Fortuna reports financial results for the second quarter of 2024
Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) announced its Q2 2024 financial results. Key highlights include:
Financial: Attributable net income rose to $40.6 million or $0.13 per share, up from $26.3 million or $0.09 per share in Q1 2024. Adjusted attributable net income was $30.4 million or $0.10 per share. Cash flow from operations before working capital changes reached $93.0 million, with free cash flow of $38.6 million. Fortuna issued convertible notes for $172.5 million, using part to clear $125.0 million under its credit facility. Liquidity stood at $355.6 million by June 30, 2024.
Operational: Gold equivalent production increased to 116,570 ounces from 112,543 ounces in Q1 2024. Gold production rose to 92,716 ounces, and silver production dropped to 990,574 ounces. Consolidated cash costs per ounce of gold equivalent sold were $988, and all-in sustaining cash costs were $1,656, with specific adjustments for San Jose mine.
Growth: At the Kingfisher prospect, Séguéla Mine, Fortuna intersected 23.7 g/t gold over 17.8 meters. Exploration at Diamba Sud showed 31.3 g/t gold over 12.0 meters.
Financial Metrics: Sales increased by 64% to $260.0 million. Operating income surged by 619% to $55.4 million. Adjusted EBITDA was $112.7 million.
- Attributable net income increased to $40.6 million from $26.3 million in Q1 2024.
- Cash flow from operations before working capital changes was $93.0 million, compared to $84.3 million in Q1 2024.
- Free cash flow from ongoing operations reached $38.6 million, up from $12.1 million in Q1 2024.
- Liquidity as of June 30, 2024, was $355.6 million, compared to $212.7 million at the end of Q1 2024.
- Gold equivalent production rose to 116,570 ounces from 112,543 ounces in Q1 2024.
- Sales increased by 64% to $260.0 million.
- Operating income surged by 619% to $55.4 million.
- Adjusted EBITDA was $112.7 million.
- Silver production decreased to 990,574 ounces from 1,074,571 ounces in Q1 2024.
- Consolidated cash costs per ounce of gold equivalent sold increased to $988 from $879 in Q1 2024.
- Consolidated all-in sustaining cash costs (AISC) per ounce of gold equivalent sold rose to $1,656 from $1,495 in Q1 2024.
(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)
VANCOUVER, British Columbia, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) (“Fortuna” or the “Company”) today reported its financial and operating results for the second quarter of 2024.
Second Quarter 2024 highlights
Financial
- Attributable net income of
$40.6 million or$0.13 per share, compared to a$26.3 million or$0.09 per share in Q1 2024 - Adjusted attributable net income1 of
$30.4 million or$0.10 per share, compared to$26.7 million or$0.09 per share in Q1 2024 - Generated
$93.0 million (or$0.30 per share) of cash flow from operations before working capital changes, and free cash flow from ongoing operations1 of$38.6 million , compared to$84.3 million (or$0.28 per share) and$12.1 million , respectively, in Q1 2024 - The Company issued Convertible Notes (the “2024 Notes”) for gross proceeds of
$172.5 million which were partially used to pay in full the outstanding$125.0 million under its revolving credit facility. As at the end of the quarter total net debt1 was$66.5 million and the total net debt to adjusted EBITDA ratio1 was 0.2:1 - Liquidity as of June 30, 2024 was
$355.6 million , compared to$212.7 million at the end of Q1 2024
Operational
- Gold equivalent3 production of 116,570 ounces, compared to 112,543 ounces in Q1 2024
- Gold production of 92,716 ounces, compared to 89,678 ounces in Q1 2024
- Silver production of 990,574 ounces, compared to 1,074,571 ounces in Q1 2024
- Consolidated cash costs1 per ounce of gold equivalent sold of
$988 , compared to$879 in Q1 2024; adjusting for San Jose, which is mining its last year of Mineral Reserves, consolidated cash costs was$858 - Consolidated all-in sustaining cash costs (AISC)1 per ounce of gold equivalent sold of
$1,656 , compared to$1,495 in Q1 2024; adjusting for San Jose, consolidated AISC was$1,584 - The Company recorded zero lost time injuries and zero total recordable injuries in the quarter
Growth and Development
- At the newly discovered Kingfisher prospect at the Séguéla Mine the Company intersected 23.7 g/t gold over 17.8 meters. For full details refer to the News Release “Fortuna intersects 23.7 g/t gold over 17.8 meters from the Kingfisher Prospect at the Séguéla Mine” dated June 20, 2024
- Exploration continued at the Diamba Sud exploration project with an intersect of 31.3 g/t gold over 12.0 meters at the Karakara prospect. For full details refer to the News Release “Fortuna intersects 31.3 g/t gold over 12.0 meters from the Karakara Prospect at the Diamba Sud Gold Project” dated June 25, 2024
"Our business performed well in the quarter, generating strong net cash flow from operations of
________________________
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 Excluding letters of credit
3 Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices:
Second Quarter 2024 Consolidated Results
Three months ended June 30, | Six months ended June 30, | |||||||||||||
(Expressed in millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||
Sales | 260.0 | 158.4 | 64 | % | 484.9 | 334.1 | 45 | % | ||||||
Mine operating income | 79.9 | 31.9 | 150 | % | 149.8 | 72.3 | 107 | % | ||||||
Operating income | 55.4 | 7.7 | 619 | % | 102.6 | 31.6 | 225 | % | ||||||
Attributable net income | 40.6 | 3.1 | 1,210 | % | 66.9 | 14.0 | 378 | % | ||||||
Attributable income per share - basic | 0.13 | 0.01 | 1,200 | % | 0.22 | 0.05 | 340 | % | ||||||
Adjusted attributable net income1 | 30.4 | 2.5 | 1,116 | % | 57.1 | 14.7 | 288 | % | ||||||
Adjusted EBITDA1 | 112.7 | 44.4 | 154 | % | 207.8 | 109.5 | 90 | % | ||||||
Net cash provided by operating activities | 73.5 | 44.2 | 66 | % | 122.5 | 85.4 | 43 | % | ||||||
