Foran Mining (FOM) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production rose 12% year-over-year to 122,319 oz, driven by strong output at Lamaque (+22%) and Kisladag (+14%), partially offset by lower Olympias production due to labor stoppages; operations generated $34 million in free cash flow excluding Skouries investment spend.

• Health and safety performance improved, with LTIFR dropping to 0.40 from 1.32 year-over-year, and multiple industry awards received for safety and sustainability initiatives.

• Skouries project advanced to 76% completion, with $92 million invested in Q2 and $144 million in H1 2024; project remains on track for 2024 capital spend guidance and first production in Q3 2025.

• Gold sales totaled 121,226 ounces at an average realized price of $2,336/oz, with revenue rising 30% to $297.1 million compared to Q2 2023.

• Maintained 2024 production guidance of 505,000–555,000 ounces and cost guidance, with production weighted to the second half of the year.

Financial highlights

• Metal sales revenue reached $297.1 million, up from $229.0 million year-over-year.

• Adjusted net earnings were $66.6 million, a significant increase from $9.7 million in Q2 2023.

• Adjusted EBITDA rose to $155.3 million from $106.8 million year-over-year.

• Cash, cash equivalents, and term deposits totaled $595 million as of June 30, 2024.

• Net cash from operating activities was $112.2 million, up from $75.3 million in Q2 2023.

Outlook and guidance

• 2024 annual gold production guidance remains at 505,000–555,000 ounces, with H2 production expected to be higher than H1 across all sites.

• Full-year total cash costs expected between $840–$940/oz sold; AISC expected at $1,190–$1,290/oz sold.

• Skouries capital spend for 2024 expected between $375–$425 million, with ramp-up of site personnel ongoing; project remains on budget and on track for first production in Q3 2025.

• Company remains on track to increase gold production by 45% by 2027 and become a major EU copper producer.