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: $2,661/oz Au, $31.3/oz Ag, $2,009/t Pb, $3,046/t Zn for Q4 2024;
$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 the following metal prices for full year 2024
$2,401/oz Au, $28.0/oz Ag, $2,072/t Pb, and $2,786/t Zn
Fortuna Reports Results for the Fourth Quarter and Full Year 2024
(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)
Vancouver, March 5, 2025: Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) (“Fortuna” or the “Company”)
today reported its financial and operating results for the fourth quarter and full year of 2024.
Fourth Quarter and Full Year 2024 highlights
Cash and Cashflow
• Record free cash flow 1 of $95.6 million in Q4, a quarter over quarter (“QoQ”) improvement of
69%; $202.9 million in 2024
• Net cash from operations of $141.6 million before working capital or $0.46 per share in Q4, a QoQ
increase of 21%; $438.2 million or $1.42 per share in 2024
• Quarter-end cash of $231.3 million, a QoQ increase of $50.7 million from strong growth in free
cash flow. Liquidity was $381.3 million and the Company achieved a positive net cash1 position of
$58.8 million
Profitability
• Attributable net income of $11.3 million or $0.04 per share in Q4 after non-cash charges of $26.3
million; attributable net income of $128.7 million or $0.42 per share in 2024
• Attributable adjusted net income1 of $37.0 million or $0.12 per share in Q4 including unrealized
foreign exchange loss and higher effective tax rate from Euro devaluation of $0.0 5 per share;
$144.0 million, or $0.47 per share in 2024
Return to Shareholders
• Returned $30.6 million to shareholders in Q4 through the repurchase of 6.4 million shares and an
additional $1.8 million for 0.4 million shares in January 2025
Operational
• Gold equivalent production of 116,358 ounces 3 in Q4; record gold equivalent production of
455,958 ounces 3 in 2024, meeting the low end of annual guidance
• Consolidated cash cost per gold equivalent ounce (“GEO1“)of $1,015 in Q4; $987 in 2024, within
annual guidance
• Consolidated AISC per GEO1 of $1,772 for Q4; $1,640 in 2024, within annual guidance
• Strong safety performance in 2024 with a TRIFR of 1.36, and a LTIFR of 0.48 achieving the same
level of top industry standard as in 2023
Fortuna | 2
Growth and Development
• $49.0 million invested in mineral exploration and project development in 2024 and a budget of
$51.0 million for 2025. Some of the high -value targets include Kingfisher and Sunbird deep
deposits at the Séguéla mine, the Tongon North prospect in northern Cote d´Ivoire, and the
Diamba Sud project in Senegal.
• The flagship Séguéla mine delivered 137,781 ounces at an AISC of $1,153 per ounce in 2024, in
its first full year of gold production . Two-year gold production guidance for 2025 and 2026 has
been provided for Séguéla, with incremental production planned to reach 160,000 to 180,000
ounces in 2026 at an AISC in the range of $1,260 to $1,390 per ounce.
Jorge A. Ganoza, President and CEO, commented, “Q4 was a record quarter of free cash -flow at $95.6
million. Quarter over quarter, we realized 7% higher gold price s and 10% higher revenue, while keeping
cash cost per ounce flat, leading to expanded operating cash flow margin from 33 % to 50%. With the
growth in cash flow over the year and a sound balance sheet we returned $30 .6 million to shareholders
via share buybacks in Q4.” Mr. Ganoza continued “Cost and capital optimization initiatives across the
portfolio remains top of mind for management with various opportunities successfully implemented in
2024 and continuing into 2025. The sale of the non-core asset San Jose mine will remove our highest cost
ounces and refocuses capital and management´s attention to high -value opportunities in the portfolio.
Additionally, the successful optimization of the Séguéla mine is enabling us to plan for increased rates of
annual gold production of 160,000 to 180,000 ounces at industry leading costs by 2026, unlocking
significant value.”
