Fortuna is developing the Diamba Sud open-pit gold project in Senegal, which a feasibility study values at an after-tax net present value (NPV) of $1 billion. Based on a gold price of $3,500 per ounce, the project boasts a 60% internal rate of return (IRR) and a one-year capital payback period, according to the Toronto Stock Exchange-listed miner.
Why is the Diamba Sud project significant for gold production?
Diamba Sud is a cornerstone of Fortuna’s strategy to increase annual gold production by roughly 60%, targeting more than 500,000 ounces by 2028. This growth occurs alongside the expansion of the Séguéla mine in Côte d’Ivoire.
The project is expected to produce an average of 158,000 ounces of gold annually during its first four years. Over its total 9.4-year mine life, production will average 116,000 ounces. The feasibility study confirmed 1.15 million ounces of probable gold reserves.
How do the operating costs compare to other assets?
Fortuna identifies Diamba Sud as its lowest-cost operation. The company estimates all-in sustaining costs (AISC) of $1,056 per ounce during the first four years of production. Over the full life of the mine, the AISC is projected to be $1,332 per ounce.
These low operating costs, combined with rapid payback and exploration potential, make the site a high-value asset. Fortuna notes that continued drilling could expand mineral reserves beyond the current 20.5 million tonnes, which would potentially increase future production and extend the mine’s lifespan.
What is the investment timeline and cost?
Fortuna has approved $73 million for early works, specifically targeting engineering and site infrastructure. The company aims for first gold production before the end of the second quarter of 2028, though this remains subject to an investment decision and final permitting.
For the state of Senegal, the project represents an estimated $397.5 million investment. This capital influx is expected to generate tax and royalty revenues, create jobs, and support local contractors and suppliers.
How does Senegal’s mining climate differ from its neighbors?
Senegal is positioning itself as a stable destination for mining investment at a time when other West African nations are tightening control over natural resources. According to the company’s analysis, governments in Mali, Burkina Faso, Niger, and Ghana have strengthened mining laws and increased state participation to keep more mineral wealth within their own economies.
Rather than adopting these restrictive measures, Senegal has focused on balancing investor confidence with stronger oversight. This approach has allowed the country to attract significant projects like Diamba Sud even as regional volatility persists.
Frequently Asked Questions
What is the projected NPV of Diamba Sud?
The project has an after-tax net present value (NPV) of $1 billion, based on a gold price of $3,500 per ounce.
When will Diamba Sud begin producing gold?
Fortuna targets first gold production before the end of the second quarter of 2028.
How many gold reserves are confirmed?
The feasibility study confirms 1.15 million ounces of probable gold reserves.
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