Canada's Fortuna Mining Q1 sales jump 76%, net income more than doubles on higher gold prices

Overview

• The Canadian precious metals miner's Q1 sales rose 76% yr/yr, adjusted net income more than doubled

• Higher realized gold prices and increased production at Séguéla and Lindero drove results

• Company returned $40 mln to shareholders via share repurchases, expanded mineral reserves by 15% yr/yr

Outlook

• Fortuna says it remains on track to deliver its 2026 production guidance

• Company expects Séguéla AISC to reach higher end of guidance range due to mine plan changes

• Fortuna anticipates investment decisions on Diamba Sud and Séguéla plant expansion by mid-year

Result Drivers

• HIGHER GOLD PRICES - Co said increased realized gold prices were a primary driver of higher adjusted net income and cash flow

• INCREASED PRODUCTION - Higher gold production at Séguéla and Lindero mines contributed to greater sales and earnings

• HIGHER ROYALTIES AND CAPEX - All-in sustaining costs rose due to higher royalties from increased metal prices and greater capital expenditures

Company press release: ID:nGNX96Bwf3

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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$18.75, about 39.3% above its May 6 closing price of C$13.46

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.