Fortuna Reports Results for the First Quarter 2026

• Fortuna Mining Corp. reported Q1 2026 financial results on May 6, 2026.
• Free cash flow from ongoing operations reached a record $174.0 million, up $41.7 million quarter-over-quarter.
• Adjusted attributable net income was $111.0 million ($0.36 basic EPS).
• Consolidated production was 72,872 gold equivalent ounces (GEO), with a realized gold price of $4,884/oz.
• Total liquidity stands at $815.9 million, including cash of $665.9 million.
• The company repurchased 4.2 million shares YTD at an average price of $9.53 per share.
• Consolidated AISC per GEO was $2,107, up from $2,054 in Q4 2025, driven by higher CAPEX and royalties.
• Mineral reserves increased 15% year-over-year; Lindero primary crusher repairs completed May 1, 2026.
• Final investment decisions (FID) for Diamba Sud and Séguéla plant expansion anticipated by mid-year.

• Revenue vs Cost Dynamics: While the record free cash flow is positive, it is heavily driven by an anomalously high realized gold price of $4,884/oz compared to reserve assumptions ($2,300/oz) and PEA assumptions ($2,750/oz). This suggests significant hedging gains or one-off pricing benefits that may not be sustainable.
• Cost Inflation Risk: AISC increased to $2,107/oz GEO, breaching the upper end of the 2026 guidance range ($1,830-$1,975). This indicates operational cost pressures (royalties, CAPEX) that could compress margins if gold prices normalize.
• Operational Continuity: The completion of Lindero crusher repairs removes a near-term production risk identified in previous quarters (Q4 2025 downtime), supporting the production guidance of 281,000-305,000 GEO for 2026.
• Capital Allocation: Share buybacks at $9.53 average price while trading near $13.46 demonstrates management confidence but also highlights that shares were repurchased significantly below current levels, potentially leaving value on the table if prices continue to rise.
• Project Progression: Diamba Sud FID remains "anticipated by mid-year," which is consistent with previous timelines (Q2 2026 feasibility). No acceleration or delay was announced, making this a confirmation of prior expectations rather than new catalyst information.

• Overview: Fortuna Mining is an intermediate gold producer with operations in Côte d'Ivoire (Séguéla), Argentina (Lindero), and Peru (Caylloma). The company has divested higher-risk assets (Yaramoko, San Jose) to focus on core growth.
• Flagship Project: Séguéla Mine is the primary cash flow generator, with reserves extended to over 9 years. Diamba Sud (Senegal) is the key growth project, currently in feasibility stage targeting a construction decision mid-2026.
• Development Status: Séguéla plant expansion study underway; Lindero operational issues resolved; Caylloma base metal production stable.