Gold Price Drives Record Free Cash Flow For Fortuna Mining

Key Concepts

• Free Cash Flow (FCF): Cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
• All-in Sustaining Cost (AISC): The total cost of producing an ounce of gold, including operating costs, sustaining capital expenditures, and corporate overhead.
• Gold Equivalent Ounces (GEO): A measure used to represent the amount of gold a mining company produces, adjusted for the value of other metals produced (like silver).
• Mineral Reserve: The economically mineable part of a measured and/or indicated mineral resource.
• Feasibility Study: An assessment to determine the viability of a mining project, considering technical, economic, and environmental factors.
• Liquidity: The ability of a company to meet its short-term obligations.
• Net Cash: Cash and cash equivalents minus total debt.

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Fortuna Mining: Q4 & Full Year 2025 Earnings Review

This review details Fortuna Mining’s financial and operational performance for the fourth quarter and full year of 2025, as released after market close. The company reported record results, particularly in free cash flow generation.

Financial Highlights

Fortuna Mining achieved record quarterly and annual free cash flow of $132.3 million and $333 million, respectively. This strong performance allowed the company to return $12.1 million to shareholders in Q4 and a total of $16.2 million through its share buyback program throughout 2025.

Key financial figures include:

• Net cash from operations (before changes in working capital): $147.6 million (Q4)
• Adjusted attributable net income from continuing operations: $71.3 million (Q4), or $0.23 per share; $203.1 million (Full Year), or $0.66 per share.
• Liquidity: $704 million
• Net Cash: $381 million

Operational Performance

Gold equivalent production for Q4 reached 65,130 ounces, with a full-year total of 317,000 ounces.

• Cash cost per gold equivalent ounce: $971 (Q4), $944 (Full Year) – within guidance.
• All-in sustaining cost (AISC): $1,870 per ounce (Full Year). The company noted that AISC was slightly higher due to increased metal prices impacting royalties, gold equivalent ratios, and share-based compensation. Adjusting for these factors, AISC would have been under $1,700 per ounce.

Project Updates & Growth Initiatives

Fortuna is actively progressing several key projects:

• Diamasud: Growth at Diamasud has been a significant contributor to the positive results. A detailed update on the Diamasud Gold Project’s mineral resource estimate has been released (and a separate video is linked).
• Sigua: A feasibility study is underway to expand plant throughput at the Sigua project.
• Dembasses: The company’s strong liquidity and net cash position are enabling the advancement of the Dembasses project.
• SUA: Mineral reserves at SUA were expanded by 31%, extending the mine life to over 9 years.

CEO Commentary & Future Outlook

Jorge Ginosza, President and CEO of Fortuna, described Q4 as a “strong end to the year” driven by record free cash flow. He highlighted the company’s ability to return capital to shareholders while continuing to invest in growth projects.

As stated by Jorge Ginosza, “Q4 was a strong end to the year as we delivered record free cash flow from operations of that 132.3 million and returned 12.1 million to their shareholders.”

A more in-depth discussion with Jorge Ginosza is scheduled for February 20th at 11:30 a.m. Eastern, covering the full results and the updated mineral resource estimate for the Diamasud Gold project.

Logical Connections

The report demonstrates a clear connection between strong financial performance (record free cash flow) and operational efficiency (in-line cash costs, expanded reserves). This financial strength is then being strategically deployed into growth initiatives (feasibility studies, project advancement) to further enhance future production and profitability. The CEO’s comments reinforce this positive trajectory and commitment to shareholder value.

Conclusion

Fortuna Mining delivered a strong financial performance in 2025, highlighted by record free cash flow and a robust balance sheet. The company is strategically investing in its existing operations and advancing key projects like Diamasud, Sigua, and Dembasses, positioning it for continued growth and success. The upcoming discussion with the CEO will provide further insights into these developments and the company’s future outlook.