1Refer to Non -IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statemen ts filed on
NEWS RELEASE
Fortuna Reports Results for the Second Quarter of 2025
(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)
Vancouver, August 6, 2025: Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) (“Fortuna” or the “Company”) today reported its financial and operating results for the second quarter of 2025.
(Results from the Company’s San Jose and Yaramoko assets have been excluded from its Q2 2025 continuing results, along with the comparative figures, due to the classification of the assets as discontinued as at June 30, 2025.)
Jorge A. Ganoza, President and CEO of Fortuna, commented, “Fortuna completed the second quarter with liquidity of more than half a billion dollars. Our strong balance sheet positions the Company to pursue growth opportunities under our control including the guided production expansion at the Séguéla Mine in 2026 and advancing to a construction decision at the Diamba Sud project in Senegal by the first half of 2026 following the completion of a PEA later this year.”
Mr. Ganoza continued, “We delivered a total of 75,950 gold equivalent ounces1, keeping us firmly on track to meet annual production guidance. Higher realized gold prices in the quarter contributed to a record EBITDA1 margin of 55%. The higher consolidated AISC1 of $1,932 per ounce of gold in the quarter was primarily driven by the timing of capital expenditures and peak mine waste stripping at Séguéla during the second quarter and into the third. These investments are critical to achieving our annual target of 160 to 180 thousand gold ounces in 2026.”
Mr. Ganoza concluded, “Looking into the second half of the year, we expect our mines to remain within annual AISC1 guidance. At Séguéla, AISC1, is projected to trend higher through the year due to planned mine waste stripping to access higher-grade material, but the full-year average is expected to remain well within guidance. In contrast, Lindero’s AISC1, is expected to trend lower in the second half of the year as the leach pad expansion is now complete and peak stripping is behind us.”
Second Quarter 2025 Highlights
Cash and Cashflow
- Free cash flow1 from ongoing operations of $57.4 million in Q2, and net cash from operating activities before working capital changes of $96.9 million or $0.32 per share
- Liquidity was $537.3 million, and the Company increased its positive net cash1 position to $214.8 million (including short-term investments), from $136.9 million in Q1 2025
- Quarter-end cash and short-term investments of $387.3 million, a quarter over quarter (“QoQ“) increase of $78.0 million
- Subsequent to June 30, 2025 the Company took advantage of the relaxing of capital controls and a favourable spread on exchange rates to repatriate $50.0 million from Argentina
1Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures 2 Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $3,306/oz Au, $33.8/oz Ag, $1,945/t Pb, and $2,640/t Zn for Q2 2025.; $2,333/oz Au, $28.5/oz Ag, $2,157/t Pb, and $2,835/t Zn for Q2 2024; $2,882/oz Au, $31.8/oz Ag, $1,971/t Pb, and $2,841/t Zn for Q1 2025
Profitability
- Attributable net income from continuing operations of $42.6 million or $0.14 per share, a QoQ increase of $0.03. Net Income was impacted by the recognition of $17.5 million in withholding taxes due to the timing of an annual dividend approval in Côte d'Ivoire
- Higher realized gold prices contributed to expanding Adjusted EBITDA1 margins to a record 55% compared to 50% in Q1 2025
- Attributable adjusted net income1 of $44.7 million or $0.15 per share, a QoQ increase of $0.04 per share
Operational
- Gold equivalent production (“GEO”) of 71,229 from continuing operations ounces2 in Q2. GEO production was 75,950 including discontinued operations.
- Consolidated cash cost per GEO1 from continuing operations of $929 in Q2, compared to $866 in Q1 2025
- Consolidated AISC per GEO1 from continuing operations of $1,932 for Q2 compared to $1,752 in Q1 2025.
- Safety performance indicator for TRIFR down to 0.87 compared to 0.98 in Q1 2025. The Company had zero lost time injuries in the quarter.