Fortuna | 3
Fourth Quarter and Full Year 2024 Consolidated Results
Three months ended, Years ended December 31,
(Expressed in millions)
December
31, 2024 September
30, 2024 December
31, 2023 2024 2023 % Change
Sales 302.2 274.9 265.3 1,062.0 842.4 26%
Mine operating income 106.8 86.9 51.9 343.6 190.0 81%
Operating income (loss) 52.8 72.7 (77.4) 228.0 (0.4) 57,100%
Attributable net income (loss) 11.3 50.5 (92.3) 128.7 (50.8) 353%
Attributable income (loss) per share - basic 0.04 0.16 (0.30) 0.42 (0.17) 347%
Adjusted attributable net income1 37.0 49.9 20.6 144.0 64.9 122%
Adjusted EBITDA1 137.9 131.3 120.3 476.9 335.1 42%
Net cash provided by operating activities 150.3 92.9 105.1 365.7 296.9 23%
Free cash flow from ongoing operations1 95.6 56.6 66.2 202.9 153.5 32%
Cash cost ($/oz Au Eq)1 1,015 1,059 840 987 874 13%
All-in sustaining cash cost ($/oz Au Eq)1,2 1,772 1,668 1,416 1,640 1,480 11%
Capital expenditures2
Sustaining 48.1 38.4 46.8 142.2 136.1 4%
Non-sustaining3 12.0 12.3 1.8 50.8 5.2 877%
Séguéla construction - - - - 50.0 (100%)
Brownfields 1.3 (0.5) 4.8 10.4 16.1 (35%)
As at
December
31, 2024
December
31, 2023 % Change
Cash and cash equivalents 231.3 128.1 81%
Net liquidity position (excluding letters of credit) 381.3 213.1 79%
Shareholder's equity attributable to Fortuna shareholders 1,403.9 1,238.4 13%
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
4 The composition of AISC was revised in Q4 2024 and the comparative periods were adjusted to reflect the change. Refer to "Non-IFRS Financial
Measures - All-in Sustaining Cost Per Gold Equivalent Ounce Sold" for a description of the calculation and the reason for the change
Figures may not add due to rounding
Fourth Quarter 2024 Results
Q4 2024 vs Q3 2024
Cash cost per ounce and AISC
Cash cost per ounce of gold equivalent (“GEO”) sold was $1,015 in Q4 2024, an improvement of 4%
compared to $1,059 over the prior quarter. All-in sustaining costs per GEO was $1,772 in Q4 compared
to $1,668 in Q3 2024 due mainly to higher capex in mine development and infrastructure in the quarter
related to the expansion of life of mine at Yaramoko and the planned expansion of annual gold production
at Séguéla to 160,000 – 180,000 oz by 2026, and timing of capital expenditures.
Attributable Net Income and Adjusted Net Income
Attributable net income for the period was $11.3 million compared to an attributable net income of $50.5
million in Q3 2024. The fourth quarter of 2024 was impacted by non -cash charges of $ 26.3 million as
follows.
• A write-down of $14.5 million related to the Boussoura mineral property in Burkina Faso. The
majority of the write -down corresponds to the purchase price assigned to Boussoura as part of
the Roxgold acquisition and reflects the Company´s view as to Boussoura´s exploration prospects.
Fortuna | 4
• A $7.2 million mine closure provision associated with the scheduled closure of the San Jose Mine.
Subsequent to the end of the quarter, the Company entered into a binding letter of intent to
divest of the San Jose mine. The associated closure provision is expect ed to unwind upon
completion of the sale.
• A write-down of low-grade ore stockpiles of $4.6 million at the Lindero Mine
After adjusting for impairment charges and other non -recurring items, adjusted attributable net income
was $37.0 million or $0.12 per share compared to $49. 9 million or $0.16 per share in Q3 2024. The
decrease was explained by a foreign exchange (“FX”) loss of $10.4 million in Q4 2024 compared to a gain
of $3.4 million in Q3 2024, and by a higher effective tax rate (“ETR”) representing approximately $16
million of additional income tax provision over the prior quarter. The main cause of the FX loss and th e
higher ETR in Q4 was the 8% devaluation of the Euro versus the USD which had an estimated combined
impact on earnings per share of 5 cents. This was partially offset by higher sales of $27.3 million, related
to a higher realized gold price quarter over quarter and 4% higher gold sold. Realized gold price in Q4
2024 was $2,662 per ounce compared to $2,490 in Q3 2024.
