Fortuna(FSM) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The average gold price realized was $3,467 per ounce, up 5% from Q2 and 20% from Q1 [4] - Attributable net income reached $123.6 million, or $0.40 per share, driven by a $69 million impairment reversal at the Lindero mine [5][24] - Adjusted net income was $0.17 per share, impacted by higher share-based compensation and a $7.4 million foreign exchange loss in Argentina [5][25] - Free cash flow from operations was $73 million, surpassing analyst consensus of $0.36 per share [5][27] - Liquidity position at the end of the quarter was $588 million, with a net cash position of $266 million [6][27] Business Line Data and Key Metrics Changes - Séguéla produced 38,799 ounces of gold, maintaining consistency with prior quarters and surpassing the mine plan [13] - Lindero achieved gold output of 24,417 ounces, a 4% rise from Q2, driven by a 5% increase in gold grade [18] - Caylloma maintained steady production, with cash costs per silver equivalent ounce at $17.92, up from $15.16 in Q2 [21] Market Data and Key Metrics Changes - The cash cost per ounce for the quarter was $942, broadly aligned with the prior quarter [24] - The all-in sustaining cost decreased significantly to $1,570 per ounce from $1,783 in Q2 [20] Company Strategy and Development Direction - The company is focused on capital allocation towards near-term growth projects, including the Ambasud project and expanding Séguéla's processing infrastructure [31] - Strategic investments in Awale Resources and a joint venture with Soto Resources position the company for growth in the Siguiri Basin [7] Management Comments on Operating Environment and Future Outlook - The business climate in Argentina has improved significantly, and the company remains optimistic about the country's trajectory [11] - In Côte d'Ivoire, the re-election of President Alassane Ouattara is expected to continue pro-business policies [11] - The company anticipates strong production growth driven by the Ambasud and Séguéla projects [12] Other Important Information - The company recorded $13.5 million in withholding taxes related to the repatriation of $118 million from Argentina and Côte d'Ivoire [5] - Capital expenditures for the quarter totaled $48.5 million, with an upward adjustment of anticipated capital expenditures for the full year to approximately $190 million [26][27] Q&A Session Summary Question: How is the company thinking about capital allocation priorities? - The company prioritizes near-term growth projects, including the Ambasud project and potential expansion of Séguéla's processing infrastructure [31] Question: How should the company think about costs into Q4 following the unexpected shutdown at Lindero? - The company does not expect significant cost impacts in Q4 due to effective mitigation strategies [34]