Free cash flow from ongoing operations1 | 38.6 | 9.5 | 306 | % | 50.7 | 17.6 | 188 | % | ||||||
Cash cost ($/oz Au Eq)1 | 988 | 968 | 2 | % | 934 | 940 | (1 | %) | ||||||
All-in sustaining cash cost ($/oz Au Eq)1 | 1,656 | 1,799 | (8 | %) | 1,577 | 1,648 | (4 | %) | ||||||
Capital expenditures2 | ||||||||||||||
Sustaining | 29.9 | 34.2 | (13 | %) | 55.7 | 62.1 | (10 | %) | ||||||
Non-sustaining3 | 17.6 | 0.9 | 1,856 | % | 26.5 | 2.0 | 1,225 | % | ||||||
Séguéla construction | - | 23.0 | (100 | %) | - | 48.1 | (100 | %) | ||||||
Brownfields | 2.9 | 2.4 | 21 | % | 9.5 | 7.3 | 30 | % | ||||||
As at | June 30, 2024 | December 31, 2023 | % Change | |||||||||||
Cash and cash equivalents | 105.6 | 128.1 | (18 | %) | ||||||||||
Net liquidity position (excluding letters of credit) | 355.6 | 213.1 | 67 | % | ||||||||||
Shareholder's equity attributable to Fortuna shareholders | 1,334.9 | 1,238.4 | 8 | % | ||||||||||
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 |
Second Quarter 2024 Results
Attributable Net Income and Adjusted Attributable Net Income
Net income attributable to Fortuna for the quarter was
The increase in net income and adjusted net income is explained mainly by increased gold sales volume and higher realized gold and silver prices. Higher gold sales volume was primarily due to contributions from Séguéla which was under construction in the comparable period. This was partially offset by lower silver production at San Jose as the mine exhausts its Mineral Reserves. The realized gold and silver prices were
Adjusted net income for the quarter was also impacted by higher G&A of
Depreciation and Depletion
Depreciation and depletion for the second quarter of 2024 was
Adjusted EBITDA and Cash Flow
Adjusted EBITDA for the quarter was
Net cash generated by operations for the quarter was
The negative change in working capital of
- An increase in receivables of
$9.3 million driven by an increase in VAT receivables of$4.9 million at Séguéla and$4.3 million at Yaramoko - An increase of inventories of
$13.5 million related to a$2.3 million increase in material and supplies and$2.6 million in metals inventory at Séguéla and a$1.5 million increase in materials and supplies and$4.5 million in metals inventory at Lindero
In the second quarter of 2024 capital expenditures on a cash basis were
Free cash flow from ongoing operations for the quarter was
Cash Costs and AISC
Cash cost per equivalent gold ounce was
All-in sustaining costs per gold equivalent ounce was
General and Administrative Expenses
General and administrative expenses for the current quarter of
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
(Expressed in millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
Mine G&A | 9.9 | 6.2 | 60 | % | 16.9 | 12.1 | 40 | % | ||||||||||
Corporate G&A | 6.6 | 7.2 | (8 | %) | 15.5 | 14.1 | 10 | % | ||||||||||
Share-based payments | 5.8 | 1.1 | 427 | % | 8.0 | 3.3 | 142 | % | ||||||||||
Workers' participation | 0.1 | — | 0 | % | 0.2 | 0.1 | 100 | % | ||||||||||
Total | 22.4 | 14.5 | 54 | % | 40.6 | 29.6 | 37 | % |
Liquidity
The Company’s total liquidity available as of June 30, 2024 was
Séguéla Mine, Côte d’Ivoire
Three months ended June 30, | Six months ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Mine Production | ||||||||||||
Tonnes milled | 318,457 | 109,605 | 713,294 | 109,605 | ||||||||
Average tonnes crushed per day | 3,461 | 1,611 | 3,898 | 1,611 | ||||||||
Gold | ||||||||||||
Grade (g/t) | 3.47 | 1.56 | 3.09 | 1.32 | ||||||||
Recovery (%) | 94 | 90 | 94 | 77 | ||||||||
Production (oz) | 32,983 | 4,023 | 67,539 | 4,023 | ||||||||
Metal sold (oz) | 33,102 | - | 67,552 | - | ||||||||
Realized price ($/oz) | 2,332 | - | 2,211 | - | ||||||||
Unit Costs | ||||||||||||
Cash cost ($/oz Au)1 | 564 | - | 511 | - | ||||||||
All-in sustaining cash cost ($/oz Au)1 | 1,097 | - | 1,021 | - | ||||||||
Capital Expenditures ( | ||||||||||||
Sustaining | 5,779 | - | 8,805 | - | ||||||||
Sustaining leases | 2,437 | - | 4,702 | - | ||||||||
Non-sustaining | 8,605 | - | 9,640 | - | ||||||||
Brownfields | 1,190 | - | 6,086 | - | ||||||||
1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures. Refer to Non-IFRS Financial Measures. | ||||||||||||
2 Capital expenditures are presented on a cash basis | ||||||||||||
In the second quarter of 2024, mined material totaled 420,222 tonnes of ore, averaging 3.03g/t Au, and containing an estimated 40,912 ounces of gold from the Antenna, Ancien and Koula pits. Movement of waste during the quarter totaled 2,495,838 tonnes, for a strip ratio of 6:1.
Production was mainly focused on the Antenna pit which produced 364,491 tonnes of ore to provide higher grade feed to the processing plant during the power supply constraints detailed below. Mining at the Ancien and Koula pits provided the balance of ore production with 1,645,716 tonnes of the waste stripping occurring there.
Séguéla processed 318,457 tonnes in the quarter, producing 32,983 ounces of gold, at an average head grade of 3.47 g/t Au. During the quarter the mine experienced intermittent power outages from April to early July which resulted in the loss of 19 days of operating time for the mill. The loss of power was the result of power shedding from the national grid supplier due to failures at two power plants in Côte d’Ivoire. Since early July the mine has been receiving stable grid power. To guarantee mine power supply in the event of future outages the Company is sourcing expanded backup diesel power generation capabilities to support the entire process operation.
The potential impact to gold production from the intermittent power outages was largely mitigated by delivering higher grade feed to the mill and the benefits of operating efficiencies which have allowed the mill to operate at a throughput rate of 208 tonnes per hour compared to a name place capacity of 154 tonnes per hour. Séguéla’s 2024 production guidance of 126,000 to 138,000 oz Au remains unaffected.
