Fortuna reports financial results for the second quarter of 2024

(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)

VANCOUVER, British Columbia, Aug. 07, 2024 (GLOBE NEWSWIRE) — Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) (“Fortuna” or the “Company”) today reported its financial and operating results for the second quarter of 2024.

Second Quarter 2024 highlights

Financial

• Attributable net income of $40.6 million or $0.13 per share, compared to a $26.3 million or $0.09 per share in Q1 2024

• Adjusted attributable net income¹ of $30.4 million or $0.10 per share, compared to $26.7 million or $0.09 per share in Q1 2024

• Generated $93.0 million (or $0.30 per share) of cash flow from operations before working capital changes, and free cash flow from ongoing operations¹ of $38.6 million, compared to $84.3 million (or $0.28 per share) and $12.1 million, respectively, in Q1 2024

• The Company issued Convertible Notes (the “2024 Notes”) for gross proceeds of $172.5 million which were partially used to pay in full the outstanding $125.0 million under its revolving credit facility. As at the end of the quarter total net debt¹ was $66.5 million and the total net debt to adjusted EBITDA ratio¹ was 0.2:1

• Liquidity as of June 30, 2024 was $355.6 million, compared to $212.7 million at the end of Q1 2024

Operational

• Gold equivalent³ production of 116,570 ounces, compared to 112,543 ounces in Q1 2024

• Gold production of 92,716 ounces, compared to 89,678 ounces in Q1 2024

• Silver production of 990,574 ounces, compared to 1,074,571 ounces in Q1 2024

• Consolidated cash costs¹ per ounce of gold equivalent sold of $988, compared to $879 in Q1 2024; adjusting for San Jose, which is mining its last year of Mineral Reserves, consolidated cash costs was $858

• Consolidated all-in sustaining cash costs (AISC)¹ per ounce of gold equivalent sold of $1,656, compared to $1,495 in Q1 2024; adjusting for San Jose, consolidated AISC was $1,584

• The Company recorded zero lost time injuries and zero total recordable injuries in the quarter

Growth and Development

“Our business performed well in the quarter, generating strong net cash flow from operations of $93.0 million before working capital changes and free cash flow after sustaining capital of $38.6 million.” said Jorge Ganoza, Fortuna’s President and CEO. Mr. Ganoza continued, “We anticipate our free cash flow to increase further in the second half of the year as we conclude a heavy sustaining capex phase in the third quarter with the completion of the Lindero leach pad expansion project.” Mr. Ganoza added, “With the issue of $172.5 million of convertible notes we have significantly strengthened our balance sheet and liquidity while lowering our cost of capital. This added financial flexibility places the Company in an advantageous position to pursue strategic initiatives and emerging opportunities in our established regions.” Mr. Ganoza concluded “On the exploration front we continue creating value through discovery. At the recently…