Q3 2026 FINANCIAL AND OPERATIONAL RESULTS WEBCAST - FORTUNA MINING CORP

Explicit Guidance:

• Annual Production: On track to meet 2026 guidance range of 281,000–305,000 gold equivalent ounces.
• Cost Guidance (AISC): Anticipates full-year 2026 AISC to finish 8–10% above the top end of guidance ($1,975/oz) due to external factors (diesel, royalties, macroeconomic impacts in Argentina); without these external factors, AISC is expected to finish at or just above the $1,975/oz top end.
• Cash Costs: Expects Q4 2026 AISC to trend down as Seguela resolves issues and Lindero maintains performance, though expected to remain ~5% above guidance top end due to external factors.
• Capex: Targeting $750 million in combined growth and exploration investment over the next two years (2027–2028).
• Sustaining Capex: Expects Q4 2026 sustaining capital expenditures to increase to $30–$34 million.

Business-Segment Outlook:

• Production Growth (Segment-wide): Aiming for ~60% growth in annual gold production to ~500,000 ounces per year starting mid-2028.
• Seguela (West Africa):
  • Plant expansion approved with a 30% capacity increase; completion and commissioning scheduled for Q3 2028, targeting >200,000 ounces annual capacity.
  • Underground project permitting on track for completion this year (2026); development scheduled to begin Q2 2027.
  • Mining volumes and recoveries expected to return to first-half 2026 levels in Q4 2026.
• Ambasud (West Africa):
  • Government notice of admissibility received; exploitation permit expected in Q4 2026.
  • Targeting first gold in mid-2028.
  • Construction formal start expected late November; $250 million in contract awards authorized for execution across the timeline.
• Bambadji (Senegal Platform):
  • Acquisition closed; six drill rigs mobilized to Caddy West, Wadi, and Latifa prospects.
  • First resource estimate for Caddy West targeted for year-end 2026.
  • Plans to integrate Bambadji deposits into the Diambasud mining convention and processing facility.
• Lindero (Latin America/Argentina):
  • Full-year 2026 production guidance of 92,000–102,000 ounces; first nine months production supports expectation of stronger output in the remainder of the year.
  • Infill drilling program expanded; updated resource/reserve estimates and life-of-mine plan targeted for Q1 2027.
• Cayoma (Latin America/Peru):
  • Positioned to exceed 2026 guidance of 29,000–33,000 gold equivalent ounces.
  • Tailings dam expansion 71% complete as of Oct 31, targeting year-end completion.

Market and Competitive Outlook:

• Demand/Supply: No explicit commentary on broader gold demand/supply, but management emphasizes "technically straightforward development plans" and "proven teams" to execute growth without reliance on external M&A for growth capital.
• Pricing/Costs: Persistent inflationary pressures on consumables, specifically diesel (~60% increase vs. guidance) and explosives (~30% increase), driving higher AISC at Lindero.
• Share Shifts: No direct commentary on market share shifts; focus is on organic growth via new capacity.

Macro / Industry Outlook:

• Economy/Argentina: Expectations that macroeconomic factors in Argentina (foreign exchange appreciation, withholding taxes, deferred tax rules) will contribute to persistent cost inflation, pushing AISC above guidance.
• Regulation: Mining Convention negotiations in Senegal aim to adopt the 2016 Mining Code with provisions stabilized for a decade.
• FX: Exposure to USD/ARS fluctuations impacting repatriation and costs; management notes effective tax rate of 47% remains consistent with prior quarters due to Argentine tax rules.
• Community/Social: Acknowledges risk of artisanal mining blockades (Seguela incident in July) driven by government crackdowns on illegal mining; no changes to long-term risk profile anticipated, but highlights need for dialogue.

Strategic Initiatives:

• Capital Allocation: Pausing share buybacks until the growth phase (2027–2028) is well underway to fund the $750 million program organically; resumption expected after Q2 2027 contingent on balance sheet strength and project progress.
• M&A/Expansion:
  • Seguela Expansion: $109 million final investment decision (FID) made in July; detailed engineering underway.
  • Ambasud Construction: EPCM contract awarded to Senate; orders placed for long-lead items (SAG mill, primary crusher); accommodation camp completion scheduled Q1 2027.
  • Bambadji Acquisition: Completed this quarter; $206 million cost; focus on rapid resource definition to feed existing Diambasud plant.
• Funding Plan: Projected to fund growth using $443 million cash, $600 million liquidity, and $350 million year-to-date free cash flow; no additional share issuance or over-leveraging expected.

Risks and Headwinds to Outlook:

• Operational Disruptions: Risks include temporary stoppages due to artisanal miner blockades (as seen in Seguela) and equipment availability issues.
• Cost Inflation: High sensitivity to diesel and explosive prices, particularly at Lindero (10% of costs), which could sustain AISC above guidance.
• Permitting Delays: Reliance on Senegalese government approvals for the Diambasud exploitation permit to meet mid-2028 targets.
• Exploration Uncertainty: Bambadji acquisition has no reported mineral inventory; future resource estimates are preliminary and subject to exploration results.
• Geopolitical/Social: Ongoing tensions with artisanal mining communities in Cote d'Ivoire and macroeconomic instability in Argentina.

Management Tone on the Future:

• Confidence: High confidence in the growth strategy ("concrete execution milestones," "strong balance sheet," "technically straightforward").
• Hedges: Cautious tone regarding capital allocation (pausing buybacks) and cost inflation; acknowledges external factors as temporary but persistent headwinds for 2026 costs.
• Priority Shift: Clear pivot from shareholder returns (buybacks) to growth investment over the next two years, balancing capital intensity with balance sheet preservation.

Miscellaneous:

• Safety: 1 LTI recorded at Seguela in July; YTD TRIF rate of 1.23 (below 1.37 target); Lindero and Cayoma have achieved ~1,950 and 1,080 days LTI-free respectively.
• Shareholder Returns: No buybacks in Q3 2026; $106 million returned YTD via buybacks of 10.8 million shares.