Fortuna’s Diamba Sud Project Posts 60% IRR, US$1B NPV and One-Year Payback
FSM•Fortuna Mining’s Diamba Sud feasibility study shows an after-tax IRR of 60%, NPV5% of US$1 billion at $3,500/oz gold, one-year payback and 9.4-year life producing 116,000 oz annually. The US$397.5 million initial capex is funded by existing liquidity, and a final investment decision and first gold are anticipated by Q2 2028 after permit approval.
1. Feasibility Study Highlights
The Diamba Sud feasibility study confirms an open-pit CIL gold mine delivering an after-tax NPV5% of US$1 billion and IRR of 60% at US$3,500/oz gold, achieving a one-year payback. At US$4,000/oz gold, returns increase to an NPV5% of US$1.3 billion, IRR of 72% and an 11-month payback.
2. Project Economics and Production
The project is designed for a 9.4-year mine life with average annual production of 158,000 oz in the first four years and 116,000 oz over the life of mine. Total life-of-mine all-in sustaining costs average US$1,332/oz, falling to US$1,056/oz during the initial four-year high-grade period.
3. Funding and Timeline
Initial capital expenditure of US$397.5 million is covered by over US$800 million in liquidity and operating cash flow. Early works including camp construction and site access road are underway, FEED is in progress, and a final investment decision plus first gold production are expected by Q2 2028 pending receipt of the mining permit.
