Fortuna reports record earnings for the third quarter of 2024 | FSM Stock News

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    Fortuna Mining reported record Q3 2024 financial results with attributable net income of $50.5 million ($0.16 per share) and operating cash flow of $119.3 million. The company produced 110,820 ounces of gold equivalent at a cash cost of $1,059 per ounce. Key highlights include achieving a positive net cash position of $8.0 million, increased liquidity to $430.6 million, and consolidated sales of $274.9 million (up 13% year-over-year). The company remains on track to meet its annual production guidance of 457-497 koz gold equivalent.

    Fortuna Mining ha riportato risultati finanziari record per il terzo trimestre del 2024, con un reddito netto attribuibile di 50,5 milioni di dollari (0,16 dollari per azione) e un flusso di cassa operativo di 119,3 milioni di dollari. L’azienda ha prodotto 110.820 once di equivalente oro a un costo di cassa di 1.059 dollari per oncia. I punti salienti includono il raggiungimento di una posizione di cassa netta positiva di 8,0 milioni di dollari, un aumento della liquidità a 430,6 milioni di dollari e vendite consolidate di 274,9 milioni di dollari (in aumento del 13% rispetto all’anno precedente). L’azienda è sulla buona strada per soddisfare le sue previsioni annuali di produzione di 457-497 koz di equivalente oro.

    Fortuna Mining informó resultados financieros récord para el tercer trimestre de 2024, con un ingreso neto atribuible de 50.5 millones de dólares (0.16 dólares por acción) y un flujo de efectivo operativo de 119.3 millones de dólares. La compañía produjo 110,820 onzas de equivalente de oro a un costo de efectivo de 1,059 dólares por onza. Los puntos destacados incluyen el logro de una posición neta de efectivo positiva de 8.0 millones de dólares, un aumento de la liquidez a 430.6 millones de dólares y ventas consolidadas de 274.9 millones de dólares (un incremento del 13% interanual). La empresa sigue en camino de cumplir con su guía de producción anual de 457-497 koz de equivalente de oro.

    Fortuna Mining는 2024년도 3분기 재무 결과에서 5050만 달러의 귀속 순이익 (주당 0.16달러)과 1억 1930만 달러의 운영 현금 흐름을 기록했습니다. 이 회사는 110,820 온스의 금에 상당하는 양을 생산했으며, 현금 비용은 온스당 1,059달러였습니다. 주요 하이라이트로는 800만 달러의 긍정적인 순 현금 위치 달성, 유동성을 4억 3060만 달러로 증가시킨 점, 그리고 총 매출이 2억 7490만 달러(전년 대비 13% 증가)인 점이 있습니다. 이 회사는 연간 생산 지침인 457-497koz의 금에 상당하는 양을 만족시키기 위해 순조롭게 진행되고 있습니다.

    Fortuna Mining a annoncé des résultats financiers record pour le troisième trimestre de 2024, avec un revenu net attribuable de 50,5 millions de dollars (0,16 dollar par action) et un flux de trésorerie d’exploitation de 119,3 millions de dollars. L’entreprise a produit 110 820 onces d’équivalent or à un coût en espèces de 1 059 dollars par once. Les points forts comprennent l’atteinte d’une position de trésorerie nette positive de 8,0 millions de dollars, une augmentation de la liquidité à 430,6 millions de dollars et des ventes consolidées de 274,9 millions de dollars (en hausse de 13 % d’une année sur l’autre). L’entreprise est en bonne voie pour atteindre ses prévisions de production annuelle de 457-497 koz d’équivalent or.

    Fortuna Mining hat für das dritte Quartal 2024 Rekordergebnisse veröffentlicht, mit einem attributablen Nettogewinn von 50,5 Millionen US-Dollar (0,16 US-Dollar pro Aktie) und einem operativen Cashflow von 119,3 Millionen US-Dollar. Das Unternehmen produzierte 110.820 Unzen Goldäquivalent zu einem Barkosten von 1.059 US-Dollar pro Unze. Zu den wichtigsten Highlights gehören die Erreichung einer positiven Nettobankposition von 8,0 Millionen US-Dollar, eine erhöhte Liquidität von 430,6 Millionen US-Dollar und konsolidierte Verkäufe von 274,9 Millionen US-Dollar (ein Anstieg von 13 % im Jahresvergleich). Das Unternehmen liegt weiterhin im Plan, um seine jährliche Produktionsprognose von 457-497 koz Goldäquivalent zu erreichen.

    Positive

    • Record attributable net income of $50.5M, up 84% YoY
    • Operating cash flow before working capital reached $119.3M
    • Achieved positive net cash position of $8.0M
    • Sales increased 13% YoY to $274.9M
    • Liquidity improved to $430.6M from $355.6M in Q2

    Negative

    • Cash costs increased 30% YoY to $1,059/oz Au Eq
    • AISC rose 29% YoY to $1,696/oz Au Eq
    • Gold equivalent production decreased from 116,570 oz in Q2 to 110,820 oz
    • Free cash flow declined 19% YoY to $56.6M

    Insights

    Record financial performance with $50.5 million attributable net income shows significant improvement over prior periods. Key positives include $119.3 million operating cash flow and achieving positive net cash position of $8.0 million. Strong liquidity position of $430.6 million provides financial flexibility.

    Production costs remain a concern with AISC at $1,696/oz tracking above guidance, impacted by Argentine peso appreciation and higher sustaining capital needs. However, several operational optimization initiatives could drive meaningful cost improvements, including solar power conversion at Lindero potentially saving $16 million annually pre-tax.

    The reduction in credit facility from $250 million to $150 million demonstrates conservative financial management and reduced reliance on debt, while maintaining strong liquidity through the $75 million accordion feature.

    Strong operational performance at Séguéla with 35% higher throughput than nameplate capacity represents significant optimization success without major capital investment. This early achievement of 2026 expansion targets demonstrates operational excellence.

    Production challenges at San Jose in its final reserve year and currency headwinds at Lindero are pressuring costs. However, multiple efficiency initiatives are underway, including grind optimization and processing improvements. The $42 million Lindero leach pad expansion, while impacting current AISC by $90/oz, positions the operation for future growth.

    Grade variability at Yaramoko requires accelerated development to access new resources, though exploration success at Kingfisher (14.2 g/t Au over 16.8m) shows promising resource expansion potential.

    (All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)

    VANCOUVER, British Columbia, Nov. 06, 2024 (GLOBE NEWSWIRE) — Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) (“Fortuna” or the “Company”) today reported its financial and operating results for the third quarter of 2024.

    “In the third quarter, a focus on cost discipline and safe operations allowed Fortuna to capture the benefit of rising metal prices and achieve record attributable earnings of $50.5 million and record operating cash flow before working capital changes of $119.3 million.” said Jorge Ganoza, Fortuna’s President and CEO. Mr. Ganoza continued, “Our mines delivered 110,820 ounces of gold equivalent production at a cash cost per ounce of $1,059 as we remain well positioned to finish the year within our cost and production guidance.” Mr. Ganoza added, “The Company also achieved a key milestone with a positive net cash position at the end of the quarter and we recently renegotiated our credit facility reducing financial costs and providing additional financial flexibility.”

