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
NEWS RELEASE
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 Excluding letters of credit
3 Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $2,490/oz Au, $29.4/oz Ag, $2,040/t Pb, and $2,782/t Zn for Q3
2024; $2,334/oz Au, $29.1/oz Ag, $2,157/t Pb and $2,835/t Zn or Au:Ag = 1:80.19, Au:Pb = 1:1.08, Au:Zn = 1:0.82 for Q2 2024. And the following metal prices
for YTD Q3-2024 $2,307/oz Au, $27.1/oz Ag, $2,091/t Pb, and $2,692/t Zn
Fortuna reports record earnings for the third quarter of 2024
(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)
Vancouver, November 6, 202 4: Fortuna Mining Corp . (NYSE: FSM | TSX: FVI) (“Fortuna” or the
“Company”) today reported its financial and operating results for the third quarter of 2024.
“In the third quarter, a focus on cost discipline and safe operations allowed Fortuna to capture the benefit
of rising metal prices and achieve record attributable earnings of $50.5 million and record operating cash
flow before working capital changes of $119.3 million.” said Jorge Ganoza, Fortuna’s President and CEO.
Mr. Ganoza continued, “Our mines delivered 110,820 ounces of gold equivalent production at a cash cost
per ounce of $1,05 9 as we remain well positioned to finish the year within our cost and production
guidance.” Mr. Ganoza added, “The Company also achieved a key milestone with a positive net cash
position at the end of the quarter and we recently renegotiated our credit facility reducing financial costs
and providing additional financial flexibility.”
Third Quarter 2024 highlights
Financial
• Attributable net income of $50.5 million or $0.16 per share, compared to $40.6 million or $0.13
per share in Q2 2024
• Adjusted attributable net income1 of $49.9 million or $0.16 per share, compared to $30.4 million
or $0.10 per share in Q2 2024
• Generated $119.3 million (or $0.38 per share) of cash flow from operations before working capital
changes, and free cash flow from ongoing operations1 of $56.6 million, compared to $93.0 million
(or $0.30 per share) and $38.6 million, respectively, in Q2 2024
• As at the end of the quarter , the Company had a cash position of $180.6 million and achieved a
positive net cash 1 position of $8.0 million . Liquidity increased to $430.6 million from $355.6
million at the end of Q2 2024
• Subsequent to the end of the quarter, the Company resized its revolving credit facility from $250.0
million to $150.0 million and increased the uncommitted accordion to $75 .0 million from $50.0
million reducing its reliance on bank debt. The revolving debt facility remains fully undrawn2
Fortuna | 2
Operational
• Gold equivalent3 production of 110,820 ounces, compared to 116,570 ounces in Q 2 2024. Nine
month gold equivalent production of 339,933 ounces, aligned to meet annual guidance of 457 to
497 koz . For full details refer to our News Release titled “ Fortuna reports solid production of
110,820 gold equivalent ounces for the third quarter of 2024” dated October 10, 2024
• Consolidated cash costs 1 per ounce of gold equivalent sold of $1,059 for the quarter and $977
year to date remain largely aligned with annual guidance of $935 to $1,055; adjusting for San Jose,
which is mining its last year of Mineral Reserves, consolidated cash costs were $935 for the
quarter
• Consolidated all-in sustaining cash costs (AISC)1 per ounce of gold equivalent sold of $1,696 for
the quarter and $1,618 year to date, are tracking at the upper end of annual guidance of $1,485
to $1,640; adjusting for San Jose, consolidated AISC was $1,594 . The leach-pad expansion for
Lindero is a one -time $42 million capital project in 2024 set for completion in Q4 and weighs
approximately $90 per ounce on our annual consolidated AISC
• The Company recorded one lost time injury in the quarter and a year -to-date total recordable
injury frequency rate of 1.37
Growth and Development
• At the newly discovered Kingfisher prospect at the Séguéla Mine the Company intersected 14.2
g/t gold over 16.8 meters. For full details refer to our News Release titled “Fortuna intersects
14.2g/t Au over 16.8 meter at the Kingfisher prospects, Séguéla Mine, Côte d’Ivoire” dated
September 10, 2024
• Exploration continued at the Diamba Sud exploration project with an intersect of 6.9 g/t gold over
33.3 meters at the Western Splay prospect. For full details refer to our News Release titled
“Fortuna intersects 6. 9g/t Au over 33.3. meters at the Diamba Sud Project, Senegal” dated
September 12, 2024
