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DATE

Thursday, August 7, 2025, at 12 p.m. ET

CALL PARTICIPANTS

  • President, Chief Executive Officer, and Co-Founder — Jorge Alberto Ganoza
  • Chief Financial Officer — Luis Dario Ganoza
  • Chief Operating Officer, Latin America — Cesar Velasco
  • Chief Operating Officer, West Africa — David Whittle

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RISKS

  • Chief Financial Officer Luis Dario Ganoza noted, "we've been experiencing delays in our VAT at our Ivory Coast operations," with $37 million in VAT receivables outstanding for approximately seventeen months at the end of Q2 2025 and collections now expected to normalize toward year-end.
  • Chief Financial Officer Luis Dario Ganoza stated, "a large portion of our annual tax payments are concentrated in the second quarter," with $36 million in taxes paid in Q2 2025.
  • CEO Ganoza said, Consolidated ASIC (non-GAAP) was $1,932 per ounce in Q2 2025, up from $1,750 in Q1 2025, with management attributed the temporary increase in consolidated ASIC in Q2 2025 to scheduled CapEx and waste stripping at operating mines.

TAKEAWAYS

  • Production Realignment-- Sale of the San Jose and Yaramoko mines reduced annualized production to approximately 130,000 ounces as of Q2 2025, but "rebuilding production to half a million ounces per year ... is fully under our control," according to CEO Ganoza.
  • Flagship Growth Asset-- Seguela gold production guidance is 140,000 ounces for 2025 and 170,000–180,000 ounces for 2026, with capital budgeted for expansion and ongoing mine plan deliveries exceeding expectations in Q2.
  • Amba Sud Resource Expansion-- Indicated resource at Amba Sud increased by 53% and inferred resource by 93% over the past six months, totaling 1,000,000 ounces of indicated and inferred resources as recently published, and facilitating an accelerated project timeline.
  • Liquidity-- Available liquidity was $537 million as of Q2 2025 and net cash was $215 million as of Q2 2025, representing increases of $76 million and $78 million, respectively, from the previous quarter (Q1 2025), driven by $84 million in mine sale proceeds during Q2 2025.
  • Margins-- EBITDA margin increased to 55%, up from 50% in Q1 2025; operating margin improved to 36%, up from 28% in Q1 2025, attributed to higher realized gold prices, which averaged $3,306 per ounce (up 14%) in Q2 2025.
  • Net Earnings-- Net earnings from continuing operations reached $41 million, or $0.14 per share, in Q2 2025, compared to $33 million, or $0.11 per share, in Q1 2025.
  • Withholding Tax Impact-- Adjusted EPS of $0.14 includes a $17 million withholding tax accrual related to Seguela's dividend in Côte d'Ivoire in Q2 2025, equivalent to 6¢ per share in Q2 2025.
  • Free Cash Flow-- Free cash flow from operations was $57.5 million in Q2 2025, primarily due to tax timing.
  • Consolidated Gold Production-- Gold equivalent production from continuing operations totaled 71,229 ounces in Q2 2025 and aligned with annual guidance.
  • Cost Structure-- Cash cost per ounce increased 7% to $929 in Q2 2025 from Q1 2025; consolidated all-in sustaining cost (non-GAAP) rose to $1,932 per ounce in Q2 2025, both temporarily elevated due to CapEx and stripping but expected to decrease in H2 2025 and 2026, with consolidated all-in sustaining cost (AISC) guidance indicating a decline in the second half of 2025 and into 2026.
  • Regional Operations-- Lindero produced 23,150 ounces of gold in Q2 2025, up 16% from Q1 2025, with a 6.7% decrease in all-in sustaining cost (non-GAAP) to $1,783 per ounce at Lindero in Q2 2025; Caylloma recorded a cash cost of $15.16 and ASIC of $21.73 per silver equivalent ounce in Q2 2025, both within the lower range of annual guidance.
  • Operational Safety-- Recorded 7.2 million work hours without a lost time injury, a company record as of Q2 2025, and total recordable injury frequency rate was 0.87 in Q2 2025; both improved from prior periods.
  • Exploration Budget-- $11 million allocated to greenfield projects for 2025.
  • VAT Receivables-- Reported $37 million in VAT receivables outstanding at the Côte d'Ivoire operations at the end of Q2 2025, with expectations for normalization by year-end.
  • Repatriation Progress-- Over $40 million was repatriated from Argentina in July, after the end of Q2 2025, following regulatory changes, without significant foreign exchange friction.
  • Capital Expenditure-- CapEx in Q2 2025 totaled $47 million, including $15 million in growth CapEx in Q2 2025, with full-year capital expenditures guidance of $180 million for 2025 ($120 million sustaining, $60 million growth, of which approximately $30 million is for Amba Sud for the full year 2025).
  • Operational Optimization-- Ongoing portfolio initiatives are expected to generate $50–$70 million in savings over the next three years through process, equipment, and energy efficiency improvements