Cash cost per gold ounce sold was
Yaramoko Mine, Burkina Faso
Three months ended June 30, | Six months ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Mine Production | ||||||||||||
Tonnes milled | 121,391 | 144,202 | 229,110 | 283,852 | ||||||||
Gold | ||||||||||||
Grade (g/t) | 8.40 | 6.51 | 8.58 | 6.23 | ||||||||
Recovery (%) | 98 | 98 | 98 | 98 | ||||||||
Production (oz) | 31,447 | 29,002 | 58,624 | 55,439 | ||||||||
Metal sold (oz) | 31,455 | 25,946 | 58,627 | 55,476 | ||||||||
Realized price ($/oz) | 2,334 | 1,976 | 2,223 | 1,933 | ||||||||
Unit Costs | ||||||||||||
Cash cost ($/oz Au)1 | 896 | 719 | 830 | 772 | ||||||||
All-in sustaining cash cost ($/oz Au)1 | 1,389 | 1,626 | 1,382 | 1,564 | ||||||||
Capital Expenditures ( | ||||||||||||
Sustaining | 5,110 | 14,318 | 14,731 | 27,867 | ||||||||
Sustaining leases | 1,018 | 1,161 | 2,067 | 2,520 | ||||||||
Non-sustaining | 1,542 | – | 1,542 | – | ||||||||
Brownfields | 1,397 | 1,019 | 2,760 | 2,210 | ||||||||
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 second quarter of 2024, 121,391 tonnes of ore were treated at an average head grade of 8.40 g/t, producing 31,447 ounces of gold. This represents a
During the quarter, 89,991 tonnes of ore were mined averaging 7.81 g/t Au from 55 Zone, and 21,361 tonnes of ore averaging 8.89 g/t Au from QV Prime, totaling 111,352 tonnes averaging 8.02 g/t Au. In May, a rock burst occurred in the deeper levels of the 55 Zone, which interrupted production for a period of 10 days. No injuries or loss of property occurred as a result of the seismic event. Changes to the stoping sequence and design of underground excavations have been implemented based on a geotechnical evaluation.
The cash cost per ounce of gold sold for the quarter ended June 30, 2024, was
During the quarter power sourced from the grid was restricted to
The all-in sustaining cash cost per gold ounce sold was
Drilling and development operations continued to extend the mining boundaries to the east and west of 55 Zone and demonstrate wider mineable widths than expected. In the third quarter, drilling will also focus on testing the potential for further strike extensions of 55 Zone, as well as testing the strike extensions that we currently see in QV Prime.
Lindero Mine, Argentina
Three months ended June 30, | Six months ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Mine Production | ||||||||||||
Tonnes placed on the leach pad | 1,408,791 | 1,503,323 | 2,956,114 | 2,981,471 | ||||||||
Gold | ||||||||||||
Grade (g/t) | 0.61 | 0.62 | 0.60 | 0.83 | ||||||||
Production (oz) | 22,874 | 25,456 | 46,136 | 50,714 | ||||||||
Metal sold (oz) | 21,511 | 25,140 | 43,230 | 51,952 | ||||||||
Realized price ($/oz) | 2,335 | 1,975 | 2,201 | 1,879 | ||||||||
Unit Costs | ||||||||||||
Cash cost ($/oz Au)1 | 1,092 | 878 | 1,050 | 884 | ||||||||
All-in sustaining cash cost ($/oz Au)1 | 2,033 | 1,686 | 1,832 | 1,550 | ||||||||
Capital Expenditures ( | ||||||||||||
Sustaining | 16,151 | 13,337 | 25,958 | 21,082 | ||||||||
Sustaining leases | 587 | 599 | 1,185 | 1,197 | ||||||||
Non-sustaining | 195 | 136 | 349 | 323 | ||||||||
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 second quarter of 2024, total mined ore was 1.8 million tonnes at a stripping ratio of 0.7:1. A total of 1,408,791 tonnes of ore was placed on the heap leach pad at an average gold grade of 0.61 g/t, containing an estimated 27,663 ounces of gold. Gold production for Q2 2024 totaled 22,874 ounces, a
The cash cost per ounce of gold for the quarter ended June 30, 2024 was
The all-in sustaining cash cost per gold ounce sold during the second quarter of 2024 was
As of June 30, 2024, the
San Jose Mine, Mexico
Three months ended June 30, | Six months ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Mine Production | ||||||||||||
Tonnes milled | 176,214 | 194,887 | 357,317 | 441,623 | ||||||||
Average tonnes milled per day | 1,980 | 2,633 | 2,077 | 2,760 | ||||||||
Silver | ||||||||||||
Grade (g/t) | 140 | 168 | 143 | 186 | ||||||||
Recovery (%) | 87 | 91 | 88 | 91 | ||||||||
Production (oz) | 684,176 | 957,265 | 1,443,287 | 2,260,577 | ||||||||
Metal sold (oz) | 666,218 | 942,671 | 1,412,825 | 2,271,004 | ||||||||
Realized price ($/oz) | 29.33 | 24.09 | 26.24 | 23.20 | ||||||||
Gold | ||||||||||||
Grade (g/t) | 1.09 | 1.02 | 0.99 | 1.13 | ||||||||
Recovery (%) | 85 | 90 | 86 | 90 | ||||||||
Production (oz) | 5,269 | 5,778 | 9,802 | 14,009 | ||||||||
Metal sold (oz) | 5,010 | 5,695 | 9,470 | 14,050 | ||||||||
Realized price ($/oz) | 2,344 | 1,973 | 2,218 | 1,929 | ||||||||
Unit Costs | ||||||||||||
Cash cost ($/oz Ag Eq)1,2 | 24.91 | 15.79 | 23.34 | 13.16 | ||||||||
All-in sustaining cash cost ($/oz Ag Eq)1,2 | 27.55 | 24.07 | 25.77 | 19.01 | ||||||||
Capital Expenditures ( | ||||||||||||
Sustaining | – | 3,593 | – | 7,366 | ||||||||
Sustaining leases | 216 | 214 | 477 | 376 | ||||||||
Non-sustaining | 2,313 | 524 | 5,790 | 793 | ||||||||
Brownfields | – | 788 | – | 1,875 | ||||||||
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 second quarter of 2024, San Jose produced 684,176 ounces of silver and 5,269 ounces of gold,
The cash cost per silver equivalent ounce sold for the three months ending June 30, 2024, was
The all-in sustaining cash cost per payable silver equivalent ounce sold for the three months ended June 30, 2024, increased by
Sustaining capital expenditures have decreased as we near the anticipated closure of the mine. Drilling in 2024 was higher due to the drilling campaign at the Yessi vein, which was discovered in the third quarter of 2023. Exploration at the Yessi vein is ongoing.
