Fortuna Mining Corp (FSM) (Q3 2026) Earnings Call Highlights: Strong Cash Generation and Growth ... GuruFocus News Thu, November 5, 2026 at 8:20 PM EST 7 min read FSM -1.05% GC=F -0.99% FSM -1.05% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Fortuna Mining Corp (NYSE:FSM) is on track to deliver approximately 60% growth in annual gold production to roughly 500,000 ounces per year starting mid-2028, driven by the Seguela plant expansion and the Diamba Sud project.
The company maintains a strong balance sheet with $443 million in cash, close to $600 million in total liquidity, and a net cash position of $260 million, providing ample capacity to fund its $750 million growth program without issuing additional shares.
Fortuna Mining Corp (NYSE:FSM) generated $90.8 million in free cash flow from ongoing operations in Q3 2026 and $350 million year-to-date, demonstrating robust cash generation to support growth initiatives.
The Diamba Sud project is advancing with the government's notice of admissibility received, exploitation permit expected in Q4 2026, and $250 million in contract awards authorized, targeting first gold in mid-2028.
The acquisition of the Bambadji concession adds significant exploration upside, with six drill rigs mobilized and a maiden resource estimate for Cabi West expected by year-end, located just two kilometers from the Diamba Sud plant site.
Fortuna Mining Corp (NYSE:FSM) experienced a production shortfall at the Seguela mine in July and August due to a site-wide stoppage from a blockade by artisanal miners and reduced equipment availability, impacting quarterly results.
All-in sustaining costs (AISC) increased to $2,286 per gold equivalent ounce in Q3 2026, up from $2,157 in the previous quarter, and are expected to track 8% to 10% above the top end of guidance for the full year due to persistent diesel price pressures, high royalty costs, and macroeconomic impacts in Argentina.
Adjusted attributable net income decreased 47% quarter-over-quarter to $51.2 million, or $0.17 per share, reflecting lower sales volumes, higher costs, and increased share-based compensation.
The company recorded one lost time injury at the Seguela mine in July, highlighting ongoing safety challenges despite a total recordable injury frequency rate below the corporate target.
Fortuna Mining Corp (NYSE:FSM) has paused share buybacks and will be particularly cautious over the next two quarters to prioritize funding its capital-intensive growth projects and preserve balance sheet strength.
Warning! GuruFocus has detected 2 Warning Sign with FSM.
Is FSM fairly valued? Test your thesis with our free DCF calculator.
Q: Can you provide more color on the site-wide stoppage at Seguela caused by the blockade by artisanal miners? What triggered it, and what has changed to reduce this risk in the future? A: CEO Jorge Alberto Ganoza explained that on July 10th, a national police task force combating illegal mining carried out an operation in a nearby village, which unfortunately resulted in a fatal shooting. This triggered protests by artisanal miners who mobilized to the site, vandalized the entrance, and blockaded access for about 24 hours. Management delayed personnel rotations and partially demobilized the workforce to ensure a safe restart and maintain long-term relations with the artisanal mining community. Operations were fully down for about six days.
Q: With the capital-intensive growth phase ahead, what are your internal thresholds or thinking regarding share buybacks? A: CEO Jorge Alberto Ganoza stated that because Fortuna is entering a phase where it will deploy close to $750 million on growth projects and exploration over the next two years, the company will be cautious with share buybacks. The priority is to fund growth organically while preserving balance sheet strength. He noted that Fortuna will be "particularly cautious" with buybacks over the next two quarters at the very least, but will remain opportunistic based on gold prices and business performance.
Q: Can you provide an update on the exploration timeline for the Diamba Sud project and the newly acquired Bambadji property? A: CEO Jorge Alberto Ganoza reported that six drill rigs (five core, one RC) have been mobilized to Bambadji. Drilling at the high-priority Cawi West target is essentially complete, with a maiden resource estimate targeted for year-end. The rigs have now moved to the Wadi and Latifa targets. For Diamba Sud, drilling at the Sunbird deposit has been paused as mineralization remains open at depths over 900 meters; further drilling will resume from underground infrastructure in 2027. Rigs are now testing other targets and exploring for underground resources below existing pits.
