Fortuna Mining (FVI) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly sales of $274.9 million, up 13% year-over-year, with year-to-date sales on track to exceed $1 billion.

• Net earnings reached $54.4 million, up 76% year-over-year, and EPS of $0.16, surpassing analyst consensus.

• Gold equivalent production for Q3 was 110,820 oz, with year-to-date output of 339,933 oz Au Eq, on track to meet annual guidance.

• Maintained robust liquidity with $180.6 million in cash and total liquidity of $430.6 million at quarter-end.

• Resized and improved terms on the revolving credit facility, reducing financial costs and increasing flexibility.

Financial highlights

• Adjusted EBITDA was $131.3 million, representing a 48% margin over sales, up 26% year-over-year.

• Free cash flow from ongoing operations was $56.6 million, down from $70.0 million in Q3 2023 due to higher taxes and negative working capital changes.

• Average realized gold price was $2,490/oz, up 29% year-over-year; silver price rose 24% to $29.37/oz.

• Cash cost per gold equivalent ounce was $1,059 for the quarter; AISC was $1,696, both tracking at the upper end of guidance.

• Net cash provided by operating activities was $92.9 million, with $26.4 million negative change in working capital.

Outlook and guidance

• On track to meet 2024 annual production guidance of 457–497 koz Au Eq and AISC of $1,485–$1,640/oz Au Eq.

• Capital projects, including the Lindero leach pad expansion, are on time and on budget, with completion expected by year-end.

• Séguéla mine expected to operate at 35% above nameplate throughput in 2025, with infrastructure capex to increase by $10 million.

• San José Mine to begin progressive closure in Q1 2025, with closure plan and budget due in Q4 2024.

• Free cash flow from San José's continued operations in 2025-2026 expected to offset closure costs.