Fortuna Reports Results for the Second Quarter 2026
Fortuna Reports Results for the Second Quarter 2026
(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)
Fortuna Delivers Strong Q2 Results; Positioned To Deliver Our Next Phase of Growth
Vancouver, British Columbia, August 5, 2026: Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) (“Fortuna”
or the “Company”) today reported its financial and operating results for the second quarter of 2026.
(Results from the Company’s San Jose and Yaramoko assets have been excluded from the 2025 comparative figures as they were disposed of
during the second quarter of 2025.)
Jorge Ganoza, President and CEO of Fortuna , commented, “Fortuna delivered another strong quarter of
production, generating $85.7 million of free cash flow from ongoing operations and $200.8 million in
adjusted EBITDA, with a robust EBITDA margin of 63%. The second quarter is expected to be our peak AISC
for the year and trend down in the second half with the completion of key capital projects at Lindero. At
the same time, we are monitoring cost pressures from external factors, including royalties linked to gold
prices, fuel costs, inflation, and macroeconomic conditions in Argentina, and the potential impact to our
cost guidance for the year.”
Mr. Ganoza continued, “We also achieved key milestones for our organic growth projects with the delivery
of the Diamba Sud Feasibility Study and a construction decision for the Séguéla Plant Expansion.
Combined, these two projects will grow our production by 60% to over 500,000 ounces per year.”
Mr. Ganoza concluded, “The quarter also demonstrated the strength of our portfolio as we funded our
growth projects, maintained a strong balance sheet, and still generated sufficient excess cash to return
$82.1 million to shareholders through share buy-backs.”
Second Quarter Highlights
Cash and Cash Flow
• Free cash flow1 from ongoing operations of $85.7 million; a QoQ decrease of $88.3 million, mostly
due to timing of tax payments
• $123.7 million of net cash from operating activities before changes in working capital or $0.41 per
share; a QoQ decrease of $89.6 million, mostly due to timing of tax payments
• Liquidity of $756.7 million and a net cash position of $435 million; strong balance sheet supports
concurrent construction of the Séguéla Plant Expansion and Diamba Sud Project
Profitability
• Adjusted attributable net income 1 of $75.5 million or $0.25 basic EPS; a QoQ decrease of $0.11
per share, due to lower gold price and higher effective tax rate
• Adjusted EBITDA1 of $200.8 million with margins of 63%; a QoQ decrease of $18.0 million primarily
due to lower gold prices
Return to Shareholders
• Year to date the Company has returned $106.6 million to shareholders ($82.1 million in Q2 2026)
via the repurchase of 10.8 million shares
Fortuna | 2
Operational
• Gold equivalent production2 of 72,217 ounces and the Company remains on track to achieve its
annual production guidance
• Consolidated cash cost per gold equivalent ounce (“GEO”)1 of $1,034, up from $951 in the
previous quarter
• Consolidated AISC per GEO 1 of $2,157 for Q2 2026, up from $2,107 in the previous quarter.
Compared to the assumptions in our annual guidance, AISC contains a $49 impact from external
factors, and $115 of one-time operational items.
• We expect AISC to trend down in the second half of the year. Excluding external factors, we expect
unit costs within our control to downtrend within our full year guidance range. External cost
factors, including metal price -linked royalties, macroeconomic factors in Argentina and diesel
prices, remain potential impacts to our full-year outlook.
• Total recordable injury frequency rate for the quarter was 1.21.
Growth and Business Development
• Delivered the Diamba Sud feasibility study, confirming an economically robust project to anchor
our next phase of growth. Refer to the News Release dated June 29, 2026 “Fortuna delivers robust
Feasibility Study for the Diamba Sud Gold Project in Senegal: A fter-tax IRR of 60% and NPV5% of
US$1 billion using US$3,500/oz”.
• Provided a final investment decision for the Séguéla Plant Expansion to unlock the potential of
the mine and provide a pathway to production of over 200,000 ounces per year. Refer to the
News Release dated July 29, 2026 “Fortuna Approves 30% Capacity Expansion of the Séguéla Gold
Mine in Côte d’Ivoire”.
• On July 28, 2026, the Company acquired 5,695,312 common shares of Awalé Resources Limited
(“Awalé”), a mineral exploration company in Côte d’Ivoire, for $3.4 million, thereby increasing the
Company’s investment to 20,732,905 common shares of Awalé and maintaining Fortuna’s
ownership interest in Awalé at approximately 14.7%
Management Promotions
• Effective September 1, Luis Dario Ganoza will be promoted to President from his current role as
Chief Financial Officer, and Kevin O’Reilly will be promoted to Chief Financial Officer from his
current role as Vice President, Finance and Accounting. Luis and Kevin have been with Fortuna for
20 and 5 years, respectively, and these promotions reflect the Company’s next phase of growth
as it prepares to advance c onstruction of the Diamba Sud Project, execute the Séguéla mine
expansion, and continue pursuing its broader growth ambitions.
