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MANAGEMENT’S DISCUSSION AND ANALYSIS
DRIVING GROWTH FROM WITHIN
San Jose Mine AISCC
2015 Guidance
Item
($/oz Ag)
Cash cost net of by-product credits
4.44
Government royalty and mining tax
0.66
Workers’ participation
0.44
Selling, general and administrative expenses (operations)
0.97
Adjusted operating cash cost
6.50
Sustaining capital expenditures
8.92
Brownfields exploration expenditures
0.84
All-in sustaining cash cost
16.27
Caylloma Mine AISCC
2015 Guidance
Item
($/oz Ag)
Cash cost net of by-product credits
6.12
Government royalty and mining tax
0.28
Workers’ participation
0.14
Selling, general and administrative expenses (operations)
1.58
Adjusted operating cash cost
8.12
Sustaining capital expenditures
4.34
Brownfields exploration expenditures
0.32
All-in sustaining cash cost
12.78
Consolidated AISCC
2015 Guidance
Item
($/oz Ag)
Cash cost net of by-product credits
5.01
Government royalty and mining tax
0.53
Workers’ participation
0.34
Selling, general and administrative expenses (operations)
1.17
Adjusted operating cash cost
7.05
Selling, general and administrative expenses (corporate)
1.51
Sustaining capital expenditures
7.38
Brownfields exploration expenditures
0.67
All-in sustaining cash cost
16.61
2015 Outlook
San Jose Mine, Mexico
San Jose plans to process 700,000 tonnes of ore averaging 214 g/t Ag and 1.66 g/t Au. Capital investment for 2015
is estimated to be $56.5 million.
Major investments include:
Filter facility and dry stack tailings deposit:
$28.3 million
3,000 tpd mill expansion:
$12.6 million
Mine development:
$ 8.3 million
Exploration:
$ 3.5 million
On December 17, 2014, the company disclosed further details of capital investments related to the processing plant
expansion, and filter facility and dry stack tailings deposit (refer to “Fortuna announces expansion of its San Jose Mine
from 2,000 to 3,000 tpd” news release).
