Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.