Fortuna | 3
Third Quarter 2024 Consolidated Results
Three months ended September
30,
Nine months ended September
30,
(Expressed in millions) 2024 2023 % Change 2024 2023 % Change
Sales 274.9 243.1 13% 759.8 577.1 32%
Mine operating income 86.9 65.9 32% 236.8 138.2 71%
Operating income 72.7 45.4 60% 175.2 77.0 128%
Attributable net income 50.5 27.5 84% 117.4 41.5 183%
Attributable income per share - basic 0.16 0.09 78% 0.38 0.14 171%
Adjusted attributable net income1 49.9 29.6 69% 107.3 44.3 142%
Adjusted EBITDA1 131.3 104.6 26% 339.1 214.0 58%
Net cash provided by operating activities 92.9 106.5 (13%) 215.4 191.8 12%
Free cash flow from ongoing operations1 56.6 70.0 (19%) 107.3 87.3 23%
Cash cost ($/oz Au Eq)1 1,059 814 30% 977 887 10%
All-in sustaining cash cost ($/oz Au Eq)1 1,696 1,313 29% 1,618 1,508 7%
Capital expenditures2
Sustaining 38.4 27.2 41% 94.1 89.3 5%
Non-sustaining3 12.3 1.3 846% 38.8 3.4 1,041%
Séguéla construction - 1.9 (100%) - 50.0 (100%)
Brownfields (0.5) 3.3 (115%) 9.0 10.7 (16%)
As at
September
30, 2024
December
31, 2023 % Change
Cash and cash equivalents 180.6 128.1 41%
Net liquidity position (excluding letters of credit) 430.6 213.1 102%
Shareholder's equity attributable to Fortuna shareholders 1,420.4 1,238.4 15%
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 Non-sustaining expenditures include greenfields exploration
Figures may not add due to rounding
Third Quarter 2024 Results
Cash Costs and AISC
Consolidated cash cost per equivalent gold ounce was $1,05 9, compared to $814 in the third quarter of
2023. The increase in cash cost is explained mainly by lower stripping and mining costs during Séguéla’s
first quarter of operations in Q3 2023; lower head grades and throughput at San Jose in its last year of
Mineral Reserves; higher cash costs per ounce at Yaramoko related to lower head grades and higher
mining and indirect costs. Cash cost per ounce for the quarter and for the year remain largely aligned with
annual guidance.
All-in sustaining costs per gold equivalent ounce was $1,69 6 for the third quarter of 2024 compared to
$1,313 for the third quarter of 2023. The increase was primarily the result of higher sustaining capital at
Lindero related to the expansion of the leach-pad, and higher cash cost per ounce as described above.
Fortuna | 4
AISC Performance vs 2024 Guidance
All-in sustaining costs per gold equivalent ounce sold for the nine months ending September 30, 2024 was
$1,618 and is expected to be at the higher end of guidance for the year as a result of the following:
• Real currency appreciation of the Argentine Peso increasing Lindero’s cash costs by 9%
• Increased sustaining capital costs to accelerate 2025 development at Yaramoko to access newly
identified mineral resources
• Lower production compared to plan at San Jose due to operational challenges in its last year of
reserves
The Company has several continuous improvement initiatives in place. Some of the key ongoing projects
are:
• Séguéla process optimization: In Q3 2024 Séguéla achieved 35% higher throughput than
nameplate capacity, and 20% higher than our 2024 mine plan. This increase already exceeds the
capacity expansion scheduled in the technical report for 2026. The expansion has been achieved
with minimal capex.
• Lindero: Several productivity and cost reduction projects representing annual incremental profit
of $16 million (pre-tax) consisting mainly of the following: increased gold recovery from grind size
optimization, ADR plant incremental flow, haulage fleet optimization, and conversion from diesel
power generation to solar.
Attributable Net Income and Adjusted Attributable Net Income
Net income attributable to Fortuna for the quarter was $ 50.5 million compared to $ 27.5 million in Q 3
2023. After adjusting for non -cash and non -recurring items, adjusted attributable net income for the
quarter was $49.9 million compared to $29.6 million in Q3 2023.
The increase in net income and adjusted net income was explained mainly by higher realized gold and
silver prices partially offset by lower gold sales volume and higher costs per ounce. The realized gold and
silver prices were $2,490 and $29.4 per ounce respectively compared to $1,92 5 and $23.7 per ounce,
respectively, for the comparable period in the prior year. The decrease in gold sales volume was primarily
due to lower production at Yaramoko and San Jose as per the mine plans. The higher cost per ounce was
primarily at Séguéla, San Jose and Yaramoko as described above.