    Third Quarter 2024 highlights

    Financial

    • Attributable net income of $50.5 million or $0.16 per share, compared to $40.6 million or $0.13 per share in Q2 2024
    • Adjusted attributable net income1 of $49.9 million or $0.16 per share, compared to $30.4 million or $0.10 per share in Q2 2024
    • Generated $119.3 million (or $0.38 per share) of cash flow from operations before working capital changes, and free cash flow from ongoing operations1 of $56.6 million, compared to $93.0 million (or $0.30 per share) and $38.6 million, respectively, in Q2 2024
    • As at the end of the quarter, the Company had a cash position of $180.6 million and achieved a positive net cash1 position of $8.0 million. Liquidity increased to $430.6 million from $355.6 million at the end of Q2 2024
    • Subsequent to the end of the quarter, the Company resized its revolving credit facility from $250.0 million to $150.0 million and increased the uncommitted accordion to $75.0 million from $50.0 million reducing its reliance on bank debt. The revolving debt facility remains fully undrawn2

    Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
    2 Excluding letters of credit
    3 Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $2,490/oz Au, $29.4/oz Ag, $2,040/t Pb, and $2,782/t Zn for Q3 2024; $2,334/oz Au, $29.1/oz Ag, $2,157/t Pb and $2,835/t Zn or Au:Ag = 1:80.19, Au:Pb = 1:1.08, Au:Zn = 1:0.82 for Q2 2024. And the following metal prices for YTD Q3-2024  $2,307/oz Au, $27.1/oz Ag, $2,091/t Pb, and $2,692/t Zn

    Operational        

    • Gold equivalent3 production of 110,820 ounces, compared to 116,570 ounces in Q2 2024. Nine month gold equivalent production of 339,933 ounces, aligned to meet annual guidance of 457 to 497 koz. For full details refer to our News Release titled “Fortuna reports solid production of 110,820 gold equivalent ounces for the third quarter of 2024” dated October 10, 2024
    • Consolidated cash costs1 per ounce of gold equivalent sold of $1,059 for the quarter and $977 year to date remain largely aligned with annual guidance of $935 to $1,055; adjusting for San Jose, which is mining its last year of Mineral Reserves, consolidated cash costs were $935 for the quarter
    • Consolidated all-in sustaining cash costs (AISC)1 per ounce of gold equivalent sold of $1,696 for the quarter and $1,618 year to date, are tracking at the upper end of annual guidance of $1,485 to $1,640; adjusting for San Jose, consolidated AISC was $1,594. The leach-pad expansion for Lindero is a one-time $42 million capital project in 2024 set for completion in Q4 and weighs approximately $90 per ounce on our annual consolidated AISC
    • The Company recorded one lost time injury in the quarter and a year-to-date total recordable injury frequency rate of 1.37

    Growth and Development

    • At the newly discovered Kingfisher prospect at the Séguéla Mine the Company intersected 14.2 g/t gold over 16.8 meters. For full details refer to our News Release titled “Fortuna intersects 14.2g/t Au over 16.8 meter at the Kingfisher prospects, Séguéla Mine, Côte d’Ivoire” dated September 10, 2024
    • Exploration continued at the Diamba Sud exploration project with an intersect of 6.9 g/t gold over 33.3 meters at the Western Splay prospect. For full details refer to our News Release titled “Fortuna intersects 6.9g/t Au over 33.3. meters at the Diamba Sud Project, Senegal” dated September 12, 2024

    Third Quarter 2024 Consolidated Results

                           
      Three months ended September 30,   Nine months ended September 30,
    (Expressed in millions) 2024     2023   % Change   2024   2023   % Change
    Sales 274.9     243.1   13 %   759.8   577.1   32 %
    Mine operating income 86.9     65.9   32 %   236.8   138.2   71 %
    Operating income 72.7     45.4   60 %   175.2   77.0   128 %
    Attributable net income 50.5     27.5   84 %   117.4   41.5   183 %
    Attributable income per share – basic 0.16     0.09   78 %   0.38   0.14   171 %
    Adjusted attributable net income1 49.9     29.6   69 %   107.3   44.3   142 %
    Adjusted EBITDA1 131.3     104.6   26 %   339.1   214.0   58 %
    Net cash provided by operating activities 92.9     106.5   (13 %)   215.4   191.8   12 %
    Free cash flow from ongoing operations1 56.6     70.0   (19 %)   107.3   87.3   23 %
    Cash cost ($/oz Au Eq)1 1,059     814   30 %   977   887   10 %
    All-in sustaining cash cost ($/oz Au Eq)1 1,696     1,313   29 %   1,618   1,508   7 %
    Capital expenditures2                      
    Sustaining 38.4     27.2   41 %   94.1   89.3   5 %
    Non-sustaining3 12.3     1.3   846 %   38.8   3.4   1,041 %
    Séguéla construction     1.9   (100 %)     50.0   (100 %)
    Brownfields (0.5 )   3.3   (115 %)   9.0   10.7   (16 %)
    As at             September 30,
    2024
      December 31,
    2023
      % Change
    Cash and cash equivalents       180.6   128.1   41 %
    Net liquidity position (excluding letters of credit)             430.6   213.1   102 %
    Shareholder’s equity attributable to Fortuna shareholders             1,420.4   1,238.4   15 %
    1 Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
    2 Capital expenditures are presented on a cash basis  
    3 Non-sustaining expenditures include greenfields exploration  
    Figures may not add due to rounding  
       

    Third Quarter 2024 Results

    Cash Costs and AISC
    Consolidated cash cost per equivalent gold ounce was $1,059, compared to $814 in the third quarter of 2023. The increase in cash cost is explained mainly by lower stripping and mining costs during Séguéla’s first quarter of operations in Q3 2023; lower head grades and throughput at San Jose in its last year of Mineral Reserves; higher cash costs per ounce at Yaramoko related to lower head grades and higher mining and indirect costs. Cash cost per ounce for the quarter and for the year remain largely aligned with annual guidance.

    All-in sustaining costs per gold equivalent ounce was $1,696 for the third quarter of 2024 compared to $1,313 for the third quarter of 2023. The increase was primarily the result of higher sustaining capital at Lindero related to the expansion of the leach-pad, and higher cash cost per ounce as described above.

    AISC Performance vs 2024 Guidance
    All-in sustaining costs per gold equivalent ounce sold for the nine months ending September 30, 2024 was $1,618 and is expected to be at the higher end of guidance for the year as a result of the following:

    • Real currency appreciation of the Argentine Peso increasing Lindero’s cash costs by 9%
    • Increased sustaining capital costs to accelerate 2025 development at Yaramoko to access newly identified mineral resources
    • Lower production compared to plan at San Jose due to operational challenges in its last year of reserves

    The Company has several continuous improvement initiatives in place. Some of the key ongoing projects are:

    • Séguéla process optimization: In Q3 2024 Séguéla achieved 35% higher throughput than nameplate capacity, and 20% higher than our 2024 mine plan. This increase already exceeds the capacity expansion scheduled in the technical report for 2026. The expansion has been achieved with minimal capex.
    • Lindero: Several productivity and cost reduction projects representing annual incremental profit of $16 million (pre-tax) consisting mainly of the following: increased gold recovery from grind size optimization, ADR plant incremental flow, haulage fleet optimization, and conversion from diesel power generation to solar.

    Attributable Net Income and Adjusted Attributable Net Income
    Net income attributable to Fortuna for the quarter was $50.5 million compared to $27.5 million in Q3 2023. After adjusting for non-cash and non-recurring items, adjusted attributable net income for the quarter was $49.9 million compared to $29.6 million in Q3 2023.

    The increase in net income and adjusted net income was explained mainly by higher realized gold and silver prices partially offset by lower gold sales volume and higher costs per ounce. The realized gold and silver prices were $2,490 and $29.4 per ounce respectively compared to $1,925 and $23.7 per ounce, respectively, for the comparable period in the prior year. The decrease in gold sales volume was primarily due to lower production at Yaramoko and San Jose as per the mine plans. The higher cost per ounce was primarily at Séguéla, San Jose and Yaramoko as described above.

    Adjusted net income for the quarter also benefited from $3.4 million of foreign exchange gains related to the appreciation of the Euro during the quarter, $3.2 million of investment income related to cross-border, Argentine pesos denominated bond trades, and lower interest expenses.

    Depreciation and Depletion
    Depreciation and depletion for the third quarter of 2024 was $59.3 million compared to $63.4 million in the comparable period. The decrease in depreciation and depletion was primarily the result of lower depreciation and depletion at San Jose due to an impairment charge in the fourth quarter of 2023 and lower depletion per ounce in the 55 Zone at Yaramoko, partially offset by higher depletion at Séguéla. Depletion at Séguéla in the quarter includes $16.8 million of the purchase price related to the acquisition of Roxgold Inc in 2021.

    Cash Flow
    Net cash generated by operations for the quarter was $92.9 million compared to $106.5 million in Q3 2023. Excluding changes in working capital, net cash from operations was $119.3 million compared to $106.2 million in the comparative period. The increase of $13.1 million reflects higher adjusted EBITDA of $25.8 million offset mainly by higher taxes paid of $8.9 million mostly at Séguéla.

