Fortuna Mining Q2 Earnings Call Highlights

Strong second-quarter financial performance: Fortuna Mining reported $380 million in sales, $200 million in adjusted EBITDA and $85.7 million in free cash flow. Adjusted attributable earnings rose 77% year over year to $75.5 million, or $0.25 per share, although profits and cash flow declined from the first quarter amid lower gold prices, higher taxes and increased costs. West African growth projects advanced: The company approved a $109 million expansion of its Séguéla plant and is progressing toward a potential second-half 2026 investment decision at Diamba Sud. Together, the projects are expected to increase annual production by approximately 60% to more than 500,000 gold ounces by mid-2028. Capital returns remain substantial but may moderate: Fortuna ended the quarter with $606.7 million in cash and repurchased $82 million of shares during the quarter, bringing year-to-date buybacks to $106 million. Management expects future repurchases to be more measured as it prioritizes organic growth, exploration and project development.

Fortuna Mining NYSE: FSM reported second-quarter 2026 results marked by $380 million in sales, $200 million in adjusted EBITDA and $85.7 million in free cash flow from ongoing operations, while advancing its Séguéla expansion in Côte d’Ivoire and Diamba Sud development project in Senegal. The company produced 72,217 gold equivalent ounces during the quarter and 145,089 gold equivalent ounces during the first half, which President and Chief Executive Officer Jorge Alberto Ganoza said keeps Fortuna on track to meet its full-year production guidance.

Fortuna reported adjusted attributable net income of $75.5 million, or $0.25 per share, up 77% from $42.6 million in the second quarter of 2025. The result was below the record $111 million, or $0.36 per share, reported in the first quarter, reflecting lower realized gold prices, a higher effective tax rate and higher cash costs per gold equivalent ounce. Average realized gold prices were $4,447 per ounce, up 34% year over year but down from $4,884 per ounce in the first quarter. Consolidated cash costs were $1,034 per gold equivalent ounce, compared with $951 per ounce in the prior quarter, while all-in sustaining costs, or AISC, rose to $2,157 per ounce from $2,107 per ounce.

Growth projects advance in West Africa Management said the Séguéla plant expansion and Diamba Sud project are expected to provide the basis for approximately 60% growth in annual production by mid-2028, supporting Fortuna’s objective of producing gold at an annual rate exceeding 500,000 ounces. At Diamba Sud, Chief Operating Officer for West Africa David Whittle said the feasibility study outlines average annual gold production of 158,000 ounces during the first four years of operations and a 9.4-year mine life. The project’s environmental and social impact assessment has been approved, and discussions with the Senegalese government are continuing as Fortuna works toward final permitting. Whittle said the feasibility study supports a potential final investment decision in the second half of 2026. Chief Executive Officer Ganoza said the company is also pursuing additional landholdings around Diamba Sud, which he described as a district-scale opportunity in a prolific West African gold belt. Fortuna’s board approved a $109 million, 30% process-plant expansion at Séguéla. Together with the Somba underground project, the expansion is expected to support average annual production of more than 200,000 ounces of gold over the next decade, according to Whittle. The expansion will increase annual ...