Caylloma Mine, Peru
Three months ended June 30, | Six months ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Mine Production | ||||||||||||
Tonnes milled | 136,543 | 137,004 | 273,639 | 262,999 | ||||||||
Average tonnes milled per day | 1,552 | 1,539 | 1,546 | 1,494 | ||||||||
Silver | ||||||||||||
Grade (g/t) | 83 | 84 | 85 | 83 | ||||||||
Recovery (%) | 84 | 83 | 83 | 81 | ||||||||
Production (oz) | 306,398 | 305,296 | 621,858 | 588,362 | ||||||||
Metal sold (oz) | 267,569 | 336,086 | 593,051 | 599,656 | ||||||||
Realized price ($/oz) | 28.55 | 24.13 | 25.69 | 23.30 | ||||||||
Gold | ||||||||||||
Grade (g/t) | 0.11 | 0.12 | 0.11 | 0.16 | ||||||||
Recovery (%) | 30 | 16 | 29 | 40 | ||||||||
Production (oz) | 143 | 89 | 293 | 255 | ||||||||
Metal sold (oz) | 60 | - | 123 | 22 | ||||||||
Realized price ($/oz) | 2,351 | - | 2,179 | 1,895 | ||||||||
Lead | ||||||||||||
Grade (%) | 3.83 | 3.72 | 3.66 | 3.27 | ||||||||
Recovery (%) | 91 | 91 | 91 | 87 | ||||||||
Production (000's lbs) | 10,525 | 10,207 | 20,055 | 19,716 | ||||||||
Metal sold (000's lbs) | 9,422 | 11,419 | 19,247 | 20,201 | ||||||||
Realized price ($/lb) | 0.98 | 0.96 | 0.96 | 0.99 | ||||||||
Zinc | ||||||||||||
Grade (%) | 4.80 | 5.18 | 4.63 | 4.14 | ||||||||
Recovery (%) | 90 | 90 | 90 | 89 | ||||||||
Production (000's lbs) | 13,040 | 14,037 | 25,223 | 27,088 | ||||||||
Metal sold (000's lbs) | 12,710 | 13,986 | 25,175 | 27,800 | ||||||||
Realized price ($/lb) | 1.29 | 1.23 | 1.20 | 1.34 | ||||||||
Unit Costs | ||||||||||||
Cash cost ($/oz Ag Eq)1,2 | 13.94 | 14.35 | 12.66 | 13.60 | ||||||||
All-in sustaining cash cost ($/oz Ag Eq)1,2 | 19.87 | 19.18 | 18.38 | 18.12 | ||||||||
Capital Expenditures ( | ||||||||||||
Sustaining | 2,794 | 2,943 | 6,171 | 5,753 | ||||||||
Sustaining leases | 974 | 957 | 1,880 | 1,813 | ||||||||
Brownfields | 333 | 336 | 691 | 540 | ||||||||
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 second quarter, the Caylloma Mine produced 306,398 ounces of silver, which was in line with the second quarter of 2023, at an average head grade of 83 g/t Ag.
Lead and zinc production for the quarter were 10.5 million pounds of lead, and 13.0 million pounds of zinc. Lead production increased
The cash cost per silver equivalent ounce for the three months ended June 30, 2024 was
The all-in sustaining cash cost per ounce of payable silver equivalent for the three months ended June 30, 2024, was
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. The Company has calculated these measures consistently for all periods presented.
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 six months ended June 30, 2024 (“Q2 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 Q2 2024 MD&A may be accessed on SEDAR+ at www.sedarplus.ca under the Company’s profile.
Except as otherwise described in the Q2 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 June 30, 2024
(Expressed in millions except Total net debt to Adjusted EBITDA ratio) | As at June 30, 2024 | |||
Convertible senior note | $ | 172.5 | ||
Convertible debenture | 45.7 | |||
Debt | 218.2 | |||
Less: Cash and Cash Equivalents | (105.6 | ) | ||
Less: Restricted cash | (46.1 | ) | ||
Total net debt1 | $ | 66.5 | ||
Adjusted EBITDA (last four quarters) | $ | 432.8 | ||
Total net debt to adjusted EBITDA ratio | 0.2:1 | |||
1 Excluding letters of credit |
Reconciliation of net income to adjusted attributable net income for the three and six months ended June 30, 2024 and 2023
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Expressed in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income attributable to shareholders | 40.6 | 3.2 | 66.9 | 14.0 | ||||||||||||
Adjustments, net of tax: | ||||||||||||||||
Community support provision and accruals1 | (0.1 | ) | - | (0.3 | ) | (0.1 | ) | |||||||||
Unrealized loss (gain) on derivatives | - | (1.3 | ) | - | (0.3 | ) | ||||||||||
Income tax, convertible debentures | (12.0 | ) | - | (12.0 | ) | - | ||||||||||
Inventory adjustment | 1.9 | 0.7 | 1.9 | 0.7 | ||||||||||||
Accretion on right of use assets | 0.9 | 0.5 | 1.8 | 1.1 | ||||||||||||
Other non-cash/non-recurring items | (0.9 | ) | (0.6 | ) | (1.2 | ) | (0.7 | ) | ||||||||
Adjusted attributable net income | 30.4 | 2.5 | 57.1 | 14.7 | ||||||||||||
1 Amounts are recorded in Cost of sales |
Reconciliation of net income to adjusted EBITDA for the three and six months ended June 30, 2024 and 2023
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Consolidated (in millions of US dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net income | 43.3 | 3.5 | 72.4 | 15.3 | |||||||||||
Adjustments: | |||||||||||||||
Community support provision and accruals | (0.1 | ) | - | (0.4 | ) | (0.1 | ) | ||||||||
Inventory adjustment | 2.6 | 1.0 | 2.6 | 0.9 | |||||||||||
Foreign exchange loss, Séguéla Mine | - | (0.2 | ) | - | (0.1 | ) | |||||||||
Net finance items | 6.9 | 3.5 | 13.1 | 6.1 | |||||||||||
Depreciation, depletion, and amortization | 57.2 | 39.8 | 107.5 | 84.2 | |||||||||||
Income taxes | 7.7 | 1.0 | 22.2 | 9.0 | |||||||||||