Q: How do you envision integrating deposits from the Bambadji acquisition into the Diamba Sud project, particularly regarding permitting? A: CEO Jorge Alberto Ganoza explained that Fortuna views Bambadji and Diamba Sud as one integrated operation, especially since the Cawi West deposit is only two kilometers from the planned Diamba Sud plant site. The company has already engaged with the Minister of Mines, who acknowledges that Bambadji ore will be processed at the Diamba Sud plant. Fortuna is working with authorities to align the permitting and mining convention to make the combined operation feasible and sensible.
Q: What is the status of the Diamba Sud project's permitting and construction preparation? A: CEO Jorge Alberto Ganoza announced that the government issued the notice of admissibility on November 2nd, confirming all documentation for the exploitation permit met legal requirements. Fortuna expects to obtain the permit in Q4 2026. Mining Convention negotiations are in final stages. The Board has authorized management to proceed with contract awards totaling $250 million (about 60% of total project CapEx) to protect the project schedule, which targets first gold in mid-2028.
Q: Can you discuss the operational issues at Seguela in Q3 and the outlook for Q4? A: COO David Whittle confirmed that Q3 operations at Seguela were affected by the artisanal miner blockade and reduced equipment availability from a mining contractor. These issues reduced mining volumes and access to higher-grade areas. Fortuna implemented initiatives, and mining volumes returned to planned levels in September. With mining volumes, access to higher-grade ore, and recoveries restored, Seguela expects a strong Q4 finish and remains on track to achieve the lower end of its 2026 production guidance.
Q: What were the key drivers of the quarter-over-quarter increase in All-in Sustaining Costs (AISC)? A: CFO Cesar Velasco explained that consolidated AISC increased to $2,286 per gold equivalent ounce from $2,157 in Q2. The increase primarily reflected lower production at Seguela and higher share-based compensation of $10.9 million (a $160 per GEO impact). Relative to guidance assumptions, external factors added $220 per GEO to Q3 AISC, including $116 from share-based compensation, $42 from higher consumable prices (mainly diesel), and $45 from macroeconomic factors in Argentina.
Q: What is the status of the Seguela plant expansion project? A: CEO Jorge Alberto Ganoza stated that the final investment decision for the $109 million Seguela plant expansion was made in July. The project will increase processing capacity by 30%, with completion and commissioning scheduled for Q3 2028. The expansion targets an annual production capacity of over 200,000 ounces of gold at the mine. Detailed engineering is underway with Lycopodium, and the owners' project team is 75% onboarded.
Q: Can you provide an update on the Lindero mine's performance and exploration results? A: COO Cesar Velasco reported that Lindero produced 26,000 ounces of gold in Q3, a 25% increase over Q2, and remains on track to meet annual guidance of 92,000 to 102,000 ounces. The 2026 infill drilling program was expanded from 6,000 to 8,500 meters after early holes encountered higher-than-expected mineralization. An updated block model and pit design are targeted for year-end, supporting a revised life-of-mine plan and updated mineral resource and reserve estimates planned for Q1 2027.
Q: What is the status of the Cayoma mine in Peru? A: COO Cesar Velasco reported that Cayoma had strong production, with silver output rising 7% quarter-over-quarter to 247,400 ounces. Gold equivalent production increased to 9,900 ounces, bringing year-to-date output to 28,900 GEOs. The mine is well positioned to exceed its annual guidance of 29,000 to 33,000 GEOs. Cash costs declined 6% quarter-over-quarter to $26.12 per silver equivalent ounce. The tailings number three expansion was 71% complete as of October 31st and remains on schedule for completion by year-end.
Q: What is the status of the Seguela underground project? A: COO David Whittle reported that Fortuna received the environmental permit for the
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