Growth and Business Development
- On August 5th the Company published an updated in-pit mineral resource estimation for the Diamba Sud project in Senegal, reporting an Indicated Mineral Resource of 724,000 gold ounces, and an Inferred Mineral Resource of 285,000 gold ounces (Indicated Mineral Resource of 14.2 Mt averaging 1.59 g/t Au containing 724,000 gold ounces, and Inferred Mineral Resource of 6.2 Mt averaging 1.44 g/t Au containing 285,000 gold ounces), reflecting 53 and 93 percent increase in resources for the project respectively since year-end 2024. This estimate incorporates initial resources from the newly discovered mineralization at the Southern Arc prospect. The Company is advancing the Diamba Sud project with parallel activities on environmental permits, engineering studies, and continued mineral exploration working towards a preliminary economic assessment in the fourth quarter of 2025. Refer to our news release “Fortuna Advances Diamba Sud Gold Project in Senegal with Updated Mineral Resources; PEA Completion Targeted for Q4 2025” dated August 5, 2025.
- The Company acquired 15% of Awale Resources who owns the Odienne project and other permits in a geologic corridor that is of interest to Fortuna in Côte d'Ivoire. Refer to our news release “Fortuna Completes Strategic Investment in Awalé Resources Limited and Files Early Warning Report” dated June 11, 2025.
Yaramoko and San Jose Divestment
The Company received $83.8 million in gross proceeds during the quarter related to the divestment of our two short-life mines as part of an initiative to streamline the asset portfolio. Taken together, these two sales allow the Company to reallocate approximately $50.0 million in capital and management focus away from mine closures and toward higher-value opportunities that align more closely with our long-term strategy.
Fortuna | 2
Second Quarter 2025 Consolidated Results
| Six months ended | ||||||
|---|---|---|---|---|---|---|
| Three months ended | ||||||
| June 30, | ||||||
| June 30, | June 30, | March 31, | ||||
| ($ Expressed in millions) | 2025 | 2024 | 2025 | 2025 | 2024 | % Change |
Total Production Including Discontinued Operations (GEO) 75,950 116,570 103,459 179,409 229,113 (22%) Production from Continuing Operations (GEO) 71,229 71,368 70,386 141,615 143,679 (1%)
Financial Highlights from Continuing Operations
| Sales | 230.4 156.3 195.2 425.5 | 300.3 | 42% | |||
| Mine operating income | 105.0 | 52.6 | 80.3 185.4 | 100.2 | 85% | |
| Operating income | 83.7 | 30.8 | 55.9 139.7 | 59.6 | 134% | |
| Net income from continuing operations | 47.7 | 22.2 | 36.6 | 86.6 | 36.6 | 137% |
| Attributable net income from continuing operations | 42.6 | 21.3 | 35.4 | 78.1 | 34.3 | 128% |
| Attributable earnings per share from continuing operations - basic | 0.14 | 0.07 | 0.11 | 0.25 | 0.11 | 127% |
| Adjusted attributable net income from continuing operations1 | 44.7 | 9.3 | 35.7 | 80.4 | 23.1 | 248% |
| Adjusted attributable net income from continuing operations earnings per share 0.15 | 0.03 | 0.11 | 0.26 | 0.08 | 225% | |
| Adjusted EBITDA1 | 127.7 | 72.5 | 98.2 225.9 | 139.7 | 62% | |
| Net cash provided by operating activities - continuing operations | 92.7 | 37.4 | 89.0 181.7 | 69.2 | 163% | |
| Free cash flow from ongoing operations1 | 57.4 | 10.2 | 66.7 124.1 | 17.5 | 609% | |
| Cash cost ($/oz GEO)1 | 929 | 842 | 866 | 899 | 791 | 14% |
| All-in sustaining cash cost continuing ops($/oz GEO)1,2 | 1,932 1,641 1,752 1,846 | 1,513 | 22% | |||
| AISC including discontinued ops($/oz GEO)1,2,3 | 1,899 1,633 1,640 1,752 | 1,553 | 13% |
Capital expenditures2
| Sustaining | 31.4 | 26.2 | 22.6 | 54.0 | 47.7 | 13% |
| Sustaining leases | 6.0 | 4.0 | 4.9 | 10.9 | 7.8 | 40% |
| Growth capital | 15.6 | 14.4 | 15.4 | 31.0 | 19.9 | 56% |
| Cash and cash equivalents and short-term investments | 387.3 | 231.3 | 67% | |||
| Net liquidity position (excluding letters of credit) | 537.3 | 381.3 | 41% | |||
| Shareholder's equity attributable to Fortuna shareholders | 1,494.61,403.9 | 6% |
| December | ||
|---|---|---|
| June 30, | 31, | |
| 2025 | 2024 | % Change |