    Negative working capital for the quarter of $26.4 million was due to an increase of $24.5 million in receivables primarily due to the timing of trade receivables and VAT collection. At the end of the quarter the balance of VAT receivables at Yaramoko was $45.0 million.

    In the third quarter of 2024 capital expenditures on a cash basis amounted to $50.2 million consisting of $37.9 million of sustaining capital, including brownfields exploration, and $12.3 million of non-sustaining capital. Year to date capital expenditures were $141.9 million consisting of $103.1 million of sustaining capital and $38.8 million non-sustaining capital.

    Free cash flow from ongoing operations for the quarter was $56.6 million, compared to $70.0 million in the comparable period. The decrease in free cash flow, despite higher metal prices in the quarter, is explained mainly by negative working capital of $26.4 million compared to $nil in the third quarter of 2023, capital expenditures for the Lindero leach pad expansion and higher taxes paid due to the third and final tax installment at Séguéla for 2023 taxes. The comparable period also had a number of one-time benefits that lowered the cost of production at Séguéla.

    General and Administrative Expenses
    General and administrative expenses for the current quarter of $16.0 million were 10% higher than the same period in 2023 due mainly to higher share-based compensation expenses. G&A comprises the following items:

      Three months ended September 30,   Nine months ended September 30,
    (Expressed in millions) 2024   2023   % Change   2024   2023   % Change
    Mine G&A   9.9     8.4   18 %     26.6     20.5   30 %
    Corporate G&A   3.9     5.5   (29 %)     19.8     19.7   1 %
    Share-based payments   2.1     0.5   320 %     10.1     3.8   166 %
    Workers’ participation   0.1     0.2   (50 %)     0.2     0.2   0 %
    Total   16.0     14.6   10 %     56.7     44.2   28 %

    Liquidity

    The Company’s total liquidity available as of September 30, 2024 was $430.6 million comprised of $180.6 million in cash and cash equivalents, and the fully undrawn $250.0 million revolving credit facility (excluding letters of credit). Effective October 31, 2024, the Company amended its credit facility reducing the amount of the facility to $150 million from $250 million (the facility would have stepped down to $175 million in November 2024), and increased the uncommitted accordion option from $50 million to $75 million. An improved pricing grid and covenant flexibility was negotiated under the amended facility.

    Séguéla Mine, Côte d’Ivoire

        Three months ended September 30,     Nine months ended September 30,
        2024     2023     2024     2023
    Mine Production                      
    Tonnes milled   418,390     310,387     1,131,684     419,992
    Average tonnes crushed per day   4,548     3,695     4,115     2,762
                           
    Gold                      
    Grade (g/t)   2.69     3.83     2.94     3.28
    Recovery (%)   92     93     93     94
    Production (oz)   34,998     31,498     102,537     35,521
    Metal sold (oz)   33,816     35,503     101,369     35,503
    Realized price ($/oz)   2,494     1,927     2,305     1,927
                           
    Unit Costs                      
    Cash cost ($/oz Au)1   655     397     559     397
    All-in sustaining cash cost ($/oz Au)1   1,176     788     1,073     788
                           
    Capital Expenditures ($000’s)2                      
    Sustaining   5,992     3,147     14,827     3,147
    Sustaining leases   2,332     3,044     7,034     3,044
    Non-sustaining   4,797         14,437    
    Brownfields   187         6,273    
    Cash cost and All-in sustaining cash cost are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.
    Capital expenditures are presented on a cash basis
     

    During the third quarter of 2024, mine production totaled 484,050 tonnes of ore, averaging 2.48 g/t Au, and containing an estimated 38,661 ounces of gold from the Antenna, Ancien and Koula pits. Movement of waste during the quarter totaled 2,935,335 tonnes, for a strip ratio of 6:1. Production was mainly focused from the Antenna pit which produced 412,063 tonnes of ore, with the balance of production sourced from the Koula and Ancien pits.

    In the third quarter of 2024, Séguéla processed 418,390 tonnes, producing 34,998 ounces of gold, at an average head grade of 2.69 g/t Au, an 11% increase and 30% decrease, respectively, compared to the third quarter in 2023. The decrease in gold grade is in line with the planned mining sequence. Plant throughput for the quarter averaged 208 tonnes per hour (tph), 35% higher than name plate design capacity of 154 tph. The power outages that were experienced in the second quarter did not affect processing plant operations in the third quarter and enabled an increase in the tonnes processed. However, a failure of the drive shaft of the main apron feeder in early July required a repair which reduced throughput rates while the repairs were completed. Throughput rates were subsequently increased, averaging 216 tph in September.

    The cash cost per gold ounce sold was $655 for the quarter ended September 30, 2024, compared to $397 in the same period of 2023. The increase is explained by the higher head grade and low-cost production associated with Séguéla´s first quarter of operations in the comparative period. The lower cost of production was mostly related to low-strip mining, shorter haulage, and lower maintenance costs.

    The all-in sustaining cash cost per gold ounce sold was $1,176 for the quarter ending September 30, 2024, an increase from $788 for the same period in 2023. This increase is due to increased cash costs and increased sustaining capital expenditures in 2024 for stripping activities.

    Looking forward into 2025, the Séguéla mine plans to operate at approximately 35 percent higher throughput rate compared to nameplate design, and at a stripping ratio closer to the Mineral Reserve average of 13:1 compared to 6:1 year to date. The higher throughput achieved through optimization initiatives in 2024 has not required any material capital expenditures. As a result of sustained higher production rates, the mine will correspondingly face an acceleration of infrastructure requirements in the approximate amount of $10 million above 2024 infrastructure capex figures. These capital projects are primarily related to the early expansion of the tailings storage facility, relocation of the Sunbird communications tower for development of the Sunbird pit, and land access to new mineral deposits and related compensation payments. Management anticipates that advancing these infrastructure projects will unlock annual target production rates of between 140k to 200k ounces in our life of mine plans.

    Yaramoko Mine, Burkina Faso

                           
        Three months ended September 30,     Nine months ended September 30,
           2024          2023        2024        2023
    Mine Production                      
    Tonnes milled   123,754       137,281     352,864     421,133
                           
    Gold                      
    Grade (g/t)   6.71       7.72     7.92     6.52
    Recovery (%)   98       99     98     98
    Production (oz)   28,006       34,036     86,630     89,476
    Metal sold (oz)   27,995       33,971     86,621     89,448
    Realized price ($/oz)   2,474       1,932     2,304     1,932
                           
    Unit Costs                      
    Cash cost ($/oz Au)1   974       753     876     764
    All-in sustaining cash cost ($/oz Au)1   1,373       1,213     1,379     1,429
                           
    Capital Expenditures ($000’s)2                      
    Sustaining   5,381       9,451     20,112     37,318
    Sustaining leases   1,002       1,161     3,069     3,681
    Non-sustaining   2,463           4,005    
    Brownfields   (1,217 )     1,447     1,543     3,656

    1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures; refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.

    2 Capital expenditures are presented on a cash basis.

    In the third quarter of 2024, 123,754 tonnes of ore were treated at an average head grade of 6.71 g/t Au, producing 28,006 ounces of gold. This represents a 13% decrease in grade and an 18% decrease in production, when compared to the same period in 2023. The gold grade was lower than predicted in the mine plan due to continuing development operations providing lower grade ore and the milling of supplementary low-grade stockpiles.

    During the quarter, 80,740 tonnes of ore were mined averaging 7.41 g/t Au from the 55 Zone, and 21,905 tonnes of ore averaging 9.02 g/t Au from QV Prime, totaling 102,645 tonnes averaging 7.75 g/t Au.

    The cash cost per ounce of gold sold for the quarter ended September 30, 2024, was $974, compared to $753 in the same period in 2023. The increase for the quarter is mainly attributed to higher mining and indirect costs and lower volume of ounces sold due to lower grades.

    The all-in sustaining cash cost per gold ounce sold was $1,373 for the quarter ended September 30, 2024, compared to $1,213 in the same period of 2023. The increase in the quarter was primarily due to higher cash costs described above, and a change in the royalty regime in Burkina Faso which increased the royalty rate from 5% to 7% when the gold price is over $2,000 per ounce. This was partially offset by lower sustaining capital expenditure in 2024.