Other items impacting the quarter compared to Q3 2024 were higher Corporate G&A expenditures of
$4.4 million related to timing of expenses.
Cash flow
Net cash generated by operations before working capital adjustments was $141.6 million or $0.46 per
share. After adjusting for working capital changes, net cash generated by operations for the quarter was
$150.3 million compared to $92.9 million in Q3 2024. The increase of $57.4 million reflects higher sales
and positive change in working capital in Q4 2024 of $ 8.6 million compared to negative $2 6.4 million in
Q3 2024-, and lower-income tax paid of $7.1 million.
Free cash flow from ongoing operations in Q4 2024 increased $39 million over Q3 2024 to $95. 6 million.
The increase was due to higher cash generated by operations partially offset by higher capital
expenditures of $15.9 million. Free cash flow in Q4 2024, after growth capex of $12.0 million, was $83.6
million.
Q4 2024 vs Q4 2023
Cash cost per ounce and AISC
Consolidated cash cost per equivalent gold ounce was $1,015, compared to the $840 reported in Q4 2023.
The increase in cash cost was driven mainly by higher cash cost at Séguéla, and the San Jose Mine
operating in its last year of Mineral Reserves. The increase in cash cost at Séguéla is explained mainly by
lower head grades in 2024, as per the mine plan, and lower stripping and mining costs during Séguéla’s
first semester of operations in 2023. Cash cost also increased at Lindero due to lower production and the
impact of the appreciation of the Argentine peso.
All-in sustaining costs per gold equivalent ounce was $1,772 in Q4 2024 compared to $1,416in Q4 2023.
AISC in the quarter includes the $1.4 million annual investment gain (Q4 2023: $12.4 million) from cross
border, Argentine pesos denominated bond trades. This is a benefit granted to exporters by the Argentine
Government whereby 20% of export proceeds is allowed to be converted into pesos at a preferential
exchange rate. This benefit is intended to alleviate exporters for the impact of the overvaluation of the
official exchange rate on input costs. The increase in AISC was primarily the result of higher cash cost per
ounce as described above and higher sustaining capital at Lindero related to the expansion of the leach -
Fortuna | 5
pad. The composition of AISC was revised in Q4 2024 and the comparative periods were updated to reflect
the change. Refer to “Non -IFRS Financial Measures – All-in Sustaining Cost Per Gold Equivalent Ounce
Sold” on page 27 in the 2024 MD&A for a description of the calculation and the reason for the change
Attributable Net Income and Adjusted Net Income
Attributable net income for the period was $11.3 million compared to an attributable net loss of $92.3
million in Q4 2023. The fourth quarter of 2024 was impacted by non -cash charges of $ 26.3 million
compared to $118.4 million in the fourth quarter of 2023.
After adjusting for write-downs and other non -recurring items, adjusted attributable net income was
$37.0 million or $0.12 per share compared to $20.6 million or $0.07 per share in Q4 2023. The increase
was primarily due to higher gold prices. The realized gold price was $2,662 per ounce in Q4 2024 compared
to $1,990 per ounce in Q4 2023. This was partially offset by lower gold sales volume and higher cost per
ounce. Lower gold sales volume was mainly due to lower production at Séguéla, San Jose, and Lindero.
The decrease in production at Séguéla and Lindero was due to lower head grades, in accordance with the
mine plan, partially offset by higher processed ore. The higher cost per ounce was explained mainly by
the lower head grades at Séguéla and Lindero, lower stripping and mining co sts during Séguéla´s second
quarter of operations in Q4 2023, and the impact of the appreciation of the Argentine peso at Lindero.