Adjusted net income for the quarter also benefited from $3.4 million of foreign exchange gains related to
the appreciation of the Euro during the quarter, $3. 2 million of investment income related to cross -
border, Argentine pesos denominated bond trades, and lower interest expenses.
Depreciation and Depletion
Depreciation and depletion for the third quarter of 2024 was $59.3 million compared to $63.4 million in
the comparable period. The decrease in depreciation and depletion was primarily the result of lower
depreciation and depletion at San Jose due to an impairment charge in the fourth quarter of 2023 and
lower depletion per ounce in the 55 Zone at Yaramoko, partially offset by higher depletion at Séguéla.
Depletion at Séguéla in the quarter includes $16.8 million of the purchase price related to the acquisition
of Roxgold Inc in 2021.
Fortuna | 5
Cash Flow
Net cash generated by operations for the quarter was $ 92.9 million compared to $106. 5 million in Q3
2023. Excluding changes in working capital, net cash from operations was $119.3 million compared to
$106.2 million in the comparative period. The increase of $13.1 million reflects higher adjusted EBITDA of
$25.8 million offset mainly by higher taxes paid of $8.9 million mostly at Séguéla.
Negative working capital for the quarter of $ 26.4 million was due to an increase of $24.5 million in
receivables primarily due to the timing of trade receivables and VAT collection. At the end of the quarter
the balance of VAT receivables at Yaramoko was $45.0 million.
In the third quarter of 2024 capital expenditures on a cash basis amounted to $50.2 million consisting of
$37.9 million of sustaining capital, including brownfields exploration, and $12.3 million of non-sustaining
capital. Year to date capital expenditures were $141.9 million consisting of $103.1 million of sustaining
capital and $38.8 million non-sustaining capital.
Free cash flow from ongoing operations for the quarter was $56. 6 million, compared to $70.0 million in
the comparable period. The decrease in free cash flow, despite higher metal prices in the quarter, is
explained mainly by negative working capital of $ 26.4 million compared to $nil in the third quarter of
2023, capital expenditures for the Lindero leach pad expansion and higher taxes paid due to the third and
final tax installment at Séguéla for 2023 taxes. The comparable period also had a number of one -time
benefits that lowered the cost of production at Séguéla.
General and Administrative Expenses
General and administrative expenses for the current quarter of $16. 0 million were 10% higher than the
same period in 2023 due mainly to higher share -based compensation expenses. G&A comprises the
following items:
Three months ended September 30, Nine months ended September 30,
(Expressed in millions) 2024 2023 % Change 2024 2023 % Change
Mine G&A 9.9 8.4 18% 26.6 20.5 30%
Corporate G&A 3.9 5.5 (29%) 19.8 19.7 1%
Share-based payments 2.1 0.5 320% 10.1 3.8 166%
Workers' participation 0.1 0.2 (50%) 0.2 0.2 0%
Total 16.0 14.6 10% 56.7 44.2 28%
Liquidity
The Company’s total liquidity available as of September 30, 2024 was $430.6 million comprised of $180.6
million in cash and cash equivalents, and the fully undrawn $250.0 million revolving credit facility
(excluding letters of credit). Effective October 31, 2024, the Company amended its credit facility reducing
the amount of the facility to $150 million from $250 million (the facility would have stepped down to $175
million in November 2024), and increased the uncommitted accordion option from $50 million t o $75
million. An improved pricing grid and covenant flexibility was negotiated under the amended facility.
Fortuna | 6
Séguéla Mine, Côte d’Ivoire
Three months ended September 30, Nine months ended September 30,
2024 2023 2024 2023
Mine Production
Tonnes milled 418,390 310,387 1,131,684 419,992
Average tonnes crushed per day 4,548 3,695 4,115 2,762
Gold
Grade (g/t) 2.69 3.83 2.94 3.28
Recovery (%) 92 93 93 94
Production (oz) 34,998 31,498 102,537 35,521
Metal sold (oz) 33,816 35,503 101,369 35,503
Realized price ($/oz) 2,494 1,927 2,305 1,927
Unit Costs
Cash cost ($/oz Au)1 655 397 559 397
All-in sustaining cash cost ($/oz Au)1 1,176 788 1,073 788
Capital Expenditures ($000's)2
Sustaining 5,992 3,147 14,827 3,147
Sustaining leases 2,332 3,044 7,034 3,044
Non-sustaining 4,797 - 14,437 -
Brownfields 187 - 6,273 -
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
During the third quarter of 2024, mine production totaled 484,050 tonnes of ore, averaging 2.48 g/t Au,
and containing an estimated 38,661 ounces of gold from the Antenna, Ancien and Koula pits. Movement
of waste during the quarter totaled 2,935,335 tonnes , for a strip ratio of 6:1. Production was mainly
focused from the Antenna pit which produced 412,063 tonnes of ore, with the balance of production
sourced from the Koula and Ancien pits.