SUMMARY

Fortuna Mining (FSM -12.02%) completed the sale of two mines, streamlining its portfolio and focusing production on higher-margin, longer-life assets. Management confirmed rising production guidance for Seguela and accelerated project timelines at Amba Sud, directly tying these expansions to future margin and volume growth. The quarter’s financial results reflected significant balance sheet strengthening, with high liquidity and cash reserves fueled by asset divestitures. Cost metrics showed temporary elevation, attributed explicitly to capital investments and waste stripping cycles, with detailed forward guidance for normalized levels in upcoming quarters. On the operational front, major safety and productivity milestones were achieved, and substantial investments in greenfield and brownfield exploration are underway, providing a diversified pipeline of organic growth opportunities.

  • CEO Ganoza stated, "the key message today is this: rebuilding production to half a million ounces per year, which is strategically where we want to reposition, is fully under our control," indicating strong confidence in organic growth leadership versus M&A.
  • Management confirmed that Q2 EBITDA and operating margins expanded due to "higher gold prices, $3,306 per ounce, which is up 14% with respect to what we averaged in the first quarter."
  • Completion of the San Jose and Yaramoko divestitures unlocked $84 million in gross proceeds in Q2 2025 and freed approximately $50 million in capital and management focus for higher-value growth projects in Q2 2025.
  • Operational improvements at Lindero and Caylloma, and new sustainability measures such as photovoltaic power generation, are contributing to margin enhancements and emissions reductions.
  • Chief Financial Officer Luis Dario Ganoza reported, while highlighting the disproportionate tax outlays and VAT collection delays affecting quarterly cash flow timing.

INDUSTRY GLOSSARY

  • ASIC (All-In Sustaining Cost): Comprehensive per-ounce mining cost measure including cash costs, sustaining capital, corporate overhead, and other ongoing expenses.
  • PEA (Preliminary Economic Assessment): Early-stage technical and economic study estimating potential project viability prior to more detailed feasibility work.
  • Birimian: A major West African geologic formation hosting significant gold mineralization targeted for exploration.
  • Strip Ratio: The amount of waste material that must be removed to extract ore, noted at 15.3:1 for Seguela.

Full Conference Call Transcript

Jorge Alberto Ganoza, President, Chief Executive Officer, and Co-Founder; Luis Dario Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer, Latin America; and David Whittle, Chief Operating Officer, West Africa. Today's earnings call presentation is available on our website at fortunasilver.com. Before we begin, please note that during the quarter, Fortuna completed the sale of the San Jose and Yaramoko mines. Accordingly, results from these mines have been excluded from continuing operations for the quarter and year to date along with comparative figures. Statements made during this call are subject to the reader advisories included in the news release, the webcast presentation, our management discussion and analysis, and risk factors outlined in our annual information form.

All financial figures discussed today are in US dollars unless otherwise indicated. Technical information presented has been reviewed and approved by Eric Chapman, Fortuna's Senior Vice President of Technical Services, a qualified person as defined by National Instrument 43-101. I will now turn the call over to Jorge Alberto Ganoza, President, Chief Executive Officer, and Co-Founder of Fortuna Silver Mines Inc.

Jorge Alberto Ganoza: Thank you, Carlos, and good morning, everyone, and thank you for joining us. The second quarter reflects the strategic streamlining of our portfolio of assets. Early in the quarter, we completed the sale of two mines with short life of mineral reserves, each with less than a year in mining left. Naturally, this reduces our near-term production. In 2024, we delivered a record 460,000 ounces of gold equivalent. With the sale of these mines, our annualized production is now roughly 130,000 ounces. But the key message today is this: rebuilding production to half a million ounces per year, which is strategically where we want to reposition, is fully under our control.