Other items impacting the adjusted net income for the quarter compared to Q4 2023 were a higher
unrealized foreign exchange loss of $8.5 million mostly explained by an 8% devaluation of the Euro versus
the USD in the period, and lower investment income of $11.0 million related to cross -border, Argentine
peso denominated bond trades.
Depreciation and Depletion
Depreciation and depletion decreased $9.0 million to $62.6 million in the fourth quarter of 2024
compared to $71.6 million in the comparable period of 2023. The decrease was primarily due to lower
accounting balances at San Jose after a $90.6 million impai rment at year end 2023. Depreciation and
depletion in the period include $18.2 million related to the purchase price allocation from the Roxgold
acquisition at Séguéla.
Cash Flow
Net cash generated by operations for the quarter was $150.3 million compared to $105.1 million in Q4
2023. The increase of $45.2 million reflects higher sales and positive change in working capital in Q4 2024
of $8.7 million compared to nil in Q4 2023, and lower interest paid of $3.2 million.
Free cash flow from ongoing operations for the quarter was $95.6 million compared to $66.2 million in
Q4 2023. The increase reflects higher net cash generated by operations.
Full Year 2024 Results
Cash cost per ounce and AISC
Cash cost per equivalent gold ounce was $987, compared to $874 reported in 2023. The increase in cash
cost is explained mainly by lower head grades at Séguéla in 2024, and lower stripping and mining costs
during Séguéla’s first semester of operations in the second half of 2023, as well as higher cost at San Jose
as explained earlier. Cash cost for the full year also increased at Lindero due to lower production and the
impact of the appreciation of the Argentine peso.
Fortuna | 6
All-in sustaining costs per gold equivalent ounce was $1,640 in 2024 compared to the $1,4804 recorded in
the prior year due mainly to higher cash cost per ounce as described above and higher capex mostly at
Lindero. AISC for 2024 includes the $9.7 million annual investment gain (FY 2023: $12.4 million) from cross
border, Argentine peso denominated bond trades. (See discussion above).
Attributable Net Income and Adjusted Net Income
Attributable net income for the year was $128.7 million, compared to an attributable net loss of $50.8
million in 2023. The loss in 2023 was explained by impairment charges of $90.6 million at the San Jose
Mine.
After adjusting for write-downs and other non-recurring items, attributable adjusted net income for 2024
was $144.0 million or $0.47 per share, compared to $64.9 million or $0.22 per share in 2023. The increase
was primarily due to higher gold prices and higher gold sales volume. The realized gold price was $2,401
per ounce in 2024 compared to $1,948 per ounce in 2023. Higher gold sales volume was mainly due to
the full year contribution of Séguéla upon successful commissioning and ramp -up in Q2 2023, par tially
offset by lower production at Lindero, aligned with the grade profile in the mine plan, and lower head
grades and processed ore at San Jose, in its last year of mineral reserves.
Depreciation and Depletion
Depreciation and depletion for 2024 increased $10.3 million to $230.0 million compared to $219.6 million
in 2023. The increase was primarily due to an increase in ounces sold at Séguéla and partially offset by
lower depletion expenses at San Jose . Depreciation and depletion in the period include $ 71.6 million
related to the purchase price allocation from the Roxgold acquisition at Séguéla.
Cash Flow
Net cash generated by operations before working capital changes was $438.2 million or $1.42 per share.
After adjusting for working capital changes, net cash generated by operations for 2024 was $365.7 million
compared to $296.9 million in 2023. The increase of $68.8 million is explained by higher sales partially
offset by negative changes in working capital of $72.5 million in 2024 from an increase in receivables of
$46.4 million due to timing and delays in repayments of VAT in Burkina Faso and an increase in inventories
of $24.5 million related to an increase in ore stockpiles at Lindero and Séguéla. This compares to a negative
working capital adjustment of $9.7 million in 2023. Higher taxes paid of $17.7 million was due to Séguéla
paying income taxes for the first time in 2024 after initiating commercial production in the second half of
2023.
