Generating Strong Cash Flow, Record Gold Prices Are Just Part of the Growth Story at Fortuna Mining

The President and CEO of Fortuna Mining Corp., Jorge Ganoza, discusses the latest record quarterly production and financial results which includes another successful quarter of production from the Séguéla Gold Mine in West Africa along with a big investment into the Lindero Gold Mine in Argentina.

Last week, Fortuna Mining announced an adjusted net income of $0.10 a share in the latest quarter with 116,570 in gold equivalent production (112,543 AU ounces + 990,574 AG ounces) Jorge Ganoza discusses Fortuna's expansion into West Africa and the larger focus on exploration budgets as the company recently completed the acquisition of Chesser Resources Limited.

Ganoza explains:

Yes, as you pointed out, we delivered 116,000 gold equivalent ounces in the quarter. Certainly we benefited from the rising prices for gold and silver with that kind of production, right? Just to give you a sense of things, in the previous quarter—the first quarter of 2024—we sold gold at an average realized price of $2,087. And in this fourth quarter, our average realized gold price has been $2,334.

So, on the back of that strong production and those higher prices, in the quarter, we managed to generate sales of $260 million with very healthy margins. Our EBITDA was $123 million, giving us an EBITDA margin of 43 percent over sales. Our cash flow from operations before working capital adjustments was $93 million. If we look at cash flow from operations after all the money that we had to invest back into the business on sustaining capital concepts, we generated $39 million of free cash flow. So, all in all, a good, strong quarter on production, sales, and healthy cash flow generation for the business.

We discuss what value and potential value Fortuna looks to unlock through developing the exciting gold prospects in Senegal.

To learn more about Fortuna, please visit their website: https://fortunasilver.com/ Please note, employees at GoldSeek are long-term shareholders in Fortuna Silver Mines and the company has been a supportive sponsor of both GoldSeek.com and SilverSeek.com.