Fortuna Mining (NYSE:FSM) executives used the company’s fourth-quarter and full-year 2025 results call to highlight record profitability and cash generation alongside a growth plan aimed at lifting annual gold production above 500,000 ounces over the next 24 months.
President and CEO Jorge A. Ganoza said the company delivered record adjusted net income of $0.23 per share in the quarter, broadly in line with analyst expectations, while net cash from operations before working capital adjustments came in at $0.48 per share, above a $0.43 consensus figure cited on the call. Fortuna also reported record free cash flow of $132 million in Q4 and a record $330 million for the full year.
Growth plan centered on Séguéla and Diamba Sud
Ganoza reiterated an objective to grow production to more than 500,000 ounces of annual gold output from “long-life assets” within 24 months, representing roughly 65% growth from current levels. He emphasized that the targeted ounces are “already contained within our mineral inventory across advanced projects in our portfolio,” and that the company expects the growth to translate into higher free cash flow per share through scale, asset quality, geographic distribution, and capital discipline.
At Diamba Sud, Fortuna is advancing on what it described as a fast-track path toward a formal construction decision around mid-year, aligned with the publication of a feasibility study. Ganoza said the company released an updated mineral resource estimate showing a 73% increase in indicated resources to 1.25 million ounces of gold, which management said will underpin the feasibility study.
For 2026, management approved a $100 million budget at Diamba Sud, including $67 million for early works such as camp facilities, major excavations, and enabling infrastructure. Ganoza said Fortuna broke ground during the week of the call and filed its exploitation permit application earlier in the month. He also said mineralization remains open and that the company is drilling aggressively in parallel with project development to pursue additional resource growth while de-risking the timeline.
At Séguéla, Fortuna is evaluating a plant upgrade intended to expand throughput and potentially lift production toward 200,000 ounces per year. Ganoza said the work follows recent reserve growth and is intended to support higher production and cash flow from what he described as a high-quality, long-life asset.
Séguéla operational performance and potential expansion
David Whittle, COO for West Africa, said Séguéla posted another strong quarter and exceeded the upper end of annual production guidance for the second consecutive year. The mine produced 36,942 ounces of gold in Q4 and 152,426 ounces for full-year 2025, which Whittle said was 4% above the upper end of guidance.
Whittle detailed quarterly mining and processing performance, including 340,000 tons of ore mined at an average grade of 3.71 grams per ton gold and 3.92 million tons of waste for a strip ratio of 11.5:1. The processing plant treated 410,000 tons at an average grade of 3.01 grams per ton gold, with throughput averaging 214 tons per hour.
He also pointed to progress at the Sunbird underground project, noting that drilling through the end of June 2025 supported a declared reserve of “just over 400,000 ounces.” Five diamond drill rigs were allocated to Sunbird in the second half of 2025, with results that Whittle said support further resource growth.
On costs, Whittle said Séguéla’s cash cost was $710 per ounce in Q4 and $679 per ounce for the year, while all-in sustaining costs (AISC) were $1,576 per ounce in Q4 and $1,560 per ounce for full-year 2025. He attributed an $86 per ounce impact at the midpoint of guidance to higher royalties driven by rising gold prices, while emphasizing continued cost discipline.
During Q&A, management said Séguéla was originally designed for 1.25 million tons per year but is operating above that rate. Ganoza said 2026 guidance assumes 1.75 million tons of throughput and that the company is targeting 2.2 million to 2.3 million tons per year through a brownfield expansion focused largely on the wet side of the circuit. He said preliminary expectations are for the study to be completed by mid-2026, with potential execution over 12 to 18 months after a go-decision, depending in part on equipment delivery timelines.
Ganoza provided an order-of-magnitude capital range for the Séguéla expansion, describing a broad estimate of roughly $50 million to $60 million up to $100 million, with more detail expected by mid-year as trade-offs are evaluated.
Latin America: Lindero downtime and Caylloma performance
Cesar Velasco, COO for Latin America, said the region delivered a “resilient performance” in 2025 with no reportable safety incidents. However, he said Q4 results at Lindero were affected by mechanical downtime in the crushing circuit, which weighed on full-year production.
Velasco reported Lindero produced 87,489 ounces of gold in 2025, about 6% below the lower end of guidance, driven by Q4 production of 19,201 ounces following two independent mechanical interruptions. An engineering review identified a structural fatigue risk in the primary crusher foundations, and the company approved a 35-day foundation replacement scheduled for late March 2026 at an estimated cost of $2.2 million. Velasco said ore is being pre-stockpiled to maintain stacking continuity and that the repair has been incorporated into the production plan and guidance.
