Fortuna Mining Corp. Q1 FY2025 earnings call

• Q1 was a great quarter with ongoing operations free cash flow hitting a record $111 million, free cash flow margin at 38% up from 31% in Q4. - Cash cost per ounce consolidated down to $929 from $1,015 in Q4, all-in sustaining costs down to $1,640 from $1,772. - Net income from continued operations was $61.7 million, or $0.20 per share, a big jump from Q4. - Generated sales of $290 million and produced 103 gold equivalent ounces. - Actively optimized asset portfolio, sold San Jose mine and Yaramoko mine, reallocating capital and management focus. - Zero lost time injuries in Q1, total recordable injury frequency rate improved to 0.98, but had a tragic incident at Séguéla in February. - Argentina government started easing capital exchange rate controls, targeting second half of 2025 to repatriate dividends. - $51 million budgeted for exploration and new project programs in 2025, advancing projects like Kingfisher and Sunbird Deep deposits at Séguéla, etc. - Lindero mine completed leach pad expansion project, solar plant project progressing. - Caylloma mine had cost adjustments leading to lower cash costs etc.

Séguéla mine produced 38,500 ounces of gold in Q1, a 9% improvement from the previous quarter, exceeding the mine plan and supporting the goal of 160,000 to 180,000 ounces of annual production from 2026 and beyond. Cash cost at Séguéla was $650 per ounce and all-in sustaining cost was $1,290 per ounce. Yaramoko mine produced 3,373 ounces of gold in Q1, a 12% improvement from the prior quarter, with cash cost of $1,059 per ounce and all-in sustaining cost of $1,411 per ounce. Lindero mine in Argentina produced 20,320 ounces of gold in Q1, a 24% decrease from the previous quarter of 2024 due to a moderate reduced ore grade and timing of leach kinetics, but completed the leach pad expansion project and the solar plant project is 97% complete. Caylloma mine in Peru maintained consistent production of silver and other metals in line with the mine plan for the year, with cost adjustments leading to lower cash costs etc.

• Budgeted $51 million for 2025 for exploration and new project programs. - Séguéla mine aims to expand production to approximately 180,000 ounces of annual production in 2026. - Aiming to migrate Diamba Sud exploration concession to exploitation concession by mid-2026 and consider construction decision by second half of 2026. - Expect Kingfisher to be incorporated into the life of mine plan by year-end 2026 as reported early 2027.

• Business and security environment challenges, Yaramoko mine approaching end of mine life with business and security environment challenges. - Safety risk from the tragic incident at Séguéla in February where a subcontractor lost his life.

Q: Mohamed Sidibe asked about capital allocation priorities following the sale of San Jose mine and Yaramoko mine and inorganic opportunities.

A: Jorge said they prioritize organic growth like Séguéla mine expansion and Diamba Sud project, and inorganic opportunities focus on West Africa and Latin America regions, looking for projects that can deliver over a decade and meaningful production north of 120,000-150,000 ounces of gold production Q: Unidentified Analyst asked about why financial analysts influence stock price with current stock down.

A: Jorge said they focus on what they control, believing the company has strong fundamentals with rock-solid balance sheet, strong free cash flow, etc.

Q: Adrian Day asked about how Greenfields exploration fits into growth.

A: Jorge introduced Greenfields exploration projects in Cote d'Ivoire, Mexico, Peru, Argentina, Senegal etc.

Q: David Kranzler asked about closure costs saved from sale of Yaramoko and San Jose and timeline for Diamba Sud advancement and Kingfisher incorporation.

A: Jorge said aggregate savings of about $50 million, Diamba Sud aiming for exploitation concession by mid-2026 and construction decision by second half of 2026, Kingfisher expected to be in mine plan by year-end 2026 Q: Unidentified Analyst commented on buying during sell-off, A: Jorge thanked the comment