Group 1 - Fortuna Mining has transitioned from being primarily a silver miner to predominantly mining gold, with an expected production of 309,000 ounces by 2025 [1] - The company has undergone significant changes over time, reflecting a strategic shift in its focus and operations [1] Group 2 - The analyst has extensive experience, having researched over 1000 companies across various sectors, including commodities and technology [1] - The analyst's preferred focus is on metals and mining stocks, but they are also comfortable covering other industries such as consumer discretionary, REITs, and utilities [1]

Industry Overview - The gold mining industry is currently experiencing a significant uptrend, with gold prices soaring to all-time highs, up 28% year to date, compared to a 10% increase in the S&P 500 [1][6] - Gold is traditionally viewed as a safe haven investment, often performing better when risk assets like stocks decline [2] - The recent increase in gold prices is attributed to geopolitical tensions, particularly following Russia's invasion of Ukraine and subsequent sanctions [3][4] Company Analysis: Fortuna Mining - Fortuna Mining has seen its stock rise 70% year to date and 155% over the past 18 months, making it one of the top gold mining stocks [7] - The company produced approximately 370,000 ounces of gold last year, a 13% increase from the previous year, with ongoing operations yielding about 62,000 ounces in the most recent quarter, a 10% increase year-over-year [8] - Fortuna's recent divestiture of the Yaramoko mine in Burkina Faso is viewed positively, as it had limited reserves and faced civil unrest [9] - The Diamba Sud mine in Senegal has an estimated 724,000 ounces of gold, which is 53% higher than last year's estimate, with an additional 285,000 ounces potentially unconfirmed [11] - Fortuna is recognized for its operational efficiency, strong organic growth, and disciplined management, making it a compelling option for investors looking to hedge against market corrections [13]

Core Viewpoint - Fortuna Mining Corp. has reported promising exploration drilling results from the Kingfisher and Sunbird deposits at the Séguéla Mine in Côte d'Ivoire, indicating significant mineralization and potential for resource expansion [1][2]. Kingfisher Deposit Highlights - A successful infill drill program at Kingfisher confirmed broad mineralization, with notable intersections including 4.5 g/t Au over an estimated true width of 37.4 meters from 79 meters in drill hole SGRD2363 [2][3]. - Additional drilling has intersected mineralization 300 meters below surface and 250 meters along strike, indicating potential for further resource expansion [2]. - Highlights from recent drilling include: - 9.4 g/t Au over 17.0 meters from 105 meters in SGRD2313, including 58.1 g/t Au over 0.9 meters [3]. - 5.6 g/t Au over 22.1 meters from 83 meters in SGRD2349, including 63.1 g/t Au over 0.9 meters [3]. - 4.4 g/t Au over 20.4 meters from 28 meters in SGRD2366, including 48.9 g/t Au over 0.9 meters [3]. - A total of 78 drill holes, totaling 13,262 meters, have been completed at Kingfisher, with ongoing drilling planned through 2025 [3]. Sunbird Deposit Highlights - Drilling at the Sunbird deposit has returned excellent results, enhancing geological confidence and expanding the mineralized envelope [2]. - Significant results include: - 8.5 g/t Au over 7.0 meters from 566 meters in drill hole SGRD2431 [8]. - 11.2 g/t Au over 5.6 meters from 479 meters in SGRD2409 [9]. - 5.6 g/t Au over 4.9 meters from 98 meters in SGRD2422 [10]. - A total of 41 drill holes, totaling 17,532 meters, have been completed at Sunbird, with drilling scheduled to continue until the end of 2025 [8][9]. Geological Insights - The Kingfisher mineralization exhibits a moderate northerly plunge, which is atypical for the region, suggesting localized geological movements [4]. - The mineralization at Sunbird extends more than 1.1 kilometers down plunge, with ongoing exploration to determine the extent of mineralization [9]. Company Overview - Fortuna Mining Corp. is a Canadian precious metals mining company with operations in multiple countries, focusing on sustainable practices and stakeholder relationships [20].