1 Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash basis 3 For Q2 2025 and year to date 2025 AISC reflects production and costs for Yaramoko from April 1 to April 14, 2025, being the date that the Company agreed to the assumed handover of operations to the purchaser. AISC per ounce of gold equivalent sold for the aforementioned period has been estimated at $1,410 which is comparable to the AISC per ounce of gold equivalent sold at Yaramoko for Q1 2025 of $1,411 Figures may not add due to rounding Discontinued operations have been removed where applicable
Second Quarter 2025 Results
Q2 2025 vs Q1 2025
Cash cost per ounce and AISC Cash cost per GEO sold from continuing operations was $929 in Q2 2025, an increase compared to $866 in Q1 2025. The increase in cash costs was mostly related to lower gold equivalent ounces at Caylloma due to an increase in the gold price and the impact on the GEO calculation.
Fortuna | 3
All-in sustaining costs per GEO from continuing operations was $1,932 in Q2 2025 compared to $1,752 in Q1 2025. The higher AISC is explained by the increase in cash cost as described above, higher capitalized stripping at Séguéla and timing of capital expenditure payments.
Attributable Net Income and Adjusted Net Income Attributable net income from continuing operations for the period was $42.6 million compared to $35.4 million in Q1 2025. After adjusting for impairment charges and other non-recurring items, adjusted attributable net income was $44.7 million or $0.15 per share compared to $35.7 million or $0.11 per share in Q1 2025. The increase was explained mainly by higher gold prices and higher gold sales volume. The realized gold price in Q2 2025 was $3,307 per ounce compared to $2,880 in Q1 2025. The increase in gold sales volume was due to higher gold production at Lindero. This was partially offset by the recognition of $17.5 million in withholding taxes related to the timing of local Board approvals for the repatriation of funds out of Côte d'Ivoire
Cash flow Net cash generated by operations before working capital adjustments was $96.9 million or $0.32 per share. After adjusting for changes in working capital, net cash generated by operations for the quarter was $92.7 million compared to $89.0 million in Q1 2025, as higher sales in Q2 2025 as described above were partially offset by income tax payments of $36.4 million compared to $9.4 million in Q1 2025.
Free cash flow from ongoing operations in Q2 2025 was $57.4 million, a decrease of $9.3 million over the $66.7 million reported in Q1 2025. The decrease was due to higher tax payments described above and higher sustaining capital expenditures of $7.6 million.
Q2 2025 vs Q2 2024
Cash cost per ounce and AISC Consolidated cash cost per GEO increased to $929, compared to $842 in Q2 2024. This increase was mainly driven by higher cash costs at Séguéla and lower gold equivalent ounces at Caylloma due to an increase in the gold price and the impact on gold equivalent ounces. The increase in cash cost at Séguéla was primarily due to lower head grade and higher stripping costs, consistent with the mine plan.
All-in sustaining costs per gold equivalent ounce from continuing operations increased to $1,932 in Q2 2025 from $1,641 in Q2 2024. This increase primarily resulted from the higher cash cost per ounce discussed above, increased royalties due to the higher gold price and higher sustaining capital expenditures.
Attributable Net Income and Adjusted Net Income Attributable net income from continuing operations for the period was $42.6 million or $0.14 per share, compared to $21.3 million or $0.07 per share in Q2 2024. After adjusting for impairment charges and other non-recurring items, adjusted attributable net income was $44.7 million or $0.15 per share compared to $9.3 million or $0.03 per share in Q2 2024. The increase was primarily due to higher realized gold prices, which averaged $3,307 per ounce in Q2 2025 compared to $2,334 per ounce in Q2 2024, and higher sales volumes at Séguéla (up 15%) and Lindero (up 9%), driven by increased processed ore at both mines.
