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.

• Sales totaled $290.1 million, up 44% year-over-year, with production of 103,459 gold equivalent ounces, in line with plans.

• Divested high-cost, short-life mines (San Jose completed, Yaramoko pending), reallocating $50 million in capital and management focus to higher-value opportunities.

• Returned $4.2 million to shareholders via repurchase of 0.9 million shares in Q1.

Financial highlights

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

• Consolidated cash cost per ounce decreased to $929 from $1,015 in Q4; all-in sustaining cost (AISC) dropped to $1,640 from $1,772.

• 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; net liquidity position improved to $459 million, including a fully undrawn $150 million revolving facility.

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

Outlook and guidance

• 2025 production guidance: 380,000–422,000 GEO at AISC of $1,550–$1,680/GEO.

• Séguéla Mine expansion on track to reach 160,000–180,000 ounces annual production by 2026.

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

• Effective tax rate expected to be 28–30% at current metal prices; current tax rate 32–35%.

• Anticipates lower free cash flow in Q2 and Q3 due to timing of tax payments exceeding $60 million for 2024.