Fortuna Mining Corp. Q4 FY2025 earnings call

• Growth objective: To grow to over 0.5 million ounces of annual gold production from long-life assets in 24 months, ~65% growth from current levels. Driven by Diamba Sud in Senegal and Seguela in Ivory Coast.
• Diamba Sud: Project advances, updated mineral resource estimate, $100 million budget in 2026, $67 million for early works, broke ground, filed exploitation permit application.
• Seguela: Preparing for plant upgrade study, evaluating throughput expansion to 200,000 ounces annual production, recent exploration drilling presents opportunities to increase production, strong operational performance with cash cost and AISC within guidance.
• Latin America operations: Lindero's production impacted by mechanical downtime, approved foundation replacement schedule; Caylloma's base metal production exceeded guidance.
• Financials: Attributable net income $68.1 million or $0.22 per share Q4, adjusted net income $71.3 million or $0.23 per share. Higher gold prices drove year-over-year increase. G&A expenses increased. Foreign exchange loss, interest and finance costs decreased. Free cash flow strong, total liquidity $704 million at end of 2025.

In the quarter, Fortuna delivered record adjusted net income of $0.23 per share. Net cash from operations before working capital adjustments was $0.48 per share. Record free cash flow of $132 million for the quarter and $330 million for the full year. Seguela delivered strong quarter, exceeded production guidance, produced 36,942 ounces in Q4, 152,420 ounces full year. Cash cost $710 per ounce Q4, $679 per year. AISC $1,576 per ounce Q4, $1,560 per year. Diamba Sud project advances, updated mineral resource estimate shows 73% increase in indicated resources to 1.25 million ounces. Latin America operation: Lindero's full year gold production 87,489 ounces, impacted by mechanical downtime; Caylloma produced 250,000 ounces silver in Q4, 12.1 million zinc, 8.4 million lead full year.

• Expect quarterly G&A, excluding stock-based compensation, to range between $14 million and $16 million.
• Effective tax rates expected to average between 30% and 33% in 2026.
• Total capital expenditures $44.5 million Q4, $178.1 million full year, with $109 million for sustaining capital and $69 million for growth initiatives.
• Production through the year should be steady, Lindero's production in Q1 and Q2 expected to be softer due to crusher foundation replacement, but fully considered in production plan and guidance.
• Seguela's plant upgrade study expected to be completed early in the year, targeting throughput between 2 million and 2.5 million tonnes per year.
• Diamba Sud project has $100 million budget in 2026, with $67 million for early works.

Q: How should we think about the upcoming technical report for Diamba Sud and its impact on mine life and production profile?

A: The new resource update will lead to an extension of life of mine and the new higher grade deposit will benefit the annual production profile to some degree. The resource used for the resource is $3,300 per ounce, and for reserves a lower gold price like $2,300 will be used.

Q: What are the key drivers behind the gold price assumption for Diamba Sud?

A: Everybody is adjusting their price decks and Fortuna is using the methodology it uses, deriving $3,300 for the resource, and using a lower price for reserves.

Q: How should we think about the cadence of production in 2026 and beyond, specifically for Seguela and Lindero?

A: Production through the year should be steady, Lindero's production in Q1 and Q2 expected to be softer due to crusher foundation replacement, but will pick up in the second half. Seguela's plant upgrade study expected to be completed early, targeting increased throughput.

Q: Can you provide more color on the CapEx cost for Seguela's throughput expansion?

A: The order of magnitude for the CapEx cost is in the range of $50 million to $100 million, with the study not complete yet.

Q: What do you consider long life?

A: The target is a decade, seeing at least a decade plus in reserves and resources.

Q: Is there exploration going on in Mexico?

A: Yes, there is early stage exploration at 2 projects, though not a significant portion of the overall budget.

Q: When could we start to see ore from the underground at Seguela's Sunbird?

A: Expect to start excavations in 2027, with first production in late 2027 or early 2028, pending permitting which aims to be completed this year.