Key Points
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Fortuna’s Guinea exploration alliance expands its African gold growth strategy.
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Local partnership helps navigate Guinea’s political and regulatory risks.
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Competition intensifies as Barrick, AngloGold, and Endeavour dominate region.
Fortuna Silver Mines Inc., a Canadian company that makes precious metals, has joined an exploration alliance in Guinea as part of its larger plan to strengthen its position in West Africa, which is now one of the fastest-growing gold frontiers.
Fortuna’s Vancouver headquarters announced the deal on Monday. The company will work with a Guinean company to get licenses in the Siguiri Basin and the Kankan region, which are already home to operations run by AngloGold Ashanti Ltd. and Russia’s Nordgold SE. This is Fortuna’s first deal in Guinea; it already has assets in Côte d’Ivoire and Burkina Faso in Africa.
Fortuna’s partnership with Guinea to explore strengthens Africa’s growth
According to a report by Mining weekly, Jorge A. Ganoza, the company’s CEO, said that Guinea is a “strategic extension” of its African portfolio. Last year, the company opened the Séguéla gold mine in Côte d’Ivoire, and in 2021, it bought the Yaramoko mine in Burkina Faso. Ganoza said in a statement, “Our Guinea exploration alliance is meant to use our technical skills while working with trusted local partners.”
Fortuna mined 326,638 ounces of gold and 6.2 million ounces of silver in 2023. Almost half of the gold came from Africa. The company thinks that most of its growth will come from its African assets, which it hopes will produce more than 400,000 ounces of gold a year in three years.
Fortuna’s exploration partnership in Guinea is at risk of political problems
Guinea has one of the largest untapped gold reserves in the region, but since a military junta took over in 2021, the country has been politically unstable. The government has promised to make changes to attract foreign investment, but miners have to deal with strict rules, higher taxes, and calls for local participation.
Roland N’Guessan, a mining consultant in Abidjan, said, “International miners can’t ignore Guinea’s potential, but working there is tricky.” “Local alliances like Fortuna’s are very important for making sure access and stability.”
Fortuna’s alliance to explore Guinea shows how competitive the market is
West Africa now makes about 12% of the world’s gold, and big companies like Barrick Gold Corp. in Mali and Endeavour Mining Plc in Burkina Faso and Côte d’Ivoire are spending billions on new projects. Fortuna’s move into Guinea shows how competitive mid-tier miners are becoming as they try to get land before prices go up.
Ganoza said, “West Africa will be the story of Fortuna’s growth.” “Guinea is the next logical step in that story.”