Other non-cash/non-recurring items | (4.9 | ) | (4.2 | ) | (9.6 | ) | (5.8 | ) | |||||||
Adjusted EBITDA | 112.7 | 44.4 | 207.8 | 109.5 | |||||||||||
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 six months ended June 30, 2024 and 2023
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(Expressed in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net cash provided by operating activities | 73.5 | 44.2 | 122.5 | 85.4 | |||||||||||
Séguéla, working capital | - | 4.4 | - | 4.4 | |||||||||||
Additions to mineral properties, plant and equipment | (32.8 | ) | (36.2 | ) | (65.2 | ) | (66.5 | ) | |||||||
Gain on blue chip swap investments | 2.5 | - | 5.1 | - | |||||||||||
Right of use payments | (5.6 | ) | (2.9 | ) | (10.6 | ) | (5.8 | ) | |||||||
Other adjustments | 1.0 | - | (1.1 | ) | 0.1 | ||||||||||
Free cash flow from ongoing operations | 38.6 | 9.5 | 50.7 | 17.6 | |||||||||||
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 six months ended June 30, 2024 and 2023
Cash Cost Per Gold Equivalent Ounce Sold - Q2 2024 | Lindero | Yaramoko | Séguéla | San Jose | Caylloma | GEO Cash Costs | ||||||||||||
Cost of sales | 36,010 | 50,839 | 51,430 | 25,524 | 16,239 | 180,044 | ||||||||||||
Inventory adjustment | (228 | ) | (2,852 | ) | — | 443 | — | (2,637 | ) | |||||||||
Depletion, depreciation, and amortization | (11,580 | ) | (13,784 | ) | (27,130 | ) | (573 | ) | (3,358 | ) | (56,425 | ) | ||||||
Royalties and taxes | (116 | ) | (6,009 | ) | (5,629 | ) | (867 | ) | (229 | ) | (12,850 | ) | ||||||
By-product credits | (704 | ) | — | — | — | — | (704 | ) | ||||||||||
Other | — | — | — | 6 | (350 | ) | (344 | ) | ||||||||||
Treatment and refining charges | — | — | — | 743 | 2,287 | 3,030 | ||||||||||||
Cash cost applicable per gold equivalent ounce sold | 23,382 | 28,194 | 18,671 | 25,276 | 14,589 | 110,112 | ||||||||||||
Ounces of gold equivalent sold | 21,409 | 31,455 | 33,102 | 12,670 | 12,858 | 111,495 | ||||||||||||
Cash cost per ounce of gold equivalent sold ($/oz) | 1,092 | 896 | 564 | 1,995 | 1,135 | 988 | ||||||||||||
Gold equivalent was calculated using the realized prices for gold of | ||||||||||||||||||
Figures may not add due to rounding |
Cash Cost Per Gold Equivalent Ounce Sold - Q2 2023 | Lindero | Yaramoko | Séguéla | San Jose | Caylloma | GEO Cash Costs | ||||||||||||
Cost of sales | 40,280 | 38,353 | — | 29,366 | 18,543 | 126,542 | ||||||||||||
Inventory adjustment | — | (827 | ) | — | — | — | (827 | ) | ||||||||||
Depletion, depreciation, and amortization | (11,873 | ) | (15,788 | ) | — | (8,532 | ) | (3,405 | ) | (39,598 | ) | |||||||
Royalties and taxes | (3,850 | ) | (3,086 | ) | — | (1,040 | ) | (519 | ) | (8,495 | ) | |||||||
By-product credits | (2,486 | ) | — | — | — | — | (2,486 | ) | ||||||||||
Other | — | — | — | 267 | (483 | ) | (216 | ) | ||||||||||
Treatment and refining charges | — | — | — | 1,113 | 5,257 | 6,370 | ||||||||||||
Cash cost applicable per gold equivalent ounce sold | 22,071 | 18,652 | — | 21,174 | 19,393 | 81,290 | ||||||||||||
Ounces of gold equivalent sold | 25,130 | 25,946 | — | 16,382 | 16,536 | 83,994 | ||||||||||||
Cash cost per ounce of gold equivalent sold ($/oz) | 878 | 719 | — | 1,293 | 1,173 | 968 | ||||||||||||
Gold equivalent was calculated using the realized prices for gold of | ||||||||||||||||||
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 | 70,059 | 85,790 | 96,640 | 49,248 | 33,344 | 335,083 | ||||||||||||
Inventory adjustment | (228 | ) | (2,852 | ) | — | 455 | — | (2,625 | ) | |||||||||
Depletion, depreciation, and amortization | (23,160 | ) | (23,999 | ) | (51,046 | ) | (964 | ) | (7,182 | ) | (106,351 | ) | ||||||
Royalties and taxes | (369 | ) | (10,302 | ) | (11,101 | ) | (1,571 | ) | (583 | ) | (23,926 | ) | ||||||
By-product credits | (1,127 | ) | — | — | — | — | (1,127 | ) | ||||||||||
Other | — | — | — | — | (681 | ) | (681 | ) | ||||||||||
Treatment and refining charges | — | — | — | 1,717 | 3,518 | 5,235 | ||||||||||||
Cash cost applicable per gold equivalent ounce sold | 45,175 | 48,637 | 34,493 | 48,885 | 28,416 | 205,606 | ||||||||||||
Ounces of gold equivalent sold | 43,037 | 58,627 | 67,552 | 24,719 | 26,156 | 220,091 | ||||||||||||
Cash cost per ounce of gold equivalent sold ($/oz) | 1,050 | 830 | 511 | 1,978 | 1,086 | 934 | ||||||||||||
Gold equivalent was calculated using the realized prices for gold of | ||||||||||||||||||
Figures may not add due to rounding |
Cash Cost Per Gold Equivalent Ounce Sold - Year to Date 2023 | Lindero | Yaramoko | Séguéla | San Jose | Caylloma | GEO Cash Costs | ||||||||||||
Cost of sales | 82,005 | 83,216 | — | 61,889 | 34,651 | 261,761 | ||||||||||||
Inventory adjustment | 15 | (827 | ) | — | — | — | (812 | ) | ||||||||||
Depletion, depreciation, and amortization | (25,065 | ) | (33,156 | ) | — | (18,444 | ) | (6,888 | ) | (83,553 | ) | |||||||
Royalties and taxes | (7,776 | ) | (6,448 | ) | — | (2,297 | ) | (685 | ) | (17,206 | ) | |||||||
By-product credits | (3,284 | ) | — | — | — | — | (3,284 | ) | ||||||||||
Other | — | — | — | 250 | (955 | ) | (705 | ) | ||||||||||