In the third quarter of 2024, Séguéla processed 418,390 tonnes, producing 34,998 ounces of gold, at an
average head grade of 2.69 g/t Au, an 11% increase and 30% decrease, respectively, compared to the third
quarter in 2023. The decrease in gold grade is in line with the planned mining sequence. Plant throughput
for the quarter averaged 208 tonnes per hour (tph), 35% higher than name plate design capacity of 154
tph. The power outages that were experienced in the second quarter did not affect processing pla nt
operations in the third quarter and enabled an increase in the tonnes processed. However, a failure of the
drive shaft of the main apron feeder in early July required a repair which reduced throughput rates while
the repairs were completed. Throughput r ates were subsequently increased, averaging 216 tph in
September.
The cash cost per gold ounce sold was $655 for the quarter ended September 30, 2024, compared to $397
in the same period of 2023. The increase is explained by the higher head grade and low -cost production
associated with Séguéla´s first quarter of operations in the comparative period. The lower cost of
production was mostly related to low-strip mining, shorter haulage, and lower maintenance costs.
The all-in sustaining cash cost per gold ounce sold was $1,176 for the quarter ending September 30, 2024,
an increase from $788 for the same period in 2023. This increase is due to increased cash costs and
increased sustaining capital expenditures in 2024 for stripping activities.
Fortuna | 7
Looking forward into 2025, the Séguéla mine plans to operate at approximately 35 percent higher
throughput rate compared to nameplate design, and at a stripping ratio closer to the Mineral Reserve
average of 13:1 compared to 6:1 year to date . The higher throughput achieved through optimization
initiatives in 2024 has not required any material capital expenditures . As a result of sustained higher
production rates, the mine will correspondingly face an acceleration of infrastructure requirements in the
approximate amount of $10 million above 2024 infrastructure capex figures. These capital projects are
primarily related to the early expansion of the tailings storage facility , relocation of the Sunbird
communications tower for development of the Sunbird pit, and land access to new mineral deposits and
related compensation payments. Management anticipates that advancing these infrastructure projects
will unlock annual target production rates of between 140k to 200k ounces in our life of mine plans.
Fortuna | 8
Yaramoko Mine, Burkina Faso
Three months ended September 30, Nine months ended September 30,
2024 2023 2024 2023
Mine Production
Tonnes milled 123,754 137,281 352,864 421,133
Gold
Grade (g/t) 6.71 7.72 7.92 6.52
Recovery (%) 98 99 98 98
Production (oz) 28,006 34,036 86,630 89,476
Metal sold (oz) 27,995 33,971 86,621 89,448
Realized price ($/oz) 2,474 1,932 2,304 1,932
Unit Costs
Cash cost ($/oz Au)1 974 753 876 764
All-in sustaining cash cost ($/oz Au)1 1,373 1,213 1,379 1,429
Capital Expenditures ($000's)2
Sustaining 5,381 9,451 20,112 37,318
Sustaining leases 1,002 1,161 3,069 3,681
Non-sustaining 2,463 – 4,005 –
Brownfields (1,217) 1,447 1,543 3,656
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.
In the third quarter of 2024, 123,754 tonnes of ore were treated at an average head grade of 6.71 g/t Au,
producing 28,006 ounces of gold. This represents a 13% decrease in grade and an 18% decrease in
production, when compared to the same period in 2023. The gold grade was lower than predicted in the
mine plan due to continuing development operations providing lower grade ore and the milling of
supplementary low-grade stockpiles.
During the quarter, 80,740 tonnes of ore were mined averaging 7.41 g/t Au from the 55 Zone, and 21,905
tonnes of ore averaging 9.02 g/t Au from QV Prime, totaling 102,645 tonnes averaging 7.75 g/t Au.
The cash cost per ounce of gold sold for the quarter ended September 30, 2024, was $974, compared to
$753 in the same period in 2023. The increase for the quarter is mainly attributed to higher mining and
indirect costs and lower volume of ounces sold due to lower grades.
The all-in sustaining cash cost per gold ounce sold was $1,373 for the quarter ended September 30, 2024,
compared to $1,213 in the same period of 2023. The increase in the quarter was primarily due to higher
cash costs described above, and a change in the royalty regime in Burkina Faso which increased the royalty
rate from 5% to 7% when the gold price is over $2,000 per ounce. This was partially offset by lower
sustaining capital expenditure in 2024.