🧾 What This Document Is

This is a quarterly production and business update from Fortuna Mining, not a full financial results report. Think of it as a "progress report" for the first three months of 2026, where the company tells investors how much gold and silver it dug up, how its key projects are advancing, and what it's doing with its cash.

🏢 What The Company Does

👉 In simple terms, Fortuna Mining is a global mining company that digs precious metals like gold and silver out of the ground. They operate three main mines: one in Ivory Coast (West Africa), one in Argentina, and one in Peru. They also have new projects in the development stage in Senegal and elsewhere. Their business is finding metal-rich deposits, building mines, and selling the metals.

💰 Production & Operational Highlights

Fortuna had a solid quarter, producing 72,872 gold equivalent ounces (GEO). This is a helpful metric that bundles all their metals (gold, silver, lead, zinc) into one "gold-equivalent" number.

👉 Why it matters: This production was up 3.5% from the first quarter of 2025 and up 12% from the previous quarter. This shows steady, improving operational performance.

Here’s how each mine did:

• Séguéla Mine (Ivory Coast): The star performer. Produced 42,016 oz of gold, a 14% jump from last quarter. They milled more ore, got better at recovering gold from it (93.4% recovery), and started mining a new deposit called Sunbird.
• Lindero Mine (Argentina): Produced 21,545 oz of gold, up 12%. They placed more ore on the leach pad, but had to pause in late March for a planned 30-day crusher repair. They're set up for a stronger second half of the year.
• Caylloma Mine (Peru): Produced 9,311 GEO, mainly from silver and base metals (lead & zinc). Performance was stable and in line with their mine plan.

🚀 Key Growth Initiatives

The company is actively working to make its mines bigger and longer-lasting. Three big projects are in motion:

1. Séguéla Plant Expansion: They're studying how to increase the processing plant's capacity by about 28%. A final decision is expected around May 2026.
2. Sunbird Underground Mine: This is a new underground gold deposit at Séguéla. They're accelerating work on it and will release a new resource estimate by May 2026. This will add more years of gold production.
3. Diamba Sud Project (Senegal): A brand new mine in the making. The final feasibility study is on track for mid-2026, and they aim to start building it later this year for first gold in mid-2028.

💸 Return to Shareholders

Fortuna used its cash to buy back its own shares. 👉 They repurchased 2.2 million shares at an average price of $9.24 per share, spending a total of $20.3 million. This reduces the number of shares in the market, which can increase the value of the remaining shares.

🔮 What's Next & Annual Guidance

Fortuna is sticking to its full-year production goal of 281,000 to 305,000 GEO. The first quarter result of ~73k GEO puts them right on track to meet that target.

Key upcoming milestones:

• May 2026: Séguéla plant expansion study & updated Sunbird resource estimate.
• Mid-2026: Diamba Sud feasibility study delivered.
• Mid-2028: Targeted first gold production at Diamba Sud.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Production Growing: Output is up quarter-over-quarter and year-over-year.
• Clear Growth Pipeline: Multiple projects to expand existing mines and build new ones.
• Balanced Portfolio: Operations across three continents (Africa, South America).
• Returning Cash: Actively buying back shares.

⚠️ Risks:

• Mining is Uncertain: Projects can face delays, cost overruns, or operational hiccups.
• Commodity Prices: Profits depend heavily on the market price of gold, silver, and other metals.
• Country Risk: Operating in multiple countries brings political, regulatory, and economic risks.
• Execution Risk: Successfully expanding plants and building new mines (like Diamba Sud) is complex and challenging.

🧠 The Analogy

Fortuna Mining is like a farmer with three established fields (the mines) that are currently yielding a good harvest. At the same time, the farmer is tilling and preparing two new fields (Sunbird and Diamba Sud) to plant in the future, ensuring the farm keeps producing crops for many years to come. This quarter's report shows the current harvest is healthy, and the new fields are being readied on schedule.

🧩 Final Takeaway

Fortuna is firing on all cylinders operationally, hitting strong production numbers while systematically investing in its future growth through expansions and new projects. They're also returning cash to shareholders along the way. The key for investors is to watch the progress of those major projects in 2026, as they determine the company's long-term size and profitability.