A Member of Pat McKeough’s Inner Circle recently asked for his advice on Fortuna Mining Corp., a Canadian precious metals producer operating three mines in Argentina, Côte d’Ivoire, and Peru with a strategic focus on expanding its West African portfolio.
Pat likes the company’s successful transition into a higher-margin, cash-rich producer with a strong balance sheet. However, Pat notes the firm is in a “production gap” transition phase where it must perfectly execute on its development projects to replace the output lost from selling two operating mines.
Fortuna Mining Corp. (Symbol FVI on Toronto; www.fortunamining.com) is a Canadian precious metals producer, focused on gold, silver and base metals.
Established in 2005, the company has three operating mines, as well as exploration activities in Argentina, Burkina Faso, Cote d’Ivoire, Peru, and Mexico.
In northern Argentina, Fortuna operates the open pit Lindero gold mine, with a remaining life of nine years. The mine began production in 2020, and in 2024, it produced 97,287 ounces of gold.
In southern Peru, Fortuna operates the underground Caylloma silver, lead, and zinc mine. In 2024, the mine produced 1.2 million ounces of silver, 39.6 million pounds of lead, and 51.9 million ounces of zinc.
In southwestern Cote d’Ivoire, Africa, Fortuna operates the open pit Seguela gold mine. In 2024, Seguela produced 137,781 ounces of gold. It has a remaining mine life of five years.
Fortuna also operated the underground Yaramoko gold mine in southwestern Burkina Faso, Africa. In May 2025, however, the company sold its interest in the mine to Soleil Resources International Ltd. for about $130 million U.S. That’s because the mine had a remaining life of just one-and-a-half years and the business climate in Burkina Faso was very challenging.
On April 14, 2025, Fortuna also completed the sale of its San Jose mine in the state of Oaxaca, Mexico. JRC Ingenieria y Construccion SAC bought the mine for $6.5 million plus as much as an additional $8.3 million if certain conditions are met.
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As well, Fortuna retains a 1.0% smelter royalty on production from the mine after the first 6.1 million ounces of silver and the first 44,000 ounces of gold (or 119,000 gold equivalent ounces) have been mined.
Fortuna’s high cash balance and rising production bode well for the stock
The sales of the Yaramoko and San Jose mines has hurt Fortuna’s production this year. In 2024, the company produced a record 455,958 gold equivalent ounces. In 2025, the company expects to produce between 380,000 and 422,000 ounces.
But the decisions to sell the San Jose and Yaramoko mines appear sound. Both mines were nearing the end of their lives. And both were challenging to keep running. Now, the company can focus on optimizing its remaining mines, especially the Seguela mine. Gold production at Seguela should reach 160,000 to 180,000 ounces by 2026. In 2024, the mine produced 137,781 ounces.
Like most mining stocks, Fortuna is heavily influenced by metal prices. But, with cash on hand of $438.3 million U.S. and low debt, the company has strong speculative appeal. Its prospects for increased production going forward—including from the Seguela mine—are also appealing.
Recommendation in Pat’s Inner Circle: Fortuna Mining is okay to hold for aggressive investors.