Fortuna | 4
Other factors influencing adjusted net income compared to Q2 2024 included the recognition of $17.5 million in withholding taxes related to the timing of local board approvals for the repatriation of funds from Côte d'Ivoire.
Depreciation and Depletion Depreciation and depletion increased by $5.4 million to $48.3 million compared to $42.9 million in the comparable period of 2024. The increase was primarily due to higher ounces sold at Séguéla. Depreciation and depletion in the period included $18.1 million related to the purchase price allocation from the Roxgold acquisition.
Cash Flow Net cash generated by operations for the quarter was $92.7 million compared to $37.4 million in Q2 2024. The increase is mainly explained by higher gold prices and higher gold volume sold at Séguéla and Lindero, and a lower negative change in working capital in Q2 2025 compared to Q2 2024.
Free cash flow from ongoing operations in Q2 2025 was $57.4 million, compared to $10.2 million reported in Q2 2024. The increase was mainly due to higher prices and metal sold as discussed above.
Fortuna | 5
Séguéla Mine, Côte d’Ivoire
| Three months ended June 30, | Six months ended June 30, | ||
|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 |
Tonnes milled 429,184 318,457 873,188 713,294 Average tonnes crushed per day 4,665 3,461 4,798 3,898
Gold
| Grade (g/t) | 3.00 | 3.47 | 2.88 | 3.09 |
| Recovery (%) | 93 | 94 | 93 | 94 |
| Production (oz) | 38,186 | 32,983 | 76,686 | 67,539 |
| Metal sold (oz) | 38,144 | 33,102 | 76,583 | 67,552 |
| Realized price ($/oz) | 3,315 | 2,332 | 3,101 | 2,211 |
Unit Costs Cash cost ($/oz Au)1 670 564 660 511 All-in sustaining cash cost ($/oz Au)1 1,634 1,097 1,461 1,021
Capital Expenditures ($000's)2
| Sustaining | 18,065 | 6,968 | 26,678 | 14,891 |
| Sustaining leases | 4,484 | 2,437 | 8,123 | 4,702 |
| Growth capital | 5,538 | 8,605 | 14,745 | 9,640 |
1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.
2 Capital expenditures are presented on a cash basis
Quarterly Operating and Financial Highlights
During the second quarter of 2025, mine production totaled 340,426 tonnes of ore, averaging 3.33 g/t Au, and containing an estimated 36,482 ounces of gold from the Antenna, Ancien, and Koula pits. Movement of waste during the quarter totaled 5,194,192 tonnes, for a strip ratio of 15.3:1. Mining continued to be focused on the Antenna, Koula, and Ancien pits.
In the second quarter of 2025, Séguéla processed 429,184 tonnes of ore, producing 38,186 ounces of gold, at an average head grade of 3.00 g/t Au, a 16% increase and a 13.5% decrease, respectively, compared to the second quarter of 2024. Higher gold production was the result of higher tonnes processed due to, in part, intermittent power outages from April to early-July 2024, which resulted in the loss of 19 days of operating time for the mill. Mill throughput during the second quarter of 2025 averaged 210 t/hr, 36% above name plate capacity.
Cash cost per gold ounce sold was $670 for the second quarter of 2025 compared to $564 for the second quarter of 2024. The increase in cash costs was a result of higher mining costs due to higher stripping requirements in line with the mine plan, and higher processing costs incurred.
All-in sustaining cash cost per gold ounce sold was $1,634 for the second quarter of 2025 compared to $1,097 in the same period of the previous year. The increase for the quarter was primarily the result of higher cash costs and higher sustaining capital from higher capitalized stripping, higher sustaining leases from an increase in the mine fleet under contract, and advancement of the stage 3 tailings lift to support higher production at Séguéla, as well as higher royalties due to higher gold prices and a 2% increase in the royalty rate effective January 10, 2025.