And those ounces will be higher margin, longer life, and lower risk than before. And here is why we're confident: Seguela, our flagship asset, is on a clear growth path. A 140,000 ounces of gold have been guided for 2025. And a 170,000 to 180,000 ounces of gold have been guided for 2026 as our expansion plan comes online. The Amba Sud in Senegal is emerging as our next growth engine. In just six months, the indicated resource, as recently published, grew by 53% and inferred resources by 93% for a combined 1,000,000 ounces. We continue to drill to expand and upgrade the resource and advance permitting and engineering towards a 2026 construction decision.

All the exploration work that we've been doing over the past eighteen months has really enhanced understanding of the deposit, and our drilling and exploration is really yielding fruit here. And importantly, our robust balance sheet with $537 million in liquidity and $215 million in net cash derisks any growth decision we choose to make. So with that growth vision in mind, let's move to our Q2 result highlights. On health and safety first, the safety of our personnel remains our top priority. And I am proud to report that we continue to improve. We recorded 7.2 million work hours without any lost time injury.

That's a record for the company, up from 6.7 million work hours in the prior record. And our total recordable injury frequency rate was 0.87 for the second quarter, improving from 0.98 in the first quarter. On highlights from our financial performance, the second quarter was another quarter of strengthening even further the balance sheet of the company and delivering solid margins. Liquidity again at $537 million, up $76 million from the previous quarter, driven by $84 million in proceeds from the mine sales. Net cash was $215 million at the end of the period, up from $137 million at the end of Q1 2025.

Free cash flow from operations was a strong $57.5 million compared to $66 million in Q1, primarily due to the timing of tax payments. Our margins expanded with higher gold prices, $3,306 per ounce, which is up 14% with respect to what we averaged in the first quarter. Our EBITDA margin grew to a record 55%, up from 50% in Q1. And our operating margin stood at 36%, up from 28% in Q1. Net earnings from continued operations were $41 million or $0.14 per share compared to $33 million or $0.11 per share in Q1.

For adjusted EPS of $0.14 includes a $17 million withholding tax accrual related to the inaugural full-year dividend declared in Cote D'Ivoire for our Seguela mine, equivalent to 6¢ per share. In Q1, we achieved full payback on Seguela's construction in twenty-one months while also canceling all intercompany loans and therefore the dividend. Cash flow from operations before working capital changes was $97 million or 32¢ per share. On operational performance, our consolidated gold equivalent production for the period was 75,950 ounces. When we look at it from continuing operations, gold production was 71,229 ounces, slightly above the previous quarter and aligned with our full-year guidance.

Cash cost was $929 per ounce, up marginally 7% from Q1, mainly due to the gold to base metal ratio at our Caylloma mine, which carries a significant base metal lead zinc component in its product. For consolidated ASIC, it was $1,932 per ounce, up from $1,750 in Q1. Here, I want to reinforce that all our mines continue to track well to meet annual guidance. However, the elevated consolidated ASIC I just mentioned is a temporary and time effect related to CapEx and waste stripping at Lindero and Seguela. These mines' ASICs gravitate towards a range of $1,500 per ounce throughout the second half of the year into 2026.

Lindero's ASIC is trending downwards towards below $1,500 per ounce by Q4 following the completion of the leach pad expansion. And Seguela's ASIC is expected to raise temporarily towards $1,800 per ounce in Q4, consistent with the planned peak in waste stripping in the second half of the year and timing of its capital investments but staying in the average for the year within annual guidance. Seguela operated in the quarter with a very competitive cash cost per ounce of $670, and our 2025 capital budget of $78 million at Seguela enables the expansion of production guided for 2026. We have a series of operational excellence and productivity initiatives that aim to drive margin improvements and cost discipline.

Across the business, our portfolio of optimization and productivity is expected to generate between $50 and $70 million in savings over the next three years. These programs span process optimization, equipment utilization, supply chain efficiencies, and energy management at our mines. They will enhance cash flow, supporting our cost-competitive half a million ounce strategic objective of annual production. And you know, on closing of my comments, I want to revisit the strategic developments and looking ahead. The sale of the San Jose and Yaramoko mines in the quarter was timely.

It not only generated $84 million in gross proceeds, but it also freed approximately $50 million in capital and management bandwidth away from mine closure projects towards high-value growth opportunities, which are better aligned with our strategy. And looking forward, the Seguela expansion positions us for strong growth in 2026. The Amba Sud continues to grow in scale and quality with a 2026 construction decision on the horizon. With this, the near future growth of the company is within our control.

