Fortuna Reports Results for the Second Quarter of 2025

Executive Summary

• Fortuna Mining reported Q2 2025 results with attributable net income of $42.6 M ($0.14/share) and adjusted net income of $44.7 M ($0.15/share), a QoQ increase of ~30% and 128% year‑over‑year respectively.
• Record Adjusted EBITDA margin of 55% was achieved, driven by higher realized gold prices and strong production (71,229 oz GEO from continuing operations).
• Liquidity stood at $537.3 M, free cash flow from ongoing operations $57.4 M, and the company repatriated $50 M from Argentina after capital‑control relief.

Key Details

• Financial Highlights (Continuing Operations)
• Sales: $230.4 M (+42% YoY)
• Mine operating income: $105.0 M (+85% YoY)
• Operating income: $83.7 M (+134% YoY)
• Net cash from operating activities (pre‑WC): $96.9 M ($0.32/share)
• Free cash flow from ongoing operations: $57.4 M (down $9.3 M QoQ due to higher tax payments and sustaining capex)

• Liquidity (cash + short‑term investments): $537.3 M, net cash position $214.8 M

• Production & Cost Metrics

• Gold equivalent production (continuing ops): 71,229 oz; total GEO including discontinued assets: 75,950 oz.
• Consolidated cash cost per GEO (cont.): $929/oz (up from $866 YoY)
• All‑in sustaining cash cost (AISC) per GEO (cont.): $1,932/oz (up from $1,641 YoY) – higher due to stripping at Séguéla and timing of capex.
• Séguéla Mine: 38,186 oz Au produced; cash cost $670/oz Au, AISC $1,634/oz Au.

• Lindero Mine: 23,550 oz Au produced; cash cost $1,148/oz Au, AISC $1,783/oz Au (AISC trending lower YoY).

• Operational Highlights

• Total ore milled Q2: 340,426 t (average 3.33 g/t Au) yielding 36,482 oz Au from Antenna, Ancien & Koula pits.
• Waste moved: 5,194,192 t (strip ratio 15.3:1).

• Mill throughput at Séguéla averaged 210 t/hr, 36% above name‑plate capacity.

• Growth & Business Development

• Updated in‑pit resource for Diamba Sud (Senegal): Indicated 724,000 oz Au and Inferred 285,000 oz Au, representing +53% and +93% increases YoY.
• Strategic investment: Acquired 15 % of Awalé Resources Ltd. (Odienne project, Côte d’Ivoire).

• Divestments: Received $83.8 M gross proceeds from sale of Yaramoko and San Jose short‑life mines; capital reallocation of ~$50 M to higher‑value projects.

• Safety

• Total Recordable Injury Frequency Rate (TRIFR) reduced to 0.87 (down from 0.98 Q1).

• Zero lost‑time injuries reported in the quarter.

• Guidance & Outlook

• Management reaffirmed annual production guidance of 160–180 k oz Au for 2026.
• Anticipates AISC to remain within guidance; Séguéla AISC may rise mid‑year due to stripping, while Lindero AISC expected to decline as leach pad expansion is complete.

• Targeting a construction decision on Diamba Sud by H1 2026 after PEA completion later in 2025.

• Conference Call

• Date: Thursday, August 7 2025 at 9:00 a.m. PT / 12:00 p.m. ET.
• Participants: Jorge A. Ganoza (President & CEO), Luis D. Ganoza (CFO), David Whittle (COO – West Africa), Cesar Velasco (COO – Latin America).

Notable Quotes

• “Fortuna completed the second quarter with liquidity of more than half a billion dollars… positioning us to pursue growth opportunities including the guided production expansion at Séguéla in 2026 and advancing to a construction decision at Diamba Sud by H1 2026.” – Jorge A. Ganoza, President & CEO