Core Viewpoint - Fortuna Mining Corp. has reported promising exploration drilling results from the Kingfisher and Sunbird deposits at the Séguéla Mine in Côte d'Ivoire, indicating significant mineralization and potential for resource expansion [1][2]. Kingfisher Deposit Highlights - A successful infill drill program at Kingfisher confirmed broad mineralization, with notable intersections including 4.5 g/t Au over an estimated true width of 37.4 meters from 79 meters in drill hole SGRD2363 [2][3]. - Additional highlights include: - 9.4 g/t Au over an estimated true width of 17.0 meters from 105 meters in drill hole SGRD2313, including 58.1 g/t Au over 0.9 meters [3]. - 5.6 g/t Au over an estimated true width of 22.1 meters from 83 meters in drill hole SGRD2349, including 63.1 g/t Au over 0.9 meters [3]. - A total of 78 drill holes, totaling 13,262 meters, have been completed at Kingfisher, with ongoing drilling planned through 2025 [3]. Sunbird Deposit Highlights - Drilling at the Sunbird deposit has also returned excellent results, including 8.5 g/t Au over an estimated true width of 7.0 meters from 566 meters in drill hole SGRD2431 [2][8]. - Additional highlights include: - 10.4 g/t Au over an estimated true width of 4.9 meters from 483 meters in drill hole SGRD2427 [8]. - 11.2 g/t Au over an estimated true width of 5.6 meters from 479 meters in drill hole SGRD2409 [9]. - A total of 41 drill holes, totaling 17,532 meters, have been completed at Sunbird, with drilling scheduled to continue until the end of 2025 [8][9]. Geological Insights - The Kingfisher mineralization exhibits a moderate northerly plunge, which is atypical for the region, suggesting localized geological movements [4]. - Mineralization remains open at depth and along strike for both deposits, indicating further exploration potential [2][10]. Quality Control and Methodology - All drilling was conducted under the supervision of Fortuna personnel, adhering to standardized procedures and methodologies [11][12]. - Reverse Circulation (RC) and Diamond Drilling (DD) methods were employed, with rigorous quality assurance and control measures in place [13][14][15]. Company Overview - Fortuna Mining Corp. is a Canadian precious metals mining company with a focus on sustainable operations and stakeholder relationships, operating three mines and holding exploration projects in multiple countries [18].

Core Viewpoint - Fortuna Mining Corp. has reported promising exploration drilling results from the Southern Arc deposit at the Diamba Sud Gold Project in Senegal, indicating potential for resource growth and further exploration planned for the upcoming months [1][2][5]. Exploration Results - The exploration drilling at the Southern Arc deposit has yielded several high-grade intercepts, with notable results including drillhole DSDD488, which intersected 22.7 g/t Au over an estimated true width of 21.6 meters [2][3]. - Additional highlights from the drilling program include: - DSDD418: 6.3 g/t Au over 18.2 meters, including 23.3 g/t Au over 0.8 meters [3]. - DSDD440: 6.3 g/t Au over 16.8 meters, including 19.4 g/t Au over 0.8 meters [3]. - DSDD462: 9.7 g/t Au over 20.8 meters, including 21.9 g/t Au over 2.2 meters [3]. - DSDD488: 22.7 g/t Au over 21.6 meters, including 258.8 g/t Au over 1.6 meters [3]. Drilling Program Details - A total of 152 reverse circulation and diamond core drill holes have been completed, amounting to 21,234 meters since the last update [4]. - The drilling program has been paused due to the rainy season, with plans to resume in mid-September [4]. - Of the 152 drill holes, 53 were completed after the data cutoff for the maiden Inferred Mineral Resource estimate of 3.9 million tonnes averaging 1.57 g/t Au, containing 194,000 ounces of gold [5]. Mineralization Characteristics - Mineralization at the Southern Arc deposit is characterized by fine stockwork vein arrays and pyrite-silica flooding, with a strong correlation to tectonic breccias and carbonate units [6]. - The mineralization remains open at depth and along strike to the south and east, indicating further exploration potential [2][6]. Future Plans - Drilling is scheduled to resume in September, with further results expected by year-end, and an updated resource estimate planned for the first quarter of 2026 [2][5].

Core Viewpoint - Fortuna Mining Corp. reports promising exploration drilling results from the Southern Arc deposit at the Diamba Sud Gold Project in Senegal, indicating potential for resource growth and further exploration planned for September 2025 [1][2]. Exploration Results - Drillhole DSDD488 intersected 22.7 g/t Au over an estimated true width of 21.6 meters from a depth of 53 meters, highlighting high-grade intercepts [2]. - Additional notable results include: - DSDD418: 6.3 g/t Au over 18.2 meters from 31 meters, with higher grades of 23.3 g/t Au over 0.8 meters from 40 meters [3]. - DSDD440: 10.4 g/t Au over 0.8 meters from 41 meters and 19.4 g/t Au over 0.8 meters from 43 meters [3]. - DSDD444: 33.5 g/t Au over 0.8 meters from 45 meters and 9.7 g/t Au over 20.8 meters from 117 meters [3]. - DSDD4621: 4.2 g/t Au over 31.2 meters from 5 meters, including 13.3 g/t Au over 0.8 meters from 7 meters [3]. Drilling Program Overview - A total of 152 reverse circulation and diamond core drill holes have been completed, totaling 21,234 meters since the last update [4]. - Of these, 53 drill holes were completed after the data cutoff for the maiden Inferred Mineral Resource estimate of 3.9 million tonnes averaging 1.57 g/t Au, containing 194,000 ounces of gold [6]. Future Plans - Drilling is set to resume in September 2025 after the rainy season, with further results expected by year-end [2][5]. - An updated resource estimate is planned for the first quarter of 2026, incorporating the results from the recent drilling [6]. Geological Context - Mineralization at Southern Arc is characterized by fine stockwork vein arrays and pyrite-silica flooding, with a strong correlation to tectonic breccias and carbonate units [7]. - The mineralization remains open at depth and along strike to the south and east, indicating further exploration potential [7].