Treatment and refining charges | — | — | — | 1,837 | 10,762 | 12,599 | ||||||||||||
Cash cost applicable per gold equivalent ounce sold | 45,895 | 42,785 | — | 43,235 | 36,885 | 168,800 | ||||||||||||
Ounces of gold equivalent sold | 51,893 | 55,418 | — | 39,511 | 32,712 | 179,535 | ||||||||||||
Cash cost per ounce of gold equivalent sold ($/oz) | 884 | 772 | — | 1,094 | 1,128 | 940 | ||||||||||||
Gold equivalent was calculated using the realized prices for gold of | ||||||||||||||||||
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 six months ended June 30, 2024 and 2023
AISC Per Gold Equivalent Ounce Sold - Q2 2024 | Lindero | Yaramoko | Séguéla | San Jose | Caylloma | Corporate | GEO AISC | ||||||||
Cash cost applicable per gold equivalent ounce sold | 23,382 | 28,194 | 18,671 | 25,276 | 14,589 | — | 110,112 | ||||||||
Inventory net realizable value adjustment | — | 1,777 | — | — | — | — | 1,777 | ||||||||
Royalties and taxes | 116 | 6,009 | 5,629 | 867 | 229 | — | 12,850 | ||||||||
Worker's participation | — | — | — | — | 472 | — | 472 | ||||||||
General and administration | 3,281 | 182 | 2,603 | 1,590 | 1,406 | 12,338 | 21,400 | ||||||||
Stand-by | — | — | — | — | — | — | — | ||||||||
Total cash costs | 26,779 | 36,162 | 26,903 | 27,733 | 16,696 | 12,338 | 146,611 | ||||||||
Sustaining capital1 | 16,738 | 7,525 | 9,406 | 216 | 4,101 | — | 37,986 | ||||||||
All-in sustaining costs | 43,517 | 43,687 | 36,309 | 27,949 | 20,797 | 12,338 | 184,597 | ||||||||
Gold equivalent ounces sold | 21,409 | 31,455 | 33,102 | 12,670 | 12,858 | — | 111,495 | ||||||||
All-in sustaining costs per ounce | 2,033 | 1,389 | 1,097 | 2,206 | 1,617 | — | 1,656 | ||||||||
Gold equivalent was calculated using the realized prices for gold of | |||||||||||||||
Figures may not add due to rounding | |||||||||||||||
1 Presented on a cash basis |
AISC Per Gold Equivalent Ounce Sold - Q2 2023 | Lindero | Yaramoko | Séguéla | San Jose | Caylloma | Corporate | GEO AISC | |||||||||
Cash cost applicable per gold equivalent ounce sold | 22,071 | 18,652 | — | 21,174 | 19,393 | — | 81,290 | |||||||||
Inventory net realizable value adjustment | — | 334 | — | — | — | — | 334 | |||||||||
Royalties and taxes | 3,850 | 3,086 | — | 1,040 | 519 | — | 8,495 | |||||||||
Worker's participation | — | — | — | (333 | ) | 501 | — | 168 | ||||||||
General and administration | 2,507 | 609 | — | 1,722 | 1,290 | 8,312 | 14,440 | |||||||||
Stand-by | — | 2,999 | — | 4,084 | — | — | 7,083 | |||||||||
Total cash costs | 28,428 | 25,680 | — | 27,687 | 21,703 | 8,312 | 111,810 | |||||||||
Sustaining capital1 | 13,936 | 16,498 | — | 4,595 | 4,236 | — | 39,265 | |||||||||
All-in sustaining costs | 42,364 | 42,178 | — | 32,282 | 25,939 | 8,312 | 151,075 | |||||||||
Gold equivalent ounces sold | 25,130 | 25,946 | — | 16,382 | 16,536 | — | 83,994 | |||||||||
All-in sustaining costs per ounce | 1,686 | 1,626 | — | 1,971 | 1,569 | — | 1,799 | |||||||||
Gold equivalent was calculated using the realized prices for gold of | ||||||||||||||||
Figures may not add due to rounding | ||||||||||||||||
1 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 | 45,175 | 48,637 | 34,493 | 48,885 | 28,416 | — | 205,606 | ||||||||
Inventory net realizable value adjustment | — | 1,777 | — | — | — | — | 1,777 | ||||||||
Royalties and taxes | 369 | 10,302 | 11,101 | 1,571 | 583 | — | 23,926 | ||||||||
Worker's participation | — | — | — | — | 889 | — | 889 | ||||||||
General and administration | 6,160 | 732 | 3,771 | 3,048 | 2,625 | 22,987 | 39,323 | ||||||||
Stand-by | — | — | — | — | — | — | — | ||||||||
Total cash costs | 51,704 | 61,448 | 49,365 | 53,504 | 32,513 | 22,987 | 271,521 | ||||||||
Sustaining capital1 | 27,143 | 19,558 | 19,593 | 477 | 8,742 | — | 75,513 | ||||||||
All-in sustaining costs | 78,847 | 81,006 | 68,958 | 53,981 | 41,255 | 22,987 | 347,034 | ||||||||
Gold equivalent ounces sold | 43,037 | 58,627 | 67,552 | 24,719 | 26,156 | — | 220,091 | ||||||||
All-in sustaining costs per ounce | 1,832 | 1,382 | 1,021 | 2,184 | 1,577 | — | 1,577 | ||||||||
Gold equivalent was calculated using the realized prices for gold of | |||||||||||||||
Figures may not add due to rounding | |||||||||||||||
1 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 | 45,895 | 42,785 | — | 43,235 | 36,885 | — | 168,800 | |||||||||
Inventory net realizable value adjustment | — | 334 | — | — | — | — | 334 | |||||||||
Royalties and taxes | 7,776 | 6,448 | — | 2,297 | 685 | — | 17,206 | |||||||||
Worker's participation | — | — | — | (312 | ) | 1,018 | — | 706 | ||||||||
General and administration | 4,499 | 1,498 | — | 3,524 | 2,434 | 17,081 | 29,036 | |||||||||
Stand-by | — | 2,999 | — | 4,084 | — | — | 7,083 | |||||||||
Total cash costs | 58,170 | 54,064 | — | 52,828 | 41,022 | 17,081 | 223,165 | |||||||||
Sustaining capital1 | 22,279 | 32,597 | — | 9,617 | 8,106 | — | 72,599 | |||||||||
All-in sustaining costs | 80,449 | 86,661 | — | 62,445 | 49,128 | 17,081 | 295,764 | |||||||||
Gold equivalent ounces sold | 51,893 | 55,418 | — | 39,511 | 32,712 | — | 179,535 | |||||||||