Fortuna | 6
Lindero Mine, Argentina
| Three months ended June 30, | Six months ended June 30, | ||
|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 |
Mine Production Tonnes placed on the leach pad 1,828,520 1,408,791 3,581,536 2,956,114
Gold
| Grade (g/t) | 0.57 | 0.61 | 0.56 | 0.60 |
| Production (oz) | 23,550 | 22,874 | 43,870 | 46,136 |
| Metal sold (oz) | 23,487 | 21,511 | 42,142 | 43,230 |
| Realized price ($/oz) | 3,293 | 2,335 | 3,108 | 2,201 |
Unit Costs Cash cost ($/oz Au)1 1,148 1,092 1,147 1,050 All-in sustaining cash cost ($/oz Au)1,3 1,783 1,916 1,839 1,712
Capital Expenditures ($000's)2
| Sustaining | 11,356 | 16,151 | 23,718 | 25,958 |
| Sustaining leases | 791 | 587 | 1,373 | 1,185 |
| Growth Capital | 1,827 | 195 | 2,134 | 349 |
1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures; refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash basis.
Quarterly Operating and Financial Highlights
In the second quarter of 2025, a total of 1,828,520 tonnes of ore were placed on the heap leach pad, with an average gold grade of 0.57 g/t, containing an estimated 33,219 ounces of gold. Ore mined was 1.32 million tonnes, with a stripping ratio of 2.3:1.
Lindero’s gold production for the quarter was 23,550 ounces, comprised of 21,153 ounces in doré bars, 1,214 ounces contained in rich fine carbon, 72 ounces contained in copper precipitate, and 1,111 ounces contained in precipitated sludge. The increase in production during the second quarter of 2025 compared to the same period in 2024 was due to increase in ore placed on the pad; partially offset by lower grades.
The cash cost per ounce of gold for the quarter was $1,148 compared to $1,092 in the same period of 2024. The increase in cash costs was primarily due to higher fuel and explosive costs and additional rehandling to increase the tonnes placed on the pad.
AISC per gold ounce sold during Q2 2025 was $1,783 compared to $1,916 in Q2 2024. Lower AISC was primarily due to lower sustaining capital expenditures as the leach pad expansion was under construction in the previous quarter. The previous quarter also benefited from $2.5 million of investment gains from cross border Argentine pesos denominated bond trades compared to $nil in the current quarter.
As of June 30, 2025, the leach pad expansion project was completed, with minor close-out activities and demobilization now taking place.
Fortuna | 7
Caylloma Mine, Peru
| Three months ended June 30, | Six months ended June 30, | ||
|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 |
Tonnes milled 138,471 136,543 275,130 273,639 Average tonnes milled per day 1,556 1,552 1,555 1,546
Silver
| Grade (g/t) | 64 | 83 | 65 | 85 |
| Recovery (%) | 84 | 84 | 83 | 83 |
| Production (oz) | 240,621 | 306,398 | 483,614 | 621,858 |
| Metal sold (oz) | 247,429 | 267,569 | 497,713 | 593,051 |
| Realized price ($/oz) | 33.76 | 28.55 | 32.76 | 25.69 |
Lead
| Grade (%) | 3.23 | 3.83 | 3.22 | 3.66 |
| Recovery (%) | 90 | 91 | 91 | 91 |
| Production (000's lbs) | 8,924 | 10,525 | 17,760 | 20,055 |
| Metal sold (000's lbs) | 9,183 | 9,422 | 18,382 | 19,247 |
| Realized price ($/lb) | 0.88 | 0.98 | 0.89 | 0.96 |
Zinc
| Grade (%) | 4.63 | 4.80 | 4.82 | 4.63 |
| Recovery (%) | 91 | 90 | 91 | 90 |
| Production (000's lbs) | 12,851 | 13,040 | 26,623 | 25,223 |
| Metal sold (000's lbs) | 12,283 | 12,710 | 26,109 | 25,175 |
| Realized price ($/lb) | 1.20 | 1.29 | 1.25 | 1.20 |
Unit Costs Cash cost ($/oz Ag Eq)1,2 15.16 13.94 13.92 12.66 All-in sustaining cash cost ($/oz Ag Eq)1,2 21.73 19.87 20.17 18.38
Capital Expenditures ($000's)3
| Sustaining | 1,988 | 3,127 | 3,602 | 6,862 |
| Sustaining leases | 741 | 974 | 1,372 | 1,880 |
| Growth Capital | 305 | – | 554 | - |
1 Cash cost per ounce of silver equivalent and All-in sustaining cash cost per ounce of silver equivalent are calculated using realized metal prices for each period respectively.