With a robust balance sheet, expanding margins, and a clear growth pipeline, Fortuna is well-positioned to rebuild and surpass the half a million ounces per year target with higher margins, higher quality ounces, and lower portfolio risk than ever before. In twenty-one years, I have never seen Fortuna as strong as it is today. With that, I will ask David Whittle, our Chief Operating Officer for West Africa, to discuss the results of his region. David?

David Whittle: Thanks, Jorge. Seguela and Yaramoko delivered a strong second quarter, achieving solid results in both production and safety. Our commitment to safety and environmental performance remains unwavering, and we are steadily progressing towards our goal of zero harm across all our operations. I'm delighted to report that no injuries occurred at any of our West African operations during the quarter. During this period, we successfully completed the divestiture of our Yaramoko mine to Soleil Resources, a privately owned Mauritius domicile resources company, thereby concluding our operations in Burkina Faso. Fortuna operated Yaramoko up until April 14, producing 4,721 ounces during this time. The decision to divest followed a compelling economic offer and aligned with our strategic priorities.

At Seguela, we produced 38,186 ounces of gold, consistent with the prior quarter and exceeding the mine plan, reinforcing our expectations to achieve annual production at the higher end of guidance. Mining during the quarter totaled 340,000 tonnes of ore, at an average grade of 3.33 grams per tonne gold, along with 5,190,000 tonnes of waste, resulting in a strip ratio of 15.3 to one. The processing plant treated 429,000 tons at an average grade of three grams per ton gold with ore primarily sourced from the Antenna, Antian, and Kula pits. The plant operates at an average throughput rate of 210 tons per hour.

Throughput in June was temporarily reduced due to a major SAG mill reline and other scheduled maintenance, which are now complete, ensuring smooth operations through the end of the year. The third lift of the tailings storage facility, an $8.5 million project, remains on track to completion in the third quarter. This will enhance our storage capacity through to 2029, supporting increased throughput and positioning Seguela to achieve the higher end of its 160,000 to 180,000 ounces of annual production from 2026 onward. All of the capital projects are progressing and within budget. Seguela's performance resulted in a cash cost of $670 per ounce and an all-in sustaining cost of $1,634 per ounce, both aligning with our budget.

The AISC reflects higher royalty expenses driven by the increase in gold prices. Exploration drilling at the Sunbird and Kingfisher deposits yielded encouraging results. Our technical teams are actively working to incorporate these deposits into reserves and mine plans, with both remaining open, indicating potential for further resource expansion and bolstering our confidence in Seguela's long-term potential. At our Amba Sud project in Senegal, exploration, environmental permitting, and feasibility activities made significant progress during the quarter. In addition to our $19 million 2025 budget, we approved an additional $17 million for early works, including ancillary facilities and infrastructure.

Infill and extension drilling continued at the main deposits, with success prompting an expansion of the exploration program further to the south and southeast of the Southern Arc prospect, where newly discovered mineralization remains open. These results enhance our confidence in the Amba potential, and we look forward to resuming drilling after the wet season in the second half of the year. Back to you, Jorge.

Jorge Alberto Ganoza: Thank you, David. Now Cesar Velasco, Chief Operating Officer for Latin America, will provide us with highlights of his region. Cesar?

Cesar Velasco: Thank you, Jorge, and good morning, everyone. I am pleased to report a robust quarter for our Latin American operations, with both of our Lindero and Caylloma mines demonstrating strong safety, production, and financial performance. This bolsters our confidence in the strength and resilience of our regional portfolio. At our Lindero mine in Argentina, we achieved remarkable progress on all fronts. Lindero's operational performance has been a significant success, with costs decreasing and stable production leading to higher margins and strong free cash flow. Lindero produced 23,150 ounces of gold, marking a 16% increase over Q1. This aligns with our mining plan and keeps us on track to meet our annual guidance. Our efficiency initiatives are yielding positive results.

Our all-in sustaining cost was $1,783 per ounce, a notable reduction of 6.7% from the previous quarter. This improvement resulted from lower sustaining capital expenditures, as the leach pad expansion was under construction in the previous quarter. As Jorge mentioned, Lindero's ASIC is steadily progressing towards our target of $1,400 per ounce by year-end. Our operational efficiencies are also leading to strong outcomes, with crushing reaching a new record in June, averaging 1,100 tons per hour, and stacking achieving a monthly record of 642,000 tons. As such, Lindero's cash cost for the second quarter was $1,148 per ounce. Financially, Lindero's net sales were $75.7 million, a 42% increase from Q1, supported by a strong gold price of $3,293 per ounce.