Fortuna | 3
Second Quarter 2026 Consolidated Results
Three months ended Six months ended June 30,
(in millions of US dollars)
Mar. 31,
2026
Jun. 30,
2026
Jun. 30,
2025
Q2 %
Chang
e 2026 2025
%
Change
OPERATING STATISTICS
GEO production from continuing operations (1)(2) 72,872 72,217 71,229 1% 145,089 141,615 2%
Cash cost continuing operations($/oz GEO) (1)(2) 951 1,034 929 11% 993 899 10%
AISC continuing operations($/oz GEO) (1)(2) 2,107 2,157 1,932 12% 2,134 1,846 16%
Realized price Gold ($/oz) 4,884 4,447 3,307 34% 4,667 3,103 50%
FINANCIAL HIGHLIGHTS
Sales 342.5 318.4 230.4 38% 660.9 425.5 55%
Attributable net income from continuing operations 111.0 75.5 42.6 77% 186.5 78.1 139%
Attributable earnings per share from continuing operations -
basic 0.36 0.25 0.14 79% 0.62 0.25 148%
Adjusted EBITDA (1) 218.8 200.8 133.3 51% 419.6 235.8 78%
CASH FLOW AND CAPEX
Net cash provided by operating activities - continuing operations 209.4 138.3 92.7 49% 347.6 181.7 91%
Free cash flow from ongoing operations (1) 174.0 85.7 57.4 49% 259.7 124.1 109%
Capital expenditures (3)
Sustaining 27.9 36.6 31.4 17% 64.5 54.0 19%
Sustaining leases 6.8 8.9 6.0 48% 15.7 10.9 44%
Growth capital 17.4 31.3 15.6 101% 48.7 31.0 57%
Jun. 30,
2026
Dec. 31,
2025
%
Change
Cash and cash equivalents and short-term investments 606.7 554.0 10%
Net liquidity position (excluding letters of credit) 756.7 704.0 7%
Shareholder's equity attributable to Fortuna shareholders 1,767.0 1,677.0 5%
(1) Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s condensed
interim consolidated financial statements for the three and six months ended June 30, 2026 and for the three months ended March 31, 2026
filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
(2) Gold equivalent was calculated using the realized prices for gold of $4,447/oz Au, $75.22/oz Ag, $1,930/t Pb and $3,464/t Zn for Q2 2026.
Gold equivalent was calculated using the realized prices for gold of $3,307/oz Au, $33.77/oz Ag, $1,945/t Pb and $2,640/t Zn for Q2 2025.Gold
equivalent was calculated using the realized prices for gold of $4,884/oz Au, $82.69/oz Ag, $1,918/t Pb and $3,246/t Zn for Q1 2026. Gold
equivalent was calculated using the realized prices for gold of $4,667/oz Au, $78.32/oz Ag, $1,925/t Pb and $3,363/t Zn for YTD 2026. Gold
equivalent was calculated using the realized prices for gold of $3,103/oz Au, $32.8/oz Ag, $1,958/t Pb and $2,747/t Zn for YTD 2025.
(3) Capital expenditures are presented on a cash basis
Figures may not add due to rounding
Fortuna | 4
Second Quarter 2026 Results
Q2 2026 vs First Quarter 2026 (“Q1 2026”)
Cash cost per ounce and AISC
Cash cost per GEO sold from continuing operations was $1,034 in Q2 2026, representing an $83 increase
compared to $951 recorded in Q1 2026 and All -in sustaining costs per GEO from continuing operations
was $2,157 representing a $49 increase from the $2,10 7 recorded in the prior quarter. Compared to
underlying annual guidance projections AISC contains a $49 impact from external factors and
approximately $115 of one -time operational items; external factors consisted mainly of $41 from the
appreciation of the Argentine peso at our Lindero mine, $37 higher royalties due to gold prices, $24 from
higher diesel prices and inflationary effects on contractor unit prices, partially offset by $48 from a
decrease in share -based compensation. Internal factors were mainly related to the primary crusher
refurbishment shutdown at Lindero and mobilization costs of an added mining contractor at Séguéla.
Attributable Net Income and Adjusted Net Income
Attributable net income from continuing operations for the period was $75.5 million in Q2 2026,
compared to $111.0 million in Q1 2026.