2 Cash cost per ounce of silver equivalent, and all-in sustaining cash cost per ounce of silver equivalent are non-IFRS financial measures, refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
3 Capital expenditures are presented on a cash basis.
Quarterly Operating and Financial Highlights
In the second quarter of 2025, the Caylloma Mine produced 240,621 ounces of silver at an average head grade of 64 g/t, a 21% decrease when compared to the same period in 2024.
Lead and zinc production for the quarter was 8.9 million pounds and 12.9 million pounds, respectively. Head grades averaged 3.23% and 4.63%, a 16% decrease and a 3.5% decrease, respectively, when compared to the same quarter in 2024. Production was lower due to lower head grades and was in line with the mine plan.
The cash cost per silver equivalent ounce sold in the first quarter of 2025, was $15.16 compared to $13.94 in the same period in 2024. The higher cost per ounce for the quarter was primarily the result of lower silver production and the impact of higher realized silver prices on the calculation of silver equivalent ounce sold.
Fortuna | 8
The all-in sustaining cash cost per ounce of payable silver equivalent in the second quarter of 2025, increased 9% to $21.73, compared to $19.87 for the same period in 2024. The increase for the quarter was the result of higher cash costs per ounce and lower silver equivalent ounces due to higher silver prices and higher workers’ participation costs.
Fortuna | 9
Qualified Person
Eric Chapman, Senior Vice President of Technical Services, is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328), and is the Company’s Qualified Person (as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.
Non-IFRS Financial Measures
The Company has disclosed certain financial measures and ratios in this news release which are not defined under the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, and are not disclosed in the Company's financial statements, including but not limited to: all-in costs; cash cost per ounce of gold sold; all-in sustaining costs; all-in sustaining cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold equivalent sold; all-in cash cost per ounce of gold sold; production cash cost per ounce of gold equivalent; cash cost per payable ounce of silver equivalent sold; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; sustaining capital; growth capital; free cash flow from ongoing operations; adjusted net income; adjusted attributable net income; adjusted EBITDA and working capital.
These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company’s performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company’s performance prepared in accordance with IFRS.
To facilitate a better understanding of these measures and ratios as calculated by the Company, descriptions are provided below. In addition see “Non-IFRS Financial Measures” in the Company’s management’s discussion and analysis for the three months and six ended June 30, 2025 (“Q2 2025 MDA”), which section is incorporated by reference in this news release, for additional information regarding each non-IFRS financial measure and non-IFRS ratio disclosed in this news release, including an explanation of their composition; an explanation of how such measures and ratios provide useful information to an investor. The Q2 2025 MD&A may be accessed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar under the Company’s profile.
The Company has calculated these measures consistently for all periods presented with the exception of the following:
- The calculation of All-in Sustaining Costs was adjusted in Q4 2024 to include blue-chip swaps in Argentina. Please refer to pages 28 and 29 of the Company’s management’s discussion and analysis for the year ended December 31, 2024 for details of the change.
Fortuna | 10
- The calculations of Adjusted Net Income and Adjusted Attributable Net Income were revised to no longer remove the income statement impact of right of use amortization and accretion and add back the right of use payments from the cash flow statement. Management elected to make this change to simplify the reconciliation from net income to adjusted net income to improve transparency and because the net impact was immaterial.
- Where applicable the impact of discontinued operations have been removed from the comparable figures. The method of calculation has not been changed except as described above.