Financial Data and Key Metrics Changes - The company reported a net income attributable to Fortuna of $42.6 million or $0.14 per share, a 380% increase compared to Q2 2024, driven by higher metal prices and an increase in gold sold [30][31] - Liquidity increased to $537 million, up $76 million from the previous quarter, primarily due to $84 million in proceeds from mine sales [9][10] - Free cash flow from operations was $57.5 million, down from $66 million in Q1, mainly due to the timing of tax payments [10][34] - The average realized gold price was $3,306 per ounce, a 14% increase from Q1 [11] Business Line Data and Key Metrics Changes - Consolidated gold equivalent production for the period was 75,950 ounces, with gold production from continuing operations at 71,229 ounces, slightly above the previous quarter [12] - At the Seguela mine, production was 38,186 ounces, consistent with the prior quarter and exceeding the mine plan [18] - Lindero produced 23,450 ounces of gold, marking a 16% increase over Q1, with an all-in sustaining cost (AISC) of $17.83 per ounce, a 6.7% reduction from the previous quarter [23][24] Market Data and Key Metrics Changes - The indicated resource at the Ambassador project in Senegal grew by 53%, and inferred resources increased by 93%, totaling a combined 1 million ounces [7] - The company’s cash cost per ounce was $929, up 7% from Q1, primarily due to the gold to base metal ratio at the Caylloma mine [12][31] Company Strategy and Development Direction - The company aims to rebuild production to 5 million ounces per year, focusing on higher margin, longer life, and lower risk ounces [6][16] - The sale of the San Jose and Yaramoko mines generated $84 million in gross proceeds and allowed the company to redirect capital towards high-value growth opportunities [15] - The company is actively pursuing greenfield and brownfield exploration opportunities, with a total exploration budget of $51 million for 2025, up from $41 million in 2024 [74][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s growth potential, highlighting a robust balance sheet with $537 million in liquidity and $215 million in net cash [7][9] - The company is well-positioned for strong growth in 2026, with ongoing investments in the Seguela and Ambassador projects [16][60] - Management noted that the elevated AISC is a temporary effect related to capital expenditures and waste stripping, with expectations for costs to decrease in the latter half of the year [13][37] Other Important Information - The company achieved a record of 7.2 million work hours without any lost time injury, improving from the previous record of 6.7 million work hours [8] - The company’s capital expenditures for the quarter totaled $47 million, with $15 million classified as growth CapEx [33] Q&A Session Summary Question: Comments on stock performance and support - Management acknowledged the stock's performance and clarified that the EPS miss was due to the timing of withholding taxes, emphasizing the company's strong financial position [41] Question: Investments in other companies - Management confirmed ongoing investments in various projects, including Awale, and expressed confidence in the growth potential of these investments [46][49] Question: Permitting experience in Senegal - Management reported positive interactions with the Senegalese government and expressed confidence in obtaining necessary permits for the Ambassador project [52][53] Question: Key milestones for the Ambassador project - Management outlined a timeline for the environmental approval and PEA, expecting to submit the environmental document soon and aiming for approval early next year [60][62] Question: CapEx cadence for the second half of the year - Management indicated a slight increase in CapEx spending in Q3, with expectations for a decrease in Q4, contributing to lower AISC in the latter part of the year [63][64] Question: Greenfield projects and exploration budget - Management detailed ongoing greenfield projects and confirmed an exploration budget of $51 million for 2025, highlighting the focus on early-stage opportunities [74][75] Question: Acquisition strategy - Management stated that while they are open to acquisitions, their primary focus is on organic growth within their existing portfolio, emphasizing value over volume [80]

