Fortuna Mining (FSM) Q2 Earnings Miss, Revenues Surge Y/Y

Core Viewpoint - Fortuna Mining Corp. reported significant year-over-year improvements in earnings and production metrics for Q2 2024, despite missing the earnings consensus estimate. Financial Performance - Earnings per share for Q2 2024 were 13 cents, below the Zacks Consensus Estimate of 16 cents, but improved from 1 cent in the same quarter last year [1] - Adjusted attributable net income rose to $30.4 million from $2.5 million year-over-year [1] - Revenues surged 64% year-over-year to $260 million, driven by a 61% increase in gold sales volumes [2] - Adjusted EBITDA increased 154% year-over-year to $113 million, with an adjusted EBITDA margin of 43.3% compared to 28% in the prior year [6] Production Metrics - Gold equivalent production increased 25% year-over-year to 116,570 ounces, with gold production at 92,716 ounces, up 44% from the previous year [3] - Silver production decreased by 22% to 990,574 ounces [3] - The Séguéla mine contributed significantly to gold production, yielding 32,983 ounces in Q2 2024 compared to 4,023 ounces in the same quarter last year [4] Cost Structure - All-In Sustaining Cost per gold equivalent ounce was $1,656, down 8% from $1,799 in the year-ago quarter [5] - Consolidated cash costs per ounce of gold equivalent sold were $988, a 2% increase from the second quarter of 2023 [5] Cash Position - Fortuna Mining ended Q2 2024 with approximately $106 million in cash and cash equivalents, down from $128 million at the end of the previous year [7] - Net cash flow from operating activities was $38.6 million, compared to $9.5 million in Q2 2023 [7] Market Performance - Shares of Fortuna Mining have gained 46.8% over the past year, contrasting with a 0.4% decline in the industry [8]