In This Article:
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Revenue: Record sales of $275 million for Q3 2024.
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Earnings: Net income of $50.5 million, or $0.16 per share.
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EBITDA: $131 million, representing a 48% margin over sales.
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Free Cash Flow: $56 million from ongoing operations.
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Cash Cost: $1,059 per gold equivalent ounce for the quarter.
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Capital Expenditure: $98 million executed for the first nine months, 75% of the annual budget.
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Gold Production: 63,004 ounces from West African operations in Q3 2024.
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Cash Position: $181 million at the end of the quarter.
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Total Liquidity: $431 million, including a $250 million revolving credit facility.
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Debt to EBITDA Ratio: Maintained under 0.2.
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Exploration Budget: Increased from $37 million to $44 million for 2024.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fortuna Mining Corp (NYSE:FSM) reported record sales of $275 million for Q3 2024, with expectations to surpass $1 billion in sales for the year.
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The company achieved a strong EBITDA of $131 million, representing a 48% margin over sales, an increase from previous quarters.
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West African operations, particularly Yaramoko and Seguela, exceeded production targets and reported zero lost time injuries.
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Fortuna Mining Corp (NYSE:FSM) maintained a disciplined cost structure, achieving a cash cost of $1,059 per gold equivalent ounce for the quarter.
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The company has a strong balance sheet with a net cash position and liquidity of about $350 million, maintaining a low debt-to-EBITDA ratio under 0.2.
Negative Points
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The Lindero mine in Argentina is about 10% above cost guidance due to lagging currency devaluation against inflation.
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Fortuna Mining Corp (NYSE:FSM) is experiencing challenges in collecting VAT receivables in Burkina Faso, which may continue to impact cash flow.
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The San Jose mine is set to initiate a progressive closure starting in Q1 2025, which may lead to increased closure costs.
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The company faces potential financial implications from repatriating US dollars into Argentine pesos due to local FX restrictions.
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Exploration costs have increased, with the 2024 global budget rising from $37 million to $44 million to expand drilling programs.
Q & A Highlights
Q: Can you provide details on the financial implications of potentially repatriating US dollars into Argentina and converting them into Argentine pesos? A: Luis Ganoza Durant, CFO, explained that the company expects to start accumulating cash locally in Argentina towards the end of the year. They are exploring different alternatives to manage this exposure, as current FX restrictions require cash surpluses to be kept in local currency. The government has signaled a potential lifting of these restrictions, but no date has been provided.