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Fortuna Mining Corp (FSM) Q4 2024 Earnings Call Highlights: Record Cash Flow and Strategic Shifts

In This Article:

  • 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.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Fortuna Mining Corp (NYSE:FSM) 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.