Operating income for the quarter was $29.1 million, nearly 66% higher than the previous quarter, and an adjusted EBITDA of $37.9 million, up 34% versus the previous quarter. We generated free cash flow of $35.7 million, reflecting strong operational execution and disciplined capital management. On the sustainability front, we commissioned our photovoltaic plant in Q2, which generated 1,000,000 watts per hour in June. This supplied approximately 26% of Lindero's power needs, saved nearly $130,000 in diesel costs, and avoided an estimated 720 tons of CO2 emissions. This marks a significant advancement in our sustainability strategy. Moving to our Caylloma mine in Peru, it continued to perform reliably and efficiently. Caylloma exemplifies operational excellence, disciplined capital expenditure, and effective project execution.

We successfully completed the new hydraulic paste backfill plant in April with a total investment of $5.4 million. The new plant enables a more efficient and automated process at a lower cost per ton. It also reduces CO2 emissions by eliminating the need to transport the tritic material outside of the underground mine, thus eliminating related diesel consumption. Caylloma's financial results reflect this operational consistency. Net sales were $28.4 million, with operating income of $8.7 million and adjusted EBITDA of $11.3 million. Free cash flow was a notable $9 million, driven by cost discipline and operational consistency.

The cash cost per silver equivalent ounce was $15.16 and ASIC of $21.73 per ounce, both within the lower range of our annual guidance. Overall, our Latin American operations continue to deliver strong and consistent results. We're firmly on track to meet our full-year guidance and continue generating long-term value for our stakeholders. Back to you, Jorge.

Jorge Alberto Ganoza: Thank you, Cesar. Luis Dario Ganoza, our CFO, will share the highlights of the quarter on the financial side of things.

Luis Dario Ganoza: Thank you, Jorge. I'll be discussing our financial results, and all corresponding figures will be from our continuing operations only unless explicitly stated. We are pleased to report a net income attributable to Fortuna of $42.6 million or 14¢ per share. After adjusting for non-cash non-recurring items, this figure rises to $44.7 million or $0.15 per share. We sold 13% more gold. This is consistent with our mine plans, which contemplate a higher stripping ratio at both Lindero and Seguela. Comparing our results to 2025, our adjusted net income grew by 25%. This was driven by gold prices that were $420 per ounce higher and an 8% increase in gold sold.

On a quarter-over-quarter basis, our cash cost per ounce increased by $63, mainly attributable to the planned progression of waste stripping at our mines. One item to note that impacted our Q2 results, as Jorge mentioned, was the recognition of the $17 million charge for withholding taxes. This relates to the first dividend declared at our CDI subsidiary. These taxes will be paid over the next few months as we repatriate funds. And, as Jorge emphasized, this represents a 6¢ per share impact on our quarterly results. Moving to our cash flow statement, we generated $92.7 million in net cash from operating activities.

It is important to highlight that a large portion of our annual tax payments are concentrated in the second quarter. We paid $36 million, which represents over 40% of what we anticipate paying for all of 2025. Our capital expenditures for the quarter totaled $47 million. Of this, we classify $15 million as growth CapEx, which primarily consists of investments in the Amba Sud project and our exploration activities. Our anticipated capital expenditures for the full year are $180 million, consisting of $120 million for sustaining and $60 million for growth CapEx. This includes close to $30 million allocated to the Amba Sud. In terms of free cash flow, we generated $57.4 million from ongoing operations.

This is a slight decrease from Q1 2025 due to the timing of tax payments and higher sustaining CapEx on a quarter-over-quarter basis. With respect to our discontinued operations, the cash flow statement discloses a net cash contribution of $70.6 million for the full year across the operating, investing, and financing sections. This figure includes gross proceeds of $83.8 million from asset sales. Turning to the balance sheet, we've been experiencing delays in our VAT at our Ivory Coast operations. At this stage, we believe this is an issue related to the electoral cycle and expect collections to start normalizing toward the end of the year.

At the end of the quarter, we held $37 million in VAT receivables, which represent approximately seventeen months outstanding. On a very positive note regarding repatriation-related matters in Argentina, a favorable change in local prevailing conditions has allowed us to restart repatriation with over $40 million in the month of July, subsequent to the end of the quarter, without any significant friction on foreign exchange costs. Finally, I want to reinforce Jorge's message regarding our all-in sustaining costs. With the exception of factors tied to metal prices such as royalties and fair value adjustments to share-based payments, we are maintaining a revised guidance range for the year.