    Lindero Mine, Argentina

        Three months ended September 30,     Nine months ended September 30,
        2024     2023     2024     2023
    Mine Production                      
    Tonnes placed on the leach pad   1,654,101     1,467,578     4,610,215     4,449,049
                           
    Gold                      
    Grade (g/t)   0.66     0.62     0.62     0.65
    Production (oz)   24,345     20,933     70,481     71,647
    Metal sold (oz)   26,655     22,242     69,886     74,194
    Realized price ($/oz)   2,503     1,910     2,316     1,923
                           
    Unit Costs                      
    Cash cost ($/oz Au)1   1,042     987     1,047     915
    All-in sustaining cash cost ($/oz Au)1   1,962     1,609     1,881     1,568
                           
    Capital Expenditures ($000’s)2                      
    Sustaining   20,678     7,669     46,636     28,751
    Sustaining leases   586     598     1,771     1,795
    Non-sustaining   219     353     568     676

    1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures; refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.

    2 Capital expenditures are presented on a cash basis.

    Quarterly Operating and Financial Highlights

    During the third quarter of 2024, 2.1 million tonnes of ore were mined, with a stripping ratio of 1:1. A total of 1,654,101 tonnes of ore was placed on the heap leach pad at an average gold grade of 0.66 g/t, containing an estimated 34,925 ounces of gold. The 13% increase in tonnes placed on the leach pad, when compared to the third quarter of 2023, is mainly due to mine sequencing.

    Lindero’s total gold production for the quarter was 24,345 ounces of gold, comprised of 22,569 ounces in doré bars, 1,754 ounces contained in rich fine carbon, and 21 ounces contained in copper precipitate. The 16% increase from the third quarter of 2023, is due to an increase in tonnes placed on the leach pad and higher gold grade in the third quarter of 2024.

    The cash cost per ounce of gold for the quarter ended September 30, 2024 was $1,042 compared to $987 in the same period of 2023. The increase in cash cost per ounce of gold was related to increased mine costs as a result of additional heavy equipment rentals and labour costs.

    The all-in sustaining cash cost per gold ounce sold during Q3 2024 was $1,962, an increase from $1,609 in the third quarter of 2023. The increase for the quarter was primarily due to higher cash costs as described above and higher sustaining capital expenditures to support the expansion of the heap leach pad which accounted for $580 per ounce in the quarter.

    As of September 30, 2024, the $51.8 million leach pad expansion project ($41.7 million capital investment in 2024) was approximately 76% complete and tracking on budget. Procurement is complete, with items onsite. Liner installation is approximately 44% complete. In October of 2024, the Company started placing ore on the leach pad expansion and practical completion is expected by year-end. Minor construction activities and contractor demobilization are planned for early 2025.

    San Jose Mine, Mexico

                           
        Three months ended September 30,     Nine months ended September 30,
        2024     2023     2024     2023
    Mine Production                      
    Tonnes milled   188,212     247,542     545,529     689,165
    Average tonnes milled per day   2,163     2,845     2,106     2,790
                           
    Silver                      
    Grade (g/t)   99     189     128     180
    Recovery (%)   86     91     87     91
    Production (oz)   510,741     1,372,530     1,954,028     3,633,107
    Metal sold (oz)   533,812     1,347,719     1,946,637     3,618,723
    Realized price ($/oz)   29.45     23.65     27.12     23.37
                           
    Gold                      
    Grade (g/t)   0.74     1.14     0.90     1.11
    Recovery (%)   85     91     86     90
    Production (oz)   3,771     8,205     13,573     22,215
    Metal sold (oz)   3,941     8,068     13,411     22,118
    Realized price ($/oz)   2,484     1,932     2,296     1,930
                           
    Unit Costs                      
    Cash cost ($/oz Ag Eq)1,2   29.40     13.73     25.01     13.37
    All-in sustaining cash cost ($/oz Ag Eq)1,2   32.65     18.04     27.67     18.66
                           
    Capital Expenditures ($000’s)3                      
    Sustaining       3,462         10,828
    Sustaining leases   198     256     675     632
    Non-sustaining   2,535     385     8,325     1,178
    Brownfields       1,082         2,958

    1 Cash cost per ounce of silver equivalent and All-in sustaining cash cost per ounce of silver equivalent are calculated using realized metal prices for each period respectively.
    2 Cash cost per ounce of silver equivalent, and all-in sustaining cash cost per ounce of silver equivalent are non-IFRS financial measures, refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
    3 Capital expenditures are presented on a cash basis

    In the third quarter of 2024, San Jose produced 510,741 ounces of silver and 3,771 ounces of gold, 63% and 54% decreases respectively, at average head grades for silver and gold of 99 g/t and 0.74 g/t, a 48% decrease and 35% decrease respectively, when compared to the same period in 2023. During the third quarter the mine plan included areas near old workings at the upper level of the mine which have a higher level of geological uncertainty. These areas accounted for 46% of quarterly production and returned 36% lower head grades and 28% lower tonnage than expected. The mine plan for the fourth quarter continues to encompass areas of high geologic uncertainty.

    The processing plant milled 188,212 tonnes averaging 2,163 tonnes per day. Metallurgical recoveries were impacted by higher iron oxide material from upper levels mined during the period.

    The cash cost per silver equivalent ounce for the three months ending September 30, 2024, was $29.40, an increase from $13.73 in the same period of 2023. The higher cost per ounce was primarily the result of lower production and silver equivalent ounces sold as described above and the impact of fixed costs being spread across fewer ounces sold.

    The all-in sustaining cash cost per payable silver equivalent ounce for the three months ended September 30, 2024, increased by 81% to $32.65 from $18.04 for the same period in 2023. These increases were mainly driven by higher cash costs and lower production, which was partially offset by lower capital expenditures.

    Following Management’s evaluation of the options available for San Jose, the Company is planning to initiate the progressive closure of the San Jose mine starting in the first quarter of 2025. A comprehensive multi-year closure and monitoring plan and budget are expected to be completed in the fourth quarter of 2024. The plan considers concurrent closure activities with reduced mining operations, which may continue for up to eighteen months at rates of under 1,000 tonnes per day in selected portions of the remaining Mineral Resources in the underground mine. Management expects production income can offset a significant portion of closure costs in the initial years.

    Caylloma Mine, Peru

        Three months ended September 30,     Nine months ended September 30,
        2024       2023     2024     2023
    Mine Production                      
    Tonnes milled   138,030       140,077     411,669     403,076
    Average tonnes milled per day   1,551       1,556     1,548     1,515
                           
    Silver                      
    Grade (g/t)   82       83     84     84
    Recovery (%)   84       82     83     82
    Production (oz)   305,446       308,221     927,304     896,583
    Metal sold (oz)   338,768       275,708     931,820     875,365
    Realized price ($/oz)   29.24       23.93     26.98     23.50
                           
    Gold                      
    Grade (g/t)   0.11       0.13     0.11     0.13
    Recovery (%)   27       24     28     24
    Production (oz)   131       149     424     404
    Metal sold (oz)   46       18     169     40
    Realized price ($/oz)   2,512       1,921     2,233     1,902
                           
    Lead                      
    Grade (%)   3.62       3.66     3.64     3.66
    Recovery (%)   91       92     91     92
    Production (000’s lbs)   9,998       10,337     30,053     30,053
    Metal sold (000’s lbs)   10,934       9,232     30,181     29,433
    Realized price ($/lb)   0.93       0.97     0.95     0.98
                           
    Zinc                      
    Grade (%)   4.64       5.07     4.63     5.07
    Recovery (%)   91       90     90     90
    Production (000’s lbs)   12,809       14,037     38,032     41,125
    Metal sold (000’s lbs)   13,411       13,959     38,586     41,759
    Realized price ($/lb)   1.26       1.10     1.22     1.26
                           
    Unit Costs                      
    Cash cost ($/oz Ag Eq)1,2   14.88       15.25     13.45     14.10
    All-in sustaining cash cost ($/oz Ag Eq)1,2   22.69       21.14     19.90     19.03
                           
    Capital Expenditures ($000’s)3                      
    Sustaining   6,310       3,514     12,480     9,267
    Sustaining leases   (9 )     813     1,871     2,626
    Brownfields   516       797     1,208     1,337

    1 Cash cost per ounce of silver equivalent and All-in sustaining cash cost per ounce of silver equivalent are calculated using realized metal prices for each period respectively.
    2 Cash cost per ounce of silver equivalent, and all-in sustaining cash cost per ounce of silver equivalent are non-IFRS financial measures, refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
    3 Capital expenditures are presented on a cash basis.