Reconciliation of Debt to total net debt and net debt to adjusted EBITDA ratio for June 30, 2025
(Expressed in millions except Total net debt to Adjusted EBITDA ratio) As at June 30, 2025 2024 Convertible Notes 172.5 Less: Cash and Cash Equivalents and Short-term (387.3) Investments Total net debt1 (214.8) Adjusted EBITDA (last four quarters) 545.7 Total net debt to adjusted EBITDA ratio (0.4):1 1 Excluding letters of credit
Reconciliation of net income to adjusted attributable net income for the three months ended March 31, 2025, and for the three and six months ended June 30, 2025 and 2024
| Three months ended | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| Consolidated (in millions of US dollars) | June 30, 2025 | June 30, 2024 | March 31, 2025 | 2025 | 2024 |
Net income attributable to shareholders 37.3 40.6 58.5 95.8 66.9 Adjustments, net of tax:
| Discontinued operations | 3.6 | (21.1) | (25.9) | (22.3) | (35.8) |
| Write off of mineral properties | 2.0 | – | – | 2.0 | – |
| Income tax, convertible debentures | – | (12.0) | – | – | (12.0) |
| Inventory adjustment | – | 0.2 | (0.1) | (0.2) | 0.2 |
| Other non-cash/non-recurring items | 1.8 | 1.6 | 0.5 | 5.1 | 3.8 |
| Attributable Adjusted Net Income | 44.7 | 9.3 | 33.0 | 80.4 | 23.1 |
Figures may not add due to rounding
Fortuna | 11
Reconciliation of net income to adjusted EBITDA for the three months ended March 31, 2025 and the three and six months ended June 30, 2025 and 2024
| Three months ended | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| Consolidated (in millions of US dollars) | June 30, 2025 | June 30, 2024 | March 31, 2025 | 2025 | 2024 |
Net income 44.1 43.3 64.8 108.8 72.4 Adjustments:
| Community support provision and accruals | - | (0.1) | (0.2) | (0.2) | (0.4) |
| Discontinued operations | 3.6 | (21.1) | (25.9) | (22.3) | (35.8) |
| Net finance items | 3.4 | 6.4 | 3.1 | 6.5 | 11.9 |
| Depreciation, depletion, and amortization | 42.5 | 42.9 | 50.5 | 93.0 | 82.5 |
| Income taxes | 33.7 | 4.5 | 15.3 | 49.0 | 15.8 |
| Investment income | (1.7) | - | - | (1.7) | - |
| Other non-cash/non-recurring items | 2.1 | (3.4) | (9.4) | (7.2) | (6.7) |
| Adjusted EBITDA | 127.7 | 72.5 | 98.2 | 225.9 | 139.7 |
| Sales | 230.4 | 156.3 | 195.2 | 425.5 | 300.3 |
| EBITDA margin | 55% | 46% | 50% | 53% | 47% |
Figures may not add due to rounding
Reconciliation of net cash from operating activities to free cash flow from ongoing operations for the three months ended March 31, 2025 and the three and six months ended June 30, 2025 and 2024
| Three months ended | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| Consolidated (in millions of US dollars) | June 30, 2025 | June 30, 2024 | March 31, 2025 | 2025 | 2024 |
| Net cash provided by operating activities | 67.3 | 73.6 | 126.40 | 193.7 | 122.5 |
| Additions to mineral properties, plant and equipment | (47.0) | (50.4) | (39.6) | (86.6) | (91.7) |
| Payments of lease obligations | (6.4) | (5.7) | (6.0) | (12.4) | (10.6) |
| Free cash flow | 13.9 | 17.5 | 80.8 | 94.7 | 20.2 |
| Growth capital | 15.6 | 14.4 | 15.4 | 31.0 | 19.9 |
| Discontinued operations | 26.2 | (25.2) | (33.9) | (7.7) | (26.6) |
| Gain on blue chip swap investments | - | 2.5 | 1.3 | 1.3 | 5.1 |
| Other adjustments | 1.7 | 1.0 | 3.1 | 4.8 | (1.1) |
| Free cash flow from ongoing operations | 57.4 | 10.2 | 66.7 | 124.1 | 17.5 |
Figures may not add due to rounding
Fortuna | 12