Fortuna Mining exits Burkina Faso for $130M

Processing plant at Yaramoko. Credit: Roxgold

Fortuna Mining has reached an agreement to sell its Burkina Faso operations to Soleil Resources International, based in Mauritius, for approximately $130 million in cash. This decision comes as the company faces growing challenges in Burkina Faso’s business environment. Fortuna’s CEO, Jorge Ganoza, described the sale as a strategic move to optimize value, especially as the Yaramoko mine, their main asset in the region, approaches the end of its reserves.

Burkina Faso has recently seen political upheaval, with juntas taking control to combat militant Islamists. Changes to mining codes have also added pressure on foreign mining companies, further influencing Fortuna’s decision to exit the country. Financial analysts, such as Mohamed Sidibé from National Bank Financial, view the transaction as advantageous, pointing to attractive multiples and avoidance of significant closure liabilities tied to the mine.

Fortuna Mining, headquartered in Vancouver, acquired Yaramoko in its $884 million purchase of Roxgold back in 2021. Located in the Houndé greenstone belt, the mine holds an estimated 150,000 oz. of gold reserves and produced over 116,200 ounces in 2023. Following the sale, Fortuna expects to receive $70 million upon closing the deal, additional cash dividends of $57.5 million, and up to $53 million in tax receivables, dependent on certain conditions.

Soleil Resources International, already active with three mines and exploration projects in Burkina Faso, is expected to continue operations at Yaramoko in support of employees and stakeholders. This sale follows Fortuna’s recent divestment of the San Jose mine in Mexico earlier this year and is part of its plan to strengthen its balance sheet, focus on high-value exploration, and pursue new acquisitions in regions such as West Africa, North America, and South America.

Fortuna experienced record production levels in 2024, yielding 370,000 oz. of gold and 3.72 million oz. of silver, but anticipates a production drop of 7%-17% this year due to its divestments. Despite the challenges, this deal positions Fortuna to strategically invest in new projects and maintain steady growth.