All-in sustaining costs per ounce | 1,550 | 1,564 | — | 1,580 | 1,502 | — | 1,648 | |||||||||
Gold equivalent was calculated using the realized prices for gold of | ||||||||||||||||
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 six months ended June 30, 2024 and 2023
Cash Cost Per Silver Equivalent Ounce Sold - Q2 2024 | San Jose | Caylloma | SEO Cash Costs | ||||||
Cost of sales | 25,524 | 16,239 | 41,763 | ||||||
Inventory adjustment | 443 | — | 443 | ||||||
Depletion, depreciation, and amortization | (573 | ) | (3,358 | ) | (3,931 | ) | |||
Royalties and taxes | (867 | ) | (229 | ) | (1,096 | ) | |||
Other | 6 | (350 | ) | (344 | ) | ||||
Treatment and refining charges | 743 | 2,287 | 3,030 | ||||||
Cash cost applicable per silver equivalent sold | 25,276 | 14,589 | 39,865 | ||||||
Ounces of silver equivalent sold1 | 1,014,526 | 1,046,393 | 2,060,919 | ||||||
Cash cost per ounce of silver equivalent sold ($/oz) | 24.91 | 13.94 | 19.34 | ||||||
1 Silver equivalent sold for Q2 2024 for San Jose is calculated using a silver to gold ratio of 79.9:1. Silver equivalent sold for Q2 2024 for Caylloma is calculated using a silver to gold ratio of 82.4:1, silver to lead ratio of 1:29.2 pounds, and silver to zinc ratio of 1:22.2 pounds. | |||||||||
2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices | |||||||||
Figures may not add due to rounding |
Cash Cost Per Silver Equivalent Ounce Sold - Q2 2023 | San Jose | Caylloma | SEO Cash Costs | ||||||
Cost of sales | 29,366 | 18,543 | 47,909 | ||||||
Inventory adjustment | — | — | — | ||||||
Depletion, depreciation, and amortization | (8,532 | ) | (3,405 | ) | (11,937 | ) | |||
Royalties and taxes | (1,040 | ) | (519 | ) | (1,559 | ) | |||
Other | 267 | (483 | ) | (216 | ) | ||||
Treatment and refining charges | 1,113 | 5,257 | 6,370 | ||||||
Cash cost applicable per silver equivalent sold | 21,174 | 19,393 | 40,567 | ||||||
Ounces of silver equivalent sold1 | 1,341,320 | 1,352,522 | 2,693,842 | ||||||
Cash cost per ounce of silver equivalent sold ($/oz) | 15.79 | 14.35 | 15.06 | ||||||
1 Silver equivalent sold for San Jose for Q2 2023 is 81.9:1.Silver equivalent sold for Caylloma for Q2 2023 is calculated using a silver to gold ratio of 0.0:1, silver to lead ratio of 1:28.2 pounds, and silver to zinc ratio 1:19.6. | |||||||||
2 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 | 49,248 | 33,344 | 82,592 | ||||||
Inventory adjustment | 455 | — | 455 | ||||||
Depletion, depreciation, and amortization | (964 | ) | (7,182 | ) | (8,146 | ) | |||
Royalties and taxes | (1,571 | ) | (583 | ) | (2,154 | ) | |||
Other | — | (681 | ) | (681 | ) | ||||
Treatment and refining charges | 1,717 | 3,518 | 5,235 | ||||||
Cash cost applicable per silver equivalent sold | 48,885 | 28,416 | 77,301 | ||||||
Ounces of silver equivalent sold1 | 2,094,621 | 2,244,876 | 4,339,497 | ||||||
Cash cost per ounce of silver equivalent sold ($/oz) | 23.34 | 12.66 | 17.81 | ||||||
1 Silver equivalent sold for Year to Date 2024 for San Jose is calculated using a silver to gold ratio of 84.5:1. Silver equivalent sold for Year to Date 2024 for Caylloma is calculated using a silver to gold ratio of 84.8:1, silver to lead ratio of 1:26.7 pounds, and silver to zinc ratio of 1:21.4 pounds. | |||||||||
2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices | |||||||||
Figures may not add due to rounding |
Cash Cost Per Silver Equivalent Ounce Sold - Year to Date 2023 | San Jose | Caylloma | SEO Cash Costs | ||||||
Cost of sales | 61,889 | 34,651 | 96,540 | ||||||
Inventory adjustment | — | — | — | ||||||
Depletion, depreciation, and amortization | (18,444 | ) | (6,888 | ) | (25,332 | ) | |||
Royalties and taxes | (2,297 | ) | (685 | ) | (2,982 | ) | |||
Other | 250 | (955 | ) | (705 | ) | ||||
Treatment and refining charges | 1,837 | 10,762 | 12,599 | ||||||
Cash cost applicable per silver equivalent sold | 43,235 | 36,885 | 80,120 | ||||||
Ounces of silver equivalent sold1 | 3,284,402 | 2,711,988 | 5,996,390 | ||||||
Cash cost per ounce of silver equivalent sold ($/oz) | 13.16 | 13.60 | 13.36 | ||||||
1 Silver equivalent sold for Year to Date 2023 for San Jose is calculated using a silver to gold ratio of 83.1:1. Silver equivalent sold for Year to Date 2023 for Caylloma is calculated using a silver to gold ratio of 81.3:1, silver to lead ratio of 1:23.6 pounds, and silver to zinc ratio of 1:17.4 pounds. | |||||||||
2 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 six months ended June 30, 2024 and 2023
AISC Per Silver Equivalent Ounce Sold - Q2 2024 | San Jose | Caylloma | SEO AISC | |||
Cash cost applicable per silver equivalent ounce sold | 25,276 | 14,589 | 39,865 | |||
Royalties and taxes | 867 | 229 | 1,096 | |||
Worker's participation | — | 472 | 472 | |||
General and administration | 1,590 | 1,406 | 2,996 | |||
Stand-by | — | — | — | |||
Total cash costs | 27,733 | 16,696 | 44,429 | |||
Sustaining capital3 | 216 | 4,101 | 4,317 | |||
All-in sustaining costs | 27,949 | 20,797 | 48,746 | |||
Silver equivalent ounces sold1 | 1,014,526 | 1,046,393 | 2,060,919 | |||
All-in sustaining costs per ounce2 | 27.55 | 19.87 | 23.65 | |||