After adjusting for non-recurring items, adjusted attributable net income was $75.5 million or $0.25 per
share compared to $111.0 million or $0.36 per share in Q1 2026. The decrease was primarily due to lower
realized gold prices, a higher effective tax rate of 46% compared to 33% in Q1 2026 and a higher cost per
GEO. The realized gold price in Q2 2026 was $4,447 per ounce compared to $4,884 in Q1 2026. The higher
effective tax rate was mostly the result of higher deferred taxes at Lindero resulting from the devaluation
of the Argentine peso. Higher cost per GEO was mostly due to the impact of increased costs at Lindero
due to real appreciation of the Argentine peso and one -time items in the quarter and higher royalties at
Séguéla.
Foreign Exchange
In Q2 2026, the Company recorded a foreign exchange loss of $6.3 million compared to a loss of $2.1
million in Q1 2026. The foreign exchange loss was due to the purchase of US dollars in Argentina for
repatriation and movement in the Euro and the impact on cash and VAT balances in Côte d’Ivoire held in
West African Francs.
Cash Flow
Net cash generated by operations before changes in working capital totaled $123.7 million or $0.41 per
share. After adjusting for working capital, net cash generated by operations for the quarter was $138.3
million, a decrease of $71.1 million compared to $209.4 million in Q1 2026. The decrease was driven
primarily by lower sales, and higher taxes paid of $69.7 million due to timing of installments, partially
offset by positive changes in working capital of $14.7 million in Q2 2026 compared to negative $4.0 million
in Q1 2026.
Fortuna | 5
Free cash flow from ongoing operations in Q2 2026 was $85.7 million, a decrease of $88.3 million
compared to $174.0 million in Q1 2026 reflecting lower cash from operating activities and higher
sustaining capital expenditures and advances to contractors.
In Q2 2026, the Company’s total capital expenditures were $67.9 million of which $36.6 million were
classified as sustaining and $31.3 million as non -sustaining. Non -sustaining capital expenditures were
comprised primarily of $10.9 million at the Diamba Sud project, $10.6 million in brownfields and
greenfields exploration, and $5 million related to the earn -in agreement on the Quartzstone project in
Guyana.
Q2 2026 vs Q2 2025
Cash cost per ounce and AISC
Consolidated cash cost per GEO increased to $1,034 in Q2 2026, representing a $105 increase compared
to $929 recorded in Q2 2025. The increase was due to higher costs at Lindero and the effect of higher
silver prices on the calculation of GEOs at Caylloma. Higher costs at Lindero were driven mostly by real
appreciation of the Argentine peso, higher diesel costs, lower gold volume produced and higher operating
expenses related to maintenance activities during the planned 30-day shut-down of the primary crusher.
All-in sustaining costs per GEO from continuing operations increased $22 5 to $2,157 in Q2 2026 from
$1,932 in Q2 2025. This increase primarily resulted from higher cash costs as described above, higher
CAPEX and sustaining leases, and higher royalties because of higher gold prices. This was partially offset
by higher GEOs sold.
Attributable Net Income and Adjusted Net Income
Attributable net income from continuing operations was $75.5 million, or $0.25 per share, compared to
$42.6 million, or $0.14 per share, in Q2 2025.
After adjusting for non-recurring items, adjusted attributable net income from continuing operations was
$75.5 million or $0.25 per share compared to $44.7 million or $0.15 per share in Q2 2025. The increase
was primarily due to higher realized gold prices and slightly higher gold volume sold, partially offset by
higher cash cost per GEO, as discussed above, and higher royalty payments associated with higher gold
prices. Gold averaged $4,447 per ounce in Q2 2026 compared to $3,307 per ounce in Q2 2025. Other
items with an offsetting impact on higher sales were a foreign exchange loss of $6.3 million compared to
a gain of $2.3 million in the comparable period, and a higher effective tax rate of 46% compared to 41%
in Q2 2025.
Depreciation and Depletion
Depreciation and depletion decreased by $4.3 million to $44.0 million compared to $48.3 million Q2 2025.
Depletion per GEO decreased primarily due to the increase in Mineral Reserves at Séguéla and partially
offset by higher depletion per GEO at Lindero due to an impairment reversal of $52.7 million recorded in
Q3 2025. Depreciation and depletion in the period included $11.5 million related to the purchase price
allocation from the 2021 Roxgold acquisition.
Cash Flow
Net cash generated by operations for the quarter was $138.3 million, an increase of $45.6 million
compared to $92.7 million reported in Q2 2025. The increase was primarily driven by higher sales, and
Fortuna | 6
positive working capital of $14.5 million compared to negative $ 4.2 million in Q2 2025, offset by higher
taxes paid in Q2 2026 of $42.9 million.