Financial Performance - Sales increased by 47% year-over-year to $230.4 million in Q2 2025[9, 10, 14] - Adjusted EBITDA margin reached a record 55% in Q2 2025, compared to 50% in Q1 2025[3, 14, 16] - Attributable net income from continuing operations was $42.6 million, or $0.14 per share, a 100% increase year-over-year[14] - Free cash flow from ongoing operations was $57.4 million in Q2 2025[3, 14, 16] Liquidity and Cash Flow - The company's liquidity position is strong, with $537 million in total liquidity[3] - Net cash position of $215 million after debt[3, 25] - Cash position increased by $78 million to $387 million[25] Production and Operations - Gold production from continuing operations was 71,229 GEO in Q2 2025[3, 4] - Séguéla mine produced 38,186 ounces of gold in Q2 2025[4] - Lindero mine produced 23,550 ounces of gold in Q2 2025[4] Cost Metrics - Cash cost at Séguéla mine was $670/oz Au in Q2 2025[4] - All-in sustaining cost (AISC) at Séguéla mine was $1,634/oz Au in Q2 2025[4] - Consolidated AISC is guided between $1,670 and $1,765/GEO for 2025[32] Resource Expansion - Increased gold resources at Diamba Sud with 724 koz Indicated (53% increase) and 285 koz Inferred (93% increase)[3]

Core Viewpoint - Fortuna Mining Corp. reported strong financial and operational results for Q2 2025, highlighting a robust liquidity position and significant production achievements, while also outlining growth opportunities in upcoming projects [2][7]. Financial Highlights - The company achieved free cash flow from ongoing operations of $57.4 million in Q2 2025, a decrease from $66.7 million in Q1 2025 [18]. - Net cash from operating activities before working capital changes was $96.9 million, or $0.32 per share [7][17]. - Attributable net income from continuing operations was $42.6 million, or $0.14 per share, reflecting a QoQ increase of $0.03 [7][16]. - Adjusted EBITDA margins reached a record 55%, up from 50% in Q1 2025, driven by higher realized gold prices [7][16]. Operational Performance - The company delivered a total of 75,950 gold equivalent ounces in Q2 2025, maintaining its annual production guidance [2][7]. - Consolidated AISC (All-in Sustaining Cost) per gold equivalent ounce from continuing operations was $1,932, an increase from $1,752 in Q1 2025, primarily due to capital expenditures and mine waste stripping [15][19]. - The Séguéla Mine produced 38,186 ounces of gold at an average grade of 3.00 g/t, with a cash cost of $670 per ounce [26][29]. Growth and Business Development - The company is advancing the Diamba Sud project in Senegal, reporting an Indicated Mineral Resource of 724,000 gold ounces, with plans for a preliminary economic assessment (PEA) by Q4 2025 [6][8]. - Fortuna completed the divestment of two short-life mines, generating $83.8 million in gross proceeds, allowing for a reallocation of capital towards higher-value opportunities [9]. Capital Expenditures - Total capital expenditures for Q2 2025 included $31.4 million in sustaining capital and $15.6 million in growth capital, reflecting a 56% increase compared to the previous quarter [12][18].

Core Viewpoint - Fortuna Mining Corp. has released an updated Mineral Resource estimate for the Diamba Sud Gold Project in Senegal, indicating significant increases in both Indicated and Inferred Mineral Resources as of July 7, 2025 [1][8]. Summary by Category Mineral Resource Estimates - The Diamba Sud Gold Project contains an Indicated Mineral Resource of 14.2 million tonnes (Mt) at an average gold grade of 1.59 grams per tonne (g/t), equating to 724,000 ounces of gold [3][6]. - The Inferred Mineral Resource is estimated at 6.2 Mt with an average gold grade of 1.44 g/t, containing 285,000 ounces of gold [3][10]. - The Indicated Mineral Resource has increased by 53% since year-end 2024, while the Inferred Mineral Resource has seen a 93% increase over the same period [8]. Drilling and Resource Expansion - The updated estimate is based on new drilling conducted from July 2024 to July 2025, involving 243 holes and totaling 31,652 meters [4]. - New resource estimates for the Southern Arc and Moungoundi deposits have been introduced, with initial Inferred Mineral Resource estimates of 194,000 ounces and 31,000 ounces of gold, respectively [8][10]. Economic Analysis and Future Plans - A Preliminary Economic Analysis (PEA) is currently underway, with completion expected in the fourth quarter of 2025 [8]. - Exploration drilling at Southern Arc is ongoing, focusing on infilling and expansion drilling to upgrade Inferred Resources and explore open mineralization [9]. Geological Interpretation and Methodology - Infill drilling has improved geological interpretation and supported the conversion of Inferred Resources to Indicated Resources [9]. - The resource estimate incorporates data from 1,178 diamond and reverse circulation drill holes, totaling 154,814 meters, completed since 2019 [11]. Price Assumptions and Cost Refinements - The long-term gold price assumption has been increased to $2,600 per ounce, which, along with refinements to mining and processing costs, has contributed to updated pit shell optimization [9][26].