    The Caylloma Mine produced 305,446 ounces of silver at an average head grade of 82 g/t Ag in the third quarter of 2024, reflecting similar production as the previous quarter.

    Zinc and lead production was 12.8 million pounds and 10.0 million pounds, respectively, with average head grades of 4.64% Zn and 3.62% Pb, representing an 8% decrease and 1% decrease, respectively, when compared to the third quarter of 2023. Zinc production decreased by 9% and lead production decreased by 3% when compared to the same period in 2023. The lower production is the result of lower head grades delivered to the plant, in accordance with the planned mining sequence for the period.

    The cash cost per silver equivalent ounce sold for the three months ended September 30, 2024 was $14.88, a 2% decrease compared to the comparable period in 2023. Cash costs for the mine were lower for the period due to lower ground support costs as mining took place in more competent rock and lower plant costs but was offset by lower silver equivalent ounces sold due to high silver prices and the impact on the calculation of silver equivalent for lead and zinc.

    The all-in sustaining cash cost per ounce of payable silver equivalent for the three months ended September 30, 2024, was $22.69 compared to $21.14 for the same period in 2023. The increase is due to higher sustaining capital expenditures in the third quarter of 2024 compared to the same period in 2023 and the impact of higher silver prices on the calculation of silver equivalent ounces for base metals. If silver equivalent ounces were calculated using guidance prices, the all-in sustaining cost per ounce would have been approximately $19.38.

    Qualified Person

    Eric Chapman, Senior Vice President of Technical Services, is a Professional Geoscientist of the Engineers and Geoscientists of British Columbia (Registration Number 36328), and is the Company’s Qualified Person (as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.

    Non-IFRS Financial Measures

    The Company has disclosed certain financial measures and ratios in this news release which are not defined under the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, and are not disclosed in the Company’s financial statements, including but not limited to: cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold equivalent sold; all-in cash cost per ounce of gold sold; production cash cost per ounce of gold equivalent; cash cost per payable ounce of silver equivalent sold; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; free cash flow from ongoing operations; adjusted net income; adjusted attributable net income; adjusted EBITDA and working capital.

    These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by management to monitor and evaluate the Company’s operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company’s performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company’s performance prepared in accordance with IFRS.

    To facilitate a better understanding of these measures and ratios as calculated by the Company, descriptions are provided below. In addition see “Non-IFRS Financial Measures” in the Company’s management’s discussion and analysis for the three and nine months ended September 30, 2024 (“Q3 2024 MDA”), which section is incorporated by reference in this news release, for additional information regarding each non-IFRS financial measure and non-IFRS ratio disclosed in this news release, including an explanation of their composition; an explanation of how such measures and ratios provide useful information to an investor; and the additional purposes, if any, for which management of the Company uses such measures and ratio. The Q3 2024 MD&A may be accessed on SEDAR+ at www.sedarplus.ca under the Company’s profile.

    Except as otherwise described in the Q3 2024 MD&A, the Company has calculated these measures consistently for all periods presented.

    Reconciliation of Debt to total net debt and net debt to adjusted EBITDA ratio for September 30, 2024

       
       
    (Expressed in millions except Total net debt to Adjusted EBITDA ratio) As at September 30, 2024
    2024 Convertible Notes 172.5  
    Less: Cash and Cash Equivalents (180.6 )
    Total net debt1 (8.1 )
    Adjusted EBITDA (last four quarters) 459.5  
    Total net debt to adjusted EBITDA ratio 0:1  
    1 Excluding letters of credit  
       

    Reconciliation of net income to adjusted attributable net income for the three and nine months ended September 30, 2024 and 2023

        Three months ended September 30,     Nine months ended September 30,
    (Expressed in millions)   2024     2023     2024     2023  
    Net income attributable to shareholders   50.5       27.5       117.4       41.5  
    Adjustments, net of tax:                      
    Community support provision and accruals1               (0.3 )     (0.1 )
    Foreign exchange loss, Séguéla Mine2         0.1              
    Write off of mineral properties         0.5             0.5  
    Unrealized loss (gain) on derivatives         (0.1 )           (0.3 )
    Income tax, convertible debentures               (12.0 )      
    Inventory adjustment   (0.1 )           1.7       0.7  
    Accretion on right of use assets   0.9       1.5       2.7       2.6  
    Other non-cash/non-recurring items   (1.4 )     0.1       (2.2 )     (0.6 )
    Adjusted attributable net income   49.9       29.6       107.3       44.3  
    1Amounts are recorded in Cost of sales                      
                           

    Reconciliation of net income to adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023

        Three months ended September 30,     Nine months ended September 30,
    Consolidated (in millions of US dollars)   2024       2023       2024       2023  
    Net income   54.4       30.9       126.8       46.2  
    Adjustments:                      
    Community support provision and accruals         (0.1 )     (0.5 )     (0.2 )
    Inventory adjustment   (0.1 )           2.5       0.9  
    Foreign exchange loss, Séguéla Mine         0.1              
    Net finance items   6.3       8.2       19.4       14.3  
    Depreciation, depletion, and amortization   59.9       63.9       167.4       148.0  
    Income taxes   15.1       6.6       37.3       15.6  
    Other non-cash/non-recurring items   (4.3 )     (5.0 )     (13.8 )     (10.8 )
    Adjusted EBITDA   131.3       104.6       339.1       214.0  

    Figures may not add due to rounding

    Reconciliation of net cash from operating activities to free cash flow from ongoing operations for the three and nine months ended September 30, 2024 and 2023

        Three months ended September 30,     Nine months ended September 30,
    (Expressed in millions) 2024     2023     2024     2023  
                           
    Net cash provided by operating activities   92.9       106.5       215.4       191.8  
    Closure and rehabilitation provisions   2.2             2.3        
    Séguéla, working capital                     4.4  
    Additions to mineral properties, plant and equipment   (37.8 )     (30.6 )     (103.1 )     (97.3 )
    Gain on blue chip swap investments   3.2             8.3        
    Right of use payments   (4.2 )     (5.9 )     (14.8 )     (11.6 )
    Other adjustments   0.3             (0.8 )      
    Free cash flow from ongoing operations   56.6       70.0       107.3       87.3  

    Figures may not add due to rounding

    Reconciliation of cost of sales to cash cost per ounce of gold equivalent sold for the three and nine months ended September 30, 2024 and 2023

    Cash Cost Per Gold Equivalent Ounce Sold – Q3 2024   Lindero     Yaramoko     Séguéla     San Jose     Caylloma     GEO Cash Costs  
    Cost of sales   42,350     45,656     55,466     24,697     19,820     187,991  
    Inventory adjustment   2             135         137  
    Depletion, depreciation, and amortization   (13,639 )   (12,923 )   (27,165 )   (1,150 )   (4,465 )   (59,342 )
    Royalties and taxes   (89 )   (5,480 )   (6,143 )   (639 )   (366 )   (12,717 )
    By-product credits   (1,132 )                   (1,132 )
    Other               6     (279 )   (273 )
    Treatment and refining charges               826     2,249     3,075  
    Cash cost applicable per gold equivalent ounce sold   27,492     27,253     22,158     23,875     16,959     117,737  
    Ounces of gold equivalent sold   26,393     27,995     33,816     9,597     13,401     111,203  
    Cash cost per ounce of gold equivalent sold ($/oz)   1,042     974     655     2,488     1,265     1,059  
    Gold equivalent was calculated using the realized prices for gold of $2,490/oz Au, $29.4/oz Ag, $2,040/t Pb, and $2,782/t Zn for Q3 2024.
    Figures may not add due to rounding
     
