• Free Cash Flow from Operations (Q4 2024): $19.6 million, a 69% increase from Q3 2024.
• Net Cash from Operations (Q4 2024): $142 million or $0.46 per share, exceeding analysts' consensus of $0.40.
• Revenue (Q4 2024): $302 million, a 10% increase quarter over quarter.
• Gold Price (Q4 2024): $2,660 per ounce, a 7% increase quarter over quarter.
• Operating Cash Flow Margin: Expanded from 33% to 50%.
• Net Cash Position (Year-End 2024): $59 million, improved from a net debt position of $198 million mid-2023.
• Cash (Year-End 2024): $231 million, a $50 million increase quarter over quarter.
• Liquidity (Year-End 2024): Over $381 million.
• Debt Reduction (Since Mid-2023): Reduced by $118 million.
• Share Buybacks (Q4 2024): $30.5 million, with additional $1.8 million in January 2025.
• Investment in Exploration and Development (2024): $49 million, with a 2025 budget of $51 million.
• Gold Production (Seguela, Q4 2024): 35,244 ounces, a 1% increase from the previous quarter.
• Gold Production (Yaramoko, Q4 2024): 29,576 ounces, a 6% increase from the previous quarter.
• Cash Cost (Seguela, Q4 2024): $653 per ounce.
• AISC (Seguela, Q4 2024): $1,376 per ounce.
• Cash Cost (Yaramoko, Q4 2024): $812 per ounce.
• AISC (Yaramoko, Q4 2024): $1,302 per ounce.
• Gold Production (Lindero, Q4 2024): 26,806 ounces, a 10% increase from the previous quarter.
• Cash Cost (Lindero, Q4 2024): $1,063 per ounce.
• AISC (Lindero, Q4 2024): $1,873 per ounce.
• Silver Production (Caylloma, Q4 2024): 249,238 ounces.
• Cash Cost per Silver Equivalent Ounce (Caylloma, Q4 2024): $16.53.
• AISC per Silver Equivalent Ounce (Caylloma, Q4 2024): $28.10.
• Attributable Net Income (Q4 2024): $11.3 million or $0.04 per share.
• Adjusted Net Income (Q4 2024): $37 million or $0.12 per share.
• Adjusted Earnings Per Share (Q4 2024): Increased 50% year over year.
• Cash Cost of Sales per Gold Equivalent Ounce (Q4 2024): $1,015.
• Free Cash Flow (Q4 2024): $95.6 million.
• Total Liquidity (Year-End 2024): $381 million.

• Warning! GuruFocus has detected 5 Warning Signs with FSM.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fortuna Mining Corp (NYSE:FSM) achieved record free cash flow from operations of $19.6 million in Q4 2024, a 69% increase from Q3 2024.
• The company surpassed $1 billion in sales for the first time in 2024, with a 10% increase in revenue to $302 million in Q4.
• FSM reduced its debt by $118 million since mid-2023, moving to a positive net cash position of $59 million by year-end.
• The Seguela Mine's strong performance resulted in a cash cost of $653 per ounce in Q4, outperforming guidance.
• The Caylloma Mine in Peru surpassed its full-year production guidance for all metals, with zinc and lead production exceeding expectations by 33% and 16%, respectively.

Negative Points

• The San Jose mine in Mexico, FSM's highest-cost mine, was placed in care and maintenance due to being at the tail end of its reserves.
• A fatal accident occurred at the Seguela Mine in February 2025, impacting the company's safety record.
• The company recorded a $14.5 million write-off related to the Bourra mineral property in Burkina Faso.
• A $7.2 million mine closure provision was associated with the scheduled closure of the San Jose mine.
• The Lindero mine faced higher costs due to the appreciation of the Argentine peso, leading to a write-down of low-grade ore stockpiles.

Q & A Highlights

Q: Can you provide an overview of Fortuna Mining Corp's financial performance in Q4 2024? A: Jorge A. Ganoza, President and CEO, highlighted that the company achieved record free cash flow from operations of $19.6 million, a 69% increase from Q3 2024. Net cash from operations before changes in working capital was $142 million, or $0.46 per share, surpassing analysts' consensus of $0.40. For the full year 2024, sales exceeded $1 billion for the first time, with a 10% increase in revenue to $302 million and a 4% reduction in cash cost per ounce, expanding the operating cash flow margin from 33% to 50%.

Q: What are the company's financial projections for 2025? A: Jorge A. Ganoza stated that for 2025, Fortuna Mining expects stable to lower cash costs in the range of $895 to $1,015 per ounce and stable to lower all-in sustaining costs (AISC) between $1,550 and $1,680 per ounce. The company also plans to continue investing aggressively in its asset portfolio with a budget of $51 million.

Q: How did the Seguela Mine perform in 2024, and what are the future plans for this site? A: David Whittle, COO of West Africa, reported that Seguela produced 137,781 ounces of gold in its first full year of production, with a cash cost of $584 per ounce, outperforming guidance. The mine is expected to reach a production of 160,000 to 180,000 ounces by 2026 at an AISC of $1,260 to $1,390 per ounce. The construction of the third lift of the tailing storage facility is underway to support increased production.

Q: What strategic decisions has Fortuna Mining made regarding its mine portfolio? A: Jorge A. Ganoza announced the strategic decision to divest the non-core San Jose mine in Mexico, which has become the highest-cost mine. The sale process is ongoing, and the company aims to refocus capital and management's attention on high-value opportunities. Additionally, the optimization and expansion of the flagship Seguela Mine are key priorities.

Q: Can you elaborate on the company's safety performance and any incidents reported? A: Jorge A. Ganoza reported that the total recordable injury frequency rate and lost time injury frequency rate for 2024 were 1.36 and 0.48, respectively. However, a fatal accident occurred at the Seguela Mine on February 24, 2025, involving a specialized service provider. An investigation is underway, and the company remains committed to a zero-harm work environment.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.