Fortuna(US:FSM)2026-02-19 18:02Financial Data and Key Metrics Changes - The company reported record adjusted net income of $0.23 per share for Q4 2025, aligning with analysts' consensus, and net cash from operations before working capital adjustments was $0.48 per share, exceeding estimates of $0.43 [4] - Free cash flow reached $132 million for the quarter and $330 million for the full year, indicating strong operational performance and a robust balance sheet with over $700 million in liquidity and a net cash position of approximately $380 million [4][27] - Attributable net income for the quarter was $68.1 million, or $0.22 per share on an adjusted basis, a significant increase from $0.06 in Q4 2024 and $0.17 in Q3 2025, primarily driven by higher gold prices [22] Business Line Data and Key Metrics Changes - Séguéla produced 36,942 ounces of gold in Q4 2025, totaling 152,426 ounces for the full year, exceeding guidance by 4% [10] - Lindero's full-year gold production totaled 87,489 ounces, approximately 6% below the lower end of guidance due to mechanical downtime in Q4 [16] - Caylloma produced 250,000 ounces of silver in Q4 2025, maintaining production levels consistent with previous quarters [18] Market Data and Key Metrics Changes - The average realized gold price was $4,166 per ounce, an increase of over $1,500 per ounce compared to previous periods, while consolidated cash costs rose only marginally by 5% to $971 per ounce [22] - AISC for Séguéla was $1,576 per ounce for Q4 and $1,560 per ounce for the full year, reflecting cost discipline despite higher royalties [12] Company Strategy and Development Direction - The company aims to grow annual gold production to over 500,000 ounces within 24 months, representing approximately 65% growth from current levels, with key projects being Diamba Sud in Senegal and Séguéla in Ivory Coast [5] - A $100 million budget has been approved for Diamba Sud, with $67 million allocated for early works, including camp facilities and major excavations [7] - Séguéla is preparing for a plant upgrade study to evaluate throughput expansion options that could increase annual production to 200,000 ounces [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production growth through controlled and executable plans, supported by a strong balance sheet and quality assets [5] - The company is focused on mitigating risks associated with equipment delivery times and securing critical resources for project advancement [47] Other Important Information - The company recorded a foreign exchange loss of $2.9 million for Q4 and $7.8 million for the full year, primarily due to operations in Argentina [24] - Total capital expenditures were $44.5 million for Q4 and $178.1 million for the full year, with significant allocations for sustaining capital and growth initiatives [26] Q&A Session Summary Question: Update on Diamba Sud resource and production profile - Management indicated that the updated resource will extend the mine life and improve the production profile due to higher grades [32] Question: Gold price assumptions for Diamba Sud - The company uses a gold price of $3,300 for resource estimates and $2,600 for reserves, reflecting current market adjustments [34] Question: Production cadence for 2026 - Production is expected to be steady, with Lindero experiencing softer production in the first half due to planned improvements [36] Question: Plans to achieve 500,000 ounces production - Management detailed that Séguéla's expansion and Diamba Sud's development will contribute to reaching the target, with specific CapEx estimates provided [41][42] Question: Underground development plans for Sunbird - Production from the underground is anticipated to start in late 2027 or early 2028, pending permitting approvals [60]