Fortuna Mining Corp. FSM has completed the sale of its non-core San Jose mine in Mexico. This comes on the heels of FSM’s announcement on Friday that it has inked a deal to sell the Yaramoko mine in Burkina Faso in West Africa, which will mark its exit from the country. Fortuna Mining shares hit a 52-week high of $6.61, before closing lower at $6.48 on Friday.

Details of Fortuna Mining’s Sale of the San Jose Mine

Fortuna Mining had been operating the San Jose mine for thirteen years. In 2024, the mine produced 2.5 million ounces of silver and 17,811 ounces of gold. In December 2024, the company placed it on care and maintenance due to its higher operating costs and depleting reserves. 

The buyer, RC Ingeniería y Construcción S.A.C. (“JRC”), a private Peruvian company, completed the acquisition through a definitive share purchase agreement. Fortuna Mining received an upfront payment of $6.5 million and an additional $1.2 million is expected by April 30, 2025, for pre-paid working capital items and tax receivables. FSM also has the right to receive up to $8.3 million on completion of certain conditions.

Fortuna Mining retains a 1% net smelter royalty on future production from the San Jose mine. This is payable after the first extraction of 6.1 million ounces of silver and 44,000 ounces of gold (or 119,000 gold equivalent ounces).

FSM to Strategically Exit Burkina Faso With Yaramoko Sale

FSM has signed an agreement to sell its interest in Roxgold Sanu SA (which owns the Yaramoko mine) and three other subsidiaries, which hold exploration permits in Burkina Faso. The buyer, Soleil Resources International Limited, will take full control once the deal is finalized, which is expected in the second quarter of 2025. 

Yaramoko produced 116,206 ounces and 33,073 ounces of gold in 2024 and in the first quarter of 2025 respectively.  Based on reserves reported as of Dec. 31, 2024, the operation had a remaining mine life of one and a half years. 

Fortuna Mining opted to sell the mine, considering its limited remaining life and increasingly difficult operating conditions in Burkina Faso. The sale not only saves FSM around $20 million in future mine closure liabilities, but also provides it with additional liquidity to focus more on its strategic objectives.

Fortuna Mining will receive an aggregate cash payment of approximately $130 million, which includes a $70 million consideration payable on closing of the sale, $57.5 million in cash dividends paid by Roxgold Sanu and the right to receive up to approximately $53 million of value-added tax receivables, subject to certain conditions.

Once the Yaramoko deal is completed, Fortuna Mining will cease to have any operations in Burkina Faso. Its operating portfolio will include the Séguéla mine in Côte d’Ivoire, Lindero mine in Argentina, and Caylloma mine in Peru. 

On April 10, 2025, along with its Q125 production numbers, Fortuna Mining stated that it maintains 2025 production guidance range at 334,000-373,000 ounces of gold and 0.9-1.0 million ounces of silver (or 380,000-422,000 GEOs). This, however, included an estimated 107,000-121,000 ounces of gold  contribution from Yaramoko.

FSM Stock’s Price Performance

Shares of Fortuna Mining have gained 41.5% in the past year against the industry’s 17.7% decline.

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Fortuna Mining’s Zacks Rank & Stocks to Consider  

FSM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are SSR Mining Inc. SSRM, Carpenter Technology Corporation CRS and Idaho Strategic Resources IDR. SSR Mining currently sports a Zacks Rank #1 (Strong Buy) while Carpenter Technology and Idaho Strategic Resources carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SSR Mining has an average trailing four-quarter earnings surprise of 155.7%. The Zacks Consensus Estimate for SSRM’s 2025 earnings is pegged at $1.21 per share, implying year-over-year growth of 332%. SSR Mining stock has soared 105% in the last year.

Carpenter Technology has an average trailing four-quarter earnings surprise of 15.7%. The Zacks Consensus Estimate for CRS’ 2025 earnings is pegged at $6.95 per share, which indicates year-over-year growth of 46.6%. Carpenter Technology shares have gained 125% in the last year.

Idaho Strategic Resources has an average trailing four-quarter earnings surprise of 77.5%. The Zacks Consensus Estimate for Idaho Strategic’s 2025 earnings is pegged at 78 cents per share, indicating year-over-year growth of 16.4%. IDR shares have jumped 88% in the last year.


 

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