Fortuna Mining Corp. Q4 FY2024 earnings call

Financial Performance Highlights

• Fourth quarter record free cash flow from operations of $19.6 million, up 69% vs Q3 2024. Net cash from operations before changes in working capital was a record $142 million or $0.46 per share.
• Full year 2024 surpassed $1 billion in sales. Quarter over quarter, gold price was 7% higher at $2,660, revenue 10% higher at $302 million, cash cost per ounce 4% lower, operating cash flow margin expanded from 33% to 50%.

Debt and Liquidity

• Since completion of Seguela mine construction in mid-2023, reduced debt by $118 million, moved from net debt of $198 million to year-end positive net cash position of $59 million. Cash at year-end was $231 million, up $50 million quarter over quarter. Liquidity over $381 million.

Share Buybacks

• Returned $30.5 million to shareholders via share buybacks in Q4, with additional purchases in January of $1.8 million until reporting period blackout.

Exploration and Investment

• Invested $49 million in mineral exploration and new project development in 2024. Plan to invest $51 million in 2025 in high-value targets like Kingfisher and Sandbird Deep at Seguela mine camp, etc.

Mine Optimization

• Announced strategic decision to divest non-core San Jose mine in Mexico. Successful optimization and expansion of Seguela mine with planned 2026 gold production of 160,000-180,000 ounces at industry-leading AISC of $1,260-$1,390 per ounce.

Safety Incident

• Seguela mine had a fatal accident on February 20, 2025, with investigation underway.

West Africa

• Seguela: Fourth quarter produced 35,244 ounces of gold, with full year production of 137,781 ounces. Cash cost per ounce for the quarter was $653, and for the year was $584. AISC for the quarter was $1,376 and for the year was $1,153.
• Yaramoko: Fourth quarter produced 29,576 ounces of gold, with full year production of 116,206 ounces. Cash cost per ounce for the quarter was $812, and for the year was $860. AISC for the quarter was $1,302 and for the year was $1,359.

Latin America

• Lindero: Fourth quarter produced 26,806 ounces of gold. Full year 2024 production was 97,287 ounces. Cash cost per ounce in the fourth quarter was $1,063, and AISC was $1,873.
• Caylloma: Fourth quarter produced 249,238 ounces of silver, with zinc and lead production also reported.

• For full year 2025, cash costs expected in range of $895-$1,015 per ounce and AISC in range of $1,550-$1,680 per ounce.
• Seguela mine planned to reach 2026 gold production of 160,000-180,000 ounces.
• Lindero mine guided for lower AISC in 2025 between $1,600-$1770 per ounce.

• Seguela mine experienced a fatal accident on February 20, 2025, involving a specialized service provider to the mine contractor while conducting a planned inspection and recharge of fire extinguishers. Investigation is underway.