Free cash flow from ongoing operations for 2024 was $202.9 million compared to $153.5 million in 2023.
The increase of $49.4 million reflects higher net cash generated by operations, partially offset by higher
sustaining capital expenditures of $14.6 million. Free cash flow in 2024, after growth capex of $44.3 million
and the Séguéla NSR repurchase of $6.5million, was $150.5 million.
4 The composition of AISC was revised in Q4 2024 and the comparative periods were updated to reflect the change. Refer to “Non-IFRS
Financial Measures – All-in Sustaining Cost Per Gold Equivalent Ounce Sold” for a description of the calculation and the reason for the change.
Fortuna | 7
Séguéla Mine, Côte d’Ivoire
Three months ended December 31, Years ended December 31,
2024 2023 2024 2023
Mine Production
Tonnes milled 430,117 387,624 1,561,800 807,617
Average tonnes crushed per day 4,727 4,123 4,279 3,282
Gold
Grade (g/t) 2.95 3.62 2.95 3.42
Recovery (%) 92 95 93 94
Production (oz) 35,244 43,096 137,781 78,617
Metal sold (oz) 36,384 43,018 137,753 78,521
Realized price ($/oz) 2,658 1,994 2,399 1,963
Unit Costs
Cash cost ($/oz Au)1 653 323 584 357
All-in sustaining cash cost ($/oz Au)1 1,376 737 1,153 760
Capital Expenditures ($000's)2
Sustaining 13,626 7,765 28,488 10,912
Sustaining leases 3,347 2,285 10,381 5,329
Non-sustaining 5,021 - 19,458 -
Brownfields 423 - 6,696 -
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 and Annual Operating and Financial Highlights
During the fourth quarter of 2024, mine production totaled 715,008 tonnes of ore, averaging 2.34 g/t Au,
and containing an estimated 53,796 ounces of gold from the Antenna, Ancien, and Koula pits. Movement
of waste during the quarter totaled 3,670,138 tonnes, for a strip ratio of 5.1:1. Producti on was mainly
focused from the Antenna pit, which produced 530,651 tonnes of ore, with the balance of production
sourced from the Koula and Ancien pits.
In the fourth quarter of 2024, Séguéla processed 430,117 tonnes of ore, producing 35,244 ounces of gold,
at an average head grade of 2.95 g/t Au, an 18% decrease and a 19% decrease, respectively, compared to
the fourth quarter of 2023. The decrease in gold production was due to lower head grade s and lower
recovery and partially offset by higher milled tonnes. Plant through put for the quarter was 208 tonnes
per hour (TPH) surpassing the name plate design capacity of 154 TPH by 35%.
Gold production in 2024 totaled 137,781 ounces, achieving the higher end of the annual guidance range.
A 75% increase in ounces of gold produced during the year ended December 31, 2024 was mainly due to
a full year of production in 2024 compared to only six months in 2023.
Cash cost per gold ounce sold was $653 for the fourth quarter of 2024 and $584 for the full year, compared
to $323 for the fourth quarter of 2023 and $357 for the full year of 2023. The increase in cash costs is
explained mainly by lower head grades in 2024, as per the mine plan, and lower stripping and mining costs
during Séguéla’s first six months of operation in the second half of 2023.
All-in sustaining cash cost per gold ounce sold was $1,376 for the fourth quarter of 2024 compared to
$737 in the same period of the previous year. For the full year, the all-in sustaining cash cost was $1,153,
compared to $760 in 2023. The increase for t he quarter was primarily the result of higher cash costs,
Fortuna | 8
higher sustaining capital from higher stripping and the purchase of capital spares as well as lower volume
of metal sold. The increase for the year was due to higher cash costs, increased royalties due to higher
realized metal prices and higher sustaining capital expenditures.
Brownfields capital expenditures were $6.7 million for the full year in 2024, compared to $nil in 2023, as
a result of drilling activities to define the geometry of mineral deposits.