Free cash flow from ongoing operations in Q2 2026 was $85.7 million, an increase of $28.3 million
compared to $57.4 million reported in Q2 2025. The increase was mainly due to higher cash flow from
operations as discussed above partially offset by higher sustaining capital expenditures.
Fortuna | 7
Séguéla Mine, Côte d’Ivoire
Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
Mine production
Tonnes milled 421,464 429,184 852,417 873,188
Average tonnes crushed per day 4,581 4,665 4,683 4,798
Gold
Grade (g/t) 3.46 3.00 3.33 2.88
Recovery (%) 92 93 93 93
Production (oz) 41,683 38,186 83,699 76,686
Metal sold (oz) 41,677 38,144 83,731 76,583
Realized price ($/oz) 4,456 3,315 4,682 3,101
Unit costs
Cash cost ($/oz Au) (1) 676 670 677 660
All-in sustaining cash cost ($/oz Au) (1) 1,765 1,634 1,762 1,461
Capital expenditures ($000's) (2)
Sustaining 18,729 18,065 36,746 26,678
Sustaining leases 6,491 4,484 10,755 8,123
Growth capital 10,594 5,538 17,238 14,745
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 condensed interim consolidated financial statements for the three and six months
ended June 30, 2026 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
During the second quarter of 2026, Séguéla mined a total of 433,231 tonnes of ore, averaging 3.06 g/t Au
and containing an estimated 42,555 ounces of gold from the Antenna, Ancien, Koula, and Sunbird pits. A
total of 5,902,142 tonnes of waste was mined during the period, resulting in a strip ratio of 13.6:1.
Additionally, 731,647 tonnes of waste were mined during the quarter at Sunbird South to gain access to
the underground portal position.
In the second quarter of 2026, Séguéla processed 421,464 tonnes of ore, producing 41,683 ounces of gold,
at an average head grade of 3.46 g/t Au, a 2% decrease in tonnes of ore and 15% increase in average head
grade, compared to the same period of the prev ious year. Tonnes milled were slightly lower than in the
previous quarter, reflecting a planned mill reline during the period.
Cash cost per gold ounce sold was $676, comparable to $670 for the second quarter of 2025 as higher
operating costs were offset by increased production.
All-in sustaining cash cost per gold ounce sold was $1,765 for the second quarter of 2026 compared to
$1,634 for the second quarter of 2025. The increase was primarily a result of higher royalties due to an
increase in realized gold prices.
Fortuna | 8
Lindero Mine, Argentina
Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
Mine production
Tonnes placed on the leach pad 1,558,750 1,828,520 3,084,036 3,581,536
Gold
Grade (g/t) 0.64 0.57 0.63 0.56
Production (oz) 20,829 23,550 42,374 43,870
Metal sold (oz) 20,404 23,487 41,587 42,142
Realized price ($/oz) 4,422 3,293 4,633 3,108
Unit costs
Cash cost ($/oz Au) (1) 1,459 1,148 1,331 1,147
All-in sustaining cash cost ($/oz Au) (1) 2,265 1,783 2,019 1,839
Capital expenditures ($000's) (2)
Sustaining 12,053 11,356 19,722 23,718
Sustaining leases 1,231 791 2,628 1,373
Growth capital 4,083 1,827 4,798 2,134
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 condensed interim consolidated financial statements for the three and six months
ended June 30, 2026 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 2026, a total of 1,558,750 tonnes of ore were placed on the heap leach pad, with
an average gold grade of 0.64 g/t, containing an estimated 32,008 ounces of gold. Ore mined was 1.38
million tonnes, with a stripping ratio of 1.81:1. During the first half of 2026, Lindero placed on the leach
pad approximately 95% of the ounces planned for the period required to achieve the midpoint of its
annual production guidance.
Lindero’s gold production for the quarter was 20,829 ounces compared to 23,550 ounces in the
comparable period. Lower production was due to Lindero completing key capital projects aimed at
improving comminution reliability and availability, which required a planned 30 -day shutdown of the
primary crusher to replace its steel foundations.
The cash cost per ounce of gold for the quarter was $1,459 compared to $1,148 in the same period of
2025. The increase in cash costs was primarily driven by lower gold production and higher maintenance
costs associated with the 30 -day shutdown of the primary crusher as well as real appreciation of the
Argentine Peso increasing costs in US dollar terms and rising diesel prices.
In the second quarter of 2026, AISC per gold ounce sold increased to $2,265 compared to $1,783 in the
comparable period of 2025. The increase in AISC was due to lower payable ounces sold and higher
production cash costs.