1 Silver equivalent sold for Q2 2024 for San Jose is calculated using a silver to gold ratio of 79.9:1. Silver equivalent sold for Q2 2024 for Caylloma is calculated using a silver to gold ratio of 82.4:1, silver to lead ratio of 1:29.2 pounds, and silver to zinc ratio of 1:22.2 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 - Q2 2023 | San Jose | Caylloma | SEO AISC | ||||
Cash cost applicable per silver equivalent ounce sold | 21,174 | 19,393 | 40,567 | ||||
Royalties and taxes | 1,040 | 519 | 1,559 | ||||
Worker's participation | (333 | ) | 501 | 168 | |||
General and administration | 1,722 | 1,290 | 3,012 | ||||
Stand-by | 4,084 | — | 4,084 | ||||
Total cash costs | 27,687 | 21,703 | 49,390 | ||||
Sustaining capital3 | 4,595 | 4,236 | 8,831 | ||||
All-in sustaining costs | 32,282 | 25,939 | 58,221 | ||||
Silver equivalent ounces sold1 | 1,341,320 | 1,352,522 | 2,693,842 | ||||
All-in sustaining costs per ounce2 | 24.07 | 19.18 | 21.61 | ||||
1 Silver equivalent sold for San Jose for Q2 2023 is 81.9:1.Silver equivalent sold for Caylloma for Q2 2023 is calculated using a silver to gold ratio of 0.0:1, silver to lead ratio of 1:28.2 pounds, and silver to zinc ratio 1:19.6. | |||||||
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 2024 | San Jose | Caylloma | SEO AISC | |||
Cash cost applicable per silver equivalent ounce sold | 48,885 | 28,416 | 77,301 | |||
Royalties and taxes | 1,571 | 583 | 2,154 | |||
Worker's participation | — | 889 | 889 | |||
General and administration | 3,048 | 2,625 | 5,673 | |||
Stand-by | — | — | — | |||
Total cash costs | 53,504 | 32,513 | 86,017 | |||
Sustaining capital3 | 477 | 8,742 | 9,219 | |||
All-in sustaining costs | 53,981 | 41,255 | 95,236 | |||
Silver equivalent ounces sold1 | 2,094,621 | 2,244,876 | 4,339,497 | |||
All-in sustaining costs per ounce2 | 25.77 | 18.38 | 21.95 | |||
1 Silver equivalent sold for Year to Date 2024 for San Jose is calculated using a silver to gold ratio of 84.5:1. Silver equivalent sold for Year to Date 2024 for Caylloma is calculated using a silver to gold ratio of 84.8:1, silver to lead ratio of 1:26.7 pounds, and silver to zinc ratio of 1:21.4 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 | 43,235 | 36,885 | 80,120 | ||||
Royalties and taxes | 2,297 | 685 | 2,982 | ||||
Worker's participation | (312 | ) | 1,018 | 706 | |||
General and administration | 3,524 | 2,434 | 5,958 | ||||
Stand-by | 4,084 | — | 4,084 | ||||
Total cash costs | 52,828 | 41,022 | 93,850 | ||||
Sustaining capital3 | 9,617 | 8,106 | 17,723 | ||||
All-in sustaining costs | 62,445 | 49,128 | 111,573 | ||||
Silver equivalent ounces sold1 | 3,284,402 | 2,711,988 | 5,996,390 | ||||
All-in sustaining costs per ounce2 | 19.01 | 18.12 | 18.61 | ||||
1 Silver equivalent sold for Year to Date 2023 for San Jose is calculated using a silver to gold ratio of 83.1:1. Silver equivalent sold for Year to Date 2023 for Caylloma is calculated using a silver to gold ratio of 81.3:1, silver to lead ratio of 1:23.6 pounds, and silver to zinc ratio of 1:17.4 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 six months ended June 30, 2024 and 2023 and accompanying Q2 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, August 8, 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/1696/50903 or over the phone by dialing in just prior to the starting time.
Conference call details:
Date: Thursday, August 8, 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: 793245
Replay number (Toll Free): +1.877.481.4010
Replay number (International): +1.919.882.2331
Replay passcode: 50903
Playback of the earnings call will be available until Thursday, August 22, 2024. Playback of the webcast will be available until Friday, August 8, 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. 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 and proposed timing for the delivery of a first resource for the Kingfisher prospect; 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 for the completion of the leach pad expansion project at the Lindero Mine; statements regarding the anticipated closure of the San Jose Mine and statements relating to exploration at the Yessi Vein; the Company’s plans regarding the mill at the Séguéla Mine; the Company’s expectations for its performance in the second half of 2024; the Company’s expectations regarding the power plant failures in Côte D’Ivoire and that Séguéla’s 2024 production guidance remains unchanged; 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; the possibility that the appeal in respect of the ruling in favor of Compania Minera Cuzcatlan S.A. de C.V. reinstating the environmental impact authorization at the San Jose Mine (the “EIA”) will be successful; 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 to differ from those 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 the appeal filed in the Mexican Collegiate Court challenging the reinstatement of the EIA will be unsuccessful; 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
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