Fortuna Mining Corp. FSM has assured investors that its Yaramoko Mine in Burkina Faso is operating per all material laws and operations in the country. This was to quell concerns triggered by President Traoré hinting at the withdrawal of certain mining permits of companies violating local laws. Even though no company names have been mentioned, this has caused investor anxiety, leading to an 8.8% dip in FSM shares on Monday.

Fortuna Mining’s Yaramoko Likely not at Risk

During a radio interview on Oct. 5, 2024, among other topics, President Traoré mentioned the possibility of the government revoking certain mining permits for companies that are not operating per the laws of Burkina Faso. No details were, however, provided. This statement raised concerns among the companies operating in the country and their investors.

Fortuna Mining clarified the situation with the country’s Ministry of Mines and received confirmation that the government does not intend to withdraw mining permits that comply with Burkina Faso’s laws. Per FSM, the Yaramoko Mine complies with laws and regulations.

Shares of another Canada-based company IAMGOLD IAG also dipped 10% on Monday on this development. IAMGOLD holds a 90% stake in the Essakane Gold Mine located in north-eastern Burkina Faso, with the remaining 10% held by the government. IAG also assured investors that it is unaware of any potential challenge to the withdrawal of any permits for the mine. The company emphasized that the mine continues to operate per the permits.

United Kingdom-based Endeavour Mining, which also has mines in Burkina Faso, stated that it is not currently aware of  government plans to revoke any of its permits for its mines.

Yaramoko to Contribute 30% to FSM’s 2024 Gold Production

The Yaramoko mine has been in production since May 16, 2016. It was added to Fortuna Mining’s portfolio following its acquisition of Roxgold on July 2, 2021.  The mine reached the milestone of producing 1 million ounces of gold on May 19, 2024.

The Yaramoko Mine consists of two underground gold mines, the 55 Zone and Bagassi South. The deposits are greenstone-hosted high-grade orogenic gold deposits.

Per the data provided by FSM, as of Dec. 31, 2023, Yaramoko had proven and probable mineral reserves of 0.9 Mt at a grade of 7.90 g/t of gold, along with 219,000 ounces of gold. It had measured and indicated mineral resources (exclusive of mineral reserves) of 0.5 Mt at a grade of 2.87 g/t of gold, which contained 43,000 ounces of gold. Inferred mineral resources, exclusive of mineral reserves, were 0.16 Mt at a grade of 3.52 g/t of gold and contained 18,000 ounces of gold.