and two.
Adrian Day: 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.
Adrian Day: Go into some of them right now we have an active drilling program in northern got divides the Dongguan project, we have a 5000 metered sorry, a 10000 meter drill program ongoing there is it's a large land package.
Adrian Day: North of the battery spun gone mine in northern Cote d'ivoire and.
Adrian Day: It's early stage exploration of the right rocks on the REIT structures.
Adrian Day: With strong Youre, giving go signatures on surface from the auger and soil work. So we're excited about that program is advancing we are I would say we're at third advanced with the with the drilling there.
Adrian Day: And we look forward to report on that in the coming weeks start reporting on vanguard and being able to talk more about on gone in the coming weeks in Mexico.
Adrian Day: We have currently three.
Adrian Day: We're entering or looking to enter into three three joint venture opportunities option agreement for a joint venture opportunities. So we continue to seek over June is in Mexico.
Adrian Day: Those are greenfields in each of these early stage projects.
Adrian Day: <unk>.
Adrian Day: In Peru, even though or work centers, mainly in the plug in my mind in the vein system around the carryover mine, we have within or appropriate the package too.
Adrian Day: I would say.
Adrian Day: Different type products for disseminated the targets are disseminated silver disseminated gold are they added that coil and Santa Rosa brain, So even though there within the Guyana land package, which is quite extensive.
Adrian Day: These are these are break that wouldn't be new with nuts.
Adrian Day: Necessarily peak the KLM plant these are disseminated.
Adrian Day: Gold and silver type targets.
Adrian Day: So so we are gearing to start drilling and testing those targets towards midyear second half of the year.
Adrian Day: And we also have initiatives in the.
Adrian Day: Argentina.
Adrian Day: Yeah.
Adrian Day: In sending out going back to West Africa, We talk about the about soon and we speak of the episode as a project, but we have a very large land package and say in around say gala and the wear.
Adrian Day: 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.
Adrian Day: So all in all my message is we're very active across the jurisdictions on or Greenfield initiatives.
Adrian Day: And.
Adrian Day: Sometimes we don't speak a lot about them.
Adrian Day: 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 and apologies. 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 stopped 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 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.
Dave: Hello, Dave.
Speaker Change: Look forward to our conversation later today.
Speaker Change: The $50 million in 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 on top of that those are $50 million that would be.
Speaker Change: Invested allocated towards mine closure.
Speaker Change: Or.
Speaker Change: Over a period of years 456 years right because he sees the closure of glass monitoring activities that go so the savings I believe are significant but equally important is.
Speaker Change: Those are long term projects that need to be managed and managed or elsewhere.
Speaker Change: So management's attention I believe is key here and we're not only saving under $50 million, but we're also being able to reallocate management.
Speaker Change: And human capital and human resources towards those.
Speaker Change: Higher value opportunities that we have in the portfolio and across the other things that we're looking at.
Speaker Change: Okay and then.
Speaker Change: My next 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 on three tracks.
Speaker Change: We aim to migrate the.
Speaker Change: Exploration concession, we have at the embassy suite into an exploitation concession by mid year 2026.
Speaker Change: So in order to do that we are advancing our environmental studies.
Speaker Change: Our engineering studies.
Speaker Change: Concurrent with that we can train and continue drilling like healthier.
So the objective is 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: 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.
Speaker Change: Our consolidated resource and reserve statements mineral resource and mineral reserve statement in early 2026, and you should see kingfisher in those mine plants 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.
Speaker Change: Drilling.
Speaker Change: 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 infill program to continue extending mineralization. So we're doing those two in parallel infield glass growth within the kingfisher the bus but.
Speaker Change: To go back to it.
Speaker Change: Question, you should seek increasingly in the 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 and look forward to that.
Speaker Change: Thank you very much.
Thomas: Our next question is coming from Thomas.
Speaker Change: He is a private investor Thomas Your line is live.
Speaker Change: Yes Jorge.
Speaker Change: I've been buying all the way down on the sell off and I really don't understand why.
Speaker Change: Right.
Speaker Change: My comment is I hope.
Speaker Change: You're buying.
Speaker Change: With me because this is a fantastic deal is August so that's all I have to say.
Speaker Change: Thank you for the comment and well noted.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: <unk> reached the end of our question and answer session 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 four tuna mining 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.