Fortuna Silver Mines (FSM, Financial) released its second-quarter production figures, showing robust performance across its mines in West Africa and Latin America. The company achieved gold production of 61,736 ounces from its ongoing operations, marking an increase from the 56,000 ounces produced in the same period last year and slightly higher than the 58,820 ounces in the first quarter of 2025.
The gold equivalent output for the quarter was 71,229 ounces, maintaining a steady pace compared to 71,368 ounces in the second quarter of 2024 and slightly above the 70,386 ounces recorded in the previous quarter. Over the first half of 2025, including contributions from the Yaramoko Mine, Fortuna's consolidated gold equivalent production reached 179,409 ounces. This figure includes credits from lead and zinc by-products.
The company remains confident in its full-year 2025 revised production forecast, maintaining an annual target range between 309,000 and 339,000 gold equivalent ounces.
FSM Key Business Developments
Release Date: May 08, 2025
- Free Cash Flow: Record $111 million, up from $96 million in Q4, with a free cash flow margin of 38%.
- Net Cash from Operations: $138 million or $0.45 per share, adjusted to $144 million or $0.48 per share after San Jose mine divestment.
- Cash Cost per Ounce: Reduced to $929 from $1,015 in Q4.
- All-in Sustaining Cost: $1,640, down from $1,770 in Q4.
- Net Income from Continued Operations: $61.7 million or $0.20 per share, up from $11 million or $0.04 per share in Q4.
- Sales: $290 million with production of 103,000 gold equivalent ounces.
- Net Cash Position: More than doubled to $137 million.
- Total Liquidity: Increased to $462 million from $381 million in Q4.
- Share Buyback: Over 900,000 shares repurchased at an average price of $4.53.
- Exploration and Project Budget: $51 million allocated for 2025.
- Gold Production at Seguela: 38,500 ounces, a 9% improvement over the previous quarter.
- Gold Production at Yaramoko: 33,073 ounces, a 12% improvement over the prior quarter.
- Cash Cost at Seguela: $650 per ounce.
- All-in Sustaining Cost at Seguela: $1,290 per ounce.
- Cash Cost at Yaramoko: $1,059 per ounce.
- All-in Sustaining Cost at Yaramoko: $1,411 per ounce.
- Gold Production at Lindero: 20,320 ounces.
- Cash Cost at Lindero: $1,147 per ounce.
- All-in Sustaining Cost at Lindero: $1,911 per ounce.
- Silver Production at Caylloma: 243,000 ounces.
- Cash Cost at Caylloma: $12.80 per silver equivalent ounce.
- All-in Sustaining Cost at Caylloma: $18.74 per silver equivalent ounce.
- Average Realized Gold Price: $2,880 per ounce.
- Effective Tax Rate: 25%, down from 34% in 2024.
- Cash Position: $309 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 a record free cash flow from operations of $111 million, surpassing the previous quarter's record of $96 million.
- The company successfully reduced its cash cost per ounce to $929 from $1,015 in the previous quarter, demonstrating effective cost control.
- Net cash from operations before working capital changes was $138 million, or $0.45 per share, indicating strong operational performance.
- Fortuna Mining Corp (FSM) improved its net cash position to $137 million, with total liquidity rising to $462 million, providing financial flexibility.
- The company reported zero lost time injuries in Q1, with an improved total recordable injury frequency rate, highlighting a strong safety performance.
Negative Points
- The sale of the San Jose mine, which contributed about 11,000 gold equivalent ounces in Q4, impacted production figures.
- The tragic incident at the Seguela mine, where a subcontractor lost his life, overshadowed the company's safety achievements.
- The Lindero mine in Argentina experienced a 24% decrease in gold production compared to the previous quarter due to reduced ore grade and timing of leach kinetics.
- The appreciation of the Argentine peso increased the cash cost per ounce at the Lindero mine, affecting cost management.
- The company's stock price experienced a significant drop, trading down nearly 12%, despite strong quarterly results, indicating market volatility and potential investor concerns.