    Cash Cost Per Gold Equivalent Ounce Sold – Q3 2023   Lindero     Yaramoko     Séguéla     San Jose     Caylloma     GEO Cash Costs  
    Cost of sales   36,778     53,943     33,233     37,071     16,159     177,184  
    Inventory adjustment                        
    Depletion, depreciation, and amortization   (11,132 )   (24,563 )   (14,556 )   (10,233 )   (2,960 )   (63,444 )
    Royalties and taxes   (3,266 )   (3,793 )   (4,568 )   (1,278 )   (166 )   (13,071 )
    By-product credits   (454 )                   (454 )
    Other               (341 )   (340 )   (681 )
    Treatment and refining charges               1,010     4,972     5,982  
    Cash cost applicable per gold equivalent ounce sold   21,926     25,587     14,109     26,229     17,665     105,516  
    Ounces of gold equivalent sold   22,224     33,971     35,503     23,487     14,384     129,570  
    Cash cost per ounce of gold equivalent sold ($/oz)   987     753     397     1,117     1,228     814  
    Gold equivalent was calculated using the realized prices for gold of $1,924/oz Au, $23.7/oz Ag, $2,136/t Pb, and $2,428/t Zn for Q3 2023
    Figures may not add due to rounding
     
    Cash Cost Per Gold Equivalent Ounce Sold – Year to Date 2024   Lindero     Yaramoko     Séguéla     San Jose     Caylloma     GEO Cash Costs  
    Cost of sales   112,409     131,446     152,106     73,945     53,164     523,072  
    Inventory adjustment   (226 )   (2,852 )       597         (2,481 )
    Depletion, depreciation, and amortization   (36,800 )   (36,922 )   (78,211 )   (2,114 )   (11,647 )   (165,694 )
    Royalties and taxes   (458 )   (15,782 )   (17,244 )   (2,210 )   (949 )   (36,643 )
    By-product credits   (2,259 )                   (2,259 )
    Other                   (960 )   (960 )
    Treatment and refining charges               2,543     5,766     8,309  
    Cash cost applicable per gold equivalent ounce sold   72,666     75,890     56,651     72,761     45,374     323,342  
    Ounces of gold equivalent sold   69,430     86,621     101,369     34,218     39,476     331,114  
    Cash cost per ounce of gold equivalent sold ($/oz)   1,047     876     559     2,126     1,149     977  
    Gold equivalent was calculated using the realized prices for gold of $2,307/oz Au, $27.1/oz Ag, $2,091/t Pb, and $2,692/t Zn for Year to Date 2024.
    Figures may not add due to rounding
     
    Cash Cost Per Gold Equivalent Ounce Sold – Year to Date 2023   Lindero     Yaramoko     Séguéla     San Jose     Caylloma     GEO Cash Costs  
    Cost of sales   118,783     137,159     33,233     98,960     50,810     438,945  
    Inventory adjustment   15     (827 )               (812 )
    Depletion, depreciation, and amortization   (36,197 )   (57,719 )   (14,556 )   (28,677 )   (9,848 )   (146,997 )
    Royalties and taxes   (11,042 )   (10,241 )   (4,568 )   (3,575 )   (851 )   (30,277 )
    By-product credits   (3,738 )                   (3,738 )
    Other               (91 )   (1,294 )   (1,385 )
    Treatment and refining charges               2,848     15,735     18,583  
    Cash cost applicable per gold equivalent ounce sold   67,821     68,372     14,109     69,465     54,552     274,319  
    Ounces of gold equivalent sold   74,117     89,448     35,503     63,000     47,128     309,195  
    Cash cost per ounce of gold equivalent sold ($/oz)   915     764     397     1,103     1,158     887  
    Gold equivalent was calculated using the realized prices for gold of $1,927/oz Au, $23.4/oz Ag, $2,162/t Pb, and $2,778/t Zn for YTD 2023
    Figures may not add due to rounding
     

    Reconciliation of cost of sales to all-in sustaining cash cost per ounce of gold equivalent sold for the three and nine months ended September 30, 2024 and 2023

                                 
    AISC Per Gold Equivalent Ounce Sold – Q3 2024   Lindero   Yaramoko   Séguéla   San Jose   Caylloma   Corporate   GEO AISC
    Cash cost applicable per gold equivalent ounce sold   27,492   27,253   22,158   23,875   16,959     117,737
    Inventory net realizable value adjustment              
    Royalties and taxes   89   5,480   6,143   639   366     12,717
    Worker’s participation           472     472
    General and administration   2,935   550   2,945   1,802   1,246   6,275   15,753
    Stand-by              
    Total cash costs   30,516   33,283   31,246   26,316   19,043   6,275   146,679
    Sustaining capital 1   21,264   5,166   8,511   198   6,817     41,956
    All-in sustaining costs   51,780   38,449   39,757   26,514   25,860   6,275   188,635
    Gold equivalent ounces sold   26,393   27,995   33,816   9,597   13,401     111,203
    All-in sustaining costs per ounce   1,962   1,373   1,176   2,763   1,930     1,696
    Gold equivalent was calculated using the realized prices for gold of $2,490/oz Au, $29.4/oz Ag, $2,040/t Pb, and $2,782/t Zn for Q3 2024.
    Figures may not add due to rounding
    Presented on a cash basis
                                 
    AISC Per Gold Equivalent Ounce Sold – Q3 2023   Lindero   Yaramoko     Séguéla   San Jose   Caylloma   Corporate   GEO AISC
    Cash cost applicable per gold equivalent ounce sold   21,926   25,587     14,109   26,229   17,665     105,516
    Inventory net realizable value adjustment                
    Royalties and taxes   3,266   3,793     4,568   1,278   166     13,071
    Worker’s participation           426   510     936
    General and administration   2,292   (243 )   3,112   1,727   1,032   6,219   14,139
    Stand-by                
    Total cash costs   27,484   29,137     21,789   29,660   19,373   6,219   133,662
    Sustaining capital1   8,267   12,059     6,191   4,800   5,124     36,441
    All-in sustaining costs   35,751   41,196     27,980   34,460   24,497   6,219   170,103
    Gold equivalent ounces sold   22,224   33,971     35,503   23,487   14,384     129,570
    All-in sustaining costs per ounce   1,609   1,213     788   1,467   1,703     1,313
    Gold equivalent was calculated using the realized prices for gold of $1,924/oz Au, $23.7/oz Ag, $2,136/t Pb, and $2,428/t Zn for Q3 2023
    Figures may not add due to rounding
    Presented on a cash basis
                                 
                                 
    AISC Per Gold Equivalent Ounce Sold – Year to Date 2024   Lindero   Yaramoko   Séguéla   San Jose   Caylloma   Corporate   GEO AISC
    Cash cost applicable per gold equivalent ounce sold   72,666   75,890   56,651   72,761   45,374     323,342
    Inventory net realizable value adjustment     1,777           1,777
    Royalties and taxes   458   15,782   17,244   2,210   949     36,643
    Worker’s participation           1,361     1,361
    General and administration   9,095   1,282   6,716   4,850   3,871   29,262   55,076
    Stand-by              
    Total cash costs   82,219   94,731   80,611   79,821   51,555   29,262   418,199
    Sustaining capital1   48,407   24,724   28,134   675   15,559     117,499
    All-in sustaining costs   130,626   119,455   108,745   80,496   67,114   29,262   535,698
    Gold equivalent ounces sold   69,430   86,621   101,369   34,218   39,476     331,114
    All-in sustaining costs per ounce   1,881   1,379   1,073   2,352   1,700     1,618
    Gold equivalent was calculated using the realized prices for gold of $2,307/oz Au, $27.1/oz Ag, $2,091/t Pb, and $2,692/t Zn for Year to Date 2024.
    Figures may not add due to rounding
    Presented on a cash basis
                                 
