What's Happening?
Fortuna Mining has released a preliminary economic assessment (PEA) for its Diamba Sud gold project in Senegal, indicating a high-return, quick-payback potential. The PEA outlines an after-tax net present
value of $563 million and an internal rate of return of 72% at a gold price of $2,750/oz. The project is expected to produce 840,000 oz of gold over an eight-year mine life, with strong early cash flow driven by higher grades in the initial oxide phase. Construction capital is estimated at $283 million, supported by Fortuna's strong balance sheet and cash generation.
Why It's Important?
The Diamba Sud project represents a significant opportunity for Fortuna Mining, offering substantial returns and rapid capital payback. The project's strong economic indicators could attract investment and support Fortuna's growth strategy. With ongoing drilling focused on expanding mineralization and upgrading resources, the project has the potential to extend its mine life beyond a decade. The development of Diamba Sud could contribute to economic growth in Senegal, providing employment opportunities and supporting local communities.
What's Next?
Fortuna Mining is advancing early construction works, including camp expansion and detailed engineering, with a $17 million budget. The company expects to make a construction decision in the first half of 2026, following permitting and the completion of a definitive feasibility study. Ongoing drilling will continue to expand mineralization and support resource upgrades, potentially extending the project's mine life. Fortuna's strategic focus on Diamba Sud aligns with its broader portfolio goals, enhancing its position in the gold mining sector.
