Canada's Fortuna Silver Mines Q4 sales rise, beat expectations on rising metal prices

Overview

• Canada precious metals miner's Q4 sales rose, beating analyst expectations

• Adjusted net income for Q4 rose, driven by higher realized gold prices

• Company expanded mineral reserves at Séguéla by 31%, extending mine life

Outlook

• Fortuna expects Séguéla plant expansion study results in Q2 2026

• Company targets mid-2026 construction decision for Diamba Sud project

• Fortuna allocates $67 mln for early works at Diamba Sud

Result Drivers

• HIGHER AISC - Co reported higher AISC due to rising metal prices impacting royalties and share-based compensation expenses

• LINDERO PRODUCTION CHALLENGES - Lower production at Lindero due to equipment downtime impacted results

• STRATEGIC DIVESTMENT - Co streamlined portfolio by divesting non-core assets to focus on growth at Diamba Sud and Séguéla

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Fortuna Mining Corp is C$17.75, about 23.6% above its February 18 closing price of C$14.36

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNEc69vyV

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