For the second half of the year, we expect Q3 ASIC to remain at similar levels to Q2 before coming down in the fourth quarter. Looking beyond 2025 and considering our expanded production guidance for Seguela, we are targeting consolidated ASIC levels in the range of $1,750 per ounce in the current metal price environment. Back to you, Jorge.

Jorge Alberto Ganoza: Thank you. And with that, we can open the floor for questions. Carlos?

Carlos Baca: Please go ahead and prompt our audience for questions.

Operator: Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press 1 on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press 1 on your phone. Your first question is coming from Thomas Bislunovitz. Your line is live.

Thomas Bislunovitz: Yes. Today, I see the stock really has got hammered pretty good. But I stepped up to the plate, and I bought quite a bit. I bought roughly $50,000 worth. I would assume that everything is running exactly the way you just want, and I hope you should do the same thing and support the stock price. Thank you very much for your time.

Jorge Alberto Ganoza: Thank you for your comments, sir. And, as stated, through the call and as you can see in our financial results, the company has never been stronger. The fact that we have a headline EPS miss against analyst consensus is related to the timing of our withholding taxes. If we adjust for those 6¢, we're above analyst consensus for earnings per share. And with respect to our elevated ASIC, for example, which has been an issue of topic of discussion, it has to do with the fact that we are investing in the business. Our Seguela mine, our flagship asset, carries today about seventy-eight million dollars worth of capital. It enables the mine to expand production into next year.

So all of those are positive. There is no free lunch. You need to invest the money to capture the opportunities, and that's what we're doing. All of this with a very strong balance sheet that backs the company. Right? We have been very careful in putting together a fortress balance sheet, and we are very comfortable that we can move our business forward, capture the growth opportunities we have in our portfolio. Yeah. So as I said in the call, I have never seen Fortuna as strong and better positioned as I see it today, sir.

Thomas Bislunovitz: Thank you.

Operator: Your next question is coming from Eric Windmill from Scotiabank. Your line is live.

Eric Windmill: Oh, hi. Good morning, Jorge and team. Thanks for taking my question. Just wondering if there's anything additional you can share on some of the investments that you've made, you know, on Awale and some of the others. And maybe just sort of strategically, do you see yourself making some more of these investments and ultimately maybe as a way of, you know, gaining additional projects for the pipeline? Thanks.

Jorge Alberto Ganoza: Yes. Thank you, Eric. Here, what I would like to say first is that the investments that we have been making over the past, you know, twenty-four months are rendering fruit. Right? We have been able to advance the Amba Sud. You've seen the recent publication of our resources. And the near future of the company with respect to expanding ounces is under our control, and that's a key message. We have clear opportunities at Seguela, and we're delivering clear opportunities at the Amba Sud for growth. On top of that, we are very active across the regions where we work.

The Awale investment, Awale sits on a regional structural trend, a basin margin in the Birimian that is very intriguing to us. We like the team at Awale. They are frugal, and they are technically capable. They are steadily advancing with their work, and we like their approach. And so, you know, and their position in an area that is, again, intriguing to us. So we've been we have invested in the company and look forward to seeing how their progress advances. We have other initiatives in Argentina as well for early-stage projects. So we're populating the pipeline of earlier-stage opportunities. We see a lot of value there.

Some of these opportunities might bear, you know, higher geologic risk in exchange for lower financial risk to the company because some of them, a lot of them, are early stage. But, again, that's where we are finding a lot of value. And we're actively putting together either investments like Awale or option agreements that might lead to joint ventures. And we're active there in Cote D'Ivoire, in Mexico, and in Argentina as well there.

Eric Windmill: Okay. Great. Thank you for that. Really appreciate it. Maybe just one more if you don't mind shifting gears. But in Senegal, what's your experience to date in permitting and, you know, as that project moves forward, I assume you feel pretty confident being able to get the necessary development.

Jorge Alberto Ganoza: Yes. You know, I have met personally with the Minister of Mines and his team on several occasions by now. And what I see is a government that's quite supportive of new developments. And we recently hosted government officials from the Ministry of Mines and local authorities in Senegal and around the Amba Sud at our Seguela mine in Cote D'Ivoire. It was a very good visit. I think the project is being has been is being continues to be well socialized with the authorities and key stakeholders. And we're finding a lot of support. We're finding a lot of support. And yeah. So far, we are well advanced with our environmental impact statement approval.

We're ready to submit in the month of September. And we expect to have an environmental approval early next year.