                                 
    AISC Per Gold Equivalent Ounce Sold – Year to Date 2023      Lindero      Yaramoko      Séguéla      San Jose      Caylloma      Corporate      GEO AISC
    Cash cost applicable per gold equivalent ounce sold   67,821   68,372   14,109   69,465   54,552     274,319
    Inventory net realizable value adjustment     334           334
    Royalties and taxes   11,042   10,241   4,568   3,575   851     30,277
    Worker’s participation         114   1,528     1,642
    General and administration   6,791   1,255   3,112   5,251   3,466   23,300   43,175
    Stand-by     2,999     4,084       7,083
    Total cash costs   85,654   83,201   21,789   82,489   60,397   23,300   356,830
    Sustaining capital1   30,546   44,655   6,191   14,418   13,230     109,040
    All-in sustaining costs   116,200   127,856   27,980   96,907   73,627   23,300   465,870
    Gold equivalent ounces sold   74,117   89,448   35,503   63,000   47,128     309,195
    All-in sustaining costs per ounce   1,568   1,429   788   1,538   1,562     1,508
    Gold equivalent was calculated using the realized prices for gold of $1,927/oz Au, $23.4/oz Ag, $2,162/t Pb, and $2,778/t Zn for YTD 2023
    Figures may not add due to rounding
    1 Presented on a cash basis
                                 

    Reconciliation of cost of sales to cash cost per payable ounce of silver equivalent sold for the three and nine months ended September 30, 2024 and 2023

                 
    Cash Cost Per Silver Equivalent Ounce Sold – Q3 2024   San Jose     Caylloma     SEO Cash Costs  
    Cost of sales   24,697     19,820     44,517  
    Inventory adjustment   135         135  
    Depletion, depreciation, and amortization   (1,150 )   (4,465 )   (5,615 )
    Royalties and taxes   (639 )   (366 )   (1,005 )
    Other   6     (279 )   (273 )
    Treatment and refining charges   826     2,249     3,075  
    Cash cost applicable per silver equivalent sold   23,875     16,959     40,834  
    Ounces of silver equivalent sold1   812,015     1,139,823     1,951,838  
    Cash cost per ounce of silver equivalent sold ($/oz)   29.40     14.88     20.92  
    1 Silver equivalent sold for Q3 2024 for San Jose is calculated using a silver to gold ratio of 84.3:1. Silver equivalent sold for Q3 2024 for Caylloma is calculated using a silver to gold ratio of 85.9:1, silver to lead ratio of 1:31.6 pounds, and silver to zinc ratio of 1:23.2 pounds.
    Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    Figures may not add due to rounding
                 
                 
    Cash Cost Per Silver Equivalent Ounce Sold – Q3 2023   San Jose     Caylloma     SEO Cash Costs  
    Cost of sales   37,071     16,159     53,230  
    Inventory adjustment            
    Depletion, depreciation, and amortization   (10,233 )   (2,960 )   (13,193 )
    Royalties and taxes   (1,278 )   (166 )   (1,444 )
    Other   (341 )   (340 )   (681 )
    Treatment and refining charges   1,010     4,972     5,982  
    Cash cost applicable per silver equivalent sold   26,229     17,665     43,894  
    Ounces of silver equivalent sold1   1,910,609     1,158,881     3,069,490  
    Cash cost per ounce of silver equivalent sold ($/oz)   13.73     15.25     14.30  
    1 Silver equivalent sold for San Jose for Q3 2023 is 81.7:1.Silver equivalent sold for Caylloma for Q3 2023 is calculated using a silver to gold ratio of 80.3:1, silver to lead ratio of 1:24.7 pounds, and silver to zinc ratio 1:21.7
    Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    Figures have been restated to remove Right of Use
    Figures may not add due to rounding
                 
                 
    Cash Cost Per Silver Equivalent Ounce Sold – Year to Date 2024   San Jose     Caylloma     SEO Cash Costs  
    Cost of sales   73,945     53,164     127,109  
    Inventory adjustment   597         597  
    Depletion, depreciation, and amortization   (2,114 )   (11,647 )   (13,761 )
    Royalties and taxes   (2,210 )   (949 )   (3,159 )
    Other       (960 )   (960 )
    Treatment and refining charges   2,543     5,766     8,309  
    Cash cost applicable per silver equivalent sold   72,761     45,374     118,135  
    Ounces of silver equivalent sold1   2,908,861     3,372,741     6,281,602  
    Cash cost per ounce of silver equivalent sold ($/oz)   25.01     13.45     18.81  
    Silver equivalent sold for Year to Date 2024 for San Jose is calculated using a silver to gold ratio of 84.6:1. Silver equivalent sold for Year to Date 2024 for Caylloma is calculated using a silver to gold ratio of 82.8:1, silver to lead ratio of 1:28.4 pounds, and silver to zinc ratio of 1:22.1 pounds.
    Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    Figures may not add due to rounding
     
                 
    Cash Cost Per Silver Equivalent Ounce Sold – Year to Date 2023   San Jose     Caylloma     SEO Cash Costs  
    Cost of sales   98,960     50,810     149,770  
    Inventory adjustment            
    Depletion, depreciation, and amortization   (28,677 )   (9,848 )   (38,525 )
    Royalties and taxes   (3,575 )   (851 )   (4,426 )
    Other   (91 )   (1,294 )   (1,385 )
    Treatment and refining charges   2,848     15,735     18,583  
    Cash cost applicable per silver equivalent sold   69,465     54,552     124,017  
    Ounces of silver equivalent sold1   5,194,670     3,869,253     9,063,923  
    Cash cost per ounce of silver equivalent sold ($/oz)   13.37     14.10     13.68  
    Silver equivalent sold for Year to Date 2023 for San Jose is calculated using a silver to gold ratio of 82.6:1. Silver equivalent sold for Year to Date 2023 for Caylloma is calculated using a silver to gold ratio of 80.9:1, silver to lead ratio of 1:24.0 pounds, and silver to zinc ratio of 1:18.6 pounds.
    Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    Figures have been restated to remove Right of Use
    Figures may not add due to rounding
                 

    Reconciliation of all-in sustaining cash cost and all-in cash cost per payable ounce of silver equivalent sold for the three and nine months ended September 30, 2024 and 2023

                 
    AISC Per Silver Equivalent Ounce Sold – Q3 2024   San Jose   Caylloma   SEO AISC
    Cash cost applicable per silver equivalent ounce sold   23,875   16,959   40,834
    Royalties and taxes   639   366   1,005
    Worker’s participation     472   472
    General and administration   1,802   1,246   3,048
    Stand-by      
    Total cash costs   26,316   19,043   45,359
    Sustaining capital3   198   6,817   7,015
    All-in sustaining costs   26,514   25,860   52,374
    Silver equivalent ounces sold1   812,015   1,139,823   1,951,838
    All-in sustaining costs per ounce2   32.65   22.69   26.83
    1 Silver equivalent sold for Q3 2024 for San Jose is calculated using a silver to gold ratio of 84.3:1. Silver equivalent sold for Q3 2024 for Caylloma is calculated using a silver to gold ratio of 85.9:1, silver to lead ratio of 1:31.6 pounds, and silver to zinc ratio of 1:23.2 pounds.
    2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    3 Presented on a cash basis
                 
                 
    AISC Per Silver Equivalent Ounce Sold – Q3 2023   San Jose   Caylloma   SEO AISC
    Cash cost applicable per silver equivalent ounce sold   26,229   17,665   43,894
    Royalties and taxes   1,278   166   1,444
    Worker’s participation   426   510   936
    General and administration   1,727   1,032   2,759
    Stand-by      
    Total cash costs   29,660   19,373   49,033
    Sustaining capital3   4,800   5,124   9,924
    All-in sustaining costs   34,460   24,497   58,957
    Silver equivalent ounces sold1   1,910,609   1,158,881   3,069,490
    All-in sustaining costs per ounce2   18.04   21.14   19.21
    Silver equivalent sold for San Jose for Q3 2023 is 81.7:1.Silver equivalent sold for Caylloma for Q3 2023 is calculated using a silver to gold ratio of 80.3:1, silver to lead ratio of 1:24.7 pounds, and silver to zinc ratio 1:21.7
    Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    Presented on a cash basis
                 
