Fortuna Mining Corp.

Fortuna reported Q1 sales of $342 million, adjusted net income of $111 million, or $0.36 per share, adjusted EBITDA of $219 million, and free cash flow from ongoing operations of $174 million. Average realized gold price was $4,884 per ounce, and cash cost per gold equivalent ounce was $951. CEO Jorge Ganoza said AISC was $2,107 per gold equivalent ounce, with about $122 per ounce tied to external factors such as higher royalties from gold prices and share-based compensation. Year over year, attributable net income was up 200%, and the company said sales and earnings benefited from higher realized gold and silver prices. Looking ahead, management said Fortuna remains positioned to meet full-year 2026 guidance, expects about $330 million of total exploration, sustaining, and non-sustaining capital in 2026 entirely from internal cash flow, and expects tax payments of about $140 million in 2026, mostly in Q2 and Q3. On tax rate, CFO Luis Ganoza said the full-year effective tax rate should end up in the high-30% range.

Jorge Ganoza framed the quarter as a strong start to 2026 and emphasized operational execution, safety, and record financial performance. He highlighted five straight quarters without a lost time injury and said the company’s growth plan is controlled and de-risked because it comes from two existing projects—Seguela and Diamba Sud—rather than acquisitions or exploration success. His tone was confident and upbeat, with repeated emphasis on strong balance sheet strength, free cash flow generation, and visible milestones over the next 24 months.

Luis Ganoza focused on the quality of earnings, pricing leverage, and tax/cash flow timing. He cited Q1 attributable net income of $111 million, realized gold price of $4,884 per ounce, cash cost of $951 per gold equivalent ounce, G&A of $27.8 million, a foreign exchange loss of $2.1 million, and free cash flow from ongoing operations of $174 million. He also noted $45.3 million of PP&E additions, including about $28 million of sustaining capital and $17 million of non-sustaining spend, and said the company ended with $665.9 million of cash, $493 million of net cash, and $816 million of total liquidity including the undrawn revolver. He warned that cash taxes of about $140 million in 2026 will be weighted to Q2 and Q3, which should temporarily reduce free cash flow, and said the effective tax rate should rise into the high-30% range for the full year.

Analysts pressed on why Seguela cash costs came in below guidance, and management said the main drivers were higher ounces, a lower quarterly strip ratio than the full-year plan, and accounting timing for stripping between operating cost and sustaining capex. On country cost pressure, management said there was no material fuel impact yet, though grinding media costs were starting to rise. Questions on Diamba Sud permitting were answered with the expectation that ESIA approval is imminent and the exploitation permit should follow in mid-year. In other questions, management said its M&A focus is mainly pre-development assets, described Guyana as a promising new frontier with favorable geology and pro-business signals, and said Sunbird underground drilling will continue from surface through 2026 and likely into 2027 before underground access becomes available.