Fortuna Mining (FSM, Financial) has received the green light from the Toronto Stock Exchange to renew its normal course issuer bid (NCIB), allowing the company to repurchase up to 5% of its outstanding common shares. The buyback process can occur via the Toronto Stock Exchange, the New York Stock Exchange, or other Canadian trading platforms.
The share repurchase initiative is set to commence on May 2 and will conclude under several potential conditions: by May 1, 2026; one year following the program's renewal; upon the acquisition of the maximum shares permissible under the NCIB; or if the company decides to halt further purchases. This program positions Fortuna Mining to strategically manage its capital and enhance shareholder value over the upcoming year or until the defined limits are reached.
FSM Key Business Developments
Release Date: March 06, 2025
- Free Cash Flow from Operations (Q4 2024): $19.6 million, a 69% increase from Q3 2024.
- Net Cash from Operations (Q4 2024): $142 million or $0.46 per share, exceeding analysts' consensus of $0.40.
- Revenue (Q4 2024): $302 million, a 10% increase quarter over quarter.
- Gold Price (Q4 2024): $2,660 per ounce, a 7% increase quarter over quarter.
- Operating Cash Flow Margin: Expanded from 33% to 50%.
- Net Cash Position (Year-End 2024): $59 million, improved from a net debt position of $198 million mid-2023.
- Cash (Year-End 2024): $231 million, a $50 million increase quarter over quarter.
- Liquidity (Year-End 2024): Over $381 million.
- Debt Reduction (Since Mid-2023): Reduced by $118 million.
- Share Buybacks (Q4 2024): $30.5 million, with additional $1.8 million in January 2025.
- Investment in Exploration and Development (2024): $49 million, with a 2025 budget of $51 million.
- Gold Production (Seguela, Q4 2024): 35,244 ounces, a 1% increase from the previous quarter.
- Gold Production (Yaramoko, Q4 2024): 29,576 ounces, a 6% increase from the previous quarter.
- Cash Cost (Seguela, Q4 2024): $653 per ounce.
- AISC (Seguela, Q4 2024): $1,376 per ounce.
- Cash Cost (Yaramoko, Q4 2024): $812 per ounce.
- AISC (Yaramoko, Q4 2024): $1,302 per ounce.
- Gold Production (Lindero, Q4 2024): 26,806 ounces, a 10% increase from the previous quarter.
- Cash Cost (Lindero, Q4 2024): $1,063 per ounce.
- AISC (Lindero, Q4 2024): $1,873 per ounce.
- Silver Production (Caylloma, Q4 2024): 249,238 ounces.
- Cash Cost per Silver Equivalent Ounce (Caylloma, Q4 2024): $16.53.
- AISC per Silver Equivalent Ounce (Caylloma, Q4 2024): $28.10.
- Attributable Net Income (Q4 2024): $11.3 million or $0.04 per share.
- Adjusted Net Income (Q4 2024): $37 million or $0.12 per share.
- Adjusted Earnings Per Share (Q4 2024): Increased 50% year over year.
- Cash Cost of Sales per Gold Equivalent Ounce (Q4 2024): $1,015.
- Free Cash Flow (Q4 2024): $95.6 million.
- Total Liquidity (Year-End 2024): $381 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fortuna Mining Corp (FSM, Financial) achieved record free cash flow from operations of $19.6 million in Q4 2024, a 69% increase from Q3 2024.
- The company surpassed $1 billion in sales for the first time in 2024, with a 10% increase in revenue to $302 million in Q4.
- FSM reduced its debt by $118 million since mid-2023, moving to a positive net cash position of $59 million by year-end.
- The Seguela Mine's strong performance resulted in a cash cost of $653 per ounce in Q4, outperforming guidance.
- The Caylloma Mine in Peru surpassed its full-year production guidance for all metals, with zinc and lead production exceeding expectations by 33% and 16%, respectively.
Negative Points
- The San Jose mine in Mexico, FSM's highest-cost mine, was placed in care and maintenance due to being at the tail end of its reserves.
- A fatal accident occurred at the Seguela Mine in February 2025, impacting the company's safety record.
- The company recorded a $14.5 million write-off related to the Bourra mineral property in Burkina Faso.
- A $7.2 million mine closure provision was associated with the scheduled closure of the San Jose mine.
- The Lindero mine faced higher costs due to the appreciation of the Argentine peso, leading to a write-down of low-grade ore stockpiles.
