Fortuna Mining (FVI) Q1 2025 earnings summary

Executive summary

• Achieved record free cash flow from operations of $111.3 million in Q1 2025, with a free cash flow margin of 38% and net cash position of $137 million, up from $59 million sequentially.

• Net income from continuing operations was $61.7 million or $0.20 per share, a significant increase from $11 million or $0.04 per share in Q4 2024, and more than double the prior year period.

• Sales reached $290.1 million, up 44% year-over-year, driven by higher realized gold and silver prices and strong mine performance.

• Completed strategic divestments of the San Jose mine and entered into an agreement to sell the Yaramoko mine, reallocating $50 million in capital and management focus to higher-value opportunities.

• Maintained strong safety performance, with zero lost time injuries in Q1 and improved total recordable injury frequency rate to 0.98, despite a fatal accident at Séguéla in February.

Financial highlights

• Adjusted EBITDA margin reached 52%, with adjusted EBITDA of $150.1 million, a 56% year-over-year increase.

• Free cash flow from ongoing operations was $111.3 million, a 545% year-over-year increase, excluding new development projects.

• Net cash from operations before working capital changes was $138 million ($0.45/share), or $144 million ($0.48/share) adjusted for San Jose divestment.

• Cash position at quarter-end was $309 million, with total liquidity of $459 million, including an undrawn $150 million revolving facility.

• General and administration expenses rose to $25.3 million, mainly due to stock-based compensation.

Outlook and guidance

• 2025 production guidance: 380,000–422,000 gold equivalent ounces at AISC of $1,550–$1,680 per GEO.

• Gold production expected at 334–373 koz, silver at 0.9–1.0 Moz, lead at 29–32 Mlbs, and zinc at 45–49 Mlbs.

• Management expects to complete the Yaramoko mine sale in Q2 2025, with anticipated cash proceeds and a $57.5 million dividend from Roxgold Sanu.

• 2025 exploration and new project budget set at $51 million, targeting key deposits and prospects in West Africa and Latin America.

• Expect effective tax rate to be 28–30% and current tax rate 32–35% at current metal prices.