Eric Windmill: Alright. Fantastic. Thank you. Really appreciate that. I'll hop back in the queue. Cheers.

Operator: Thank you. Your next question is coming from Mohamed Sidibe from National Bank Financial. Your line is live.

Mohamed Sidibe: Hi, Jorge and team, and thanks for taking my question. Maybe just to follow-up on Senegal and the experience in permitting there. For Amba Sud specifically, with the expectation of the environmental approval early next year, could you maybe walk us through the key milestones for the Amba Sud in terms of PEA by the end of the year? You get the environmental approval. And then what are the next steps we go towards the PFS, or do you start assessing the potential to take this into construction if you have the right permits in place? Thank you.

Jorge Alberto Ganoza: Yes. Let me start by saying that this recent publication of a million-ounce resource between indicated and inferred is a game changer for our view of the project. Right? And just as a small recap, when we acquired Chesser, they had a historic resource of about 800,000 ounces. We saw some risks there. And we decided to go in, drill, and rebuild the geologic model. As an outcome of that, the resource shrunk to 600,000 ounces. So we went back, and we've been drilling, enhancing our knowledge of the deposit. Our original expectation is that we would be where we're standing today by year-end 2025.

So this result, this million ounces that we've been able to produce with clear opportunities to continue expanding it, is a significant change in our approach to the project. So to go straight to your question, we are aiming to submit, along with exploration, we've been carrying a lot of parallel activities on permitting and engineering. So we are ready to present our environmental permits for review and approval in the coming month. And we expect to have an approval of that environmental document early in 2026. We expect we're planning to publish a PEA in the month of October, probably late October, early November, have a PEA out.

But all of the process, design, ancillary facilities of that PEA really carry by now feasibility level. Are at the feasibility level. So our view is that we will transition quickly into a feasibility study early in 2026. So that's where we are setting our sights. Into a feasibility study in early 2026. And consistent with that, a construction decision. And we are advancing capital for early works right now. We have approved a $17 million budget already for some early works. Because, you know, as the project advances and we are breaching this million-ounce threshold with clear opportunities to continue expanding the resource, we're getting as well more courageous on our view of a viable project. Right?

So that is the timeline for us now, I would say, you know, environmental approval early next year, submission this year, early next year, approval. PEA by late October, feasibility study in, you know, H1. No? Middle of H1. 2026. Those are roughly the timelines we're seeing for the Amba.

Mohamed Sidibe: Thanks a lot for that color, Jorge. That's very helpful. And then my second question relates to, I guess, the cadence for CapEx and maybe more for Luis into the second half of the year. Could you maybe help us know if there's a CapEx spend Q3 and Q4 will likely be equal or if it's more weighted to Q3 or Q4.

Jorge Alberto Ganoza: There should be slightly more weighing into the second half of the year. Particularly, we expect in Q3. And, again, coming slightly down in Q4, which is part of the driver for the projected lower ASIC in the latter part of the year. Right. The key message here is that, you know, we have one of our mines, Lindero, trending down on ASIC. From a high ASIC at the beginning of the year towards a low ASIC at the end of the year. And Seguela trending the opposite. Our ASIC at the beginning of the year at Seguela was a low, you know, under $1,200. Sorry. And under $1,300 per ounce.

And it, you know, as investments are picking up and stripping is picking up according to plan, that ASIC is gonna gravitate higher. Right? So and, again, Seguela is the mine that is expanding into next year. It's expanding production into next year. So, therefore, the capital buildup throughout the year. Right?

Mohamed Sidibe: Yeah. No. That's great. And just to clarify that, Q4 ASIC that Luis talked about, was that the $17.50 per ounce level? Was that just more for comments on the overall year?

Jorge Alberto Ganoza: So the comment on the $17.50 was related to 2026. And it would represent a decrease in ASIC with respect to our guidance for 2025. So the key message is ASIC is gonna be somewhat higher in Q2 and Q3 of this year. Coming down towards Q4, and we anticipate even a lower ASIC into 2026 at these levels.

Mohamed Sidibe: Okay. That's great. Thank you so much.

Operator: Thank you. Your next question is coming from Adrian Day from Adrian Day Asset Management. Your line is live.

Adrian Day: Oh, thank you. Yeah. Good afternoon. Yeah. You discussed your pipeline quite a bit. That was interesting. But I wonder if you could quantify a little more specifically the greenfields, the number of projects, the geographies, how much you're spending, you know, this year, next year, and how the spend compares on a historic basis to your greenfields exploration?

