Fortuna bets $71M on Latin America gold growth

Fortuna Mining (TSX: FT; NYSE: FSM) plans to invest $71 million (C$101 million) in Argentina and Peru this year as the Canadian precious metals producer targets higher gold output and expands key operations across both countries.

The company will spend $41 million at its Lindero gold mine in Argentina’s Salta province, where it expects to produce between 92,000 and 102,000 oz. gold in 2026. The budget includes sustaining capital and exploration at the nearby Cerro Lindo gold deposit and the Arizaro project, where drilling is expected to wrap up in the third quarter. 

Lindero produced 20,829 oz. gold in the second quarter, bringing first-half output to 42,374 oz. and keeping the mine on track to meet annual guidance. With major plant upgrades complete, Fortuna expects improved mechanical reliability, higher crushing and stacking rates and stronger ore grades to lift production in the second half.

“Looking ahead, with all of the plant’s major capital projects now completed, management expects better mechanical availability throughout the processing circuit, supporting higher crushing and stacking rates,” the company said, adding that higher ore grades scheduled for the second half should further boost production.

The investment reflects Fortuna’s strategy to expand production from existing operations as elevated gold prices support spending on mine optimization and exploration. The company is also strengthening its presence in Latin America while maintaining operations in Africa, positioning itself for continued growth in precious metals production.

Peru expansion 

Fortuna will invest a further $29.9 million at its Caylloma polymetallic mine in Peru, where brownfield exploration and an expansion of the tailings storage facility are underway. 

Expansion work remains on schedule, having reached reached 28% completion last month. Caylloma produced 133,940 tonnes of ore in the second quarter, with 75% mined using overhand cut-and-fill methods and the balance through sub-level stoping. The mine produced 19,016 gold equivalent oz. (GEO) in the first half of the year, keeping it on pace to meet annual guidance of between 29,000 and 33,000 GEO.

Operated by wholly owned subsidiary Compañía Minera Bateas, Caylloma also produces silver, zinc and lead.

Fortuna produced 87,489 oz. gold at Lindero in 2025, providing a foundation for the higher production target this year. Exploration at both Lindero and Caylloma is intended to extend mine life and support future resource growth as the company continues investing in its existing asset base.