Financially, Velasco said Lindero generated $294.2 million in annual gold sales and delivered an EBITDA margin of 57% of sales. Cash costs were $1,117 per ounce in Q4 and $1,132 per ounce for the year, which he said was within guidance. Q4 AISC improved to $1,639 per ounce due to lower sustaining capital and reduced stripping, partially offset by maintenance interventions and temporary crushing solutions. Full-year AISC was $1,716 per ounce, also within guidance.
Velasco also outlined a 6,500-meter diamond drilling program below the pit bottom, where mineralization remains open at depth. The objective, he said, is to upgrade an estimated 400,000 ounces of inferred resources to indicated and measured categories beyond the current final pit design.
On Caylloma, Velasco said the operation delivered consistent performance, and he noted that base metal production exceeded the upper end of guidance for the year. He reported Q4 production of 250,000 ounces of silver at an average head grade of 65 grams per ton, as well as 12.1 million pounds of zinc and 8.4 million pounds of lead. The Caylloma section of the prepared remarks was cut short due to a temporary disconnection on the call.
Financial results, costs, and liquidity
CFO Luis D. Ganoza said attributable net income for Q4 was $68.1 million, or $0.22 per share on an adjusted basis excluding non-cash charges. Reported net income was $71.3 million, or $0.23 per share, up from $0.06 in Q4 2024 and $0.17 in Q3 2025.
He attributed the year-over-year improvement primarily to higher gold prices. Fortuna realized an average gold price of $4,166 per ounce in the quarter, up by more than $1,500 per ounce, while consolidated cash costs increased 5% to $971 per ounce. He said the price benefit was partially offset by lower production volumes linked to HPGR downtime at Lindero in December. Sequentially, he said the $0.06 increase in EPS from Q3 was driven by a $700 per ounce rise in realized gold prices.
G&A expense was $26 million in Q4, including $6.9 million in stock-based compensation, which was $9.5 million higher than Q4 2024. The CFO cited higher stock-based compensation tied to share price appreciation and higher site-level G&A due to expense timing. For 2026, he said quarterly G&A excluding stock-based compensation is expected to range from $14 million to $16 million. Full-year G&A was $97.7 million, up $29 million from 2024, with roughly two-thirds of the increase attributed to stock-based compensation.
Fortuna recorded a foreign exchange loss of $2.9 million in Q4 and $7.8 million for the year, including a $13.8 million realized FX loss largely related to Argentina. The CFO said more than $6 million of the realized loss came from in-country cash balances during the first half of the year, but he added that this was “fully offset” by hedging strategies intended to protect the U.S. dollar value of local currency.
Interest and financing costs were $2.6 million in Q4, down $3 million from Q4 2024. For the full year, interest costs totaled $12.3 million, down $12 million, which the CFO attributed mainly to increased interest income that rose to $14.5 million in 2025 from $3.7 million in 2024 as cash balances grew.
Capital expenditures were $44.5 million in Q4 and $178.1 million for 2025, including $109 million of sustaining capital and $69 million for growth initiatives. Growth spending included $48 million for exploration across operating sites and greenfield initiatives, plus $14 million to advance Diamba Sud. The company reported free cash flow from ongoing operations of $132 million in Q4 and $330 million for the year, with an EBITDA conversion rate of 84% in Q4 and 60% for the full year.
Fortuna ended 2025 with $704 million in total liquidity, which management said increased by $327 million versus 2024, driven by operating results and the sale of Yaramoko earlier in the year.
Key Q&A takeaways: Diamba resource implications, price assumptions, and timing
During Q&A, management said the updated Diamba Sud resource estimate is not expected to change throughput assumptions from the project’s October PEA, but it could extend the life of mine. Ganoza also said the updated inventory includes Southern Arc, which he described as the largest deposit at the Diamba Sud camp and the highest grade, and he expected the higher-grade ounces to benefit the annual production profile “to some degree.”
Asked about the gold price used for the resource estimate at Diamba Sud, management said it used $3,300 per ounce for the resource methodology and indicated a lower gold price would be used for reserves. As a reference point for 2026 budgets and reserves, Ganoza said the company used $2,600 gold for resources and $2,300 gold for reserves.
Management also discussed timing at Lindero, indicating production in the first half of the year should be “a bit on the softer side” due to planned crusher foundation work, with improvement expected in the second half once works are complete. The CEO added that AISC was expected to be higher earlier in the year due to heavier capital expenditures in the first half, then trend lower into mid-year and the second half.
On Sunbird underground at Séguéla, management said the 2026 budget includes about $14 million that could grow, with plans to start a box cut and purchase underground equipment. Management said ore from underground could begin in late 2027 or early 2028, subject to permitting, with an expectation that permits could be obtained late this year.
About Fortuna Mining (NYSE:FSM)
Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc and changed its name to Fortuna Mining Corp.
