Fortuna Mining Corp. Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Sales:: $342 million, a record high driven by increased gold and silver prices.

Adjusted Net Income:: $111 million ($0.36 per share), up 64% quarter-over-quarter and 200% year-over-year.

Adjusted EBITDA:: $219 million, also a record for the company.

Free Cash Flow:: $174 million, the strongest quarterly cash generation to date.

Gold Equivalent Production:: 72,900 ounces.

All-in Sustaining Cost (AISC):: $2,107 per gold equivalent ounce, with $122 per ounce attributed to external factors (royalties and share-based compensation).

Liquidity:: Total liquidity of $816 million, including $493 million in net cash.

2Strategic Updates and Business Highlights

Safety Performance:: Zero lost time injuries for five consecutive quarters.

Production Growth Plans:: Targeting approximately 60% growth in annual gold production over the next 24 months, aiming for 0.5 million ounces through the Seguela mine expansion and Diamba Sud project.

Mineral Reserves Growth:: Proven and probable reserves increased by 50% year-over-year to 3 million gold ounces.

Operational Highlights::

Seguela produced 42,016 ounces of gold, exceeding expectations.

Lindero in Argentina produced 21,545 ounces, showing a 12% increase from 2025.

Caylloma in Peru maintained stable performance with 258,000 ounces of silver produced.

3Forward Guidance and Outlook

Production Guidance:: Remains on track to meet full-year 2026 guidance based on strong Q1 performance.

Upcoming Milestones:: Completion of feasibility studies for Diamba Sud and Seguela expansion expected in May, with environmental approvals anticipated imminently.

Cost Management:: Expecting AISC at Lindero to trend towards $1,300 per ounce by Q4 2026 as temporary costs are removed.

4Challenges and Points of Concern

Cost Pressures:: While inflation has not significantly impacted overall costs, there are rising input costs for certain materials, particularly in Peru.

Tax Rate Increase:: Effective tax rate expected to rise to the high-30% range for 2026 due to changes in deferred tax positions.

Geopolitical Risks:: Expansion into new regions like Guyana introduces potential geopolitical risks, although management believes they can mitigate these through diversified operations.

5Notable Q&A Insights

Cost Management at Seguela:: Management attributed lower cash costs to increased production, accounting aspects, and a favorable stripping ratio.

Diamba Sud Permitting:: Environmental approval expected imminently, with exploitation permits anticipated mid-year.

Acquisition Strategy:: Currently focused on pre-development stage opportunities rather than mature assets, reflecting a cautious approach to acquisitions.

Exploration Activities:: Active in greenfields exploration in Côte d’Ivoire, Guinea, and Senegal, with a shift of resources from Mexico to Guyana. This summary encapsulates Fortuna Mining Corp.'s strong start to 2026, highlighting record financial performance, strategic growth initiatives, and challenges faced in a dynamic market environment.