                 
    AISC Per Silver Equivalent Ounce Sold – Year to Date 2024   San Jose   Caylloma   SEO AISC
    Cash cost applicable per silver equivalent ounce sold   72,761   45,374   118,135
    Royalties and taxes   2,210   949   3,159
    Worker’s participation     1,361   1,361
    General and administration   4,850   3,871   8,721
    Stand-by      
    Total cash costs   79,821   51,555   131,376
    Sustaining capital3   675   15,559   16,234
    All-in sustaining costs   80,496   67,114   147,610
    Silver equivalent ounces sold1   2,908,861   3,372,741   6,281,602
    All-in sustaining costs per ounce2   27.67   19.90   23.50
    1 Silver equivalent sold for Year to Date 2024 for San Jose is calculated using a silver to gold ratio of 84.6:1. Silver equivalent sold for Year to Date 2024 for Caylloma is calculated using a silver to gold ratio of 82.8:1, silver to lead ratio of 1:28.4 pounds, and silver to zinc ratio of 1:22.1 pounds.
    2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    3 Presented on a cash basis
                 
                 
    AISC Per Silver Equivalent Ounce Sold – Year to Date 2023   San Jose   Caylloma   SEO AISC
    Cash cost applicable per silver equivalent ounce sold   69,465   54,552   124,017
    Royalties and taxes   3,575   851   4,426
    Worker’s participation   114   1,528   1,642
    General and administration   5,251   3,466   8,717
    Stand-by   4,084     4,084
    Total cash costs   82,489   60,397   142,886
    Sustaining capital3   14,418   13,230   27,648
    All-in sustaining costs   96,907   73,627   170,534
    Silver equivalent ounces sold1   5,194,670   3,869,253   9,063,923
    All-in sustaining costs per ounce2   18.66   19.03   18.81
    1 Silver equivalent sold for Year to Date 2023 for San Jose is calculated using a silver to gold ratio of 82.6:1. Silver equivalent sold for Year to Date 2023 for Caylloma is calculated using a silver to gold ratio of 80.9:1, silver to lead ratio of 1:24.0 pounds, and silver to zinc ratio of 1:18.6 pounds.
    2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results – Sales and Realized Prices
    3 Presented on a cash basis
                 

    Additional information regarding the Company’s financial results and activities underway are available in the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023 and accompanying Q3 2024 MD&A, which are available for download on the Company’s website, www.fortunamining.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.

    Conference Call and Webcast

    A conference call to discuss the financial and operational results will be held on Thursday, November 7, 2024, at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chief Financial Officer, Cesar Velasco, Chief Operating Officer – Latin America, and David Whittle, Chief Operating Officer – West Africa.

    Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast at: https://www.webcaster4.com/Webcast/Page/1696/51478 or over the phone by dialing in just prior to the starting time.

    Conference call details:

    Date: Thursday, November 7, 2024
    Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern time

    Dial in number (Toll Free): +1.888.506.0062
    Dial in number (International): +1.973.528.0011
    Access code: 398720

    Replay number (Toll Free): +1.877.481.4010
    Replay number (International): +1.919.882.2331
    Replay passcode: 51478

    Playback of the earnings call will be available until Thursday, November 21, 2024. Playback of the webcast will be available until Friday, November 7, 2025. In addition, a transcript of the call will be archived on the Company’s website.

    About Fortuna Mining Corp.

    Fortuna Mining Corp. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru, as well as the preliminary economic assessment stage Diamba Sud Gold Project located in Senegal. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility. For more information, please visit our website.

    ON BEHALF OF THE BOARD

    Jorge A. Ganoza
    President, CEO, and Director
    Fortuna Mining Corp.

    Investor Relations:

    Carlos Baca | info@fmcmail.com | www.fortunamining.com | X | LinkedIn | YouTube

    Forward-looking Statements

    This news release contains forward-looking statements which constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward-looking Statements”). All statements included herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements. The Forward-looking Statements in this news release include, without limitation, statements about the Company’s plans for its mines and mineral properties; the Company’s anticipated financial and operational performance in 2024; estimated production and costs of production for 2024, including grade and volume of metal produced and sales, revenues and cashflows, and capital costs (sustaining and non-sustaining), and operating costs, including projected production cash costs and all-in sustaining costs; the Company’s expectations regarding meeting cost and production guidance; the ability of the Company to mitigate the inflationary pressures on supplies used in its operations; estimated capital expenditures and estimated exploration spending in 2024, including amounts for exploration activities at its properties; statements regarding the Company’s liquidity, access to capital; the impact of high inflation on the costs of production and the supply chain; the Company’s expectation regarding the timing of the completion of the leach pad expansion project at the Lindero Mine and statements that the project is tracking on budget; statements regarding the anticipated exhaustion of Mineral Reserves at the San Jose Mine; statements regarding the progressive closure of the San Jose Mine, including expected timing of the closure and monitoring plan and budget, the anticipated duration of mining operations and production amounts as well as expectations that production income can offset significant closure costs in the initial years; statements regarding cost and productivity initiatives launched by the Company; the Company’s expectations regarding the Séguéla Mine in 2025, including anticipated stripping ratio, throughput compared to nameplate design, and expectations regarding increased infrastructure costs; the Company’s business strategy, plans and outlook; the merit of the Company’s mines and mineral properties; mineral resource and reserve estimates, metal recovery rates, concentrate grade and quality; changes in tax rates and tax laws, requirements for permits, anticipated approvals and other matters. Often, but not always, these Forward-looking Statements can be identified by the use of words such as “estimated”, “expected”, “anticipated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations. 

    Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; uncertainty relating to new mining operations such as the Séguéla Mine, including the possibility that actual capital and operating costs and economic returns will differ significantly from those estimated for such projects prior to production; risks associated with war or other geo-political hostilities, such as the Ukrainian – Russian and the Israel – Hamas conflicts, any of which could continue to cause a disruption in global economic activity; fluctuation in currencies and foreign exchange rates; increases in the rate of inflation; the imposition or any extension of capital controls in countries in which the Company operates; any changes in tax laws in Argentina and the other countries in which we operate; changes in the prices of key supplies; technological and operational hazards in Fortuna’s mining and mine development activities; risks related to water and power availability; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; changes to current estimates of mineral reserves and resources; changes to production and cost estimates; changes in the position of regulatory authorities with respect to the granting of approvals or permits; governmental and other approvals; changes in government, political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under “Risk Factors” in the Company’s Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

    Forward-looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including, but not limited to, the accuracy of the Company’s current mineral resource and reserve estimates; that the Company’s activities will be conducted in accordance with the Company’s public statements and stated goals; that there will be no material adverse change affecting the Company, its properties or changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing, and recovery rate estimates and may be impacted by unscheduled maintenance, labor and contractor availability and other operating or technical difficulties); geo-political uncertainties that may affect the Company’s production, workforce, business, operations and financial condition; the expected trends in mineral prices and currency exchange rates; that the Company will be successful in mitigating the impact of inflation on its business and operations; that all required approvals and permits will be obtained for the Company’s business and operations on acceptable terms; that there will be no significant disruptions affecting the Company’s operations, the ability to meet current and future obligations and such other assumptions as set out herein. Forward-looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward-looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that these Forward-looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward-looking Statements. 

    Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources  

    Reserve and resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for public disclosure by a Canadian company of scientific and technical information concerning mineral projects. Unless otherwise indicated, all mineral reserve and mineral resource estimates contained in the technical disclosure have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Reserves. Canadian standards, including NI 43-101, differ significantly from the requirements of the Securities and Exchange Commission, and mineral reserve and resource information included in this news release may not be comparable to similar information disclosed by U.S. companies. 


    FAQ

    What was Fortuna’s (FSM) gold equivalent production in Q3 2024?

    Fortuna produced 110,820 ounces of gold equivalent in Q3 2024, compared to 116,570 ounces in Q2 2024.

    What was Fortuna’s (FSM) net income in Q3 2024?

    Fortuna reported attributable net income of $50.5 million or $0.16 per share in Q3 2024.

    What were Fortuna’s (FSM) cash costs per ounce in Q3 2024?

    Consolidated cash costs were $1,059 per ounce of gold equivalent sold in Q3 2024.

    What was Fortuna’s (FSM) cash position as of Q3 2024?

    Fortuna had a cash position of $180.6 million and achieved a positive net cash position of $8.0 million at the end of Q3 2024.

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