Jorge Alberto Ganoza: Hello, Adrian. Hello. And first, geography. We currently have on the greenfield site three opportunities being pursued. One, of course, is Awale through our investment. I'm not sure if you follow Awale, but they have a commanding land position in a most intriguing geologic setting. Already have made a significant discovery. They have a joint venture on that discovery with Newmont. But outside of that joint venture, there is a significant land package that continues to offer, we believe, very good potential, and that's what's intriguing to us. In the north of Barrick's Tongon Mines, we have a joint venture also an option agreement for a joint venture in Northern Cote D'Ivoire. That's the Tongon North project.

It's a project where we're currently we've been drilling this first half of the year. Drilling has stopped due to rains. And we look to resume in the second half of the year. But we're testing major structures in the Birimian with the identified gold in Augur. And big structures, long trends. We're drilling. You know? And we look forward to reporting when we find something that merits reporting. Right? We're finding gold. We're finding gold in the structures. We need to see where those structures blow up right, and offer opportunity for size and tonnage and grade. And we have an early discovery, I would say, in our Greek Leo property in Cote D'Ivoire as well in the south.

Where we have identified a very large five-kilometer gold-in-soil anomaly in a concession that's owned 100% by us. And that is one. No? Cote D'Ivoire. And you see we're very active, not only on Brownfields but in Greenfields. We're looking at opportunities in Guinea. Right? As well. Moving on to Senegal, we're right now very much focused on the land package we control around Amba Sud, which is sizable. So we have a program where we're drilling the main core property of Amba Sud also within the larger property package, we're doing a lot of generative work. Across the Atlantic in Mexico, we have currently two, three active joint ventures for early-stage opportunities.

And in Argentina, we just did an option agreement with a local party to explore what I would categorize as one of the largest in-heated anomalies in the province of Salta up there close to the Chilean border. And that's early stage. It's an option agreement, and after the winter, we look forward to initiating our first drilling campaigns. So our exploration budget for greenfields right now sits at about $11 million. And that does not include any of the work we're doing at the Amba. No. That's excluding the Amba Sud. The budget is $11 million. Our global exploration budget, including now Amba Sud, stands at about $51 million. Total exploration budget. That's up from $41 million in 2024.

So we have increased our budget, our global budget for brownfields, greenfields, all that is under the concept of exploration and new project development. Has gone up from $41 million in 2024 up to $51 million in 2025. But we feel we're well funded, and we have clear opportunities in front of us.

Adrian Day: That's excellent. Thank you. We do not talk a lot about this early or talk enough. Perhaps we don't talk enough about these early-stage opportunities because, again, what we expect is to produce something that we can meaningfully share with the market. You know how it is with early-stage opportunities. We're testing ideas, testing anomalies, a bit of a hit and miss. But, you know, we're going through the process, generating the idea, testing the targets. Right? Okay. Super. Thank you.

Operator: Thank you. Once again, everyone, if you have any questions or comments, please press star then 1 on your phone. Your next question is coming from Thomas Bislunovitz. Your line is live.

Thomas Bislunovitz: Yes. I was wondering if you're actively looking to buy another company or possibly merge. Maybe you can't talk about that stuff now, but I was just curious.

Jorge Alberto Ganoza: Yes. The answer to that, sir, is that when we think of acquisitions, they are answering the needs for growth mainly. Right? And we are very comfortable and calm that we have a very robust clear opportunity for growth within our control, in our portfolio. So and that would be growth that we can deliver at the lowest cost and dilution to our shareholders. Right? The most accretive growth we can provide our shareholders is organic growth. And that's under our control. As I spoke during the call already, the Amba Sud and Seguela right now offer clear opportunities for that. No? And we're always paying attention for value opportunities, but I would characterize it as this.

We have no need to chase ounces. We are chasing value. And if we see value out there, you'll see us very aggressively. We have the balance sheet to pursue big opportunities. But our search is for value, not ounces. You know? We can produce the ounces organically. And that's the cheapest, most value we can deliver to our shareholders, advancing what's already in the portfolio, and that is our primary focus.

Thomas Bislunovitz: Thank you very much.

Jorge Alberto Ganoza: Thank you.

Operator: There are no further questions in the queue.

Carlos Baca: Thank you, Matthew. If there are no further questions, I'd like to thank everyone for joining us today. We appreciate your continued support and interest in Fortuna Silver Mines Inc. Have a great day.

Operator: Thank you. Everyone, this concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.